Submit to Sustainability Review for Sustainability Propose a Special Issue

Journal Browser

Sustainable Performance Management

Special Issue Editors
Special Issue Information
Keywords
Published Papers

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (30 April 2020) | Viewed by 110459

Share This Special Issue

Special Issue Editor

Prof. Dr. Flavio Tonelli

E-Mail Website
Guest Editor

Department of Mechanical Engineering, Energetics, Management and Transportation (DIME), Polytechnic School University of Genoa, 16145 Genova, GE, Italy
Interests: industrial sustainability; digital manufacturing; supply chain management; performance management

Special Issue Information

Dear Colleagues,

In recent years, interest on sustainable supply chain management (SSCM) has risen significantly in both the academic and the business communities. This is confirmed by the growing number of conferences, journal publications, Special Issues, and websites dedicated to the topic [1].

At the same time, research in sustainability measurement and management has also been growing at a very fast pace and has explored a variety of issues, from sustainability disclosure to measurement in green supply chains and from the diffusion of environmental standards to the political use of sustainability metrics [2].

Sustainability, even if a relatively new research area, already shows an interesting number of measures and metrics mainly de-structured and at very different levels. This variety is creating confusion among businesses when they attempt to select an operational set of indicators for assessing sustainability in practical terms [3].

Companies are striving to develop sustainability strategies in a clear, structured, and rigorous way. However, many are failing to uncover the real value of sustainability, which should be explicitly linked to business performance to maximize value creation. Clear drivers and practical outcomes related to sustainability and the value it creates should be able to be measured by applying a robust framework. This demands well thought-out and consistent metrics, systematic processes, and the appropriate use of technology.

The objectives of this Special Issue are to provide a snapshot of the status, potential, challenges, and recent developments of sustainable performance management and to open a discussion for new ideas.

We invite researchers to contribute original research articles as well as review articles that will further stimulate the continuing efforts to improve the current investigations within the field.

References

Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2015). A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research, 53(21), 6473-6494.
Mura, M., Longo, M., Micheli, P., & Bolzani, D. (2018). The Evolution of Sustainability Measurement Research. International Journal of Management Reviews, 20(3), 661-695.
Demartini, M., Pinna, C., Aliakbarian, B., Tonelli, F., & Terzi, S. (2018). Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators. Sustainability, 10(10), 3540.

Dr. Flavio Tonelli
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

performance management for sustainable manufacturing systems and
circular economy
sustainable metrics for manufacturing companies in the digital era
application of sustainable performance management
sustainability performance management model
sustainability performance assessment
assessment methodologies
case studies

Published Papers (13 papers)

Download All Papers

Research

Jump to: Review

15 pages, 508 KiB

Open AccessArticle

Management Overconfidence and CSR Activities in Korea with a Big Data Approach

by Sun-A Kang and Sang-Min Cho

Sustainability 2020, 12(11), 4406; https://doi.org/10.3390/su12114406 - 28 May 2020

Cited by 8 | Viewed by 2458

Abstract

We examined the relationship between management characteristics and corporate social responsibility (CSR) and this relationship was differentiated by the level of corporate governance. Our analysis was undertaken in firms listed on the Korean Stock Exchange (KSE) from 2006 to 2015. We employed Ordinary Least Square (OLS) regression after clustering the standard errors at the firm level in order to examine these relationships. The KEJI (Korea Economic Justice Institute) index was used as a proxy for CSR and a big data-based proxy estimated from multimedia was used as the level of advertising. We showed that there is a positive relationship between overconfident management and CSR activities. We then categorized the CSR activities as primary and social activities and found that overconfident management is more aggressive in primary CSR activities. In addition, overconfident management makes fewer CSR expenditures when the management is in a chaebol firm but promotes more CSR advertisement. This finding indicates that chaebol affiliation controls overinvestment in CSR activities but promotes CSR advertisements by overconfident managers. Similarly, we found consistent results with overconfident owner-managers. Prior literature on CSR activities focuses on the impact of CSR activities on firm performance. In this paper, we elucidated the determinants of CSR activities, so that this research contributes to firms’ decision-making about sustainable management. Our estimation of CSR variables with big data approaches will also guide future research on this issue. We expect our study to be used as a reference for decision-making by relevant authorities and stakeholders. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

