Organizational Factors and Performance Measurement System Implementation: The Moderating Role of Human Resource Capability

Puspita Dewi Wulaningrum; Linda Kusumastuti Wardana

doi:10.59261/inkubis.v8i3.434

Authors

Puspita Dewi Wulaningrum Universitas Muhammadiyah Yogyakarta
Linda Kusumastuti Wardana Universitas Muhammadiyah Yogyakarta

DOI:

https://doi.org/10.59261/inkubis.v8i3.434

Keywords:

HR Capability, Institutional Theory, Organizational Factors, Performance Measurement System, Public Sector

Abstract

Background: Despite extensive performance measurement reforms in Indonesia, the Government Agency Performance Accountability System (SAKIP) has not achieved its intended outcomes. By 2024, few local governments achieved an A or higher rating, while most remained at BB or B levels, indicating procedural compliance rather than substantive performance use. Weaknesses include integration between planning and budgeting, poorly defined performance indicators, and limited use of performance information in decision-making.

Objective: This study examines the influence of organizational factors management commitment, decision-making authority, incentives, training, and responsiveness to change on Performance Measurement System (PMS) implementation in local government and tests the moderating role of Human Resource (HR) capability.

Methods: A survey involved 139 officials (echelon III and IV) of Regional Government Work Units (SKPD) in the Special Region of Yogyakarta (DIY) using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

Results: Management commitment, training, and responsiveness to change positively and significantly influence PMS implementation, whereas decision-making authority and incentives do not. HR capability significantly moderates the relationship between responsiveness to change and PMS implementation.

Conclusion: The study extends Institutional Theory and the Resource-Based View (RBV) by positioning HR capability as a context-dependent moderator of PMS adoption. Practically, responsiveness to change, supported by strong HR capability, emerges as a key pathway for strengthening local government performance reform. As the study is limited to the Special Region of Yogyakarta (DIY), future research should conduct cross-regional studies to validate and broaden the generalizability of the findings.

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