A conceptual framework for a value-based sustainability balanced scorecard

What is it about?

Sustainability balanced scorecard (SBSC) is a management system that can translate strategy into the company's operations. However, based on previous research, a gap states that using SBSC gives birth to many performance indicators. Therefore, we need a framework that can formulate performance indicators to be more proportional to using company resources. For this reason, this research proposes a value framework adopted from six business process values. These six values ​​are efficiency, quality, agility, integration, compliance, and networking. This study aims to prove that these six values ​​can be used as SBSC values. So that will be obtained A Conceptual Framework for a Value-Based Sustainability Balanced Scorecard. The methodology explored three state-owned plantation enterprise in Indonesia and analyzed data using qualitative research coding. The result shows that there are 11 criteria for efficiency, 11 for quality, seven for agility, 12 for compliance, eight for integration, and nine for networking. These criteria have a 100% validation level where the value criteria are found in each company. The performance indicator criteria have been assessed based on the level of relevance test from managers who say that it is almost 100% important and very important. The criteria that have been grouped against these values ​​have proven that the six values ​​can be used to direct managers in formulating company performance indicators so that the established performance indicators are expected to allocate resources proportionally.

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Why is it important?

This research is important because it addresses a major limitation of the Sustainability Balanced Scorecard (SBSC), namely the tendency to generate an excessive number of performance indicators that are difficult to manage effectively. By introducing a value-based framework derived from six core business process values—efficiency, quality, agility, integration, compliance, and networking—this study provides a practical approach to help managers formulate more proportional and resource-efficient indicators. The findings contribute not only to refining SBSC theory but also to offering actionable tools for enterprises, particularly state-owned plantation companies, to align sustainability goals with operational realities.

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