Click here to load reader

4_Pengukuran Kinerja Sektor Publik

  • View
    16

  • Download
    6

Embed Size (px)

DESCRIPTION

ASP

Text of 4_Pengukuran Kinerja Sektor Publik

  • Pacific Accounting ReviewPerformance measurement in Indonesia: the case of local governmentRusdi Akbar Robyn Pilcher Brian Perrin

    Article information:To cite this document:Rusdi Akbar Robyn Pilcher Brian Perrin, (2012),"Performance measurement in Indonesia: the case of localgovernment", Pacific Accounting Review, Vol. 24 Iss 3 pp. 262 - 291Permanent link to this document:http://dx.doi.org/10.1108/01140581211283878

    Downloaded on: 26 August 2015, At: 17:45 (PT)References: this document contains references to 87 other documents.To copy this document: [email protected] fulltext of this document has been downloaded 1122 times since 2012*

    Users who downloaded this article also downloaded:Rusdi Akbar, Robyn Ann Pilcher, Brian Perrin, (2015),"Implementing performance measurement systems:Indonesian local government under pressure", Qualitative Research in Accounting & Management,Vol. 12 Iss 1 pp. 3-33 http://dx.doi.org/10.1108/QRAM-03-2013-0013Harun Harun, Karen Van Peursem, Ian Eggleton, (2012),"Institutionalization of accrual accounting in theIndonesian public sector", Journal of Accounting & Organizational Change, Vol. 8 Iss 3 pp. 257-285http://dx.doi.org/10.1108/18325911211258308Kevin Baird, Herbert Schoch, Qi (James) Chen, (2012),"Performance management system effectivenessin Australian local government", Pacific Accounting Review, Vol. 24 Iss 2 pp. 161-185 http://dx.doi.org/10.1108/01140581211258461

    Access to this document was granted through an Emerald subscription provided by emerald-srm:273599 []

    For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald forAuthors service information about how to choose which publication to write for and submission guidelinesare available for all. Please visit www.emeraldinsight.com/authors for more information.

    About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The companymanages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well asproviding an extensive range of online products and additional customer resources and services.

    Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committeeon Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archivepreservation.

    Dow

    nloa

    ded

    by U

    nive

    rsita

    s Gad

    jah M

    ada A

    t 17:4

    5 26 A

    ugust

    2015

    (PT)

  • *Related content and download information correct at time of download.

    Dow

    nloa

    ded

    by U

    nive

    rsita

    s Gad

    jah M

    ada A

    t 17:4

    5 26 A

    ugust

    2015

    (PT)

  • Performance measurementin Indonesia: the case of local

    governmentRusdi Akbar

    Fakultas Ekonomi, Universitas Gadjah Mada, Yogyakarta, Indonesia, and

    Robyn Pilcher and Brian PerrinSchool of Accounting, Curtin University, Perth, Australia

    Abstract

    Purpose The purpose of this paper is to investigate the implementation of performancemeasurement systems (PMSs) in Indonesian local government (ILG) using Smart PLS. Couched withinan institutional theory framework, it explores a conceptual model developed to explain the hypothesisedrelationships between technical and organisational factors and the development and use of performanceindicators and accountability practices.

    Design/methodology/approach Surveys were sent to senior finance officers in all localgovernments (457) across Indonesia with a response rate of 21.4 percent being achieved. Smart PLSwas used to assess the quality of the data and analyse the research model proposed.

    Findings Findings revealed that ILGs developed performance indicators more to fulfil regulatoryrequirements than to make their organisation more effective and efficient. As a way of increasing thesuccess of PMS implementation management commitment through good leadership was found to be amajor contributor. Coercive pressure from central government impacted on the result as did normativeisomorphism by way of widespread training by universities (and others) and the subsequent sharingof this knowledge.

    Practical implications The findings will assist Indonesian central government formulate futuregovernment policy as well as design appropriate strategies for implementing the second wave of(bureaucratic) reform.

    Originality/value Set in a local government environment in a developing country, this research isoriginal and makes three major contributions. First, it provides an understanding of factors influencingthe development and use of performance measures in the ILG context. Second, the use of Smart PLS isoriginal in this context and fills a gap in the literature examining local government PMS. Last,the existence of institutional isomorphism reaffirms that this theory is still applicable in the twenty-firstcentury and relevant as an explanator of the results in the context examined here.

