Research Supply Chain Performance Evaluation Based on Creating
Shared Value Strategy
Wenlei Shi and Yanfang Niu
School of Accountancy, Shandong University of Finance and Economics, Jinan 250014, China
Keywords: Create Shared Value, Strategic Performance Evaluation, Balanced Scorecard, DEMATEL, ANP.
Abstract: Creating shared value strategic thinking that can be applied in many fields. How to promote the supply chain
management? Companies need to recognize the limited development in logistics, suppliers, distribution
channels, training, etc. Aiming at the strategic choice, performance evaluation and performance improvement
issues of creating shared value, based on the improved BSC and the fuzzy comprehensive evaluation model
integrating DEMATEL and ANP, the paper carried out the evaluation research on supply chain strategic
performance. Firstly, this research analyzes the feasibility of the supply chain and created a shared value
development strategy; secondly, based on the traditional BSC framework combined with the connotation of
the shared value creation strategy, a six-dimensional performance evaluation framework is proposed to
evaluate the performance of the strategy implementation, and then a performance evaluation system for the
implementation of the strategy is established. And integrate DEMATEL and ANP methods to establish a
performance evaluation model, perform fuzzy comprehensive evaluation to obtain comprehensive weights to
achieve an accurate evaluation of the strategic implementation performance system. Practical results show
that the comprehensive performance evaluation model is novel and effective. It can evaluate the performance
creating shared value strategies, thereby improving the effectiveness and scientificity of decision-making, and
meets the needs of performance improvement for companies creating shared value.
1 INTRODUCTION
The creation of shared value is proposed by Porter
and Kramer and defined as policies and operational
practices that improve the competitiveness of the
company, while promoting the economic and social
conditions of the community where it is located.
Creating shared value is an organization’s strategic
goal or a new method of value creation, which is to
expand value The new method of total volume
guarantees the competitiveness of network
organizations (Porter & Kramer 2011). In practice,
Google, IBM, Intel, Johnson & Johnson, Nestl,
Unilever, and Wal-Mart have begun to implement
shared value plans to bring greater innovation and
growth to enterprises and bring greater benefits to
society. At the Create Shared Value Summit in 2011,
“measurement” was also identified as the key driving
force for the adoption of shared value. Porter M, Hills
G, Pfitzer M, et al (Porter, Hills, Pfitzer, et al. 2012)
pointed out that if companies do not measure their
progress in social goals, what’s more important is the
extent to which social performance improves the
economic value of enterprises, and enterprises cannot
know the extent to which they create shared value.
The new framework that focuses on the interaction
between business and social results is one of the most
important tools for driving shared value in practice.
There is no universal system that can evaluate the
existence of this role, but even those who are most in
the pursuit of shared value Advanced companies also
lack the data needed to optimize their results
(Spitzeck, Chapman 2013). Although people are
beginning to accept the concept of shared value, the
tools to put this concept into practice are still in its
infancy (Moretti 2017). Therefore, how to construct a
measurement system to create shared value and use
scientific methods to measure has important
theoretical and practical significance for the
promotion and application of the strategy of creating
shared value.
The strategy implementation performance
evaluation framework plays a core role in strategic
management. Currently, there are two main methods
applied to strategy implementation performance: key
performance indicator method and balanced
790
Shi, W. and Niu, Y.
Research Supply Chain Performance Evaluation Based on Creating Shared Value Strategy.
DOI: 10.5220/0011767800003607
In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology (ICPDI 2022), pages 790-795
ISBN: 978-989-758-620-0
Copyright
c
2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
scorecard method. Among them, the balanced
scorecard has a significant impact on performance
evaluation. Harvard Business Review is rated as the
most influential and comprehensive strategic
management tool in modern times. Praveen Gupta
(Gupta 2007) organically combined the Sigma
principle and BSC to create a Six Sigma scorecard
based on continuous process improvement. The ANP
method developed by Saaty can solve problems
involving quantitative and qualitative standards and
considering the interdependence and feedback
between standards. Therefore, ANP is a useful
method to solve the problems mentioned in this
article. However, when applying the ANP method, on
the one hand, you need to clarify the relationship
between the factors. At this time, if there are many
influencing factors, you also need to consider the
simplification of the relationship to avoid the
exponential disaster of pairwise judgment in ANP; on
the other hand, use The method of obtaining the ANP
super matrix by average weighting is unreasonable,
which results in different element groups being given
the same weight (Erol, Sencer, Sari 2011). Therefore,
a new evaluation method is proposed by integrating
DEMATEL and ANP methods, and it has been widely
used.
