Read this article and pay attention to how companies achieve high-quality performance for value creation. Focus on the selection of KPIs and the discussion. How can organizations improve sustainability in their strategies to improve certain KPIs?
Research Methodology
In order to identify the most relevant KPIs that allow integrating sustainability into a company's strategy, the study was conducted with two data sources, SLR and survey.
Literature Review Procedure
We followed this method to ensure a rigorous process involving all authors during the research steps of the analysis. The main database that we searched was Scopus. The keywords used for the selection of articles were as follows: "Sustainability" or "Environmental" or "Social", or "SBSC" or "Sustainable", and "KPI" or "Key Performance Indicator" or "Index" or "Benchmark" in the article title, abstract, and keywords. Only peer-reviewed articles written in English were selected, excluding, for example, book chapters, doctoral dissertations, and research reports. In particular, we eliminated duplications and excluded papers if they were published in journals not focused on business management and accounting or economics. In the first step of our research, we obtained a total of 971 papers from the initial search. In the second step, we analyzed each paper's title, abstract, and keywords to decide whether or not to include the paper for further analysis. We selected only papers that focused on the role of KPIs in sustainability dimensions. In order to ensure validity and reliability of checks done in selecting the abstracts, the authors worked together following a specific procedure. For example, all authors skimmed the abstracts. Then they worked separately reading these papers and reported their main contents on a detailed table. An initial review of 971 papers netted 179 studies that we considered were in the field of research. In the last screening evaluation, the selection was based on the full text by examining the contents in depth, to ensure that all selected papers specifically focused on sustainability issues related to KPIs used in order to lead companies in the value creation process. Based on this approach, 82 papers were finally identified and analyzed (Figure 1). The time period chosen for searching the most relevant articles was from 1999 to 2019. This period confirmed a steady increase in the emphasis on sustainability dimensions to support strategic management tools and therefore PMSs.
Figure 1. Systematic analysis results.
Survey Methodology
In
order to reinforce our contribution to the literature and provide the
practical implications of our model, we selected a sample of managers
who specialized in KPIs used in sustainable development. The
managers played a fundamental role in providing suggestions for future
research based their experience in the field. Using LinkedIn and
personal contacts, we sent a first questionnaire, composed of 10
questions, to 97 managers in order to identify some of their basic
information and their experience with KPIs and sustainability issues.
The survey was divided into two parts: the first was aimed at revealing
demographic aspects, and the second was aimed at determining obtaining
about knowledge of the SBSC and use of sustainability dimensions and
indicators. We obtained a total of 64 responses and selected only
managers with a high level of experience (more than 5 years using KPIs
connected to sustainability dimensions); their ages ranged from 40 to 60
years. Our final sample was composed of 25 managers who confirmed their
availability to be interviewed (Figure 2). We informed managers by
e-mail of the main purposes of our study. In the second step of this
process, we interviewed our sample managers. Each interview, by phone or
Skype, lasted 32 minutes on average (ranging from 25 to 39 min), and
all were transcribed and coded for analysis. The interview questionnaire
was composed of five sections, aimed to (1) identify the
strategic goals to include in each sustainability dimension; (2) select
the appropriate KPIs for each goal; (3) identify possible competitive
advantages from implementing a sustainable strategy; (4) understand how
the managers evaluate performance in terms of sustainability value
creation; and (5) analyze the role of the SBSC in accounting for these
dimensions. All data were analyzed by categorizing the responses into
major conceptual macro areas. Finally, we improved the validity of the
process by asking the respondents to check their transcribed interviews
for the information obtained and to highlight possible errors. At
the same time, we triangulated all data obtained by the interviews and
the secondary data.
Figure 2. Sample selection results.