Search results

The purpose of this paper is to study more deeply the use of performance information (PI) in the context of the administrative-territorial reform, e.g. amalgamation in the local governments (LG) with an example of Estonian LGs.

The case study method is adopted, using data from publicly available documents and interviews with the politicians and officials at the five merger cases of Estonian LG units. The data are interpreted and analysed using attribution theory.

The results show that amalgamation patterns do have an influence on PI use – in particular, the authors see that PI is reported to be used more frequently in cases of voluntary mergers, which may be related to the different motivations to make attributions in cases of voluntary and compulsory mergers.

The study contributes to the debate on the importance and usefulness of different types of PI, as financial as well as non-financial information and for different information users in the light of LG reform in Estonia as being a Central and Eastern European country.

The purpose of this paper is to explore the dynamics of the usage of performance measurement (PM) methods and indicators, and this usage's influencing factors in service companies.

The study is based on the contingency theory framework and focuses on PM patterns. The sector, company size, and market environment dynamics, which are these patterns' primary determinants, are analysed. The study uses empirical survey data gathered from the 61 largest companies in Estonia. The study has a dynamic focus, explaining the changes in PM practices as in 2004 and 2007.

The research shows the increasing use of more balanced PM tools combining financial and non‐financial, market‐related and internal process dimensions. Nevertheless, the findings demonstrate that the companies predominantly used traditional cost accounting and reporting methods, as well as financial indicators for their PM. The findings highlight the similarities and differences between the PM patterns in service companies and manufacturing companies.

The general limitations of survey‐based research have to be considered. The findings on the PM indicators and methods explain the usage's intensity, but not the effects of this usage on the performance. The study also analyses only a limited number of drivers that influence PM practices.

The research findings have two main implications. First, the paper contributes to the scarce knowledge about PM practices in service companies. Second, the paper considers the changes in PM patterns, concentrating on the dynamics of PM practices.

The purpose of this paper is to analyse how local governments implement non‐mandatory performance measures (PM), the types of PM employed, the degree of their usefulness in decision making and/or accountability, and their outcomes.

The information was collected through a questionnaire sent to the expert managers in charge of developing PM for Spanish local governments with more than 50,000 inhabitants. In addition, data sources were triangulated through an analysis of the performance indicators published in the notes to the local governments' financial statements and in their web sites.

The implementation of PM in Spain follows a top‐down approach in which each local government can choose whether to implement PM, how to implement them, and what information to disclose. Implementation features a high degree of involvement on the part of managers and little involvement on the part of medium‐ and street‐level staff. PM are used primarily for budgetary and strategic management planning and long‐term decision making.

The paper will be useful to academics and practitioners to enable better understanding of the problems associated with introducing and using non‐financial, non‐mandatory PM. The Spanish case is similar to that of most continental European countries, in the leeway their local governments have in implementing their own PM systems.

The paper sheds light on the application of an interesting aspect of public sector management accounting and contributes to the literature by analyzing the application of a non‐mandatory PM system in a non‐Anglo‐American context.

The purpose of this paper is to clarify the concept of innovation capability and to show how the linkage between innovation capability and performance measurement can be formed.

The study is based on current literature of innovation capability and performance measurement and matching these two to find out how the measurement of innovation capability should be organized.

The paper describes the concept of innovation capability and presents a performance measurement framework for the measurement of innovation capability and its effects. As a result, a conceptual framework with five perspectives for measuring the relationship between innovation capability and business performance is presented. Also, the link between innovation capability and an organization's business performance is disclosed.

The paper shows a way forward of how to define measures of business performance in such a way that they are led from the development of innovation capability.

The purpose of this study is to investigate ways in which the performance management at different school management levels contributes to the performance of public schools in the Estonian general education system.

The study is based on the balanced performance management approach and focuses on performance management patterns in Estonian general education schools. At the individual, operational, and strategic performance management levels, the primary performance determinants are analysed. The study uses empirical survey data gathered from 164 schools providing upper secondary education in Estonia.

The research shows that a pupil's academic performance as the most common indicator of a school's performance influences individual goals, such as satisfaction with the quality of education and teaching in the school and the pupils' further choices and opportunities in education. The satisfaction of other interested parties such as teachers and parents is influenced by the school's strategic as well as operational performance management measures. Therefore, a school's performance management system must operate as a balanced system integrating the individual, operational and strategic performance management levels of the school.

The general limitations of survey‐based research have to be considered – the study is static in nature, although the longitudinal approach would allow assessing the dynamic aspects of performance management in public schools. In addition, it is necessary to further explore a wider set of individual, operational and strategic performance management indicators and their interconnections in the implementation of performance management in public schools.

The research findings have two main implications. First, the paper contributes to the limited knowledge about the implementation of performance management practices in public schools. Second, due to the fact that the Estonian education system is firmly based on approaches that have proven to be performance‐enhancing, the analysis provides an overview of and information about the countries that have not gone to such lengths in the restructuring of their education system.

The purpose of the paper is to report the findings of a study of the relation between perceived environmental uncertainty and the abandonment of traditional annual budgets.

The paper is based on the use of data from a survey among the largest Danish companies. The hypothesized relationships are tested by the use of logistic regression.

The results show no sign of a relationship between perceived environmental uncertainty and the abandonment of traditional annual budgets. Instead, the results show a positive relationship between competition in the environment and the adoption of rolling forecasts.

Instead of focusing on the budgeting system in isolation, future research should, to a larger extent, focus on management control systems as a package.

The results indicate that a competitive environment could be handled by retaining budgets but supplementing them with rolling forecasts.

This paper is among the first to investigate the relationship between environmental uncertainty and the abandonment of traditional annual budgets.

In recent years, accrual accounting has become increasingly popular in many governments. Yet some questions remain unresolved. Previous literature questioned whether all governmental assets should be capitalized. Whereas those studies mostly focussed separately on a limited number of assets, such as infrastructure, military assets or heritage assets, the purpose of this paper is to expand these views by taking a holistic approach to their treatment.

The paper is based on a literature review combined with archival data, being the IPSAS (International Public Sector Accounting Standards).

The analysis distinguishes between the business and government sectors of the economy and argues that business accounting for assets cannot be applied to the public sector without significant modification. Secondly, within the public sector, it is argued that “businesslike assets” (such as normal buildings and equipment) should be distinguished from “specific governmental assets” (such as art galleries), where the latter should be reported off balance sheet as community assets held in trust by governments for community enjoyment.

The current paper presents a solution for recognizing capital assets in different situations.

The paper reveals some basic differences in points of view between the governmental dimension versus a businesslike dimension in considering capital assets.

The purpose of this paper is to examine the way strategic approach to business process management (BPM) impacts organizational performance, both its financial and non‐financial aspects, using empirical data from Croatian firms. The impact of strategic approach to BPM on process performance measurement (PPM) is examined as well.

A questionnaire survey was conducted on a sample of 194 manufacturing and service firms in Croatia and propositions were tested using a structural equation model with SAS software.

The results suggest that PPM practice is positively related to strategic approach to BPM. The impact of PPM on non‐financial performance has been found, as well as the impact of non‐financial performance on financial performance, thus indicating an indirect influence of PPM on financial performance.

The paper extends the previous research that exclusively investigated impact of BPM to organizational performance. The authors extended results of previous research and found that strategic approach to BPM is an important push factor for implementation of PPM, and that PPM is an important link between BPM and improved organizational performance.