Therefore, this article takes the creation of shared
value as the supply chain strategy, based on the BSC
theoretical framework, summarizes the shortcomings
of BSC in the research on the creation of shared value
strategy, improves the BSC performance evaluation
framework, systematically establishes a supply chain
strategy implementation performance evaluation
system, and Use the integrated DEMATEL and ANP
model for evaluation to make it more accurate to
evaluate the strategic implementation performance of
the supply chain and improve the strategic
implementation performance.
2 DESIGN OF PERFORMANCE
EVALUATION MODEL FOR
CREATING SHARED VALUE
STRATEGY
Porter and Kramer proposed the concept of creating
shared value (Porter & Kramer 2011), which is to
increase the total economic value through the creation
of social value and environmental value, similar to
the triple bottom line model (Elkington 1997).
Juscius and Jonikas (Juscius, Jonikas 2013) believe
that shared value creation includes the economic
benefits of the enterprise, better product quality, the
establishment of organizational culture and the
development of globalization. Spitzeck and Chapman
(Spitzeck, Chapman 2013) used socio-ecological
efficiency analysis to evaluate the triple bottom line
indicators of a particular product life cycle to
determine whether the company's strategy can be
regarded as a case of shared value creation. In
summary, the strategy of creating shared value is a
strategy to increase the total economic value through
the interaction between social value and
environmental value constituent elements. Therefore,
creating shared value is not only a social
responsibility, but also a new strategic goal or a new
way of value creation. The creation of shared value
can be used as an enterprise's development strategy,
as shown in Fig 1.
Supply chain from creating shared value strategy
to performance creation is mainly reflected in the
economic, social and environmental performance
obtained by stakeholders. Economic value
performance includes cost reduction, profit increase,
etc.; social value performance includes improving
corporate reputation and corporate reputation,
Economic
value
Social value
Environmental value
Create shared value
Environmental
performance
Economic performance
Social performance
Figure 1: The performance evaluation model of creating shared value strategy.
Research Supply Chain Performance Evaluation Based on Creating Shared Value Strategy
791
Economics value
Innovation and learning
Environmental
Social
Customer
Internal
operation
Create
shared
value
BSC
Figure 2: Relationship between six dimensions.
etc.; environmental value performance includes
reducing environmental pollution from corporate
activities, improving ecological environment quality,
and achieving the sustainability of the company and
society Sexual development.
The strategy of creating shared value is a complex
network composed of many related dimensions.
Therefore, the establishment of a performance
evaluation index system is a systematic work. The
evaluation index needs to be comprehensive,
objective and effective to reflect the logical
relationship of creating economic value and the
performance of creating shared value. Impact. Reefke
H, Trocchi M (Reefke, Trocchi 2016) believes that
the creation of shared value is sustainability,
corporate social responsibility and strategic
philanthropy are all supplements to common values,
not something different. In this context, the overall
goal of the strategy of creating shared value is to
increase the total amount of economic value, which
reflects the market attributes of the enterprise.
Therefore, the traditional BSC performance
evaluation framework is an appropriate method to
transform strategic goals and policies into evaluable
ones. Indicators, to realize the performance
measurement of the strategy of creating shared value;
on the other hand, creating shared value is to consider
finding new economic value growth points from
social and environmental factors, in order to reveal
the important role of social and environmental
dimensions in the strategy of creating shared value.
In-depth exploration of the mechanism of society and
the environment in promoting the increase of the total
economic value, so it is necessary to improve the
traditional BSC structure. On the basis of retaining
the original four dimensions of BSC, add "social
dimension" and "environmental dimension", and The
"financial dimension" is revised to the "economic
value dimension" to be more suitable for the
connotation of the enterprise to create shared value,
and the improved BSC is named the six-dimensional
balanced scorecard to more comprehensively
evaluate the implementation performance of the
enterprise's strategy of creating shared value, such as
in Figure 2.
