IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i4p1464-d1336188.html
   My bibliography  Save this article

Balanced Scorecard for Circular Economy: A Methodology for Sustainable Organizational Transformation

Author

Listed:
  • Alejandro M. Martín-Gómez

    (Design Engineering Department, Higher Polytechnic School, University of Seville, 41011 Seville, Spain)

  • María Pineda-Ganfornina

    (Design Engineering Department, Higher Polytechnic School, University of Seville, 41011 Seville, Spain)

  • María Jesús Ávila-Gutiérrez

    (Design Engineering Department, Higher Polytechnic School, University of Seville, 41011 Seville, Spain)

  • Alejandro Agote-Garrido

    (Design Engineering Department, Higher Polytechnic School, University of Seville, 41011 Seville, Spain)

  • Juan Ramón Lama-Ruiz

    (Design Engineering Department, Higher Polytechnic School, University of Seville, 41011 Seville, Spain)

Abstract

The integration of circular economy (CE) principles within organizational strategies has become imperative for companies committed to sustainability and resource efficiency. This study explores the adoption of CE principles and the role of the balanced scorecard (BSC) as a facilitative tool. By contextualizing the significance of CE adoption, this paper reviews existing BSC models that incorporate sustainability aspects and evaluates software solutions for BSC implementation. Subsequently, a novel methodological framework was proposed. As a novelty, the strategic analysis included the use of a SWOT analysis. Once the situation was identified, BS 8001:2017 was used to define strategic objectives oriented towards the principles of a CE. Moreover, the proposed objectives were prioritized using the analytic network process tool. After completing the organizational and strategic analyses, the UNE 66175:2003 norm was incorporated to decide on the most appropriate indicators for each objective. Finally, to illustrate the proposed framework, a theoretical detailed case study was developed within the context of an industry specializing in the design and manufacturing of plastic packaging. The developed BSC was implemented using the selected software. This study demonstrated the convenience of establishing a methodology to guide decision making in the development and monitoring of the BSC.

