The Effect of Organizational Factors on Performance Measurement in Indonesia Local Governments

Abstract

Purpose: This research begins with a problem dealing with the inability of many local governments in Indonesia to compile a Government Agency Performance Accountability Report or LAKIP. The problem transpires because many local governments have not been able to measure performance using applicable standards. This research aims to find out the local government's efforts to measure performance according to the organizational factors of local government in Indonesia. Approach/Methodology/Design: Data collection in this study was based on the structured questionnaire sent to 44 respondents who have been the Head of the Planning Subdivision that has compiled LAKIP in Bekasi city, Indonesia. The sampling methodology used in this study is a census method. The hypothesis testing is based on the Structural Equation Modelling by SmartPLS. Findings: The results indicate that the resources have a significant positive relationship with the local government performance measurement. Meanwhile, technical knowledge and management commitment do not have a significant relationship with the local government performance measurement. Practical Implications: The findings imply to the local government expected to maintain the principles of behavior and ethics by existing standards to carry out the preparation of LAKIP and provide a picture for the local government in measuring performance based on organizational factors. Originality/Value: The study originally examines the effect of resources with the local government performance measurement.