23 pages, 1220 KiB

Open AccessArticle

The Sustainable Effect of Operational Performance on Financial Benefits: Evidence from Chinese Quality Awards Winners

by Huiming Liu, Su Wu, Chongwen Zhong and Ying Liu

Sustainability 2020, 12(5), 1966; https://doi.org/10.3390/su12051966 - 4 Mar 2020

Cited by 22 | Viewed by 4140

Abstract

Quality management practices have become increasingly important as firms seek to obtain quality certifications to dominate markets. To date, adequate research evaluating the effects of quality management is lacking. In this work, we used Chinese quality awards to evaluate a firm’s quality level. A PSM-DiD (propensity score matching and difference-in-difference) model describing the relationship between quality award effects and financial benefits in terms of return on assets was developed. We further used a hierarchical regression to examine the influence of operational performance on financial benefits. The results show that quality awards cannot assure their winners a higher return on asset. Indicators of operating performance, such as less lead time and higher inventory turnover, can significantly enhance firms’ profitability. The moderating effects of operational performance suggest that firms may focus on how to translate quality management practices into business improvement. This study also contributes to the operation management literature by describing how firms need outstanding financial performance for sustainable development and continuous improvement. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

14 pages, 268 KiB

Open AccessArticle

Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China

by GuoXiang Tang, Kwangtae Park, Anurag Agarwal and Feng Liu

Sustainability 2020, 12(4), 1355; https://doi.org/10.3390/su12041355 - 12 Feb 2020

Cited by 38 | Viewed by 6282

Abstract

Small and medium-sized enterprises (SMEs) in both the manufacturing and service sectors have been viewed as an important driving force behind the rapid economic growth in China. There are multiple factors that drive the success of SMEs. In this paper, we study the effect of innovation culture, technological capability, and organization size on the performance of SMEs in China. We hypothesize that firm performance is positively affected by each of these factors. We use data from 1124 SMEs in China and apply regression analysis to test our hypotheses. We find that technological capability and organization size have a statistically positive effect on the performance of SMEs. Because manufacturing and service industries have distinct characteristics, we also compare the effects of these factors on firm performance within these industries. We find that technological capability is positively and statistically significantly related to firm performance in the manufacturing industry but not in the service industry, while innovation culture is positively and statistically significantly related to firm performance in the service industry but not in the manufacturing industry. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

11 pages, 201 KiB

Open AccessArticle

The Impact of Interest Coverage Ratio on Value Relevance of Reported Earnings: Evidence from South Korea

by Hyunmi Ji

Sustainability 2019, 11(24), 7193; https://doi.org/10.3390/su11247193 - 16 Dec 2019

Cited by 5 | Viewed by 4952

Abstract

This study examined the usefulness of the cash-based interest coverage ratio (CICR). It also verified the usefulness of accrual-based interest coverage ratio (AICR), which is used as a criterion for exiting insolvent companies. This paper analyzed whether the value relevance of earnings to stock price differs according to various interest coverage ratios. The CICR is measured by dividing the cash generated from operations by the interest payments. AICR is measured by operating income divided by interest expenses. The research model for the hypothesis test of this study is based on the Ohlson model, which has been used for the test of stock value relevance in many previous studies. As a result of the empirical analysis, the CICR is used as useful information by the investors in the capital market. CICR is used as useful information in the capital market as an indicator of sustainability of profits. This study suggests that supervisors and financial institutions can make rational decision-making if they consider AICR and CICR as criteria for exiting insolvent companies. The contribution of this study was to suggest that the CICR can be a useful indicator for determining whether a company is insolvent due to its relatively low forecast error and high predictability. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

20 pages, 285 KiB

Open AccessArticle

Dynamic Panel Threshold Model-Based Analysis on Equity Restriction and Enterprise Performance in China

by Bing Zhou, Meng Peng, Yingxue Tan, Sidai Guo, Shengzhong Huang and Bing Xue

Sustainability 2019, 11(22), 6489; https://doi.org/10.3390/su11226489 - 18 Nov 2019

