Sustainability Performance Measurement Research Articles

A hybrid sustainability performance measurement approach for fresh food cold supply chains

Fresh food cold supply chains (CSCs) feature high fresh food quality and safety, high energy consumption, and poor economic and environmental sustainability. Sustainable management of fresh food CSCs is critical. However, limited research has addressed the implementation of systematic good practices in sustainable fresh food CSCs in developing countries. Consequently, decision-makers lack empirical evidence to help them understand how companies successfully implement systematic good practices and how those good practices affect sustainability performance. This paper formulates a hybrid analytic hierarchy process-fuzzy technique for order preference by similarity to ideal solution (AHP-Fuzzy TOPSIS) decision framework to systematically explore the impact of good practices on the sustainability performance of fresh food CSCs in the context of a developing country such as China. The results of the integrated methodology show that China's CSC industry pays more attention to economic sustainability and that employee training is the most impactful good practice for improving the sustainability performance of fresh food CSCs.

Metrics for measuring industrial sustainability performance in small and medium-sized enterprises

PurposeThis paper aims to identify and empirically analyze useful and applicable metrics for measuring and managing the sustainability performance of small and medium-sized enterprises (SMEs).Design/methodology/approachTo achieve the objective of the paper, potential metrics were adopted from previous research related to industrial sustainability and an empirical analysis was carried to assess the applicability of the metrics by collecting empirical data from Italian footwear SMEs using a structured questionnaire. The SMEs were selected using a convenience sampling method.FindingsThe results of the within-case analysis and the cross-case analysis indicate that the majority of the metrics were found to be useful and applicable to each of the SMEs and across the SMEs, respectively. These metrics emphasized measuring industrial sustainability performance related to financial benefits, costs and market competitiveness for the economic sustainability dimension; resources for the environmental sustainability dimension; and customers, employees and the community for the social sustainability dimension.Research limitations/implicationsApart from the within-case analysis and cross-case analysis, it was not possible to conduct statistical analysis since a small number of SMEs were accessible to collect empirical data.Originality/valueThe findings of the paper have considerable academic, managerial and policy implications and will provide a theoretical basis for future research on measuring and managing industrial sustainability performance. By providing a set of empirically supported metrics based on the triple bottom line approach (i.e. economic, environmental and social metrics), this paper contributes to the existing knowledge in the field of industrial sustainability performance measurement.

Modeling and usage of a sustainametric technique for measuring the life-cycle performance of a waste management system: A case study of South Africa

The use of eco-friendly materials, waste prevention protocols, the support and participation of building construction stakeholders, polluter pays concepts, producer responsibility, life-cycle system thinking, and the application of cost-efficiency and cost minimization strategies are some of the guiding philosophies that are of extreme value when designing a waste management system via circular economy initiatives. However, it is crucial to measure the waste management strategy used in each building project. In order to measure the life-cycle performance of waste management systems and to assess how sustainable they are, this study offers a statistical methodology using a sustainametric technique to indicate how sustainable waste management system performance in emerging construction industries, particularly in South Africa. This study employs a sustainametric approach to evaluate the life-cycle performance of the waste management system of South Africa, with evidence of its sustainability performance measurement that can help advance the its waste minimization policy and implementation. The result indicates the viability of the measuring model and the findings of each metric utilized. The conclusion confirms that South Africa has not fully adopted and/or implemented a more sustainable waste management system for efficient waste minimization during its construction activities. Moreover, it is the reality that most emerging economies urgently need to expand and improve the waste reduction method employed in its construction building projects.

Enterprise Sustainability Performance Measurement in Small and Medium Enterprises in Kenya: Construct Validation Using Confirmatory Factor Analysis

This study sought to validate existing sustainability performance measurement scales in the context of Small and Medium Enterprises (SMEs) in Kenya. The study was cross-sectional. Data were collected through a structured questionnaire from a sample of 221 SMEs drawn from a target population of 517 SMEs using a stratified random sampling strategy. The respondents were apex managers of the sampled SMEs. Valid responses were received from 134 respondents representing a 60.63 percent response rate. Descriptive statistics and confirmatory factor analyses were performed to achieve the study’s objective. From the analysis, four-factor loadings were extracted suggesting that the sustainability performance of SMEs in Kenya could be viewed from a quadruple bottom line perspective, that is, economic, internal processes, environmental and social perspectives. The study confirmed the reliability and validity of the measurement scales. The study, therefore, concluded that sustainability performance measurement in SMEs in Kenya could best be viewed from the integration of environmental, social, internal processes, and economic performance aspects. The study recommends empirical studies in Kenya to integrate the four dimensions in assessing SMEs’ performance

