THE RELATIONSHIP BETWEEN THE USE OF A PERFORMANCE MEASUREMENT SYSTEM, ORGANIZATIONAL FACTORS, ACCOUNTABILITY, AND THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS

Abstract

This research studies the accountability and performance of public sector organizations. It provides empirical evidence about the relationship between the use of a performance measurement system and the organizational factors of accountability and organizational performance. We investigate the three roles of a performance measurement system (its operational use, incentive use, and exploratory use), and three organizational factors (contractibility, the legislative mandate, and management commitment). A mixed method approach with squential explanatory design was used to answer the research question. The hyphoteses testing used Structural Equation Modelling-Partial Least Square (SEM-PLS). Our findings were based on survey data from 137 SKPD officers in the local government of Yogyakarta Province, and showed that management commitment had a positive association with accountability and organizational performance. We also found a positive association between the legislative mandate and accountability. However, this research did not find any significant association among the three roles of the performance measurement system with accountability and organizational performance. Based on the institutional theory, our findings show substantial contributions by the institutional isomorphism, which was used in an appropriate manner to explain the context of public sector organizations, especially in the local government of Yogyakarta Province.Keywords: the use of performance measurement system, organizational factors, accountability, mixed method