Cited by 5 | Viewed by 2437

Abstract

This paper takes China’s A-share listed companies of the mixed ownership of state-owned enterprises from 2007 to 2016 as a sample, and examines the impact of state-owned business mixed reform on corporate performance. Research shows that under different equity restriction ratios, there exists a difference in the connection between corporate performance and equity restriction ratio. Corporate performance reduces with the subjoin of equity restriction ratio, and they are negatively correlated when the stockholding ratio of the largest stockholder is less than 25%; on the condition that the stockholding ratio of the largest stockholder is in the range of 25 and 40% and 40 and 60%, it presents an “inverted U-shaped” connection between corporate performance and equity restriction ratio. At this time, the threshold value of the optimal equity restriction ratio is 1.1336 and 0.7297, respectively. On the condition that the stockholding ratio of the largest stockholder is equal to or more than 60%, there exists no threshold value for equity restriction ratio. However, the regression results present that corporate performance increases with the increase of equity restriction ratio, and the two are positively correlated. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

13 pages, 481 KiB

Open AccessArticle

Measuring Sustainability Performance with Multi Criteria Model: A Case Study

by Renato Vivas, Ângelo Sant’anna, Karla Esquerre and Francisco Freires

Sustainability 2019, 11(21), 6113; https://doi.org/10.3390/su11216113 - 2 Nov 2019

Cited by 20 | Viewed by 3758

Abstract

The proposal of this research is the development of a hybrid multi-criteria decision analysis (MCDA) model of sustainability performance. The model is applied to a Brazilian oil and gas company and is constructed from the MCDA associated with statistical analysis. The MCDA technique is a preference ranking organization method for enrichment evaluation (PROMETHEE), with analysis of 20 indicators of the dimensions of sustainability. In the statistical analysis, the Principal Component Analysis (PCA) and Multiple Linear Regression (MLR) are used. The results of PROMETHEE showed that the company’s best sustainability performance was in 2011 and 2010. The worst sustainability performance was in 2015 and 2016. The application of the PCA technique aims to eliminate the existing multicollinearity and capture the direction of variability of the indicators. The first PC with 53.2%, the second PC with 25.6%. An estimate based on the MLR equation was performed. The limitation of the paper is with data from the company’s sustainability reports as well as the choice and quantity of indicators. The analysis of the sustainability performance of the company through multi-criteria models is not new but their combination with mathematical models, comparing the sustainability reports per year, brings more complete results on the sustainability performance of the company. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

19 pages, 5139 KiB

Open AccessArticle

The Role of Sustainability Key Performance Indicators (KPIs) in Implementing Sustainable Strategies

by Ivo Hristov and Antonio Chirico

Sustainability 2019, 11(20), 5742; https://doi.org/10.3390/su11205742 - 17 Oct 2019

Cited by 113 | Viewed by 43671

Abstract

The role of sustainability dimensions in the value creation process has attracted considerable interest in the scientific academic world in the last two decades. The 2030 Agenda, which fixed the sustainable goals (SDGs) to safeguard our planet, highlighted the fundamental role of sustainability issues. In this context, companies around the world need to integrate their strategies with environmental, social, and economic dimensions. However, sustainability aspects are often not linked to company strategies, and there has been growing difficulty in measuring sustainable development by adopting an appropriate set of key performance indicators (KPIs). Accordingly, the aim of this study is as follows: (1) to identify the suitable KPIs that affect company performance, based on the literature and management practices, and (2) to propose a new perspective on a way to integrate sustainability issues in company strategies. Based on a systematic procedure, we obtained 82 papers that focus on KPIs related to sustainability issues. Following a review of papers and a survey conducted with Italian managers, we developed a sustainability perspective by selecting the most appropriate KPI system for each of the dimensions discussed. The proposed model suggests that incorporating sustainability dimensions within corporate strategy would allow strategic alignment in order to gain competitive advantage and therefore create sustainability value. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

14 pages, 237 KiB

Open AccessArticle

Evaluating R&D and Transformation Functional Platforms’ Operational Performance Using a Data Envelopment Analysis Model: A Comparative Study

by Yuhong Cao, Jianxin You, Yongjiang Shi and Wei Hu

Sustainability 2019, 11(18), 5023; https://doi.org/10.3390/su11185023 - 13 Sep 2019