A model proposal for sustainable urban logistics performance measurement and implementation for the city of İzmir

A model proposal for sustainable urban logistics performance measurement and implementation for the city of İzmir

Evaluation of sustainability performance of the rail freight transportation: An index-based analysis

The freight transportation industry must adopt sustainable practices to tackle environmental and social challenges. The existing literature considers sustainable performance measurement of the overall freight transportation industry, which left a research gap in developing a sustainable performance assessment framework comprising sustainability indicators precisely modelled for rail freight transportation. This sets a motivation for the existing research to measure the triple bottom line performance of rail freight business. This study proposes an index-based sustainable performance assessment framework using the spherical fuzzy analytic hierarchy process (SF-AHP) and fuzzy logic-based approach. Thirty-six sustainability indicators are identified using literature analysis and experts’ opinions. These indicators are divided into six sustainability measures and three triple bottom line dimensions. The SF-AHP method is used to evaluate the relative importance of these sustainability indicators, and the fuzzy logic is used to compute the performance of each indicator based on inputs collected from experts in linguistic terms. The proposed research framework is applied to the Indian Railways (IR) for validation. The result of this study indicates a sustainability index of 16.1141 for IR, which is close to “fairly high sustainable” performance. Further, the indicators that hinder sustainable performance are identified by evaluating the fuzzy performance importance index. Government policymakers and IR officials can focus more on these highlighted indicators to further enhance IR’s sustainable rail freight transportation.

GIS-based Sustainability Assessment for Palm Oil Industry

The palm oil industry has its own issues, and one of them is related to sustainability issues. This paper aims to analyze and visualize the sustainability performance of the palm oil industry with Geographic Information System (GIS). The sustainability of the palm oil industry has three main dimensions, which are Economic, Social and Environmental. In this paper, 7 sustainability indicators were used in each of these dimensions. The results provide the sustainability performance measurement of the palm oil industry on several locations in Sumatra & Borneo islands, and have been visualized using the QGIS application.

Tailoring sustainability indicators to small and medium enterprises for measuring industrial sustainability performance

PurposeThe lack of suitable indicators tailored to manufacturing industries’ needs, particularly to small and medium enterprises (SMEs), has been the major challenge to measure and manage industrial sustainability performance. This paper aims to empirically analyze and select the useful and applicable indicators to measure sustainability performance in the context of SMEs.Design/methodology/approachA systematic review was carried out to identify potential sustainability indicators from the literature. A questionnaire was designed based on the identified indicators and then pretested with the selected industrial experts, scholars, and researchers to further refine the indicators before data collection from the Italian footwear SMEs. Fuzzy Delphi method with consistency aggregation method was applied to analyze and select the final indicators.FindingsThe study’s findings show that the selected indicators emphasized measuring progress toward achieving industrial sustainability goals in terms of increasing financial benefits, reducing costs, improving market competitiveness, improving the effectiveness of resources utilization, and promoting the well-being of employees, customers and the community. In doing so, Italian footwear SMEs can contribute to achieving the Sustainable Development Goals (SDGs) by promoting health and well-being, promoting sustainable economic growth, providing productive employment and decent work, and ensuring responsible consumption and production.Social implicationsThe results of this study have significant social implications in terms of promoting the well-being of employees, customers, and the community.Originality/valueBy providing empirically supported indicators tailored to measure and manage sustainability performance in the context of SMEs, this paper contributes to the existing knowledge in the field of industrial sustainability performance measurement. Furthermore, it links the selected indicators to their respective SDGs to provide policy implications.

Sustainability performance measurement in risk and uncertainty management: An analysis of base of the pyramid supply chain literature

AbstractRisk management in the base of the pyramid (BoP) environment is needed to ensure that firms performance objectives are met. Accordingly, integrating sustainability performance measurement in the supply chain risk management would offer interesting avenues for managing risks in BoP supply chain. Therefore, the paper conceptualizes an intersection between supply chain risk/uncertainty management and sustainable performance measurement. This intersection is then tested by a literature review of 164 BoP SC articles between the years 2000 and 2022. Descriptive, frequency, and correlation analysis identify various risks factors studied in the BoP literature so far, their management strategies and respective performance measures. The findings show a broad strategical aspect of managing SC risks and proffered the tactical or operational level performance measures which along with these practices can manage the related risks. Therefore, their incorporation into the risk management process should be considered. The correlation findings highlight the important role of performance process measures and the impact of these along with the management practices on firm's performance outcomes. The study contributes to supply chain risk and performance management literature by capturing the nexus between BoP and supply chain management.

