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Performance Measurement Framework for Local Government: A Systematic Literature Review

Author

Listed:
  • Mohammad Roziq

    (Doctoral Student, Doctor in Economics, Postgraduate School, University of Pancasila-Indonesia)

  • Sri Widyastuti

    (Professor, Doctor in Economics, Postgraduate School, University of Pancasila – Indonesia)

  • Widarto Rachbini

    (AssociateProfessor, Doctor in Economics, Postgraduate School, University of Pancasila – Indonesia)

Abstract

This research paper aims to provide a systematic literature review on the integration of the BSC with other performance measurement frameworks in evaluating local government performance. Effective performance measurement is crucial for local governments to evaluate their performance and drive continuous improvement. This systematic literature review explores the integration of two prominent performance measurement approaches, the Balanced Scorecard (BSC) and Performance Measurement Framework (PMF), in evaluating local government performance. The review examines existing studies, frameworks, and practical implementations to uncover the benefits, challenges, and best practices associated with this integration. The data obtained from 36 most relevant articles to “balanced scorecard implementation†, performance measurement framework†, and “local government†or “municipalities†. The findings highlight that the integration of the BSC and PMF provides a comprehensive and strategic approach to performance measurement in local government. It enhances performance measurement practices by incorporating financial and non-financial indicators, aligns with organizational strategies, and promotes accountability and transparency. However, challenges such as defining relevant indicators, data availability, organizational buy-in, and resource constraints need to be addressed for successful implementation. The integrated model has practical implications, including the need for strong leadership support, stakeholder engagement, continuous monitoring, and capacity building. Future research should focus on empirical evaluations of the model’s effectiveness, contextual factors influencing its implementation, and long-term impacts on local government performance and governance. Policymakers can use the integrated model to develop evidence-based policies, allocate resources strategically, and foster a culture of continuous improvement. Ultimately, the integrated performance measurement model has the potential to drive positive change and enhance service delivery in local government, contributing to better governance outcomes.

Suggested Citation

  • Mohammad Roziq & Sri Widyastuti & Widarto Rachbini, 2025. "Performance Measurement Framework for Local Government: A Systematic Literature Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 247-259, February.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:14:p:247-259
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    References listed on IDEAS

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    1. Yi Zheng & Wei Wang & Wenbin Liu & John Mingers, 2019. "A performance management framework for the public sector: The balanced stakeholder model," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(4), pages 568-580, April.
    2. Al-Alawi, Adel Ismail, 2018. "Using Balanced Scorecard In Measuring The Performance Of Online Banking: Cultivating Strategic Model Map In Financial Sector-Case Of Bahrain," Journal of Internet Banking and Commerce, , vol. 23(02), pages 01-26, August.
    3. Nidya Astrini, 2015. "Local Government Performance Measurement: Developing Indicators Based on IWA 4: 2009," Public Organization Review, Springer, vol. 15(3), pages 365-381, September.
    4. Brownlees, Christian & Chabot, Ben & Ghysels, Eric & Kurz, Christopher, 2020. "Back to the future: Backtesting systemic risk measures during historical bank runs and the great depression," Journal of Banking & Finance, Elsevier, vol. 113(C).
    5. Sven Modell, 2012. "The politics of the balanced scorecard," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 8(4), pages 475-489, October.
    6. Daria Balkovskaya & Liubov Filneva, 2016. "The use of the balanced scorecard in bank strategic management," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 9(1), pages 48-67.
    7. Dag Øivind Madsen & Blerim Azizi & Albert Rushiti & Tonny Stenheim, 2019. "The Diffusion and Implementation of the Balanced Scorecard in the Norwegian Municipality Sector: A Descriptive Analysis," Social Sciences, MDPI, vol. 8(5), pages 1-31, May.
    8. Sabina Nuti & Chiara Seghieri & Milena Vainieri, 2013. "Assessing the effectiveness of a performance evaluation system in the public health care sector: some novel evidence from the Tuscany region experience," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 59-69, February.
    9. Christopher Mcnamara & Steven Mong, 2005. "Performance Measurement and Management: Some Insights from Practice," Australian Accounting Review, CPA Australia, vol. 15(35), pages 14-28, March.
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