Good governance and accountability issues have become a serious concern in Indonesia after the economic crisis and subsequent political transition in 1998. Consequently, the Indonesian government has increasingly given attention to the application of performance measurement for the governmental agencies, including local authorities, as part of bureaucratic reform and good governance practices. The purpose of this article is to review the regulations and guidelines while examining issues and consequences of implementing performance measurement system in Indonesian local governments using descriptive and analytical methods based on secondary data. Although a performance measurement system has been implemented in Indonesia for 14 years, the results have been far from satisfactory. The Performance Management System (PMS) regulation is quite comprehensive, except it lacks a punishment and reward system. Some evidence demonstrates implementation issues such as lack of compliance, lack of integration between planning and budgeting, and inaccurate indicators and data reporting.
Purpose This paper aims to investigate the actions and activities undertaken by public managers of a local government to institutionalise an externally mandated performance measurement and management (PMM) system in a developing country. Design/methodology/approach A qualitative case study of one of the best-ranked early adopters of PMM in a local government in Indonesia was undertaken, with interviews with public officers at various organisational levels, along with an extensive documentary review. An institutional work perspective was used to explain the types of work undertaken to institutionalise PMM at the organisation. Findings The PMM change was shown to be centralised and directed from the top and facilitated by other public officers. The Mayors’ instrumental and political view of PMM as a tool for efficiency and societal legitimacy enabled the adoption of PMM. The political and cultural work of the Mayor and the key officers involved constructing new rules pertaining to PMM, specifically in dealing with resource allocation and its associated sanctions and rewards, which encouraged more substantive implementation. The substantive implementation of PMM had a significant influence on the norms and values of the local government. Research limitations/implications The case organisation is the local government of a relatively medium-sized city. Therefore, it may be easier to achieve tighter control and coordination as compared to the local government of other larger cities. Originality/value The paper highlights the interrelated nature of institutional work in the creation and disruption of institutions. In addition, the three main types of institutional work, i.e. political, cultural and technical work, are not mutually exclusive. The paper also indicates the processes involved in the implementation of PMM, which unfolds from the establishment of a policy, its impact, and the role of the actors in the process.
This investigation means to break down the impact of corporate governance, and company size, on risk management in companies recorded on the Indonesia Stock Exchange. Risk management which is a dummy variable estimated through the presence of a risk management committee will be given an estimation of 1 and in the event that it doesn't have an estimation of 0. The independent variable used is corporate governance by using the proxy proportion of independent directors, board size, audit quality, company size and ownership institutional. This examination utilizes secondary data types, and the total population is 563 companies found on the Indonesia Stock Exchange in 2015 to 2017, where the example was chosen utilizing the purposive sampling method. Logistic regression analysis is a statistical method that will be used in this test. The consequences of this investigation clarify that audit quality has a significant negative effect, institutional ownership and firm size have a significant positive effect on risk management. The proportion of independent directors and the size of the board of commissioners do not affect risk.
Healthcare business in Indonesia continues to grow rapidly and remains attractive for local and global investors. Numerous healthcare providers offer a wide range of service and give their best service to customers to gain profit, win the market competition and also to be sustainable, including pharmacy as the largest number of healthcare provider in Indonesia. However, there were some pharmacies in Batam City that ended their business and unable to win the highly competitive marketing inspite of their good brand name. This research was conducted to analyse factors influencing customer satisfaction at pharmacy in Batam City. Samples were collected by distributing 300 questionnaires at Vitka Farma Pharmacy and Kimia Farma Pharmacy. The data was analysed by using Smart PLS 3.0 program. Based on hypothesis testing, it was found out that customer satisfaction was significantly influenced by brand image, purchase intention was significantly influenced by price and brand image. The pharmacies should address the findings to improve the service level so they can offer the best customer service to obtain business success in the long run.
This study aims to examine the role of founders on the board of directors on the performance of companies with family ownership and political connections as moderating variables. The determination of the research sample used purposive sampling from companies listed on the Indonesia Stock Exchange (IDX). The number of samples used was 265 companies with a research time span of 2017-2021. Testing using panel regression using Eviews software. The results of the study show that the presence of the founder on the board of directors significantly influences the success of the company. The moderating variable of family ownership strengthens the relationship between founders on the board of directors and company performance, while political connections cannot moderate the relationship between founders on the board of directors and company performance. Keywords: Founders on Board of Director; Family Ownership; Political Connection; Firm Performance
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