Cited by 4 | Viewed by 1892

Abstract

The purpose of this paper is to provide a contribution to the development of R&D and transformation functional platforms by identifying key performance influencing factors in the use of data envelopment analysis (DEA) to analyze platform operation performance status and reasons. The DEA method is undertaken to calculate the comprehensive efficiency, pure technical efficiency and scale efficiency of R&D and transformation functional platforms in China’s 30 provinces within the period 2016–2018. Based on the 2018 pure technical efficiency and scale efficiency calculations, the K-means clustering method was used to classify the R&D and transformation functional platforms of 30 provinces. Finally, according to the clustering results, the corresponding clustering improvement scheme is given. The operational level of R&D and transformation functional platforms in many provinces of China still needs to be improved: the R&D and transformation capabilities are weak, the market share of leading products is low, the ability of new technology value-added is insufficient, and the development of R&D and transformation functional platforms has regional imbalance. This study is based solely on statistical data, these data alone obviously cannot fully describe and evaluate the real state of R&D and transformation functional platform due to the complexity and diversity of platforms. Further research is needed to generalize beyond the performance indicators constructed in this paper. For the problems of low overall operation efficiency, unbalanced regional development, redundancy of input resources and lack of professional management personnel in the operation of R&D and transformation functional platforms, policy suggestions can be put forward according to clustering results and input and output adjustment values calculated based on relaxation variables. The study presenting a methodology for analyzing R&D and transformation functional platforms’ operation performance, and the conclusions will provide reference for the development of platforms and high-tech industries. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

33 pages, 1173 KiB

Open AccessArticle

Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model

by María Luisa Pajuelo Moreno and Teresa Duarte-Atoche

Sustainability 2019, 11(16), 4411; https://doi.org/10.3390/su11164411 - 15 Aug 2019

Cited by 7 | Viewed by 3618

Abstract

Due to the lack of consensus on the Sustainable Disclosure (SD)–Sustainable Performance (SP) relationship and the absence of a robust theoretical framework base, this research tests this relationship. Based on Ullmann’s argument that the execution of corporate responsibility regarding SD, SP and EP (economic performance) is determined by the management’s (unobservable) overall strategy, we apply Partial Least Squares, introducing EP, size and membership in sensitive sectors and subjecting them to a multiplicity of external pressures (social, environmental and legislative) as determinants of the SD–SP link. There is a moderate SD–SP relationship, with a significant effect due to EP and conditioned by size. Specifically, (1) the companies that are concerned and which act sustainably have a higher SD, (2) the greater the EP, the greater its effect on this SD, but (3) when the sample is segmented by size, the moderating effect is only positive and significant for large companies. An awareness of the added value of the sustainable business model exists, more than simply reporting (actions beyond words), but the value that its profitability yields will not be determinant for SP, though it will affect SD, despite there being no direct relationship between performance and SD. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

12 pages, 260 KiB

Open AccessArticle

CSR-Contingent Executive Compensation Incentive and Earnings Management

by Zhichuan (Frank) Li and Caleb Thibodeau

Sustainability 2019, 11(12), 3421; https://doi.org/10.3390/su11123421 - 21 Jun 2019

Cited by 36 | Viewed by 6992

Abstract

This paper empirically studies the connection between earnings management and corporate social performance, conditional on the existence of CSR-contingent executive compensation contracts, an emerging practice to link executive compensation to corporate social performance. We find that executives are more likely to manipulate earnings to achieve their personal compensation goals when CSR rating is low, as well as their CSR-contingent compensation. Because of public pressure on their excessive total compensation, corporate executives see no need to manipulate earnings to increase compensation when their CSR-contingent compensation is already high. Our results suggest that earnings management and CSR-contingent compensation are substitute tools to serve the interests of executives, which is an agency problem that was never previously studied. Additionally, we explore how managerial characteristics affect earnings management, driven by the incentive effects of CSR-linked compensation. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

27 pages, 1572 KiB

Open AccessArticle

Performance Management Assessment Model for Sustainable Development

by Flavia Fechete and Anisor Nedelcu

Sustainability 2019, 11(10), 2779; https://doi.org/10.3390/su11102779 - 15 May 2019

