20 Years of Performance Measurement System (PMS) Implementation in Indonesian Local Governments: Why is Their Performance Still Poor?

Abstract

Manuscript type: Research paper. Research aims: This study aims to investigate the Performance Measurement System implementation in Indonesian local governments and the phenomenon of institutional isomorphism. Design/ Methodology/ Approach: This paper employed a qualitative approach, using semi-structured interviews and observations. The samples comprise the heads of departments and individuals representing the agencies and institutions in the Yogyakarta Special Region. A deductive thematic method was utilised as the data analysis technique. Research findings: The study reveals that institutional isomorphism is still in existence. It plays a dominant role in the Performance Measurement System (PMS) implementation of Indonesian local governments at the coercive level. This situation leads to the underachievement of the successful PMS implementation. Theoretical contributions/ Originality: This paper fulfills an identified need for studying how institutional isomorphism influences PMS implementation. This area of study is underresearched in the public sector of accounting, particularly in Indonesia.

What Determines Village Autonomy in Indonesia? A Case of Villages in Sleman Regency

“…Even though community participation and the competency of village management are high, if these two factors are not able to create good village fund management, then it would not contribute to a better village autonomy. This idea is in line with the perspective of the institutional isomorphism mechanism DiMaggio & Powell (1983) as further elaborated by (Sofyani, Akbar, et al, 2018). The proponents of the institutional theory believe that an organization will not be able to achieve the substance expected from the policy adopted if it is not based on substantive goals.…”

Exploring Performance Measurement System for Lecturer (Pmsl): Comparison Among Three Models in Indonesia, Singapore and Turkey

“…Therefore, when they are demanded with higher performance targets in the current new university climate, such as research publication in reputable international journal, these old-generation lecturers need supervision and additional trainings. Sofyani et al (2018) explain that assistance (mentoring, supervision and training) and additional education, in this case in the form of science camp, is needed to improve employee's capability. Moreover, educations and programs alike can improve one's self-confidence to reach the targeted higher performance demand (Lovely, 2004).…”

“…The data are analyzed using thematic-deductive analysis approach suggested by Braun and Clarke (2006) and Sofyani, Akbar, and Ferrer (2018). This approach focuses on analyzing the structure of primary data obtained from the interview to find the general theme contained in the data.…”

Issues and Challenges of Performance Measurement Practice

“…Much empirical research has highlighted the importance of the PMS and its role in achieving organisational objectives (Chenhall & Euske, 2007;Ferreira & Otley, 2009;Kallunki, Laitinen & Silvola, 2011;Riccaboni & Leone, 2010;Sofyani, Akbar & Ferrer, 2018). Spekle and Verbeeten (2014) also found that exploratory use of the PMS tends to enhance performance in public sector organisations.…”

“…Hence, their evidence indicates that both alignment with the activities of the organisation and the way the PMS is used significantly affect organisational performance in the public sector. However, Sofyani et al (2018) claimed that despite the significant role of the PMS, its implementation in Indonesia has not achieved the full aim of improving performance and accountability.…”