Assessment of Social Accountability through SDGs of Corporate Sector during COVID-19 in India

The major focus in the field of sustainability assessment for the past few years is on analysing the sustainability practices of corporates on an annual basis. Less attention has been devoted to estimating the sustainability practices on an event basis. The current study was carried out to analyse the sustainability practices adopted by companies during the period of Coronavirus Disease 2019 (COVID-19). A sustainability performance measurement (SPM) framework was constructed using content analysis, to measure the performance of Sensex companies towards sustainability efforts. Sensex constitutes 30 well-established and financially sound companies listed in the Bombay Stock Exchange (BSE). The primary elements of the SPM framework were derived from Sustainable Development Goals, which are considered to be a blueprint for a sustainable future. The initiatives taken by companies during the period of ‘covidization’ were classified under different parameters of SPM and then quantified with the help of mathematical tools. The results signify that there lies a scope of 63.08% improvement in sustainability practices of overall industries. Further, there is a huge gap of 76.92% between the best-performing and least-performing companies. The performance of all the sectors studied for the sustainability practices was statistically at par with each other. However, the difference between the best-performing (fast-moving consumer goods—FMCG) and least performing (finance) sectors was found to be 42.74%. The result of analysis of variance (ANOVA) for performance across various sustainability parameters taken up by different sectors was significantly different from each other. A gap of 86.67% was uncovered in our analysis between the best-performing and least-performing sustainability parameters taken up by the companies under various sectors. Considering the fact that COVID-19 is a medical emergency, the performance of ‘good health and well-being’ as the best-performing sustainability parameter is justified. But at the same time, importance of other sustainability parameters cannot be ignored. It has also been observed that even in times of dire necessity, the prevailing undersized image of sustainability efforts of selected sample companies was not satisfactory. It is suggested that the corporate sector and the government should be more cautious in pursuing the objective of sustainability.

Sustainability and Industry 4.0: Definition of a Set of Key Performance Indicators for Manufacturing Companies

Today, sustainability represents a fundamental concept to be developed and implemented in any industrial context. Therefore, it is essential to be able to measure sustainability performance by proper indicators, along the entire lifecycle and the value chain, considering environmental, economic, and social impacts. Moreover, every manufacturing company should have a specific measuring framework to calculate all the specific parameters. In this direction, the modern digital transition and Industry 4.0 (I4.0) technologies are proposing to transform human–machine relations, with a significant impact on social and organizational aspects. At the same time, digitization can help companies to define and implement sustainability by correlating production with proper evaluation metrics. The aim of this research is to provide a complete overview of sustainability Key Performance Indicators (KPIs) based on the Triple Bottom Line concept, referring to the three sustainability areas. Such an overview can be used by companies to set their specific KPIs and metrics to measure their sustainability level, according to their needs.

A supply chain sourcing model at the interface of operations and sustainability

In this article, we develop a supply chain sourcing model that incorporates both sustainability and operational performance measures. The model selects suppliers and determines sustainability investments and order allocations among the selected suppliers. High sustainability performance, as well as cost efficiency, is achieved while a high operational performance level is maintained. We formulate the problem as a nonlinear bi-objective integer-programming model, discover the model’s special features, and propose an effective and computationally efficient algorithm to solve it. To quantify a supply chain’s sustainability performance, we adopt the Environmental, Social, and Governance index. Instead of searching for just one sourcing solution, we find the Pareto-optimal set of effective solutions. Numerical tests verify that our algorithm outperforms an existing sourcing algorithm in terms of computational efficiency. A simulation of Apple’s sourcing decisions demonstrates the effectiveness of the model in business practice. Our work also provides managerial insights on how sustainable operations alter traditional supply chain sourcing decisions. It helps practitioners make fast and effective sourcing and investment decisions to implement their sustainability strategies at the operational level.