Suggested Citation

  • Alejandro M. Martín-Gómez & María Pineda-Ganfornina & María Jesús Ávila-Gutiérrez & Alejandro Agote-Garrido & Juan Ramón Lama-Ruiz, 2024. "Balanced Scorecard for Circular Economy: A Methodology for Sustainable Organizational Transformation," Sustainability, MDPI, vol. 16(4), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1464-:d:1336188
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/4/1464/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/4/1464/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gavin Lawrie & Ian Cobbold, 2004. "Third‐generation balanced scorecard: evolution of an effective strategic control tool," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 53(7), pages 611-623, October.
    2. Krongthong Heebkhoksung & Wanchai Rattanawong & Varin Vongmanee, 2023. "A New Paradigm of a Sustainability-Balanced Scorecard Model for Sport Tourism," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    3. Isabela Blasi Valduga & Mauricio Andrade De Lima & Brenda Caroline Geraldo Castro & Paulo Guilherme Fuchs & Wellyngton Silva de Amorim & José Baltazar Salgueirinho Osório de Andrade Guerra, 2023. "A Balanced Scorecard Proposal for Gender Equality and Sustainable Development," Sustainability, MDPI, vol. 15(19), pages 1-26, September.
    4. Eirini Stavropoulou & Konstantinos Spinthiropoulos & Konstantina Ragazou & Christos Papademetriou & Ioannis Passas, 2023. "Green Balanced Scorecard: A Tool of Sustainable Information Systems for an Energy Efficient Business," Energies, MDPI, vol. 16(18), pages 1-18, September.
    5. Pedro Nuñez-Cacho & Jaroslaw Górecki & Valentín Molina-Moreno & Francisco A. Corpas-Iglesias, 2018. "What Gets Measured, Gets Done: Development of a Circular Economy Measurement Scale for Building Industry," Sustainability, MDPI, vol. 10(7), pages 1-22, July.
    6. Gupta, Shivam & Chen, Haozhe & Hazen, Benjamin T. & Kaur, Sarabjot & Santibañez Gonzalez, Ernesto D.R., 2019. "Circular economy and big data analytics: A stakeholder perspective," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 466-474.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Cristóbal Hernández-Arzaba & Sarfraz Nazir & Sandra Nelly Leyva-Hernández & Sanar Muhyaddin, 2022. "Stakeholder Pressure Engaged with Circular Economy Principles and Economic and Environmental Performance," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    2. Luca Adami & Marco Schiavon, 2021. "From Circular Economy to Circular Ecology: A Review on the Solution of Environmental Problems through Circular Waste Management Approaches," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    3. María Belén Prados-Peña & Francisco Jesús Gálvez-Sánchez & Pedro Núñez-Cacho & Valentín Molina-Moreno, 2024. "Intention to purchase sustainable craft products: a moderated mediation analysis of the adoption of sustainability in the craft sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 775-797, January.
    4. Daozhi Zhao & Jiaqin Hao & Cejun Cao & Hongshuai Han, 2019. "Evolutionary Game Analysis of Three-Player for Low-Carbon Production Capacity Sharing," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    5. Joanna Rucińska & Anna Komerska & Jerzy Kwiatkowski, 2020. "Preliminary Study on the GWP Benchmark of Office Buildings in Poland Using the LCA Approach," Energies, MDPI, vol. 13(13), pages 1-18, June.
    6. repec:ehu:cuader:55443 is not listed on IDEAS
    7. Surajit Bag & Muhammad Sabbir Rahman, 2024. "Navigating circular economy: Unleashing the potential of political and supply chain analytics skills among top supply chain executives for environmental orientation, regenerative supply chain practice," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 504-528, February.
    8. Kajikawa, Yuya & Mejia, Cristian & Wu, Mengjia & Zhang, Yi, 2022. "Academic landscape of Technological Forecasting and Social Change through citation network and topic analyses," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    9. Muhammad Noman Shafique & Umar Adeel & Ammar Rashid, 2024. "The Synergy Between Industry 5.0 and Circular Economy for Sustainable Performance in the Chinese Manufacturing Industry," Sustainability, MDPI, vol. 16(22), pages 1-17, November.
    10. Fabio De Felice & Antonella Petrillo, 2021. "Green Transition: The Frontier of the Digicircular Economy Evidenced from a Systematic Literature Review," Sustainability, MDPI, vol. 13(19), pages 1-26, October.
    11. Yasanur Kayikci & Yigit Kazancoglu & Nazlican Gozacan‐Chase & Cisem Lafci, 2022. "Analyzing the drivers of smart sustainable circular supply chain for sustainable development goals through stakeholder theory," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3335-3353, November.
    12. Qinglan Liu & Adriana Hofmann Trevisan & Miying Yang & Janaina Mascarenhas, 2022. "A framework of digital technologies for the circular economy: Digital functions and mechanisms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2171-2192, July.
    13. Pedro Núñez-Cacho & Juan Carlos Leyva-Díaz & Jorge Sánchez-Molina & Rody Van der Gun, 2020. "Plastics and sustainable purchase decisions in a circular economy: The case of Dutch food industry," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-16, September.
    14. Elena Aurelia Botezat & Anca Otilia Dodescu & Sebastian Văduva & Silvia Liana Fotea, 2018. "An Exploration of Circular Economy Practices and Performance Among Romanian Producers," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    15. Gupta, Shivam & Justy, Théo & Kamboj, Shampy & Kumar, Ajay & Kristoffersen, Eivind, 2021. "Big data and firm marketing performance: Findings from knowledge-based view," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    16. Aschemann-Witzel, Jessica & Stangherlin, Isadora Do Carmo, 2021. "Upcycled by-product use in agri-food systems from a consumer perspective: A review of what we know, and what is missing," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    17. Mohammad Mousa Mousa & Heyam Abdulrahman Al Moosa & Issam Naim Ayyash & Fandi Omeish & Imed Zaiem & Thamer Alzahrani & Samiha Mjahed Hammami & Ahmad M. Zamil, 2025. "Big Data Analytics as a Driver for Sustainable Performance: The Role of Green Supply Chain Management in Advancing Circular Economy in Saudi Arabian Pharmaceutical Companies," Sustainability, MDPI, vol. 17(14), pages 1-24, July.
    18. Muhammad Ikram, 2021. "Models for Predicting Non-Renewable Energy Competing with Renewable Source for Sustainable Energy Development: Case of Asia and Oceania Region," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 133-160, December.
    19. Roope Husgafvel & Daishi Sakaguchi, 2021. "Circular Economy Development in the Construction Sector in Japan," World, MDPI, vol. 3(1), pages 1-26, December.
    20. Leonora Charlotte Malabi Eberhardt & Anne van Stijn & Freja Nygaard Rasmussen & Morten Birkved & Harpa Birgisdottir, 2020. "Development of a Life Cycle Assessment Allocation Approach for Circular Economy in the Built Environment," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    21. Bag, Surajit & Sabbir Rahman, Muhammad & Choi, Tsan-Ming & Srivastava, Gautam & Kilbourn, Peter & Pisa, Noleen, 2023. "How COVID-19 pandemic has shaped buyer-supplier relationships in engineering companies with ethical perception considerations: A multi-methodological study," Journal of Business Research, Elsevier, vol. 158(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1464-:d:1336188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.