A comprehensive Dynamic Balanced Scorecard approach for the Blue Economy

Abstract

The Balanced Scorecard (BSC) is a strategic management tool that organizes a series of key indicators under four fundamental perspectives: Finance, Customer, Internal Processes, and Learning and Growth. One of the main advantages of the BSC for strategic management is its ability to identify and establish cause-and-effect relationships between the results obtained in each of these perspectives. However, recent studies have highlighted the inherent difficulties in identifying appropriate indicators that can effectively assess dynamic performance, i.e., long-term, especially in sectors such as the Blue Economy (BE), where performance evaluation presents specific and unique challenges.

This study focuses on validating a Dynamic Balanced Scorecard (DBSC) for the BE, a strategy aimed at fostering the sustainable development of marine and coastal resources. Using BE indicators established by the European Commission, we have designed a DBSC that enables the assessment and monitoring of economic activities in this field. The validation of the DBSC is carried out through the Dynamic Network Data Envelopment Analysis (DNDEA) model, a technique that assesses the relative efficiency of decision-making units in a complex system, allowing for multi-period analysis and considering the interrelationships between indicators. Additionally, Principal Component Analysis (PCA) was employed to simplify complex datasets and highlight the most critical components driving performance across the DBSC perspectives.

The results demonstrate that the validated DBSC is an effective tool for guiding policies and strategic decisions in the BE. Specifically, the analysis identified distinct areas for improvement across European countries, such as enhancing Internal Processes and Finance while highlighting strengths like Learning and Growth. This framework facilitates targeted interventions and promotes more sustainable practices by providing a multi-dimensional performance assessment. Furthermore, this analytical framework can be adapted and applied in other regions and contexts, contributing to the global advancement of the BE.