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Article
Publication date: 6 May 2014

Chunguang Bai and Joseph Sarkis

The purpose of this paper is to introduce a methodology to identify sustainable supply chain key performance indicators (KPI) that can then be used for sustainability…

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9150

Abstract

Purpose

The purpose of this paper is to introduce a methodology to identify sustainable supply chain key performance indicators (KPI) that can then be used for sustainability performance evaluation for suppliers.

Design/methodology/approach

Initially the complexity of sustainable supply chain performance measurement is discussed. Then, a two-stage method utilizing neighborhood rough set theory to identify KPI and data envelopment analysis (DEA) to benchmark and evaluate relative performance using the KPI is completed. Additional analysis is performed to determine the sensitivity of the KPI set formation and performance results.

Findings

The results show that KPI can be determined using neighborhood rough set, and DEA performance results provide insight into relative performance of suppliers. The supply chain sustainability performance results from both the neighborhood rough set and DEA can be quite sensitive parameters selected and sustainability KPI sets that were determined.

Research limitations/implications

The data utilized in this study are illustrative and simulated. Only one model for the neighborhood rough set and DEA was utilized. Additional investigations using a variation of rough set and DEA models can be completed.

Practical implications

This tool set is valuable for managers to help identify sustainable supply chain KPI (from among hundreds of potential measures) and evaluate sustainability performance of various units within supply chains, including supply chain partners, departments, projects and programs.

Social implications

Sustainability incorporates many business, economic and social implications. The methods introduced in this paper can help organizations and their supply chains become more strategically and operationally sustainable.

Originality/value

Few tools and techniques exist in the sustainable supply chain literature to help develop KPIs and evaluate sustainability performance of suppliers and the supply chain. This paper is one of the first that integrates neighborhood rough set and DEA to address this important sustainable supply chain performance measurement issue.

Details

Supply Chain Management: An International Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 March 2015

Mahfuzar Rahman, Amrita Kumar Das and Zohurul Islam

This study focuses on the importance of transparency and accountability of Local Government Engineering Department (LGED)'s procurement performance based on 45…

Abstract

This study focuses on the importance of transparency and accountability of Local Government Engineering Department (LGED)'s procurement performance based on 45 predetermined Key Performance Indicators (KPIs). The main objectives of this study are to find the extent of compliance of PPR 2008 by LGED and to identify gaps in compliance and scope of improvement for implementation. For this study, a questionnaire survey method collected data from different stakeholders related to procurement activities of LGED. Key informant interviews were also conducted with senior officers of LGED and IMED. The study result shows a clear adherence to the rules of PPR 2008 by LGED in operating its procurement functions except when paying interest for delayed payment. This study was confined to compliance issues covering 11 KPIs set by the Central Procurement Technical Unit (CPTU).

Details

Journal of Public Procurement, vol. 15 no. 2
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 20 July 2012

Pedro Sena Ferreira, A.H.M. Shamsuzzoha, Cesar Toscano and Pedro Cunha

The purpose of this paper is to provide practical justification for performance measurement and management within a collaborative business network. The basic performance

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4895

Abstract

Purpose

The purpose of this paper is to provide practical justification for performance measurement and management within a collaborative business network. The basic performance measurement indicators are elaborated within the scope of this research.

Design/methodology/approach

Performance measurement techniques are highlighted through the application of an ICT‐based solution approach, with special focus on business collaboration among small and medium sized enterprises (SMEs).

Findings

From the basic need to measure the performance of individual partners within a business network, this research proposes a generic framework and process flow with the objective of evaluating the individual partners in terms of various performance indicators such as key success factors (KSF), key performance factors (KPF) and key performance indicators (KPI). The outcomes from this framework or process flow will help partners in the network to build valuable trust, cooperation and coordination.

Originality/value

The focus of this paper is to demonstrate the methodological approach of measuring the performance through identifying and prioritizing the performance indicators (KSF, KPF, KPI) among collaborative partners and to highlight their importance for successful business operations.

