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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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
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    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.

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    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

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