The six dimensions are generally driven and
driven to form a value creation management system.
The six dimensions interact and support each other.
At the same time, the goals of the six dimensions are
centered on the overall strategy of creating economic
value. The indicators of each dimension directly or
indirectly serve the supply chain strategy. From the
perspective of influence trends, the environmental
and social dimensions are generally external
influencing factors, which tend to affect customers
and internal operation dimensions. The five
dimensions generally affect the economic value
dimension, which is also in line with the balanced
scorecard’s strategy as the core and focus on The
"balance" between the various dimensions and
performance drivers are mainly for maximizing the
benefits of the corporate strategy. At the same time,
there is a certain causal relationship between the six
dimensions, which will be mainly reflected in the
selection of the evaluation model later, and the
performance of the strategy of creating shared value
will be created by scientific evaluation.
3 CONSTRUCTION OF
PERFORMANCE EVALUATION
INDEX SYSTEM FOR
STRATEGY
IMPLEMENTATION
The strategic map is an extension of the BSC theory,
which can help the supply chain clarify the strategy
ICPDI 2022 - International Conference on Public Management, Digital Economy and Internet Technology
792
of creating shared value and strengthen the internal
communication of the enterprise. At the same time,
the strategy map adds two levels on the basis of the
BSC dimension: granular level: that is, each
dimension is composed of multiple elements;
dynamic level: that is, the strategy map is
dynamically changing. The strategy map is a measure
and countermeasure that decomposes the company's
strategy into corresponding levels, and lays the
foundation for the design of the balanced scorecard
indicator system. In practice, a preliminary strategic
map can be given based on research analysis and
expert decision-making.
Creating shared value as the overall strategic goal
(mainly economic value), using the six-dimensional
BSC performance evaluation framework,
decomposing multiple lower-level indicators under
their respective dimensions, and taking the most
representative evaluation indicators as examples.
According to the quantitative and qualitative
indicators of the above pre-selected performance
evaluation, then the supply chain strategic
management experts are investigated. The
interviewed experts are required to fill in the
corresponding indicators on the supply chain The
degree of importance of the performance evaluation
for creating shared value (1 represents extremely
unimportant, 7 represents extremely important).
According to the experts' statistics on the response to
the questionnaire, six dimensions of key performance
indicators (the average score can be set to 5 or more)
are obtained. The results of the selected indicators are
shown in Figure 3.
While following the logic and framework of BSC,
it also refers to several typical indicators of Erol et al
(Erol, Sencer, Sari 2011) to match specific indicators
with the connotation of the strategy of creating shared
value. BSC supports the connection between metrics,
goals, and strategies to integrate and reflect the
realization of corporate strategy. The key
performance indicators are arranged according to the
six-dimensional BSC framework. Some indicators
may only be observed at the specific company level,
but they still reflect the impact on the strategy of
creating shared value. For example, the annual water
consumption, annual energy consumption and waste
minimization in the "environmental dimension" are
applicable to individual companies' strategies for
creating shared value. There are similar conclusions
for various social or economic value indicators.
4 FUZZY COMPREHENSIVE
EVALUATION MODEL
INTEGRATING DEMATEL
AND ANP
The integration of DEMATEL and ANP methods
streamlined the indicators in ANP, and obtained a lot
of valuable information by calculating the reason set
and result set. At the same time, considering the
weighting problem of the ANP supermatrix, the
comprehensive influence matrix of DEMATEL can
be used as the weight matrix of the ANP unweighted
supermatrix to correct the deficiency of the average
weight when calculating the weighted supermatrix by
ANP. At the same time, the fuzzy comprehensive
evaluation is used. Method for the integration of
information.
Firstly, it is to identify whether the supply chain
implements the strategy of creating shared value, and
then conduct a questionnaire survey on the factors
that may affect the performance of the supply chain.
The survey scope includes leaders, technical experts
and employees at all levels of the company. After
statistical analysis of the results of the questionnaire,
combined with the actual situation of the supply chain,
based on the six-dimensional BSC framework
proposed above as the indicator dimension, 24
representative key performance indicators were
selected, and the selected supply chain was
comprehensively evaluated in multiple dimensions.
As shown in Fig. 3.
