Measuring Sustainability Performance Measurement System

• Published in: Acta Universitatis Danubius. OEconomica Vol. 12; no. 3; pp. 182 - 199
• Main Authors: Muhamad, Nurisyal, Auzair, Sofiah Md, Amir, Amizawati Mohd, Ismail, Md Daud
• Format: Journal Article
• Language: English
• Published: Danubius University Press 2016; Editura Universitară Danubius
• Subjects: Economic development; Economy; Effectiveness; Instruments; Measurement; Performance appraisal; Performance evaluation; Sustainability; Social; Environment; Malaysia; Economy; Manufacturing
• ISSN: 2065-0175; 2067-340X

This paper presents an effort to suggest a comprehensive measurement for the Sustainability Performance Measurement (SPMS) construct. Absence of a comprehensive instrument has limited the research on SPMS. This study makes a significant contribution on defining SPMS general characteristics. The SPMS construct was empirically tested through confirmatory factor analysis based on data obtained from 147 manufacturing business units. The data suggest that SPMS construct is a manifestation of three dimensions; first, financial orientation, which reflects the financial measures that link with other units and the shareholders. Second is the growth orientation which covers measures such as the customer satisfaction, new product development, effectiveness of information use and supplier performance. Finally, the third dimension is environmental and social orientation, which covers environmental and social measures, and measures that linked to sustainability strategy. Using the suggested instrument, future study could examine the effect of SPMS on performance, or study the factors that could affect the SPMS implementation.