Cited by 16 | Viewed by 5590

Abstract

Achieving performance is the premise of an organization’s existence on the market. Performance may be achieved by optimal administration of resources, in order to ensure not only short-term but also long-term efficacy. In this sense, performance and sustainability have common support. A sustainable enterprise is, implicitly, a performing enterprise. To be performing or to be able to support sustainable development implies the concern for simultaneous achievement of three categories of objectives: Economic-financial, social and environmental. Therefore, performance measurement requires a global vision of what the entity’s performance means. Thus, the present paper has the major objective of determining the global performance within industrial systems, by indicators that are mainly used to assess the sustainability aspects of the manufacturing systems. Indicators, such as manufacturing costs, quality of manufacturing, energy consumption, personal motivation, and safety, were correlated by an advanced multicriterial analysis. The created model presents the novelty that it provides a total score for performance, allowing to highlight risk areas and to set up improvement measures. The model is an important tool for optimizing the planning processes in order to reduce the consumption of energy, materials or water. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

19 pages, 1477 KiB

Open AccessArticle

Sustainability Value Creation, Survival, and Growth of the Company: A Critical Perspective in the Sustainability Balanced Scorecard (SBSC)

by Ivo Hristov, Antonio Chirico and Andrea Appolloni

Sustainability 2019, 11(7), 2119; https://doi.org/10.3390/su11072119 - 10 Apr 2019

Cited by 65 | Viewed by 19740

Abstract

The issue of sustainability in company strategy has assumed crucial relevance in recent years. Many companies have implemented specific environmental and sustainability management systems such as the Sustainability Balanced Scorecard (SBSC), which integrates sustainability and the traditional Balanced Scorecard (BSC). However, environmental and sustainability aspects are often not linked to economic success, and qualitative analysis is not considered adequately by managers. Therefore, these dimensions remain unclear, because it is necessary to analyze the conditions under which the SBSC represents a suitable tool for sustainability value creation in more depth. In this context, the purpose of the study is to propose a new strategic framework to provide a way to manage critical issues connected to the SBSC. Thanks to the information obtained from a survey and interviews conducted with managers of Italian companies, we created an adjusted SBSC (ASBSC) that allows us to consider the critical aspects from a new perspective, named the critical perspective. The conceptual model is developed in five dimensions (conceptual, structural, environmental, social, and economic). Research findings suggest that considering the critical perspective makes it possible to build the ASBSC in order to achieve sustainability and economic success of the company. The proposed framework contributes to the existing literature on improving the performance of the SBSC. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

Review

Jump to: Research

18 pages, 3338 KiB

Open AccessReview

Disrupting the Status-Quo of Organisational Board Composition to Improve Sustainability Outcomes: Reviewing the Evidence

by Kim Beasy and Fred Gale

Sustainability 2020, 12(4), 1505; https://doi.org/10.3390/su12041505 - 18 Feb 2020

Cited by 6 | Viewed by 3284

Abstract

Sustainability, conceptualised as the integration of economic, social and environmental values, is the 21^st century imperative that demands that governments, business and civil society actors improve their existing performance, yet improvement has been highly fragmented and unacceptably slow. One explanation for this is the lack of diversity on the boards of organisations that perpetuates a narrow business, economic and legal mindset rather than the broader integrated values approach that sustainability requires. This paper presents a systematic review of the literature investigating how board diversity affects the sustainability performance of organisations. Our review uncovers evidence of relationships between various attributes of the diversity of board members and sustainability performance, though over-reliance on quantitative methodologies of studies reviewed means explanations for the observed associations are largely absent. Limited measures of sustainability performance and narrow definitions of diversity, focused predominantly on gender, were also found. Important implications from the study include the need for policy responses that ensure boards are diversely composed. We identify that more qualitative investigations into the influence of a broader range of types of board diversity on sustainability performance is needed, along with studies that focus on public sector boards, and research that takes an intersectional understanding of diversity. Full article

(This article belongs to the Special Issue Sustainable Performance Management)

► Show Figures

Figure 1

Journal Menu

Journal Browser

Sustainable Performance Management

Share This Special Issue

Special Issue Editor

Special Issue Information

Keywords

Published Papers (13 papers)

Research

Review

Further Information

Guidelines

MDPI Initiatives

Follow MDPI