Legitimacy and relevance of a performance measurement system in a Finnish public-sector case
Qualitative Research in Accounting & Management
ISSN: 1176-6093
Article publication date: 23 December 2019
Issue publication date: 6 May 2020
Abstract
Purpose
This study investigates the difficulties involved in translating stakeholder expectations into action and maintaining legitimacy through the use of a performance measurement system (PMS) created in a Finnish regional development company (RDC). This longitudinal case study illustrates the fluctuating and socially constructed nature of legitimacy in the public sector.
Design/methodology/approach
This qualitative case study longitudinally analyzes the various developments occurring during and after the development of a PMS system for the case organization. Empirical data include interviews, workshops, observation and other materials relating to the case organization.
Findings
The initial interest in operational improvement changed to legitimation-seeking behavior by the case organization when the measures created were modified to accord with the changed preferences of the key stakeholders. However, the pursuit of legitimacy for the RDC was made difficult by the outcome-oriented, changing and contradictory nature of stakeholders’ demands. This study’s findings reveal a continuous mismatch between organizational activities and the board’s expectations, leading to the eventual closure of the organization.
Practical implications
The findings help to analyze the legitimacy and relevance of PMSs in public-sector projects. The study highlights the practical importance of analyzing the different legitimacy priorities of various stakeholder groups, such as politicians and entrepreneurs.
Originality/value
The study analyzes the fluctuating nature of legitimacy longitudinally in the public-sector context from the stakeholder perspective. This study analyzes a situation where the stakeholders’ evaluations of the legitimacy of the organization, and the PMS developed, change over time, complicating the accounting for stakeholders.
Keywords
Acknowledgements
Authors are appreciative of the comments received in the 40th Annual Congress of the European Accounting Association, Valencia. Authors would also like to thank professor Robert Scapens for his invaluable comments. Finally, we wish to thank all the commentators that offered their insightful comments on the article during the review process.
Citation
Mättö, T., Anttonen, J., Järvenpää, M. and Rautiainen, A. (2020), "Legitimacy and relevance of a performance measurement system in a Finnish public-sector case", Qualitative Research in Accounting & Management, Vol. 17 No. 2, pp. 177-199. https://doi.org/10.1108/QRAM-04-2018-0027
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited