Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no8.0541

Results-oriented Culture, Performance Information Use and the Performance of Public Organizations: Evidence from Vietnam  

CHAU, Thao Hong Phuong (School of Accounting, University of Economics Ho Chi Minh City)
LE, Truc Dinh (School of Accounting, University of Economics Ho Chi Minh City)
PHAM, Quynh Xuan (Accounting and Finance Department, Faculty of Economics and Business Administration, An Giang University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.8, 2021 , pp. 541-552 More about this Journal
Abstract
The purpose of this research is to investigate the mediating role of performance information use in the relationship between result-oriented culture and organizational performance. The data were collected from chief accountants and managers working in public-sector organizations in Vietnam. The analysis was based on the 197 completed questionnaires by using Partial Least Squares Structural Equation Modeling (PLS-SEM). For the test research model and hypotheses, the supporting tool is SmartPLS 3 software. Research findings show that result-oriented culture is positively associated with organizational performance, and that performance information use is a mediating mechanism that explains how a result-oriented culture leads to higher performance in public organizations. The findings of this study suggest that the results-oriented culture, not only directly improves organizational performance, but also indirectly does so by the use of performance information. This study provides evidence for theoretical understanding of the impact of result-oriented culture on the performance of public-sector organizations through performance information use, and suggests practical implications for public organizations in applying result-oriented culture to foster using performance measurement and improve organizational performance. In order to achieve good performance, public-sector organizations need to create and spread result-oriented culture and enhance the use of performance information for decision-making.
Keywords
Results-oriented Culture; Performance Information Use; Organizational Performance; Public Sector;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Ammons, D. N., & Roenigk, D. J. (2015). Performance management in local government: Is practice influenced by doctrine?. Public Performance & Management Review, 38(3), 514-541.   DOI
2 Baird, K., Harrison, G., & Reeve, R. (2007). Success of activity management practices: The influence of organizational and cultural factors. Accounting & Finance, 47(1), 47-67.   DOI
3 Brewer, G. A., & Selden, S. C. (2000). Why elephants gallop: Assessing and predicting organizational performance in federal agencies. Journal of Public Administration Research and Theory, 10(4), 685-712.   DOI
4 Garnett, J. L., Marlowe, J., & Pandey, S. K. (2008). Penetrating the performance predicament: Communication as a mediator or moderator of organizational culture's impact on public organizational performance. Public Administration Review, 68, 266-281.   DOI
5 Gerrish, E. (2016). The impact of performance management on performance in public organizations: A meta-analysis. Public Administration Review, 76(1), 48-66.   DOI
6 Gomes, P., Mendes, S. M., & Carvalho, J. (2017). Impact of PMS on organizational performance and moderating effects of context. International Journal of Productivity and Performance Management, 66(4), 517-538.   DOI
7 Thi Tran, Y., Nguyen, N. P., & Nguyen, L. D. (2020). Results-oriented Culture and Organizational Performance: The Mediating Role of Financial Accountability in Public Sector Organizations in Vietnam. International Journal of Public Administration, 1-16.
8 Van Dooren, W., Bouckaert, G., & Halligan, J. (2010). Performance management in the public sector. London: Routledge.
9 Verbeeten, F. H. (2008). Performance management practices in public sector organizations: Impact on performance. Accounting, Auditing & Accountability Journal, 21(3), 427-454. https://doi.org/10.1108/09513570810863996   DOI
10 Verbeeten, F. H., & Spekle, R. F. (2015). Management control, results-oriented culture and public sector performance: Empirical evidence on new public management. Organization Studies, 36(7), 953-978.   DOI
11 Song, M., & Meier, K. M. 2018. Citizen Satisfaction and the Kaleidoscope of Government Performance: How Multiple Stakeholders See Government Performance. Journal of Public Administration Research and Theory, 1-17.
12 Andrews, R., Boyne, G. A., & Walker, R. M. (2006). Strategy content and organizational performance: An empirical analysis. Public Administration Review, 66(1), 52-63.   DOI
13 Baird, K. M., & Harrison, G. L. (2017). The association between organizational culture and the use of management initiatives in the public sector. Financial Accountability & Management, 33(3), 311-329.   DOI
14 Behn, R. D. (2003). Why measure performance? Different purposes require different measures. Public Administration Review, 63(5), 586-606.   DOI
15 Birnberg, J. G., Luft, J., & Shields, M. D. (2006). Psychology theory in management accounting research. Handbooks of Management Accounting Research, 1, 113-135.   DOI
16 Straub, D., Boudreau, M.-C., & Gefen, D. (2004). Validation Guidelines for IS Positivist Research. Communications of the Association for Information Systems, 13(Article 24), 380-427.
17 Taylor, J. (2011). Factors influencing the use of performance information for decision making in Australian state agencies. Public Administration, 89(4), 1316-1334.   DOI
18 Tran, Y. T., & Nguyen, N. P. (2020). The impact of the performance measurement system on the organizational performance of the public sector in a transition economy: Is public accountability a missing link? Cogent Business & Management, 7(1), 1792669.   DOI
19 Perrin, B. (2002, February). Implementing the vision: Addressing challenges to results-focused management and budgeting. In meeting on Implementation Challenges in Results Focused Management and Budgeting (pp. 11-12).
