Exploring the links between different performance information uses, NPM cultural orientation, and organizational performance in the public sector

ABSTRACT

This paper looks at how the relationship between performance measurement system use(s) and organizational performance is affected by the type of performance information use and moderated by New Public Management (NPM) cultural orientation. Analysing data from a survey of Italian public managers, it shows that only monitoring and attention-focusing types of uses of performance measures are directly associated with organizational performance, whereas strategic-decision-making and legitimizing uses are not directly related with organizational performance. Moreover, an NPM orientation moderates positively the relationship between monitoring uses of performance information on organizational performance, and negatively the relationship between legitimizing uses and organizational performance.

KEYWORDS:

• New Public Management
• organizational culture
• organizational performance
• performance information use
• performance measurement

Acknowledgements

The authors wish to acknowledge the research assistance of Chiara Potena in the collection of data.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. In contrast to reflective measurements, formative measurements capture different aspects of a construct domain. This can be seen as man-made or artefact such as it is typical for performance measurements. Formative measurements are caused by the items in contrast to reflective measurement, where the assumption is that an underlying construct causes the items.

2. We thank one of the anonymous reviewers for pointing this out.

Additional information

Notes on contributors

Christian Nitzl

Christian Nitzl is a postdoctoral researcher at Universität der Bundeswehr München. His research interests include PLS path modelling with a special focus in accounting, trust research, and accounting change in the governmental area.

MariaFrancesca Sicilia

MariaFrancesca Sicilia is an associate professor at University of Bergamo. Her research interests include public sector accounting, performance measurement, and coproduction.

Ileana Steccolini

Ileana Steccolini is a professor of Accounting & Finance at Newcastle University London campus. Her research interests include public sector accounting, performance measurement, and resilience.