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The research on government performance measurement has been largely descriptive and prescriptive, with only limited attention paid to hypothesis testing and middle-range theory construction. Although researchers have made prescriptions about how to make performance management work, the validity of those prescriptions has not been systematically examined. In particular, the role of the external political environment and stakeholder participation, two important factors for public sector management, remains unclear. Based on survey data, this article uses structural equation modeling to test a model that assesses how political environment, stakeholder participation, organizational support, and training affect the adoption and managerial effectiveness of performance management.