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Measuring the Economic Performance of Small Ruminant Farms Using Balanced Scorecard and Importance-Performance Analysis: A European Case Study

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  • Danilo Gambelli

    (Department of Agricultural, Food and Environmental Sciences (D3A), Università Politecnica delle Marche, via Brecce Bianche, 60131 Ancona, Italy)

  • Francesco Solfanelli

    (Department of Agricultural, Food and Environmental Sciences (D3A), Università Politecnica delle Marche, via Brecce Bianche, 60131 Ancona, Italy)

  • Stefano Orsini

    (Organic Research Centre, Trent Lodge, Stroud Road, Cirencester GL7 6JN, UK)

  • Raffaele Zanoli

    (Department of Agricultural, Food and Environmental Sciences (D3A), Università Politecnica delle Marche, via Brecce Bianche, 60131 Ancona, Italy)

Abstract

Given the increasing complexity of the agro-food sector, the analysis of financial performance alone may not be sufficient to assess the economic sustainability of farmers. This paper presents a practical method to measure the performance of farm businesses by combining the Balanced Scorecard (BSC) theoretical framework and Importance–Performance Analysis (IPA). The proposed model of Business Performance Indicators (BPI) measurement allows identification and validation of the indicators that consistently measure the latent dimension of the BSC framework while allowing identification Buin of the BPI areas where farm businesses need to concentrate their efforts to assure economic sustainability. The method was applied to small ruminant farm businesses across Europe through visits and interviews. The case study application showed that the model could help measure the performance of small farms while allowing detection of the areas of fragility and intervention. The case study results showed that finance and internal business management were the most relevant farmers’ weaknesses, alongside low priority given to innovation. In conclusion, to prevent the potential long-term decline of the sector, the study provided evidence for policy changes to support the farmers’ innovation potential and a higher level of integration in the supply chain.

Suggested Citation

  • Danilo Gambelli & Francesco Solfanelli & Stefano Orsini & Raffaele Zanoli, 2021. "Measuring the Economic Performance of Small Ruminant Farms Using Balanced Scorecard and Importance-Performance Analysis: A European Case Study," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3321-:d:519001
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    2. Toušek, Zdeněk & Hinke, Jana & Malinská, Barbora & Prokop, Martin, . "Shareholder Value Generation within the Agro-Food Financial Supply Chain," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(3).
    3. Concetta Cardillo & Orlando Cimino, 2022. "Small Farms in Italy: What Is Their Impact on the Sustainability of Rural Areas?," Land, MDPI, vol. 11(12), pages 1-25, November.
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    5. Virginia Serrano-Gómez & Oscar García-García & Antonio Rial-Boubeta, 2023. "Using Importance–Performance Analysis (IPA) to Improve Golf Club Management: The Gap between Users and Managers’ Perceptions," Sustainability, MDPI, vol. 15(9), pages 1-12, April.
    6. Vasiliki Papanikolopoulou & Sotiria Vouraki & Stergios Priskas & Alexandros Theodoridis & Socratis Dimitriou & Georgios Arsenos, 2023. "Economic Performance of Dairy Sheep Farms in Less-Favoured Areas of Greece: A Comparative Analysis Based on Flock Size and Farming System," Sustainability, MDPI, vol. 15(2), pages 1-11, January.

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