The role of the environmental dimension in the performance management system: A systematic review and conceptual framework

Abstract

The issues of sustainable development and green practices have received increased attention in recent decades. More and more companies are moving towards a strategic approach designed to integrate environmental considerations into their strategies. Nevertheless, a difficulty still remains in the strategic alignment between the environmental dimension of sustainability and performance management system (PMS). In this context, a 'state-of-the-art' analysis of related literature was used to support future research to develop integration of effective approaches and solutions. To achieve this objective, the authors sought to develop a clear picture about the key drivers of the integration process between the environmental dimension and PMS, and to identify the missing concepts, research challenges and opportunities. The authors systematically reviewed 71 English-language scientific papers published between 2002 and 2020, and identified the missing concepts by means of content analysis. The authors found a growing trend in the 18-year period of increasing theoretical research on environmental issues, but a gap was found in developing practical solutions. The findings were used to develop a conceptual model for integrating environmental drivers that emerged from the analysis in an early stage of strategy formulation, through a scorecard-based tool aimed at supporting strategic alignment. This study provides a novel and original framework for exploring environment aspect and PMS approach. We also propose a future research agenda and useful recommendations for scholars and practitioners. It lays a firm foundation for future studies and research debates.

Dynamic Capability and Strategic Corporate Social Responsibility Adoption: Evidence from China

“…We consider using a quantitative method to measure the SCSR adoption and performance. The adoption of SCSR reflects corporate sustainability, creating and sustaining the long-term firm value [63]. Corporate sustainability embraces the triple bottom line dimensions (economic, environmental, and social) by identifying the needs for changes in current and unsustainable firm practices [64].…”

“…Corporate sustainability embraces the triple bottom line dimensions (economic, environmental, and social) by identifying the needs for changes in current and unsustainable firm practices [64]. Among these dimensions, the main categories of key performance indicators (KPIs) on the environmental dimension include emissions, consumption of natural resources, renewable resources, and eco-efficiency [63]. Categories of KPIs on the economic and social dimensions are in financial aspects and societal community, respectively [63].…”

“…Among these dimensions, the main categories of key performance indicators (KPIs) on the environmental dimension include emissions, consumption of natural resources, renewable resources, and eco-efficiency [63]. Categories of KPIs on the economic and social dimensions are in financial aspects and societal community, respectively [63]. Therefore, the choice of indicators of measuring SCSR adoption should reflect performance in terms of the triple bottom line dimensions.…”

“…The CSR Strategy Score reflects a firm's SCSR practices and performance when the firm integrates the economic (financial), social, and environmental dimensions into its day-to-day decision-making processes (referred to as the indicator definition in Datastream). Therefore, this indicator could be used to measure the SCSR adoption and performance since the definition is highly consistent with the meaning of SCSR [59] and comprehensively embraces the triple bottom line dimensions of corporate sustainability [63].…”

Employee Satisfaction, Corporate Social Responsibility and Financial Performance

“…Namely, the effects of such perceived compliances on customer satisfaction and loyalty may reward the sustainable development of the enterprises. Among the corporate environmental compliances, for instance, either ecological footprints, emissions, consumption, renewable resources, ecoefficiency, or in combination, may serve as the strategic variables [4]. Individual investors and institutional investors may become more inclined to incorporate the CSR accomplishments of the companies in their investment decisions, and governments around the world are implementing more stringent environmental and social policies.…”