Developing an action-oriented performance framework for sustainability measurement in the new product development

Abstract

PurposeThe integration of sustainability, performance measurement and new product development (NPD) is key for aligning environmental and social objectives with business strategies. While previous research has initiated proposals for integrating sustainability into NPD or incorporating sustainability into corporate measurement systems, there is a notable deficiency in studies that comprehensively integrate these three perspectives. In this sense, this study proposes a performance framework (PF) to integrate sustainability performance indicators (PIs) into the measurement system considering the company’s NPD phases.Design/methodology/approachThe PF was developed through a literature review and action research (AR). This resulting PF was positively evaluated by the practitioners in the company.FindingsFirst, the review enabled the synthesis of an initial conceptual PF with 188 sustainability PIs and a five-step procedure. Then, the empirical results of the AR led to a new PF that presents the systematisation of the PIs database and a practice-based seven-stage approach.Research limitations/implicationsThis action-oriented research limits the extent to which this study’s findings can be generalised. Future research should apply the PF in different research designs to produce managerially relevant knowledge.Practical implicationsThis PF may provide managers with actionable knowledge that best supports the measurement system integration with sustainability PIs considering the NPD phases.Originality/valueIntegrating sustainability, performance measurement and the NPD has been recognised as critical for supporting decision-making concerning the impact of processes and products. Compared with previous frameworks, the proposed PF extends the existing literature by introducing a systematised PIs database and a novel procedure for integrating sustainability measurement throughout the NDP.