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Book part
Publication date: 20 November 2020

J. E. Yalico, M. B. Ortíz, J. A. Larco, A. Gallegos and C. Antonini

The key performance indicators (KPIs) are frequently used in organizations, and they help to transmit the strategy at all levels of the organization. However, the…

Abstract

The key performance indicators (KPIs) are frequently used in organizations, and they help to transmit the strategy at all levels of the organization. However, the implementation of these indicators in small- and medium-sized companies remains a challenge. Many studies reveal two challenges faced by these firms, the lack of knowledge about the KPIs and the lack of alignment of these with the business strategy. For this reason, this chapter investigated the current level of knowledge about KPIs in managers of small and medium enterprises in the wood and timber sector in Peru.

The level of knowledge was measured using the framework of Bloom's Taxonomy in 21 firms. The use and importance that managers assign to performance indicators were evaluated, in order to identify gaps that exist between the strategy and its use.

The results of a survey study show a high degree of variability in the knowledge of KPI-related concepts as well as an average low level of usage. The importance attributed to KPIs was seen as a necessary but not sufficient condition for attaining higher levels of KPI usage.

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Article
Publication date: 29 June 2012

Peng Peng Xu, Edwin H.W. Chan and Queena K. Qian

Building energy efficiency retrofit (BEER) not only provides excellent opportunities to reduce overall energy consumption of buildings in a city but also encourages…

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5203

Abstract

Purpose

Building energy efficiency retrofit (BEER) not only provides excellent opportunities to reduce overall energy consumption of buildings in a city but also encourages environmental protection, the rational use of resources, and occupants' healthcare, which all contribute towards the sustainability of existing buildings. However, there is a lack of effective performance indicators to measure the sustainability of BEER projects. The aim of this paper is to formulate a list of key performance indicators (KPI) for the sustainability assessment of BEER in hotel buildings.

Design/methodology/approach

First, a literature review and in‐depth interviews with industry experts and academic researchers were conducted, which filtered the performance indicators for assessing sustainability. Second, a questionnaire survey was conducted to collect data from various groups of experts to analyze the significance of the selected performance indicators. Finally, a model based on fuzzy set theory was designed to identify the key performance indicators (KPIs) for the sustainability of BEER.

Findings

Eight KPIs were identified based on fuzzy set theory in this study. They are: quality performance, hotel energy management, cost performance, project profitability, energy consumption and resources saving, health and safety, stakeholder satisfaction, and innovation and improvement.

Practical implications

The KPIs of sustainability of BEER identified for hotel buildings in China in this study can be useful reference for other similar research. However, with the different requirements for building types and building ownerships, the KPIs of sustainability of BEER for different buildings may be variable. The findings in this study may not be directly relevant to other types of building.

Originality/value

Key performance indicators for the sustainability assessment of BEER in hotel buildings in China are identified and analyzed in this study. The KPIs can help decision‐makers to identify an optimal solution between alternatives, which presents the maximum sustainability performance.

Details

Facilities, vol. 30 no. 9/10
Type: Research Article
ISSN: 0263-2772

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Article
Publication date: 8 June 2020

Saoussen Boujelben and Chourouk Boujelben

The purpose of this paper is to examine the effect of the emotional attachment strength of family members to their business on the quality of the voluntary disclosure of…

Abstract

Purpose

The purpose of this paper is to examine the effect of the emotional attachment strength of family members to their business on the quality of the voluntary disclosure of their key performance indicator (KPI). More specifically, the authors focused on the effect of two dimensions of the socio-emotional theory, i.e. “family influence and control” and “firm dynasty succession.”

Design/methodology/approach

The authors performed a content analysis of annual reports for a sample of 87 French families listed in CAC All-Tradable to calculate a disclosure quality index of KPI. The authors proxied the “family influence and control” by the proportion of family members appointed in the board. To identify the “firm dynasty succession” concern, the authors classified firms according to the generation they belonged to. The authors estimated a cross-sectional linear regression model to meet the research objective.

Findings

This study confirms the role of the family affective attachment in decreasing the quality of KPI disclosure in such a way to preserve its socio-emotional wealth. The family firms’ principals who desire to sustain their control on the firm, to perpetuate the business for future generations and to protect their emotional wealth tend to avoid the disclosure of credible and reliable KPI information.

