DESIGNING BALANCED SCORECARD FRAMEWORK BASED ON CULTURAL VALUES

Miuhsyaf, Saipul Arni (2019) DESIGNING BALANCED SCORECARD FRAMEWORK BASED ON CULTURAL VALUES. S3 thesis, TOHOKU UNIVERSITY - JAPAN.

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Abstract

Healthcare organizations have adopted a comprehensive performance measurement system (PMS) more than 20 years in which non-financial measures play important roles. The adoption was driven mainly by increasing demands of better health quality services from communities, and also by growing demands on the hospitals’ accountability, effectiveness, and efficiency from stakeholders. As institutions play major roles within a national healthcare system, public hospitals are inseparable from those demands. Hospitals have been acknowledged for utilizing major portion of national health resources and therefore, are encouraged to implement a comprehensive PMS such as balanced scorecard (BSC). Many studies have reported that adoption of BSC by hospital in high-income countries (HICs) setting have promoted a balanced performance between financial and non-financial outcomes such as higher employee motivation and patient satisfaction. However, there are still limited empirical investigations on the successful of the adoption in non-high-income countries (non HICs), including in Indonesia. This main objective of this research is to investigate the PMS adoption from cultural perspectives in the context of Indonesian public hospitals., by (1) reviewing the existing experiences of BSC implementation in High-Income Countries and then assess applicability of BSC adoption to Indonesian public hospitals, (2) conducting a case study on organizational culture to understand contextual culture of Indonesian public hospitals, and (3) investigating the influence of organizational culture on the acceptance, importance and use of PMS in Indonesian public hospitals. The first objective was conducted by reviewing literatures from major world’s academic research database. Literatures suggested that the implementation of BSC requires harmonization of hospitals’ BSC best practices and the government regulations. Furthermore, the implementation strategy should be in gradual and combined with the readiness and cultural assessment. The second objective was conducted by diagnosing organizational culture using Competing Values Framework (CVF) developed by Cameron and Quinn. The survey was conducted in a local public hospital owned by local government with 266 respondents. Results showed that the hospital is characterized by a mixture of a friendly workplace and hierarchical control through rules and regulations. The hospital’s business is run by focusing on the development of employees and managed like an extended family with participation, openness, high commitment, and loyalty as organization’s glue. Flexibility, employee autonomy, and teamwork are valued rather higher than competition or innovation efforts. The third study was conducted by employing Partial Least Squared-Structural Equation Model (PLS-SEM). The findings revealed that the use and the acceptance of a multiple-based dimensions of PMS such as BSC is clearly determined by perception and cognition of the employees. Culture can be enabler or barrier to the PMS use, acceptance and perceived importance. Clan culture that characterized by collaborative working environment is found has a positive and significant influences to the acceptance and the perceived importance of PMS. Consequently, the hospital is suggested to be more decentralized in decision-making process and encourages hospital’s directors and managers to act as employees’ mentors rather than as coordinator and organizer. This study has contributed to the literature on organizational theories in general and to the management accounting in particular by investigating organization performance measurement system. The findings reinforced the relevancy of contingency approach and the PMS acceptance models (theories) in Indonesian public hospital setting. The study is perhaps the first to study the relationship between hospital cultures and the acceptance, the importance, and the use of BSC. The results were expected to be useful in designing a BSC framework for Indonesian public hospitals. However, further research by involving hospitals across cities, islands, and regions within the country is suggested since this study is conducted in one city public hospital. It is also desirable for future research to compare the PMS contextual factors as there are some types of Indonesian hospitals including private and public, local and national, and so on.

Item Type:	Thesis (S3)
Keywords (Kata Kunci):	Performance measurement, Balanced scorecard, Competing Values Framework
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting J Political Science > JS Local government Municipal government
Divisions:	Fakultas Ekonomi
Depositing User:	Dr SAIPUL ARNI MUHSYAF
Date Deposited:	16 Nov 2022 00:48
Last Modified:	16 Nov 2022 00:48
URI:	http://eprints.unram.ac.id/id/eprint/33091

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