Measuring sustainability performance of rice cultivation in Thailand using Sustainable Rice Platform indicators

ABSTRACT The sustainability level of current rice farming practices in Thailand was assessed based on in-field data from interviewing 2000 farmers covering six rice varieties and their different production systems. Data were collected on farmers’ characteristics and farming activities according to the 41 requirements of the Sustainable Rice Platform (SRP) standard. The SRP scores ranged from 53 to 81%, with the best performance by Khao Dawk Mali 105 cultivated in rainfed, organic production systems. The key success factors were linked to the formation of a farmer group resulting in very good performance on farm management, Integrated Pest Management, health and safety, and water use. The proposed 12 performance indicators (PIs) interconnected with the 41 requirements are considered appropriate to measure and monitor progress toward sustainable rice cultivation for policy makers. PIs for good governance, affordability of living costs, energy-use efficiency, and life satisfaction could potentially be added, considering the local context in relation to sustainable agriculture goals. The successful cases of SRP-certified rice farms and the benefits from SRP implementation should be conveyed to with other rice farmers to induce wider implementation. The SRP scores and PIs were useful to identify areas requiring priority interventions to make progress toward sustainability.

Mapping Studies on Sustainability in the Performance Measurement of Public-Private Partnership Projects: A Systematic Review

The integration of sustainable practices into infrastructure projects under the auspices of public-private partnerships (PPPs) is vital in the attainment of United Nation’s Sustainable Development Goals (SDGs). Since the inception of the SDGs in 2015, the attention of world has been shifting towards more sustainable practices and it is essential that the conventional performance measurement models on PPP projects also adapt to the trend of sustainable practices. Therefore, This study aims at reviewing and operationalising sustainable performance measures for the PPP infrastructure projects. A systematic literature review (SLR) methodology was utilised in this study. The research process began with the search, retrieval and selection of thirty-three (33) journal articles. Thoroughly, the selected articles were contently analysed to form key themes that form the basis of this research’s findings. The outcomes of this review demonstrate twenty-seven (27) most critical sustainable performance criteria of PPP projects such as the lowest project costs, green index, disability-friendly inclusion rate and carbon emission per project among others. Although, the study is limited to few journal articles, it provides theoretical and practical understanding of integration of sustainability in PPPs. Further, it gives a list of relevant research gaps for further studies. This study contributes to the benchmarking and management of sustainable performance assessment of PPP projects.

Sustainability Measurement of Transportation Systems in China: A System-Based Bayesian Network Approach

Sustainability has been a challenging issue in the transportation industry, which necessitates obtaining a better measurement of transport sustainability performance. To appropriately measure performance, this paper presents a hybrid approach based on the hierarchical Bayesian network model (BNM) and Principal Component Analysis (PCA). The proposed BNM encompasses social, economic, environmental, and technological dimensions, where each dimension consists of various subdivisions. The Conditional Probability Table of the model is determined by PCA. Twenty-three sustainable transportation indicators involved in the different stages of traffic management are used to kick off the calculation and probability propagation. The results show that the overall transport sustainability of the selected cities is generally at a medium level, indicating that there is much room for further improvement. The sustainability-economic coupling analysis exhibits the nonlinear relationship between sustainability and economic level, revealing that economic growth does not necessarily lead to the enhancement of the transport sustainability. Additionally, the sensitivity analysis reveals that “Accessibility,” “Serviceability,” “Reliability,” and “Innovation” demonstrate an upward trend, indicating their great effect on transportation sustainability. Last, the policy implications of this study can not only offer a solution for the current needs of transportation systems but also serve as more transparent decision-making to develop a sustainable transportation system in the future.

Interrelationship between Three Dimensions of Sustainable Performance Measurement among Malaysian Manufacturing Companies

Corporate financial responsibility is the sole driving force of business in the business sector, as the primary goals of a firm are to maximize profit and grow shareholder value. However, in the previous decade, larger corporate obligations have been recognized, including environmental, local community, working conditions, and ethical standards. With the rise of "sustainability" reasons, unprecedented climate change is being measured into corporate strategy in the direction of sustainable thinking. The triple bottom line (TBL) is a sustainability assessment that combines environmental and social factors in addition to profitability and the rate of return on investment. The purpose of this research is to look into the interrelationships between the three dimensions of sustainable performance measurement (SPM) in Malaysian manufacturing companies. A questionnaire is issued to 600 manufacturing companies in the Federation of Malaysian Manufacturers (FMM) as part of a quantitative data collection approach. All the proposed hypotheses are supported, thus showing the interrelationship between three dimensions of SPM existed. Consequently, Malaysian companies are lagging behind in terms of SPM’s adoption compared to developed countries. Because of that, more government efforts to facilitate the adoption of SPM practice among companies are needed. The sole focus on the manufacturing industry, accuracy of data collection and time constraint are the limitations of this study. Therefore, it is suggested that further research should explore more the interrelationship between the three dimensions of SPM.

