Measurement systems alone won't drive sustainability gains, study finds
Installing sophisticated performance metrics isn't enough to improve corporate sustainability—companies must actually use those systems to inform decisions and drive action. A survey of 207 small and medium-sized firms shows that sustainability performance depends on developing a genuine organizational commitment to sustainability goals, not just better tracking.
Originaltitel: Linking PMS sophistication to sustainability performance: the mediating role of sustainability orientation
**Mätetal-brist kräver omprioriteringar i hållbarhetsarbetet** Små och medelstora företag som investerar i sofistikerade resultatmätningssystem (PMS) når högre hållbarhetsprestation — men endast om investeringen kombineras med tydlig hållbarhetsriktning. En studie av 207 företag visar att PMS-sofistikering och hållbarhetsprestation inte är direkt kopplade; orienteringen mot hållbarhet fungerar som förmedlare. Resultatet förutsätter att måttsystemen inte är self-fullfilling. En välutvecklad rapportering och datainsamling löser inte hållbarhetsutmaningarna utan tjänar närmast som grund för styrda beslut och konkreta åtgärder. Utan denna målmedvetenhet förblir investeringen i mätsystem ineffektiv. För CFO:er och strategiska analytiker innebär det: renovera måttsystemen parallellt med omställningen av ledningsprioriteter. LAB University of Applied Sciences i Finland genomförde studien.
Purpose The purpose of this study is to focus on the relationships among the sophistication level of performance measurement systems (PMSs), sustainability orientation and sustainability performance. Design/methodology/approach Data from 207 small- and medium-sized enterprises (SMEs) across distinct industries were collected using a structured survey questionnaire. Findings The results of this study show that a higher level of PMS sophistication is positively related to sustainability orientation, which in turn affects sustainability performance. Thus, this study provides evidence that an orientation toward sustainability mediates the connection between PMS sophistication level and sustainability performance. This finding of this study suggests that PMS sophistication alone is insufficient. Sustainability benefits are more likely when PMSs are substantively used to inform decisions and trigger concrete actions. Originality/value While an orientation toward sustainability has been encouraged in prior research, comparatively limited research has focused on PMS sophistication level that underlies the execution of target-oriented activities and, hence, provides the potential for sustainability. The results of the current study enrich the understanding of managerial means (i.e. PMSs) and the implications underlying the enhancement of SMEs’ sustainability orientations.