Designing a three-dimensional performance measurement system (SMD3D) for the wine industry: A Chilean example

• Published in: Agricultural systems Vol. 142; pp. 112 - 121
• Main Authors: Valenzuela, Lionel, Maturana, Sergio
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-02-2016
• Subjects: Inter-organizational Performance Measurement Systems; Strategic Performance Measurement Systems; Sustainability; Wineries; Wineries; Strategic Performance Measurement Systems; Inter-organizational Performance Measurement Systems; Sustainability
• ISSN: 0308-521X; 1873-2267
• DOI: 10.1016/j.agsy.2015.11.011

Sustainability is a growing concern for companies in the agro-industrial sector, in particular in the wine industry, where Chile is a major player and where performance measurement plays a pivotal role. To address a void in the literature regarding strategic performance measurement in said industry, a three-dimensional performance measurement system (SMD3D) is proposed as a strategic performance measurement system (SPMS). SMD3D encompasses three key dimensions: sustainable, temporal, and spatial. Our research results are supported by 50 surveyed companies with in-depth interviews conducted to managers of such companies. Interestingly, the survey shows that 78% of the companies formally define a strategic plan; only 14% of the total survey sample has the Balanced Scorecard, and 43% of the cases actually use it. In light of this it is found that the current conditions of the wine industry in Chile favor the implementation of such a system, which would enable agricultural enterprises, such as wineries, to address and strategically manage these three important dimensions. Finally, the SMD3D system is compared with various other performance management systems especially developed for the agriculture industry.
•Sustainability is an ever more important core competence for companies in the agro-industrial sector.•The Chilean wine industry, faces a growing set of challenges that call for new strategic management actions.•A new strategic performance measurement system (SPMS) is proposed which encompasses three dimensions.•This SPMS could measure both sustainability performance as well as the performance of the supply chain management.•Results are promising and conditions are ripe for the introduction of the new SPMS in the industry.