20 Kroll, A., & Vogel, D. (2014). The PSM-leadership fit: A model of performance information use. Public Administration, 92(4), 974-991.   DOI
21 Marcoulides, G. A., & Heck, R. H. (1993). Organizational Culture and Performance: Proposing and Testing a Model. Organization Science, 4(2), 209-225.   DOI
22 Moynihan, D. P., Pandey, S. K., & Wright, B. E. (2012). Setting the table: How transformational leadership fosters performance information use. Journal of Public Administration Research and Theory, 22(1), 143-164.   DOI
23 OECD (2005). (Mayne, J.) Using performance information for managing and budgeting: challenges, lessons and opportunities. Working Party of Senior Budget Officials.
24 Ouda, H. A. G. (2015). Results-based systems are the path towards results-oriented. International Journal on Governmental Financial Management, 15(1), 46-69.
25 Moynihan, D. P., & Pandey, S. K. (2005). Testing how management matters in an era of government by performance management. Journal of Public Administration Research and Theory, 15(3), 421-439.   DOI
26 Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In: G. A. Macoulides (Ed.), Modern methods for business research. (pp. 295-336). Mahwah, NJ: Lawrence Erlbaum Associates.
27 Fekete, H., & Bocskei, E. (2011). Cultural waves in company performance. Research Journal of Economics, Business and ICT, 3, 38-42.
28 Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12, 531-544.   DOI
29 Pham, C. D., Vu, S. T., Pham, Y. T. K., & Vu, N. T. (2020). Evaluating performance of Vietnamese public hospitals based on balanced scorecard. Journal of Asian Finance, Economics and Business, 7(6), 339-349. https://doi.org/10.13106/jafeb.2020.vol7.no6.339   DOI
30 Phornlaphatrachakorn, K., & Peemanee, J. (2020). Integrated performance measurement as a strategic management accounting approach: A case of beverage businesses in Thailand. Journal of Asian Finance, Economics and Business, 7(8), 247-257. https://doi.org/10.13106/jafeb.2020.vol7.no8.247   DOI
31 Podsakoff, P. M., MacKenzie, S. B., Podsakoff, N. P., & Lee, J. Y. (2003). The mismeasure of mannagement and its implications for leadership research. The Leadership Quarterly, 14(6), 615-656.   DOI
32 Pollitt, C., & Bouckaert, G. (2011) Public Management Reform: A Comparative Analysis - New Public Management, Governance, and the Neo-Weberian State. Oxford: Oxford University Press.
33 Cavalluzzo, K. S., & Ittner, C. D. (2004). Implementing performance measurement innovations: evidence from government. Accounting, Organizations and Society, 29(3-4), 243-267.   DOI
34 Fuller, C. M., Simmering, M. J., Atinc, G., Atinc, Y., & Babin, B. J. (2016). Common methods variance detection in business research. Journal of Business Research, 69(8), 3192-3198.   DOI
35 Wulaningrum, P. D., Akbar, R., & Sari, M. R. (2020). Isomorphism, Human Resource Capability and Its Role in Performance Measurement and Accountability. Journal of Asian Finance, Economics and Business, 7(12), 1099-1110. https://doi.org/10.13106/jafeb.2020.vol7.no12.1099   DOI
36 Van de Ven, A. H., & Ferry, D. L. (1980). Measuring and assessing organizations. Hoboken, NJ: John Wiley & Sons.
37 Pollanen, R., Abdel-Maksoud, A., Elbanna, S., & Mahama, H. (2017). Relationships between strategic performance measures, strategic decision-making, and organizational performance: empirical evidence from Canadian public organizations. Public Management Review, 19(5), 725-746.   DOI
38 Garson, G. D. (2014). Partial least squares: Regression and structural equation models. Asheboro, NC: Statistical Associates Publishers.
39 Rivenbark, W. C., Fasiello, R., & Adamo, S. (2019). Exploring Performance Management in Italian Local Government: The Necessity of Outcome Measures and Citizen Participation. The American Review of Public Administration, 49(5), 545-553.   DOI
40 General Statistics Office. (2018). Statistical yearbook 2017. Statistics Publishing House, Hanoi, Vietnam.
41 Yesil, S., & Kaya, A. (2013). The effect of organizational culture on firm financial performance: Evidence from a developing country. Procedia - Social and Behavioral Sciences, 81, 428-437.   DOI
42 Giauque, D., Anderfuhren-Biget, S., & Varone, F. (2013). HRM practices, intrinsic motivators, and organizational performance in the public sector. Public Personnel Management, 42(2), 123-150.   DOI
43 Glisson, C. A., & Martin, P. Y. (1980). Productivity and efficiency in human service organizations as related to structure, size, and age. Academy of Management Journal, 23(1), 21-37.   DOI
44 Sanger, M.B. (2008). Getting to the roots of change performance management and organizational culture. Public Performance & Management Review, 31(4), 621-653.   DOI
45 Kim, S. (2004). Individual-level factors and organizational performance in government organizations. Journal of Public Administration Research and Theory, 15(2), 245-261.   DOI
46 Heady, F. (2001). Public administration: a comparative perspective (6th ed.). New York: Marcel Dekker.
47 Zammuto, R. F., & Krakower, J. Y. (1991). Quantitative and qualitative studies of organizational culture. Research in Organizational Change and Development, 5, 83-114.
