Keywords: causal relations, knowledge, learning, performance measurement systems, strategy fulfilment, error correction models, Ydria Motors, semi products, household appliances, Slovenia, ebm–papst Group, electric motors, electric fans, ebmpapst, Germany, competency centres, prototypes, new products, manufacturing machines, sustainable strategies, management models, quantitative approaches, qualitatively identificated indicators, key performance indicators, strategic directions, performance management, strategic objectives, strategy monitoring, sustainability, sustainable development, sustainable economy
Managing sustainability with the error correction model
The aim of our paper is to represent the intermediate research results of the case study of the Ydria Motors LL Company which produces semi products for household appliances. The company is a part of the ebmpapst international group and is opting for the ambitious goal of becoming the competency centre. For that reason focuses on the prototypes of new products and manufacturing machines according to chosen sustainable strategy. Within our survey, we have closely examined the development of a management model with the use of the error correction model approach. Our major conclusion is that quantitative approach should support the benefit of the qualitatively identificated key performance indicators and their influence on the fulfilment of the strategic directions. Developed model also supports improvements of performance management system, monitoring of implemented sustainable strategy and achievement of strategic objectives.