New Public Management between reality and illusion: Analysing the validity of performance-based budgeting

Sara Giovanna Mauro, Lino Cinquini () and Daniela Pianezzi

The British Accounting Review, 2021, vol. 53, issue 6

Abstract: Drawing from the theoretical insights of pragmatic constructivism, this paper aims to explain the difficulties faced by organizational actors in the translation of performance-based budgeting (PBB) into practice. The dichotomy of reality and illusion at the centre of pragmatic constructivism sheds light on the limitations and shortcomings that characterize the implementation of a business-like practice introduced as a component of the reform movement known as New Public Management (NPM). The paper investigates the case of an Italian Ministry through the analysis of interviews, policy documents, and governmental reports. The analysis shows that a failed integration of communication, values and aims between actors and an illusionary analysis of factual possibilities constrain the construction of causalities, hence jeopardizing the successful implementation of the performance-based budgeting reform. Rather than engaging in a co-authoring process, the actors are left with illusionary constructs that, while providing the appearance of a compliant organization, fail to produce the desired changes.

Keywords: New Public Management; Pragmatic constructivism; Performance-based budgeting; Public sector (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:53:y:2021:i:6:s0890838919300319

DOI: 10.1016/j.bar.2019.02.007

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