The performance function in local government: Does location impact performance data use?

Abstract

Abstract Research has demonstrated that certain drivers increase the probability of performance data use in local government. One performance driver that has received minimal attention is where the performance function is organizationally located, even though prior research has shown that the organizational placement of the performance function can potentially influence the design and use of performance measurement systems. Our study explores how the organizational placement of the performance function in local government influences key drivers of performance data use. We find evidence that performance functions located outside the budget office are more likely to promote the drivers of measurement system maturity, other management processes, and devolved decision‐making, which in turn increases the probability that local officials engage in performance data use. We also identify several research implications to advance the study and practice of performance management in local government and conclude with research limitations and suggestions for future research opportunities.

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