Strategic Performance Measurement for Sustainable Value in Indonesian Banking
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This study aims to develop a conceptual model of Strategic Performance Measurement System (SPMS) that can improve the value and sustainability of the banking sector in Indonesia. The background of this study stems from the dominance of traditional financial performance measurement systems that do not fully capture the strategic, risk, and compliance dimensions that are unique to the banking industry. The method used is a Systematic Literature Review of 58 relevant international academic articles published between 2005 and 2025, based on the PRISMA guidelines. The literature analysis focuses on the integration of Management Control Systems (MCS) theory (Anthony & Govindarajan, 2007; Merchant & Van der Stede, 2007), Balanced Scorecard (Kaplan & Norton, 1992), and Performance Prism (Neely & Adams, 2001), as well as banking financial performance literature (Panayiotis et al., 2005; Zimmerman, 2009). The results of the study show that an effective SPMS must include a balance between financial and non-financial indicators, as well as placing risk and regulation as additional core perspectives. The proposed model emphasizes the interrelationship between strategic performance, stakeholder contribution, compliance, and value sustainability. This study contributes theoretically through cross-concept integration and practically through the development of a holistic strategic PMS framework relevant to Indonesian banking. In conclusion, an SPMS designed with a holistic approach can strengthen the competitiveness, resilience, and long-term sustainability of banks in an era of regulation and digital transformation.
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