    Keywords Performance measurement systems, Indonesia, Local government, Institutional theory,Isomorphism, PLS analysis, Performance management

    Paper type Research paper

    1. IntroductionMany government entities in developed countries have introduced elements of newpublic management (NPM)[1] (Hood, 1991, 1995; ter Bogt, 2004) which is based ona fundamental concept that public sector organizations can, and even should, borrow

    The current issue and full text archive of this journal is available at

    www.emeraldinsight.com/0114-0582.htm

    The authors would like to acknowledge the anonymous reviewers at the AFAANZ 2010Conference for their feedback on an earlier version of the paper. The authors would also like tothank the two anonymous reviewers who provided feedback as part of this journals reviewprocess.

    PAR24,3

    262

    Pacific Accounting ReviewVol. 24 No. 3, 2012pp. 262-291q Emerald Group Publishing Limited0114-0582DOI 10.1108/01140581211283878

    Dow

    nloa

    ded

    by U

    nive

    rsita

    s Gad

    jah M

    ada A

    t 17:4

    5 26 A

    ugust

    2015

    (PT)

  • many management strategies from the private sector. In Indonesia the governmentintroduced performance measurement reporting to respond to public demand onproductivity, transparency and accountability. According to Cheung (2011, p. 131),the NPM and good governance models were the two dominant paradigms havingthe greatest impact on Asian (in which he includes Indonesia) institutional reforms.

    This study focuses on two pivotal aspects in the public sector accountability andperformance measurement. Over the last 40 years the idea of performance measurementhas been the focus of considerable attention from both academics and practitioners(Neely, 1999; Kihn, 2010). Initially, the research in the field mainly concentrated onperformance measurement in the private sector (Kaplan, 1983; Johnson and Kaplan,1987; Chenhall and Smith, 2007). However, since then there have been a number ofstudies addressing the issues of performance measurement in the public sector(Hood et al., 1998; Cavalluzzo and Ittner, 2004; Micheli and Neely, 2010). In Indonesia, theinterest in performance measurement began to emerge at the beginning of the reform erain 1999 when President B.J. Habibie signed a presidential instruction (Inpres No. 7/1999),the Performance Accountability Report of State Apparatus (known as LAKIP).

    Coinciding with the first wave of public sector reform, this research investigates theimplementation of performance measurement systems (PMS) in Indonesian localgovernment (ILG). A second generation structural equation modelling technique knownas partial least squares (PLS) was used to analyse the proposed model and relationships.Based on a survey of ILGs, the research explores a conceptual model adaptedand developed to explain the hypothesised relationships between technical andorganisational factors and the development and use of performance indicatorsand accountability practices. The theoretical development and interpretation of thisresearch is drawn from institutional theory. A major contribution of this research is thatit provides an understanding of factors influencing the development and use ofperformance measures which, in turn, could be used to formulate future governmentpolicy. Further, it fills a gap in the literature exploring PMS and accountability in adeveloping country in this case, Indonesia. This paper begins with a brief literaturereview followed by an explanation of the theoretical framework employed. Section 4then considers the research model and hypotheses development, and Section 5 discussesthe research method used. Section 6 presents the results of the research using SmartPLS,with these results discussed in the penultimate section. A conclusion and suggestions forfuture research ends this paper.

    2. Literature reviewNPM and accountabilityNPM was introduced in Europe in the 1980s. Lapsley and Pallot (2000) considered thisframework separately from that of institutional theory, whereas Bovaird and Downe(2006) use institutional isomorphism to understand NPM-type reforms. This paperadopts the latter framework as it considers whether, with the introduction of PMS,institutional isomorphism particularly coercive plays a role in the implementationprocesses adopted by ILG.

    The development of NPM was seen as a means by which to enhance accountabilityand transparency of governments and this, in turn, required performance informationthat was more comparable, relevant and useful for decision-making within the publicsector. Romzek and Dubnick (1998, p. 6), define accountability as a relationship in which

    Performancemeasurement in

    Indonesia

    263