Performance Measurement in the Public Sector: A Clarification and Agenda for Research

Abstract

Despite the growing significance of performance measurement systems, theoretical evidence suggests that unique and complex characteristics in the public sector prevent performance measures being used for internal managerial purposes. A paucity of empirical studies suggests a need to shift the research agenda to interpretive methods to understand how the measures are used in a public‐sector entity. A field study approach employing grounded theory is advocated to connect what is happening in practice with scholarly work.