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A strategic performance measurement system for firms across supply and demand chains on the analogy of ecological succession

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  • Li, Xiao
  • Gu, Xin Jian
  • Liu, Zheng Gang

Abstract

To answer the call for a new business that integrates economic, biological and human systems, this paper develops a strategic performance measurement system (SPMS) for firms across supply and demand chains (SDC) by analogy with ecological succession. Based on the explanation that SDC can be viewed as community, it develops SDC (monetary value) structure by analogy with community (trophic) structure. As energy flow in ecology follows the first and second laws of thermodynamics, monetary value flow in business follows two laws that are similar to the laws of thermodynamics. Based on these laws, as well as throughput accounting and traditional cost accounting, it puts forward a general monetary value flow model in SDC (i.e. in demand chain and in supply chain respectively). Based on the value flow model in SDC, it conceives an SDC evolution model with a case study on the maturity of Toyota Motor Corporation. Based on these two models, it develops an SPMS for firms across SDC with procedural and structural frameworks. The discussion about monetary value flows in business from nature to the final consumers or converse gives a chance to coordinate business with nature. The SPMS that rationally integrates effective evaluation of tiers in SDC and practical product development plans in firm will help firms create a sustainable commerce (e.g. product-service system).

Suggested Citation

  • Li, Xiao & Gu, Xin Jian & Liu, Zheng Gang, 2009. "A strategic performance measurement system for firms across supply and demand chains on the analogy of ecological succession," Ecological Economics, Elsevier, vol. 68(12), pages 2918-2929, October.
    • Handle: RePEc:eee:ecolec:v:68:y:2009:i:12:p:2918-2929
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    References listed on IDEAS

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    1. Michael Hergert & Deigan Morris, 1989. "Accounting data for value chain analysis," Strategic Management Journal, Wiley Blackwell, vol. 10(2), pages 175-188, March.
    2. Matutinovic, Igor, 2002. "Organizational patterns of economies: an ecological perspective," Ecological Economics, Elsevier, vol. 40(3), pages 421-440, March.
    3. L·szlÛ PÛlos & Michael T. Hannan, 2002. "Foundations of a theory of social forms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(1), pages 85-115, February.
    4. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
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    1. Jalali Naini, Seyed Gholamreza & Aliahmadi, Ali Reza & Jafari-Eskandari, Meisam, 2011. "Designing a mixed performance measurement system for environmental supply chain management using evolutionary game theory and balanced scorecard: A case study of an auto industry supply chain," Resources, Conservation & Recycling, Elsevier, vol. 55(6), pages 593-603.
    2. Kudla, Nicole & Stölzle, Wolfgang, 2011. "Sustainability Supply Chain Management Research," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(3), pages 263-301.
    3. Maestrini, Vieri & Luzzini, Davide & Maccarrone, Paolo & Caniato, Federico, 2017. "Supply chain performance measurement systems: A systematic review and research agenda," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 299-315.

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