The influence of the stakeholders’ perspective for the performance measurement in local authorities

Abstract

Abstract This research constructs a performance evaluation of the influence of stakeholders’ perspective on the performance measurement in the local authorities. The stakeholders’ perspective has been proven as one of the main factors that influence higher rating on the performance measurement in many public organizations including the local authorities. However, very little attention has been paid towards the attributes of the stakeholders’ perspective that affecting the performance measurement in the local authorities. This research focused on the elements that contribute on the stakeholders’ perspective from the Balanced Scorecard’s perspective and Multi-Criteria Decision Making tool namely Analytic Network Process (ANP) to acquire the priorities of the attributes for the stakeholders’ perspective. The attributes were used as the performance indicator for performance measurement in the local authorities. There were eight (8) attributes that have been measured in order to acquire the priorities of the attributes in affecting the performance measurement under the stakeholders’ perspective (customer, customer retention, new customer acquisition, customer profitability, community support, employees, management and service providers). From this result, it will provide the management of the local authorities to improve the performance of the local authorities which are meaningful for managerial and improvement purpose in the service delivery towards the public.