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Economic Accountability in the Context of Local Governance in the Philippines: A Structural Equation Modelling Approach

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  • Roxas
  • Val Lindsay
  • Nicholas Ashill
  • Antong Victorio

Abstract

This study posits that by virtue of the enabling role of local governments, the economic development of their locality must be at the core of their public accountability, which is referred to here as "economic accountability". Grounded on this idea of accountability, along with enabling theory and institutional theory, the study presents empirical evidence supportive of the argument that the enabling role of local governments, as manifested in a capacity to establish or adhere to formal institutional arrangements, has a direct impact on the entrepreneurial strategic posture and performance of local small and medium enterprises (SMEs) which are key players in local economic development.The results of the structural equation modelling support the view that institutional arrangements as manifestations of the enabling role of city governments are positively associated with an entrepreneurial strategic posture of local firms, which consequently improves the firms' overall economic performance. Therefore, SME development in particular, and local economic development in general, should be part of the economic accountability of local governments in the Philippine context of local governance.

Suggested Citation

  • Roxas & Val Lindsay & Nicholas Ashill & Antong Victorio, 2009. "Economic Accountability in the Context of Local Governance in the Philippines: A Structural Equation Modelling Approach," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 31(1), pages 17-37, June.
    • Handle: RePEc:taf:rapaxx:v:31:y:2009:i:1:p:17-37
    DOI: 10.1080/23276665.2009.10779354
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    References listed on IDEAS

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    1. Largo, Francisco M. & Sumulong, Lea & Magdaluyo, Raymund E & Tecson, Karen G. & Batac, Maria Victoria H. & Geniza, Anabel T. & Abasar, Mario V. & Reyes, Jason & Yuson-Pepito, Rusela, 2001. "An Inquiry into the Competitiveness of Emerging Philippine Cities," Research Paper Series RPS 2001-01, Philippine Institute for Development Studies.
    2. Paul, Samuel, 1998. "Making voice work : the report card on Banglalore's public service," Policy Research Working Paper Series 1921, The World Bank.
    3. Deichmann, Uwe & Lall, Somik V., 2003. "Are you satisfied? citizen feedback and delivery of urban services," Policy Research Working Paper Series 3070, The World Bank.
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    Cited by:

    1. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    2. Banjo Roxas & Val Lindsay, 2012. "Social Desirability Bias in Survey Research on Sustainable Development in Small Firms: an Exploratory Analysis of Survey Mode Effect," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 223-235, May.
    3. Mai, Nhat Chi, 2021. "Determinants of successful adoption of the Balanced Scorecard in Vietnamese small and medium-sized enterprises," OSF Preprints 5hx2r, Center for Open Science.

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