From negative to positive sustainability performance measurement and assessment? A qualitative inquiry drawing on framing effects theory

AbstractCurrent approaches to sustainability performance primarily capture the reduction of negative impacts, but are rather silent about creating positive sustainability performance (PSP). This paper draws on framing effects theory to argue why interviewees in our abductive single case study of the life cycle of a laundry detergent struggled to identify PSP. Based on the theory and our findings, we argue that negative sustainability performance is a “sticky” frame in individual perception, and propose a research agenda for PSP that discusses three research routes and key determinants (i.e., systemic mindsets, collective goals and collaboration, and a balanced view for sustainable value) to explain how the dominant negative frames can be overcome to advance PSP. This study contributes to the sustainability management and performance literature by illuminating a current blind spot (PSP) and how the dominant negative frame can be overcome.

How do adoption choices influence public private partnership outcomes? Lessons from Spain and Portugal transport infrastructure

Purpose Maximising real efficiency benefit (REB) is currently being replaced with access to private finance as core public–private partnership (PPP) adoption motive. This later choice focusses on short-term performance, compromising REB and the procurement of infrastructure that meets the need of the present and future generations, which the former accomplishes. The paper aims to review these observed changes to understand the rationales and significance behind such switch.Design/methodology/approach Secondary data powered exploratory study. Deployed X-inefficiency theory to triangulate and reduce bias and select country cases to provide the proper foundation for the descriptive “what happened?” question, such as “what was the failure concerns with a particular adoption choice?”Findings The shift to accessing private finance adoption motive against REB failed to improve PPP project performance or meet efficiency and sustainability. Instead, it allows the private sector to assume financial risk without synergistic monitoring from the government to determine their contractual and commitment trust level, which would help achieve the five-dimensional sustainable performance measurement system for PPP. This led to the struggles of PPP projects in Portugal and Spain, where cost overruns and high demand forecast led to project failures. A recommendation, blended finance with its technical assistance additionality, is considered pivotal to addressing access to private finance motive shortcomings.Originality/value This study improves best practices for new and existing adopters by systematically establishing that adoption ideology is a cardinal variable that influences PPP project success. When not correctly adopted, it can make the most successful structured projects face complexities and uncertainty.

Board characteristics and sustainability performance: empirical evidence from emerging markets

PurposeThis study aims to investigate the effects of board attributes, i.e. board independence, gender diversity, board size and board activity, on the sustainability performance of 439 publicly-listed non-financial companies across 20 emerging countries over the period of 2010–2019.Design/methodology/approachWe use Refinitiv environmental, social and governance (ESG) performance scores and board attributes variables derived from Thomson Reuters Eikon database. We examined the relationship between board features and sustainability performance by using the dynamic panel two-step system generalized method of moments estimator.FindingsOverall, our findings suggest that smaller, gender diverse and independent boards that convene frequently achieve better sustainability performance. The authors document a positive relationship between board gender diversity and sustainability performance across a broad spectrum of sustainability indicators. The authors also find evidence that board independence has a positive impact on two sustainability performance measures, i.e. environmental and governance performance. Although board size does not influence aggregate sustainability measures (ESG score, ESG controversies, and ESG combined score), the authors find a negative relation between board size and governance performance. Finally, board activity seems only relevant in explaining ESG controversies, i.e. other things being equal frequently held board meetings significantly reduce sustainability issues (ESG controversies).Practical implicationsThe authors’ findings provide implications to support regulators and emerging market companies on how to improve sustainability performance through the design and use of specific governance mechanisms. These interventions will help resolve agency problems among different stakeholders and, in turn, benefit sustainability.Social implicationsThis study also has social implications because it sheds light on how companies may change their attitudes towards sustainable practices through adjusting their corporate governance structures to increase the welfare of the society.Originality/valueThis study examines the behaviour of companies in emerging markets on sustainability performance by discussing a broad range of board characteristics and covering a large sample of emerging markets. Thus, it provides valuable insights to the companies for further growth opportunities in emerging markets.

Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective

Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective