AbstractIn this project, we study the use of performance measurement systems in the public sector. We hypothesize that the way in which these systems are being used depends on the characteristics of the activities -particularly on contractibility, which is a broad construct encompassing clarity of goals, the ability to select undistorted performance metrics, and the degree to which managers know and control the transformation process. We expect that public sector organizations that use their performance measurement systems in ways that match the characteristics of their activities outperform those that fail to achieve such fit. We also examine the influence of political or stakeholder pressure on performance measurement system use. We test our hypotheses using survey data from 101 public sector organizations. Our findings indicate that contractibility of performance moderates the relationship between the use of the performance measurement system and performance. Using the performance measurement system for incentive purposes negatively influences organizational performance, but this effect is less severe when contractibility is high. We also find that an exploratory use of the performance measurement system tends to enhance performance. This positive effect is independent of the level of contractibility. Finally, we find that stakeholders’ demands for information on goal achievement lead to a more intense use of performance measurement systems for exploratory purposes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Nyenrode Business Universiteit in its series Nyenrode Research Papers Series with number NRI09-09.
Date of creation: 2009
Date of revision:
Contact details of provider:
Web page: http://www.library.nyenrode.nl
Knowledge Based View of the Firm; Spatial Organization Theory; Spatial Arrangements; Spatial Design.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ronald Piebes).
If references are entirely missing, you can add them using this form.