Performance Measurement Framework for Local Government: A Systematic Literature Review

Mohammad Roziq, Sri Widyastuti and Widarto Rachbini
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Mohammad Roziq: Doctoral Student, Doctor in Economics, Postgraduate School, University of Pancasila-Indonesia
Sri Widyastuti: Professor, Doctor in Economics, Postgraduate School, University of Pancasila – Indonesia
Widarto Rachbini: AssociateProfessor, Doctor in Economics, Postgraduate School, University of Pancasila – Indonesia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 14, 247-259

Abstract: This research paper aims to provide a systematic literature review on the integration of the BSC with other performance measurement frameworks in evaluating local government performance. Effective performance measurement is crucial for local governments to evaluate their performance and drive continuous improvement. This systematic literature review explores the integration of two prominent performance measurement approaches, the Balanced Scorecard (BSC) and Performance Measurement Framework (PMF), in evaluating local government performance. The review examines existing studies, frameworks, and practical implementations to uncover the benefits, challenges, and best practices associated with this integration. The data obtained from 36 most relevant articles to “balanced scorecard implementation†, performance measurement framework†, and “local government†or “municipalities†. The findings highlight that the integration of the BSC and PMF provides a comprehensive and strategic approach to performance measurement in local government. It enhances performance measurement practices by incorporating financial and non-financial indicators, aligns with organizational strategies, and promotes accountability and transparency. However, challenges such as defining relevant indicators, data availability, organizational buy-in, and resource constraints need to be addressed for successful implementation. The integrated model has practical implications, including the need for strong leadership support, stakeholder engagement, continuous monitoring, and capacity building. Future research should focus on empirical evaluations of the model’s effectiveness, contextual factors influencing its implementation, and long-term impacts on local government performance and governance. Policymakers can use the integrated model to develop evidence-based policies, allocate resources strategically, and foster a culture of continuous improvement. Ultimately, the integrated performance measurement model has the potential to drive positive change and enhance service delivery in local government, contributing to better governance outcomes.

Date: 2025
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