IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i4p122-131.html
   My bibliography  Save this article

The Effect of Organizational Factors on Performance Measurement in Indonesia Local Governments

Author

Listed:
  • Khoirul Aswar
  • Lovina Eka Putri
  • Ermawati

Abstract

Purpose: This research begins with a problem dealing with the inability of many local governments in Indonesia to compile a Government Agency Performance Accountability Report or LAKIP. The problem transpires because many local governments have not been able to measure performance using applicable standards. This research aims to find out the local government's efforts to measure performance according to the organizational factors of local government in Indonesia. Approach/Methodology/Design: Data collection in this study was based on the structured questionnaire sent to 44 respondents who have been the Head of the Planning Subdivision that has compiled LAKIP in Bekasi city, Indonesia. The sampling methodology used in this study is a census method. The hypothesis testing is based on the Structural Equation Modelling by SmartPLS. Findings: The results indicate that the resources have a significant positive relationship with the local government performance measurement. Meanwhile, technical knowledge and management commitment do not have a significant relationship with the local government performance measurement. Practical Implications: The findings imply to the local government expected to maintain the principles of behavior and ethics by existing standards to carry out the preparation of LAKIP and provide a picture for the local government in measuring performance based on organizational factors. Originality/Value: The study originally examines the effect of resources with the local government performance measurement.

Suggested Citation

  • Khoirul Aswar & Lovina Eka Putri & Ermawati, 2020. "The Effect of Organizational Factors on Performance Measurement in Indonesia Local Governments," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 122-131.
  • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:122-131
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/574/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Khoirul Aswar & Siti Zabedah Saidin, 2018. "The Influencing Factors On The Level Of Accrual Accounting Adoption: A Conceptual Approach," Romanian Economic Business Review, Romanian-American University, vol. 13(2), pages 30-36, June.
    2. Carol Propper & Deborah Wilson, 2003. "The Use and Usefulness of Performance Measures in the Public Sector," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(2), pages 250-267, Summer.
    3. Khoirul Aswar, 2019. "Factors on the Accrual Accounting Adoption: Empirical Evidence from Indonesia," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 12(3), pages 36-42, December.
    4. Cavalluzzo, Ken S. & Ittner, Christopher D., 2004. "Implementing performance measurement innovations: evidence from government," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 243-267.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rabina Laila & Ermawati, 2021. "Performance Measurement in Local Government: Institutional Factors," Journal of Social and Development Sciences, AMH International, vol. 12(2), pages 35-44.
    2. Miranti Putri & Khoirul Aswar, 2022. "Local Government Financial Performance: The Role of Political Monitoring," Journal of Economics and Behavioral Studies, AMH International, vol. 14(3), pages 42-50.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Douglas Kamara, 2020. "Outcomes-based performance management through measuring indicators: Collaborative governance for local economic development (LED) in South African municipalities," Technium Social Sciences Journal, Technium Science, vol. 9(1), pages 1-19, July.
    2. Frank H.M. Verbeeten, 2008. "Performance management practices in public sector organizations," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(3), pages 427-454, March.
    3. Štrangfeldová Jana & Štefanišinová Nikola, 2020. "Value for Money in Organizations Providing Public Education Services and How to Measure It," Naše gospodarstvo/Our economy, Sciendo, vol. 66(2), pages 62-70, June.
    4. Vania Talitha & Khoirul Aswar, 2021. "Implementation of Accrual-Based Government Accounting Standards in Indonesia: A Review of Organizational Factors," Journal of Economics and Behavioral Studies, AMH International, vol. 13(5), pages 22-31.
    5. Lovina Eka Putri & Khoirul Aswar & Ermawati, 2020. "Performance Measurement of Local Government in Indonesia: A Conceptual Study," Information Management and Business Review, AMH International, vol. 12(1), pages 41-44.
    6. Aditya Wira Dianto & Khoirul Aswar, 2020. "Assessing Accrual Accounting Implementation in Cianjur Regency: An Empirical Investigation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 13(1), pages 7-13, April.
    7. Marcel Van Rinsum & Frank H.M. Verbeeten, 2012. "The impact of subjectivity in performance evaluation practices on public sector managers’ motivation," Accounting and Business Research, Taylor & Francis Journals, vol. 42(4), pages 377-396, September.
    8. Albertus Theo Jonathan & Khoirul Aswar & Ermawati, 2020. "The Implementation of Accrual Basis Accounting in Indonesian Local Government," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 67-72.
    9. Simon Burgess & Denise Gossage & Carol Propper, 2003. "Explaining differences in hospital performance: Does the answer lie in the labour market?," The Centre for Market and Public Organisation 03/091, The Centre for Market and Public Organisation, University of Bristol, UK.
    10. Asif Mohammad Shahan & Ferdous Jahan & Rizwan Khair, 2021. "A glimpse of light in darkness: Performance‐based accountability in Bangladesh public administration," Public Administration & Development, Blackwell Publishing, vol. 41(4), pages 191-202, October.
    11. Burgess, Simon & Propper, Carol & Wilson, Deborah, 2005. "Extending Choice In English Health Care: The implications of the economic evidence," CEPR Discussion Papers 5328, C.E.P.R. Discussion Papers.
    12. Jaime Vázquez-Caro & Richard M. Bird, 2011. "Benchmarking Tax Administrations in Developing Countries: A Systemic Approach," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1104, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    13. Anika Kreutzberg & Rowena Jacobs, 2020. "Improving access to services for psychotic patients: does implementing a waiting time target make a difference," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(5), pages 703-716, July.
    14. Escobar-Rodríguez, Tomás & Bartual-Sopena, Lourdes, 2015. "Impact of cultural factors on attitude toward using ERP systems in public hospitals," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(2), pages 127-137.
    15. Dietrichson, Jens, 2013. "Coordination Incentives, Performance Measurement and Resource Allocation in Public Sector Organizations," Working Papers 2013:26, Lund University, Department of Economics.
    16. Francesca Francioli & Alberto Quagli, 2021. "Management accounting change and the rise of Vespa (1884-1965)," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 2), pages 313-338.
    17. Damir Ivankovic & Mircha Poldrugovac & Pascal Garel & Niek S Klazinga & Dionne S Kringos, 2020. "Why, what and how do European healthcare managers use performance data? Results of a survey and workshop among members of the European Hospital and Healthcare Federation," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-19, April.
    18. Carol Propper & Deborah Wilson, 2012. "The Use of Performance Measures in Health Care Systems," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 33, Edward Elgar Publishing.
    19. David Gill & Zdenka Kissová & Jaesun Lee & Victoria Prowse, 2019. "First-Place Loving and Last-Place Loathing: How Rank in the Distribution of Performance Affects Effort Provision," Management Science, INFORMS, vol. 65(2), pages 494-507, February.
    20. Revelli, Federico & Tovmo, Per, 2007. "Revealed yardstick competition: Local government efficiency patterns in Norway," Journal of Urban Economics, Elsevier, vol. 62(1), pages 121-134, July.

    More about this item

    Keywords

    Performance measurement; organizational factors; institutional theory; local government.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:122-131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.