Practical implications

The findings have meaningful practical implications. First, they provide relevant insights into the regulatory bodies of the financial reporting regarding the increasing appeal for making KPI disclosure mandatory. Second, as the family businesses are the most widespread proprietorship in the French context, the effect of the family agenda on the quality of the KPI should be of interest to various policymakers and financial statements’ users of such firms. Third, the results inform nonfamily shareholders regarding the importance of selecting representatives on the board that should share similar interest with regard to KPI disclosure.

Social implications

From a societal perspective, this study is relevant in taking into account the critical role the family businesses have in the French economy. This study should help the minority shareholders to protect their interests and maximize their wealth within the family firm because it sheds light on the influence that family members have on hiding key information on the firm’s real performance.

Originality/value

To the best of the authors’ knowledge, no prior study in the family firms literature has examined the quality of voluntary disclosure of KPI. Although most previous studies merely compared family and nonfamily firms in terms of voluntary disclosure, the authors acknowledge and address the heterogeneity between family firms. The authors contribute to the few prior empirical validations of SEW implication on voluntary disclosure decisions by testing the effect of an additional dimension, which is family dynasty.

Details

Journal of Financial Reporting and Accounting, vol. 18 no. 3
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 27 July 2021

Prabath Chaminda Abeysiriwardana and Udith Krishantha Jayasinghe-Mudalige

Key performance indicators (KPIs) are in use to determine how and the extent to which the business objectives of an organization are achieved. This paper aims to evaluate…

Abstract

Purpose

Key performance indicators (KPIs) are in use to determine how and the extent to which the business objectives of an organization are achieved. This paper aims to evaluate the contribution of a research institute in terms of KPIs to support its process of decision-making towards, etc., innovation, sustainability and improvement.

Design/methodology/approach

In light of this, a systemic review was conducted on a set of relevant scholarly studies to identify the trends which shed light on the possible critical success factors to be effectively used in research institutes in association with the development of commercial agriculture. It examines whether, and if so how KPIs that are highly associated with those critical success factors are disruptive in research culture in an institute with certain organization design to promote research on innovative commercial agriculture.

Findings

The study highlighted some important aspects of commercial agriculture that showed strong links with possible critical success factors that could be used to develop a possible KPI set for a research institute. The salient features in a model performance management system with such KPIs of a research institute having strategical contribution for commercial agriculture are further elaborated.

Originality/value

This manuscript is a conceptual piece that advocates research institutes geared towards commercial agriculture development to begin using KPIs as part of research culture to evaluate their success. The paper suggests that commercial agriculture – perhaps, especially in developing countries – faces many challenges and using KPIs could help diagnose when and why essential processes break down. This study shows possible avenues of KPI use in research institutes that have not been very well discussed or discussed meagerly that have high potential to be integrated into successful KPIs towards innovative commercial agriculture.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

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Article
Publication date: 18 December 2007

Pang‐Lo Liu and Chih‐Hung Tsai

The high‐tech industry is the economic lifeline for Taiwan. Its characteristics are short product life cycle, rapid changes in the market, and a high obsolescence rate for…

Abstract

The high‐tech industry is the economic lifeline for Taiwan. Its characteristics are short product life cycle, rapid changes in the market, and a high obsolescence rate for new products. Under globalization, the high‐tech industry has adopted Information Technology (IT) to shorten the manufacturing process, reduce costs and conduct product research and development (R&D) to increase the core competence of enterprises and achieve the goal of sustainable operations. Enterprises should actively strengthen their integration with internal and external resources and lead in R&D management to increase industrial operating performance. Effectively managing operations and R&D management evaluation in Taiwan’s High‐tech Industry has become a critical subject. This study adopted 4 major Balanced Scorecard (BSC) perspectives to establish the Total Performance Evaluation Indicators for the R&D management department in Taiwan’s High‐tech Industry. The Analytic Network Process (ANP) was applied to evaluate the overall performance of the R&D management department. The research framework is divided into 2 phases. The first phase is combined with the 4 major perspectives, Financial, Customer, Internal Business Process and Learning and Growth, as the related indicators for each measurement perspective. The Key Performance Indicators (KPI) were selected using Factor Analysis to identify the key factor from the complicated indicators. The relationship between the characteristics of each BSC’s evaluation perspective is dependence and feedback. This study applied ANP to conduct the calculation and adjustment of correlation between each KPI, and determine on their relative weights for the objective KPI. The “Financial Perspective” for R&D management department in Taiwan’s High‐tech Industry focused on the budget achievement rate of R&D management. The weight indicator value is (0.05863). The “Customer Perspective” focused on problem‐solving satisfaction. The weight value of this indicator is (0.17549). The “Internal Business Process Perspective” focused on the quantity and quality of R&D. The weight value of this indicator is (0.13506). The “Learning and Growth Perspective” focused on improving competence in the research ersonnel’s professional techniques. The weight value of this indicator is (0.02789). From the total weighting indicators, the order of the Performance Indicators for the R&D management department in Taiwan’s High‐tech Industry is: (1) Customer Perspective; (2) Internal Business Process Perspective; (3) Financial Perspective; and (4) Learning and Growth Perspective.

