Adoption and implementation of performance measurement system in the Yemeni public sector: challenges and prospects

Abstract

This thesis is submitted for the Cranfield DBA program. It examines and explores the utilization of Performance Measurement Systems (PMS) in public organizations with a special focus on the culture of developing countries. The research was inspired by the apparent potential of measurement for reform and the limited research on the implementation of performance measurement systems in the public sector. The paper started by conducting a thorough and critical examination of a vast body of literature using a systematic approach in order to identify the key determinants of successful utilization of PMS in public organizations. The review revealed that utilization of performance measurement in the public sector is a work in progress. It showed that, in spite of the growing interest on the field of performance measurement to improve public services, the empirical work remains small and disintegrated, focused only on single issues, and lacks a holistic perspective. The literature indicates that little is known about the needed conditions for an effective utilization of measurement within the public context in general and more so in non-western countries. The thesis, then, report the result of an empirical research based on in-depth interviews and focus group meetings with senior public managers from multiple public organizations in the Republic of Yemen. The empirical project sought to examine the Yemeni public sector organizations’ familiarity with performance measurement and explore the actual and potential role of measurement to support reform and improve performance in the public sector. Findings indicate that consecutive reforms in the Yemeni public sector did not seem to emphasize the need to establish a performance-based culture. It shows that the Yemeni public sector features a traditional administration that is away from a resultbased management, bound to roles and process, and less flexible to change. This study, accordingly, highlights the significant importance of the context and subsequent processes and arrangements that promote or impede the development and use of performance measurement in public organizations in non-western countries. It shows that a one-size-fits-all policy should be avoided by policy makers who should be mindful of possible dissimilarities between public entities and the significance and relevance of the context. The study indicates that failure and success of utilization of PMS in the public sector is influenced by various elements that need to be considered prior and after the adoption of measurement. A new theoretical model has been developed based on findings in order to extend the existing literature in this area. The model provides an extensive description about the main factors affecting adoption and implementation of PMS and promotes understanding about the needed conditions for successful utilization in the public sector. It addressed the need for translating abstract concepts such as adoption and implementation into clearly defined theoretical constructs in order to avoid confusion and create a common vocabulary for researchers.