Sustainability Performance Management Framework for Circular Economy Implementation in State-Owned Plantation Enterprises

Erlin Trisyulianti, Budhi Prihartono, Made Andriani and Kadarsah Suryadi
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Erlin Trisyulianti: Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132, Indonesia
Budhi Prihartono: Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132, Indonesia
Made Andriani: Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132, Indonesia
Kadarsah Suryadi: Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132, Indonesia

Sustainability, 2022, vol. 14, issue 1, 1-21

Abstract: The circular economy concept needs to be part of the performance management system so that it is in line with a company’s vision and mission. Thus, the circular economy will play an important role at the operational level of companies. The circular economy needs to be internalized, starting by formulating the company’s vision and mission, establishing strategic objectives and performance indicators, and creating resource allocation policies. This research aims to design a sustainable performance management system in the context of a circular economy for state-owned plantation enterprises (SOPEs). This study used a qualitative research coding method that was validated in three SOPEs in Indonesia. Validation was performed by comparing the framework based on the conceptual formulation with the data and information obtained during field assessment. Primary data came from interviews with 15 managers, while secondary data came from official company documents. The research results show that the initial framework that was built is in accordance with the results of the exploration of the circular economy strategic objectives in the three SOPEs. The results of the 100 percent validation and perception test of managers on the range of values are important. Therefore, the proposed framework can be used in SOPE.

Keywords: circular economy; sustainability performance management; sustainability balanced scorecard; state-owned plantation enterprise (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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