<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study aimed to empirically test some variables related to Performance-Based Budgeting (PBB) and Performance Measurement System (PMS) implementation in the local government, namely Special Region of Yogyakarta, Indonesia. This study applied the mixed-methods approach with sequential explanatory strategy (QUANTITATIVE to Qualitative). Quantitative stage was conducted by testing the hypothesis using the Structural Equation Model (SEM) approach. On the qualitative stage, the interview was conducted to dig more information on the unsupported hypothesis. From the result of the hypothesis testing, it was discovered that the limitation of information system had a negative influence, while education had a positive influence towards the effectiveness of PBB. Furthermore, the effectiveness of PBB had a positive influence towards budget absorption, and the accountability also had a positive influence towards the use of performance information to practice the arrangement of PPB. Meanwhile, the qualitative analysis produced the finding that there were practices of PBB that could still be done manually and it was not supported by information technology. Besides, the implementation of PMS and PBB was more because of the coercive pressure rather than consciousness of normative apparatus.</p></abstract>

This study aimed to empirically test some variables related to Performance-Based Budgeting (PBB) and Performance Measurement System (PMS) implementation in the local government, namely Special Region of Yogyakarta, Indonesia. This study applied the mixed-methods approach with sequential explanatory strategy (QUANTITATIVE to Qualitative). Quantitative stage was conducted by testing the hypothesis using the Structural Equation Model (SEM) approach. On the qualitative stage, the interview was conducted to dig more information on the unsupported hypothesis. From the result of the hypothesis testing, it was discovered that the limitation of information system had a negative influence, while education had a positive influence towards the effectiveness of PBB. Furthermore, the effectiveness of PBB had a positive influence towards budget absorption, and the accountability also had a positive influence towards the use of performance information to practice the arrangement of PPB. Meanwhile, the qualitative analysis produced the finding that there were practices of PBB that could still be done manually and it was not supported by information technology. Besides, the implementation of PMS and PBB was more because of the coercive pressure rather than consciousness of normative apparatus.

Does Performance-Based Budgeting Have a Correlation with Performance Measurement System? Evidence from Local Government in Indonesia

Foundations of Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This study aimed to empirically test some variables related to Performance-Based Budgeting (PBB) and Performance Measurement System (PMS) implementation in the...

Does Performance-Based Budgeting Have a Correlation with Performance Measurement System? Evidence from Local Government in Indonesia

Publié en ligne: 15 sept. 2018

Pages: 163 - 176

DOI: https://doi.org/10.2478/fman-2018-0013

Mots clés
local government, performance accountability, performance-based budgeting, Indonesia

© 2018 Hafiez Sofyani, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Does Performance-Based Budgeting Have a Correlation with Performance Measurement System? Evidence from Local Government in Indonesia

Publié en ligne: 15 sept. 2018

Pages: 163 - 176

DOI: https://doi.org/10.2478/fman-2018-0013

Mots cléslocal government, performance accountability, performance-based budgeting, Indonesia

© 2018 Hafiez Sofyani, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Mots clés
local government, performance accountability, performance-based budgeting, Indonesia