Abstract
Setting Business Excellence as a primary goal, public sector organisations have been increasingly looking for new ways of measuring performance that are intended to promote stakeholders' satisfaction, people involvement and continuous improvement. In this paper, we present an approach referred as KBEM (Kanji's Business Excellence Measurement System), which was applied to measure the performance of 85 municipalities in Portugal. Data were collected by means of specifically designed questionnaires and analysed using structural equation modelling. Results broadly confirm the validity of the models that form KBEMS and stress the importance of founding performance measurement upon Total Quality Management principles and concepts.
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