The role of performance measurement in assessing the contribution of circular economy to the sustainability of a wine value chain

Abstract

PurposeThis study aims to ascertain the extent to which a cooperative controlling a wine supply chain implements a performance measurement system (PMS) that monitors the effects of a circular economy (CE) strategy, developed through partnerships, on the economic and environmental sustainability of the value chain.Design/methodology/approachThe study analyzes the characteristics of the closed-loop business model and uses the PMS to assess the contribution of CE partnerships to the sustainability of the value chain. The case study is based on interviews conducted on the cooperative's top management and supplemented with an analysis of external reports, related documents and direct observations.FindingsThe PMS was underpinned by enterprise resource planning (ERP), through which CE indicators control for the benefits generated on behalf of the cooperative and its CE partners.Originality/valueGiven the paucity of the studies that address the performance measurement of CE at the supply chain level and its relation to sustainability, this study sheds light on the role that PMS can play in tracking the contribution of CE partnerships to the sustainability of a wine value chain operating in agro-waste valorization. Furthermore, the performance measurement of the CE strategy contributes to an assessment of the responsible production of sustainable development goals at the supply chain level.