5 CONCLUSIONS AND
PROSPECTS
The purpose of this research is to create, implement
and evaluate performance for the design and
development of strategies for creating shared value.
It will promote the development of shared value
creation to performance evaluation methods. In order
to achieve these goals, this article reviews the
concepts, models, frameworks and methods related to
the fields of creating shared value strategy, BSC, and
performance evaluation. Finally, in the process of
summarizing the research challenges, a performance
evaluation system development process aimed at
creating shared value strategies for the supply chain
was proposed and explained. At the same time, a
supply chain performance evaluation model with
interrelated factors, considering the creation of shared
value and a performance management framework is
Research Supply Chain Performance Evaluation Based on Creating Shared Value Strategy
793
Supply chain creation shared value strategy
implementation performance
Economic
value
dimension
Customer
dimension
Internal
operation
dimension
Innovation and
learning
dimension
Environmental
dimension
Social
dimension
Social and
environmental
cost savings
(F1)
Lower labor
cost (F2)
New product
development
cost savings
(F3)
Market share
share (F4)
Profit
(increased
income) (F5)
Product quality
(C1)
Customer
satisfaction
(C2)
Effective
monitoring
method (P1)
Human
Resource
Management
(P2)
Increase
productivity
(P3)
Effective
resource
planning
(I&L1)
Difficulty in
copying
(I&L2)
Incentive
Management
(I&L3)
Improvement
of leadership,
team ability,
and
comprehensive
staff ability
(I&L4)
Reduce waste
(E1)
Reduce
emissions (E2)
Better working
conditions
(E3)
Environmental
Management
(E4)
Social Security
(S1)
Good
corporate
reputation (S2)
Employees'
working
conditions (S3)
Local and
national
communities
(S4)
Emergency
treatment
benefits (S5)
Stakeholder
rights
protection (S6)
Figure 3: The ANP model of the performance evaluation of the strategy of creating shared value.
proposed, and implemented by the integration of
DEMATEL and ANP methods. The novelty of this
method is that the performance evaluation attribute is
the use of The widely recognized elements and model
methods of the balanced scorecard have also been
theoretically proven and tested in practice. Therefore,
the performance evaluation of the supply chain to
create shared value is scientific, and the
interdependence and feedback relationship between
them are considered at the same time.
(1) Improve the structure of the traditional
balanced scorecard and build a performance
evaluation system for the implementation of the
supply chain creation and shared value strategy. On
the basis of the traditional balanced scorecard,
combined with the characteristics of the strategy of
creating shared value, by improving the structure of
the traditional balanced scorecard, a performance
evaluation system in line with the implementation of
the strategy of creating shared value is established.
(2) The scientific and systematic evaluation of
corporate strategy implementation performance takes
into account the interaction between evaluation
dimensions and evaluation indicators and between
the two. In the existing applications, there is a lack of
consideration of the above interaction relationship,
and the selected quantitative method cannot match it.
(3) Help the supply chain improve the
performance of strategy implementation. The
purpose of strategic implementation and performance
management is not only to determine and evaluate the
strategy, but to better implement the management of
the strategy to improve performance. Through the
evaluation method of this article, we can identify the
key driving factors of strategy implementation
performance, so as to better carry out strategic
management and improve strategy implementation
performance.
The method and research framework proposed are
applicable to all types of supply chains that create
shared value as a strategy. At the same time,
performance factors need to be selected according to
the specific supply chain conditions and specific
industries analyzed, and the standards for creating
shared value need to be further adjusted. At the same
time, there are also issues that need further research.
For example, this article does not fully analyze the
supply chain performance of companies creating
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794
shared value based on financial reports. Therefore, in
future research, a third type of indicators can be
established to supplement and improve the evaluation
system. Integrate the strategy of creating shared value
with performance appraisal management, and use
objective key indicators of performance appraisal to
measure and realize the traceability between the
creation of shared value and the performance
framework. The lack of data support in the research,
future research can use a combination of qualitative
and quantitative methods to improve the objectivity
of the evaluation.
ACKNOWLEDGMENT
Authors also acknowledge the support from the
National Social Science Foundation (Grant No.
20BJY033), 2020 Academic cooperation and
collaborative education project "Construction of
Intelligent Accounting Professional Xindao
Intelligent Virtual Simulation Experimental Base".
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