The Relationship Between the Use of a Performance Measurement System, Organizational Factors, Accountability, and the Performance of Public Sector Organizations

Abstract

ABSTRACT

Indonesian Local Government’s Accountability and Performance: the Isomorphism Institutional Perspective

“…Moreover, those organizations have many interactions and are influenced by the external environment. Several researches that used institutional theory in the context of public sector organizations especially in and Ahyaruddin and Akbar (2016).…”

“…The institutional theory explains a structure where an organization adopts something conformity with a cultural ethic code that then leads to the legitimacy and support of external organizations (DiMaggio and Powell, 1983;Ahyaruddin and Akbar, 2016). DiMaggio and Powell (1983) suggest that time over time, in an established area, organizations tend to move toward homogenyzation, although at first they show huge diversity.…”

“…Structural isomorphism is described as an important consequence of the competitive and institutional processes. As a result, organizations do not compete to gain resources or customers but to gain power and legitimacy, in addition to social welfare and economic outcomes (DiMaggio and Powell, 1983;Erro and Sanchez, 2012;Akbar et al, 2012;Ahyaruddin and Akbar, 2016). Meyer and Rowan (1977) as quoted by Akbar et al (2012) stated that isomorphism has three consequences to the organization, (1) they link legitimated elements externally, not in efficiency, (2) they use external criteria or ceremonial to determine the value of the structural elements, and (3) reliance on external institutions keep reducing turbulence and maintaining stability.…”

“…This is also reinforced by the findings of several studies which state that the organization will be faced with competition to gain institutional legitimacy and political power, as well as community and customer support (Chenhall, 2003;Akbar et al, 2012;Sofyani and Akbar, 2013 ;Wijaya and Akbar, 2013;Akbar et al, 2015;Ahyaruddin and Akbar, 2016). Performance measurements and improvements in the government organizations need to be viewed more thoroughly and comprehensively.…”

“…They do not substantively reflect the performance that occurs in the field. This could mislead the public as an information user and finally results excessive public expectations towards government agencies (Ahyaruddin and Akbar, 2016).…”