Performance Measurement Definition

Performance measurement is described as the process of quantifying efficiency and effectiveness of action (Neely et al. 1995) and the process of using measurement information to support managers in decision-making processes and to link strategy to operations (Bititci et al. 2012). Nudurupati et al. (2011) reported that performance management is an organisation-wide shared vision that surrounds performance measurement activity. Marr and Creelman (2011) define performance management as “the execution of the organization mission through the coordinated effort of others”. Performance management has become much more common in government managed organisations in the past few years (Poister 2003) and has become a popular research topic in the field

Hall (2000) argued that today's organisations face pressure to enhance sustainable behaviour from several sources, including regulations, consumers, etc. As noted also by Dey and Cheffi (2012), the pressure from various stakeholders to commit to sustainable practices and performance management results in the rapid increase of the interest in sustainable supply chains and their management on the part of government regulators, NGOs, academics and industrial players. Measurement has been recognized as a crucial element to improve business performance (Sharma et al. 2005). Consequently, there has been a vast of existing literature on designing and implementing performance measurement as well as developing performance measures in supply chains for sustainability (e.g. Gunasekaran et al. 2004; Chan and Qi 2003; Dey and Cheffi

Bhattacharya et al. (2013) identified and tested the green causal relationships between the constructs, i.e. organisational commitment based on a green supply chain performance measurement framework and tested with collaborative decision-making approach using fuzzy analytical network process based on green balance scorecard. Zhu et al. (2007a) revealed that external relationships in green supply chain management may receive less attention than might be expected. Kainumaa and Tawarab (2006) argued that quantitative methods can be useful, when considering the complexity involved in making a supply chain leaner and greener, in assessing the value of specific initiatives to the overall greenness of the supply chain (Zhu et al. 2007b) or in deciding what to do first (Kleindorfer et al. 2005, Orsato