48 Zhang, H., Van de Walle, S., & Zhuo, Y. (2016). Does trust in the performance measurement organization influence how public managers use performance information? Public Performance & Management Review, 40(2), 409-430.   DOI
49 Kim, J. (2010). Strategic human resource practices: Introducing alternatives for organizational performance improvement in the public sector. Public Administration Review, 70(1), 38-49.   DOI
50 Kim, P. S., Lee, K. H., & Roh, C. Y. (2006). Promoting a High-Performance Culture in Government. ASPA/EGPA A Performing Public Sector: The Second Trans-Atlantic Dialogue, 1-3.
51 De Bruijn, H. (2003). Managing performance in the public sector. London: Routledge.
52 Pillay, S., & Kluvers, R. (2014). An institutional theory perspective on corruption: The case of a developing democracy. Financial Accountability & Management, 30(1), 95-119   DOI
53 Spekle, R. F., & Verbeeten, F. H. (2014). The use of performance measurement systems in the public sector: Effects on performance. Management Accounting Research, 25(2), 131-146.   DOI
54 Steccolini, I., Saliterer, I., & Guthrie, J. (2020). The role (s) of accounting and performance measurement systems in contemporary public administration. Public Administration, 98(1), 3-13.   DOI
55 Sun, R., & Van Ryzin, G. G. (2014). Are performance management practices associated with better outcomes? Empirical evidence from New York public schools. The American Review of Public Administration, 44(3), 324-338.   DOI
56 Korac, S., Saliterer, I., Sicilia, M., & Steccolini, I. (2020). Contrasting and explaining purposeful and legitimizing uses of performance information: a mayor's perspective. Public Management Review, 22(4), 553-577.   DOI
57 Latham, G. P., & Locke, E. A. (1991). Self-regulation through goal setting. Organizational Behavior and Human Decision Processes, 50(2), 212-247.   DOI
58 Henseler, J., & Fassott, G. (2010). Testing moderating effects in PLS path models: An illustration of available procedures. In: Handbook of partial least squares (pp. 713-735). Berlin, Heidelberg: Springer.
59 Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: Sage Publications.
60 Halachmi, A., & Holzer, M. (2010). Citizen participation and performance measurement: Operationalizing democracy through better accountability. Public Administration Quarterly, 34(3), 378-399.
61 Simons, R. (2000). Performance measurement and control systems for implementing strategy. Upper Saddle River, NJ: Prentice Hall.
62 Poister, T. H., Pasha, O. Q., & Edwards, L. H. (2013). Does performance management lead to better outcomes? Evidence from the US public transit industry. Public Administration Review, 73(4), 625-636.   DOI
63 Prowle, M. J., Kalar, M., & Barrow, L. (2016). Developing contestability in the delivery of public services. Public Money & Management, 28(4), 255-260.   DOI
64 Rizzi, F., Annunziata, E., & Frey, M. (2018). The relationship between organizational culture and energy performance: A municipal energy manager level study. Business Strategy and the Environment, 27(6), 694-711.   DOI
65 Hood, C. (1995). The "new public management" in the 1980s: Variations on a theme. Accounting, Organizations and Society, 20(2-3), 93-109.   DOI
66 Henri, J. F. (2006). Organizational culture and performance measurement systems. Accounting, Organizations and Society, 31(1), 77-103.   DOI
67 Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135.   DOI
68 Hood, C. (1991). A public management for all seasons? Public Administration, 69(1), 3-19.   DOI
69 Hood, C., & Dixon, R. (2015). What we have to show for 30 years of new public management: Higher costs, more complaints. Governance, 28(3), 265-267.   DOI
70 Jung, C. S., & Lee, G. (2013). Goals, strategic planning, and performance in government agencies. Public Management Review, 15(6), 787-815.   DOI
71 Nitzl, C., Sicilia, M., & Steccolini, I. (2019). Exploring the links between different performance information uses, NPM cultural orientation, and organizational performance in the public sector. Public Management Review, 21(5), 686-710.   DOI
72 Kroll, A. (2015). Explaining the use of performance information by public managers: A planned-behavior approach. The American Review of Public Administration, 45(2), 201-215.   DOI
73 Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9), 705.   DOI
74 Moon, M. J. (2000). Organizational commitment revisited in new public management: Motivation, organizational culture, sector, and managerial level. Public Performance & Management Review, 24(2), 177-194.   DOI
75 O'Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & Quantity, 41 (5), 673-690.   DOI
76 Ogbonna, E., & Harris, L.C. (2000). Leadership style, organizational culture and performance: Empirical evidence from UK companies. The International Journal of Human Resource Management, 11(4), 766-788.   DOI
77 Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: an exploratory analysis. Management Accounting Research, 15(4), 415-439.   DOI