The determinants of the balance of the Performance Measurement Systems (PMS) of Moroccan Public Establishments and Enterprises (MPEE)

Abstract

The management approach of Moroccan public organizations instituted by Organic Law No. 130-13 relating to the Finance Law (LOF No. 130-13) based on results and performance requires the adaptation of their PMS. In this sense, the Balanced Scorecard (BSC) has aroused the interest of researchers and managers as a strategic management model in line with the challenges of public managers in terms of evaluation and performance. However, while some organizations have successfully balanced their PMS and leveraged them as strategic steering systems, others still embed their PMS in a classic control approach. This raises questions about the factors that explain the convergence of the PMS of these organizations towards the BSC model. Through an empirical study conducted with 63 MPEE, the objective of this research is to characterize the PMS adopted by the organizations studied and to explain the differentiation recorded according to a contingent approach. Based on a review of the literature, we established our theoretical model. We used structural equation modeling and more specifically the Partial Least Squares (PLS) approach to verify the hypotheses. The results show that a minority of the studied MPEE opt for balanced PMS with reference to the BSC. This research confirmed the relationship between the balance of the PMS and three contingency factors, the decentralization of the organizational structure, the uncertainty of the environment and the organizational culture of performance. The limited size of our sample is the main limitation of this work.

Keywords: PMS, BSC, MPEE, contingent approach

JEL Classification : M40

Paper type : Empirical research