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Measuring Sustainability Performance Measurement System

Author

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  • Nurisyal Muhamad

    (National University of Malaysia (UKM))

  • Sofiah Md Auzair

    (National University of Malaysia (UKM))

  • Amizawati Mohd Amir

    (National University of Malaysia (UKM))

  • Md Daud Ismail

    (National University of Malaysia (UKM))

Abstract

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.

Suggested Citation

  • Nurisyal Muhamad & Sofiah Md Auzair & Amizawati Mohd Amir & Md Daud Ismail, 2016. "Measuring Sustainability Performance Measurement System," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(3), pages 182-199, JUNE.
    • Handle: RePEc:dug:actaec:y:2016:i:3:p:182-199
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3361/3282
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    References listed on IDEAS

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