Balanced scorecard for sustainable supply chains: design and development guidelines

Abstract

Purpose

Supply chains (SCs) are integral to the globalized economy and offer many business opportunities but can also lead to unintended social and environmental impacts. Accurate performance assessments are crucial for SC control and are also a cornerstone for sustainable development. Hence, procedural, technological, and operational support is needed to facilitate a balanced approach to performance measurement for sustainable SCs.

Design/methodology/approach

The paper combines concepts derived from literature on performance measurement in SCs and sustainability with the balanced scorecard (BSC). Synthesis of these related approaches leads to the proposal of a customized scorecard design and development processes which are further elaborated through illustrations and practical examples.

Findings

A scorecard design customized for sustainable SCs is proposed along with development and implementation processes.

Research limitations/implications

The organization and synthesis of related performance measurement approaches advances the theoretical understanding of how a BSC can be operationalized in sustainable SCs. Research opportunities are derived based on the presented findings. The results are limited due to their mainly conceptual development.

Practical implications

The BSC is illustrated by practical examples in an attempt to demonstrate the feasibility and practical value of the conceptual approach.

Originality/value

The field of sustainable supply chain management continues to be beset by little guidance in terms of principles and applicable tools for performance assessment. The paper provides structure in this regard, integrates concepts central to the performance of sustainable SCs, and supports the practical application of a BSC approach.

Citation

Reefke, H. and Trocchi, M. (2013), "Balanced scorecard for sustainable supply chains: design and development guidelines", International Journal of Productivity and Performance Management, Vol. 62 No. 8, pp. 805-826. https://doi.org/10.1108/IJPPM-02-2013-0029