A conceptual framework for a value‐based sustainability balanced scorecard

Abstract

Sustainability balanced scorecard (SBSC) is a management system that can translate strategy into the company's operations. However, based on previous research, a gap states that using SBSC gives birth to many performance indicators. Therefore, we need a framework that can formulate performance indicators to be more proportional to using company resources. For this reason, this research proposes a value framework adopted from six business process values. These six values are efficiency, quality, agility, integration, compliance, and networking. This study aims to prove that these six values can be used as SBSC values. So that will be obtained A Conceptual Framework for a Value-Based Sustainability Balanced Scorecard. The methodology explored three state-owned plantation enterprise in Indonesia and analyzed data using qualitative research coding. The result shows that there are 11 criteria for efficiency, 11 for quality, seven for agility, 12 for compliance, eight for integration, and nine for networking. These criteria have a 100% validation level where the value criteria are found in each company. The performance indicator criteria have been assessed based on the level of relevance test from managers who say that it is almost 100% important and very important. The criteria that have been grouped against these values have proven that the six values can be used to direct managers in formulating company performance indicators so that the established performance indicators are expected to allocate resources proportionally.

Port Authority of Cartagena: Evidence of a Sustainability Balanced Scorecard

“…Having developed varying strategies year on year, it was not until 2018 when the APC started the BSC/SBSC implementation process that it forced the adoption of several internal changes and investments, resulting in a successful tool to make the strategy an inherent part of the daily work of the organisation, confirming the BSC/SBSC as a useful management tool in helping the APC to implement its sustainable strategy, going along with previous works (Butler et al, 2011; de Villiers et al, 2016; Epstein & Wisner, 2001; Ferreira da Cruz & Cunha Marques, 2014; Figge et al, 2002; Hansen & Schaltegger, 2012, 2016; Huang et al, 2014; Jong Na et al, 2020; Journeault, 2016; Kang et al, 2015; Kaplan & Reisen de Pinho, 2008; Länsiluoto & Järvenpää, 2010; León‐Soriano et al, 2010; Lu et al, 2018; Mio et al, 2021; Raut et al, 2017; Trisyulianti et al, 2022), and specifically for government units (da Silva Neiva et al, 2021; Hamid, 2018; Khalid et al, 2019; Modell, 2012).…”

“…Since then, the scholarly community has shown a genuine interest in progressing this issue, resulting in many articles being published and reviewed over the past years. This work has borne fruit, reaching a broad consensus when confirming that the BSC is a valuable management tool in helping companies in the development and implementation of their sustainable strategies (Butler et al, 2011; de Villiers et al, 2016; Epstein & Wisner, 2001; Ferreira da Cruz & Cunha Marques, 2014; Figge et al, 2002; Hansen & Schaltegger, 2012, 2016; Huang et al, 2014; Jong Na et al, 2020; Journeault, 2016; Kang et al, 2015; Kaplan & Reisen de Pinho, 2008; Khalid et al, 2019; Länsiluoto & Järvenpää, 2010; León‐Soriano et al, 2010; Lu et al, 2018; Mio et al, 2021; Modell, 2012; Raut et al, 2017; Trisyulianti et al, 2022).…”

“…Discussion about the BSC as it has become traditionally known: a new ‘evolution’ of the BSC has been demanded for several years to satisfy increasing social demand, resulting in the ‘Sustainability Balanced Scorecard (SBSC)’ (Butler et al, 2011; da Silva Neiva et al, 2021; de Villiers et al, 2016; Epstein & Wisner, 2001; Ferreira da Cruz & Cunha Marques, 2014; Figge et al, 2002; Hansen & Schaltegger, 2012, 2016; Huang et al, 2014; Jong Na et al, 2020; Journeault, 2016; Kang et al, 2015; Kaplan & Reisen de Pinho, 2008; Khalid et al, 2019; Länsiluoto & Järvenpää, 2010; León‐Soriano et al, 2010; Lu et al, 2018; Mio et al, 2021; Modell, 2012; Raut et al, 2017; Trisyulianti et al, 2022). To cover this deficit as well as providing evidence of the relevance that government units have had over the last years in developing and implementing their strategies by using not only a BSC but a SBSC, we decided to carry out this study within the Shipping Industry.…”

Practical Application of Big Data Statistical Analysis Method for Enterprise Economic Management in Digital Era

“…Then, different weights are given according to the state and value of each index. Finally, the final performance evaluation is provided by and synthesizing these indicators [18].…”