Measuring the performance of public organizations, which uses the authority to act on behalf of the public, is seen as an important way of holding them accountable. In addition to its contributions on improving accountability, performance information may also help strategic planning and budgeting practices. Moreover, it has the potential of contributing the improvement of the services provided. However, the expected benefits of performance can only be accrued with the existence of appropriate performance measures and their rigorous application. The aim of this study is to examine the predictors of effective performance measurement in the context of Turkish municipalities. In the study, mainly the theoretical guidance of context-design-performance model has been utilized to examine the contextual and design factors which influence the effective use of performance measurement systems.

The following research questions are examined in this study: What are the predictors of effective performance measurement systems in public sector? To what extent do Turkish municipalities implement performance measurement systems effectively?, What are the predictors of effective performance measurement in Turkish municipalities?, and  whether or to what extent do technical capacity, organizational support, and external support have influence on the effectiveness level of performance measurement systems in Turkish municipalities? It is hypothesized in the study that external support and organizational support for the use performance measurement, and technical capacity for the performance measurement are associated with the effectiveness of both performance measures and performance measurement systems in general. The data for the study is collected by a cross-sectional survey from all Turkish province and district municipalities, which total to 973 including metropolitan municipalities. The data is analyzed with the structural equation modeling (SEM).

This study builds on and contributes to earlier studies on performance measurement. Although earlier studies have examined the factors which influence the use and the effectiveness of performance measurement systems in the US public sector and in other countries, to our knowledge, the issue is not studied for the Turkish municipalities. Moreover, earlier studies did not examine the predictors of effective performance measures. But this study will also evaluate the effectiveness of performance measures in addition to effectiveness of performance measurement systems. Furthermore, many researchers argue that Turkish municipalities do not implement performance measurement effectively. However, these arguments have not been examined empirically and therefore, there is a need for empirical studies in the literature.

Since performance measurement has the potential to improve the accountability and performance of the government agencies, examining the factors which affect the use of performance measurement in Turkish municipalities may also contribute to those ends. As the concept of “performance” is new in Turkish public administration, so are the studies conducted about the performance of Turkish public agencies. Therefore, this study contributes to the literature and may help policy-makers, elected officials, and managers reconsider and improve the effective use of performance measurement systems.