On Selection of Sustainable Production Indicators for Technology-Intensive Manufacturing SMEs

Although literature recognises the need to involve small and medium-sized enterprises (SMEs) in the work towards sustainable development, few guidelines are targeted at SMEs for this purpose. Performance Indicators (PIs) offer valuable guidance in sustainable technology innovation as they allow for prediction and decision making based on facts, provide focus and alignment, enhance monitoring and communication on progress towards established goals, promote organizational learning, and enhance empowerment of employees and stakeholders. However, most SMEs do not utilize the potential of PIs in creating more sustainable products and services. Based on the hypothesis that this is partly due to lacking guidelines targeted at SMEs, this paper discusses general recommendations for sustainable PI development and management in manufacturing SMEs. Some of the more common initiatives for sustainability reporting and indicator development are then reviewed in order to verify their applicability to manufacturing SMEs. It is concluded that the reviewed frameworks provide a valuable baseline for selection of sustainable PIs. However, to provide value to a business they all need a great deal of customization to the specific conditions of the company.