Tailoring sustainability indicators to small and medium enterprises for measuring industrial sustainability performance

Abstract

Purpose The lack of suitable indicators tailored to manufacturing industries’ needs, particularly to small and medium enterprises (SMEs), has been the major challenge to measure and manage industrial sustainability performance. This paper aims to empirically analyze and select the useful and applicable indicators to measure sustainability performance in the context of SMEs. Design/methodology/approach A systematic review was carried out to identify potential sustainability indicators from the literature. A questionnaire was designed based on the identified indicators and then pretested with the selected industrial experts, scholars, and researchers to further refine the indicators before data collection from the Italian footwear SMEs. Fuzzy Delphi method with consistency aggregation method was applied to analyze and select the final indicators. Findings The study’s findings show that the selected indicators emphasized measuring progress toward achieving industrial sustainability goals in terms of increasing financial benefits, reducing costs, improving market competitiveness, improving the effectiveness of resources utilization, and promoting the well-being of employees, customers and the community. In doing so, Italian footwear SMEs can contribute to achieving the Sustainable Development Goals (SDGs) by promoting health and well-being, promoting sustainable economic growth, providing productive employment and decent work, and ensuring responsible consumption and production. Social implications The results of this study have significant social implications in terms of promoting the well-being of employees, customers, and the community. Originality/value By providing empirically supported indicators tailored to measure and manage sustainability performance in the context of SMEs, this paper contributes to the existing knowledge in the field of industrial sustainability performance measurement. Furthermore, it links the selected indicators to their respective SDGs to provide policy implications.