Details

Asian Journal on Quality, vol. 8 no. 3
Type: Research Article
ISSN: 1598-2688

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Article
Publication date: 6 August 2018

Fei Ying, John Tookey and Jeff Seadon

Construction logistics is an essential part of Construction Supply Chain Management for both project management and cost aspects. The quantum of money that is embodied in…

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1350

Abstract

Purpose

Construction logistics is an essential part of Construction Supply Chain Management for both project management and cost aspects. The quantum of money that is embodied in the transportation of materials to site could be 39–58 per cent of total logistics costs and between 4 and 10 per cent of the product selling price for many firms. However, limited attention has been paid to measure the logistics performance at the operational level in the construction industry. The purpose of this paper is to contribute to the knowledge about managing logistics costs by setting a key performance indicator (KPI) based on the number of vehicle movements to the construction site.

Design/methodology/approach

A case study approach was adopted with on-site observations and interviews. Observations were performed from the start of construction until “hand-over” to the building owner. A selection of construction suppliers and subcontractors involved in the studied project were interviewed.

Findings

Data analysis of vehicle movements suggested that construction transportation costs can be monitored and managed. The identified number of vehicle movements as a KPI offers a significant step towards logistics performance management in construction projects.

Originality/value

This research paper demonstrates that framework of using vehicular movements meet the criterion of effective KPI and is able to detect rooms for improvements. The key findings shed valuable insight for industry practitioners in initiating the measurement and monitor “the invisible logistics costs and performance”. It provides a basis for benchmarking that enables comparison, learning and improvement and thereby continuous enhancement of best practice at the operational level, which may accelerate the slow SCM implementation in the construction industry.

Details

Benchmarking: An International Journal, vol. 25 no. 6
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 6 November 2018

Dawei Lu, Sobhan Asian, Gurdal Ertek and Mete Sevinc

A perception gap refers to the differences in perception among the stakeholders regarding any aspect of the supply chain relationship. The purpose of this paper is to…

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1139

Abstract

Purpose

A perception gap refers to the differences in perception among the stakeholders regarding any aspect of the supply chain relationship. The purpose of this paper is to investigate the perception gap among service supply chain partners relating to the relative importance of key performance indicators (KPIs) and the association of this gap with service performance.

Design/methodology/approach

This paper presents an integrative framework that combines statistical methods and data envelopment analysis for computing perception and performance gaps, and for identifying the association between the gaps. The study follows a middle-range theorizing research approach where general inferences are induced from instances, and a theory can be developed from the observation of empirical reality.

Findings

Analysis of data from a leading global insurance service supply chain suggests that perception gap exists and can be recognised as a factor associated with performance gaps. The results suggest that the perception gap not only affects performance but can also be tracked as a meta-KPI to improve performance throughout the service supply chain.

Practical implications

The key implication of the presented research is that service companies can identify and resolve the differences in perceptions regarding the importance of the KPIs, by methodologically computing the gaps and tracking them as meta-KPIs.

Originality/value

The study extends the theoretical boundary of supply chain performance management by introducing the perception and performance gaps as novel meta-KPIs. These meta-KPIs can be computed through the integrative framework developed in the study.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

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