List of Abbreviations
Chapter 5: Research Methodology
5.12 Chapter summary
This chapter has explained the research methodology applied in this study. This study takes a positivist philosophical position in that it exhibits positivist characteristics; for instance, the researcher was distant from the phenomena under study (the research utilised a survey questionnaire that was independently completed by the respondents), the knowledge gained originated from objective evidence, and the results were interpreted in a value-free manner. In terms of the research design, this chapter also justifies the choice of a cross-sectional design, which made it possible to gain an overview of how the BSC, in association with OC and PSM, was adopted in the organisations under consideration. In addition, the chapter discusses the selection of a longitudinal design for examining the association between the BSC and OP and the effect of BSC implementation on OP.
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This study collected primary data (survey questionnaires) from twelve CEOs in Indonesia. The survey questionnaire consists of seven latent variables: strategy translation, strategy alignment, strategy as everyone’s everyday job, strategy as a continuous process, leadership involvement, OC and PSM. In addition to primary data, this study collected secondary data in the form of performance reports, survey reports, and data on organisational characteristics, all of which were used to support the data analysis. A justification for the choice of the twelve customs and excise organisations as the units of analysis is also provided. The ethical process of this study was discussed, as were the piloting activities used to test the drafted questionnaire. The next chapter provides an analysis of the first two research questions: How do SFO principles relate to each other within the implementation of the BSC? and To what extent are organisational factors associated with the implementation of the BSC?.
This chapter closes with a presentation of the linkages among the aim of the research, the objectives of the research, the research questions, the hypotheses, the research methodology, and the respondents (Table 5.6).
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Table 5.6 Linkages of research aim, research objectives, research questions, hypotheses, research methodology and methods, and respondents
Research aim Research objective Research question Hypothesis
Research methodology and methods
Respondents
To explore the implementation of BSC as a performance management system within public-sector organisations in Indonesia with a view to clarifying the nature of BSC practices and their
relationship to organisational factors, organisational performance and employee behaviour
i. Explore the theoretical perspectives of balanced scorecard in order to identify the key success factors of balanced scorecard implementation;
RQ1. How do strategy-focused organisations’ (SFO) principles relate to each other within implementation of the BSC?
H1: SFO principles correlate positively with each other within the implementation of the BSC.
• Philosophical research orientation:
Positivist paradigm
• Research strategy: quantitative
• Research design: cross-sectional and longitudinal
• Methods for data collection:
• primary data: survey questionnaires
• secondary data: performance reports, customer satisfaction survey results
• Data analysis techniques:
• CFA
• SEM
• Panel data regression model
• Growth curve analysis
• Units of analysis:
- MSO Tg. Priok - MSO Batam - MSO Soetta - CEO Marunda - CEO Jakarta - CEO Tangerang - CEO Merak - CEO Bogor - CEO Bekasi - CEO Cikarang - CEO Purwakarta - CEO Bandung
• Distributed to 1,969 employees at 12 CEOs, with the following compositions in each of the organisations:
- All middle
management-level employees;
- Representatives of first-line managers - Representatives of
staff-level
employees under each of the line managers
ii. Review balanced scorecard practices in order to clarify organisational factors that affect the balanced scorecard as well as the ways in which the balanced scorecard implementation affect employee behaviour
RQ2. To what extent are organisational factors associated with the implementation of the BSC?
H2. The large organisation has more influence on the implementation of BSC than the small organisation.
H2a.The level of BSC strategy translation is higher for employees working in large organisations than for employees working in small organisations;
H2b.The level of BSC strategy alignment is higher for employees working in large organisations than for employees working in small organisations;
• Primary data: survey questionnaires
• Data analysis technique: SEM
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and organisational performance;
iii. Develop a conceptual framework of balanced scorecard
implementation in the public-sector
organisation to describe the relationship between organisational factors and the balanced scorecard and define the ways in
which its
implementation contributes to employee behaviour and organisational performance; and iv. Test and examine the
conceptual framework in order to discover the extent to which organisational factors
influence the
implementation of the balanced scorecard and the extent to which balanced scorecard implementation relates to employee behaviour and organisational performance within the public-sector
organisational context.
H2c.The level of the strategy everyone’s everyday job through in large organisation is higher than that of small organisation;
H2d.The level of the strategy as a continuous process through BSC in large organisation is higher than that of small organisation;
H2e.The level of the leadership involvement through a BSC in the large organisation is higher than that of the small organisation.
H3. Employees holding strategic roles have more influence on BSC implementation than other employees.
H3a. The level of strategy translation through BSC of employees holding strategic roles is higher than the rest of employees;
H3b. The level of strategy alignment through BSC of employees holding strategic roles is higher than the rest of employees;
H3c. The level of the strategy everyone’s everyday job through BSC of employees holding strategic roles is higher than the rest of employees;
H3d. The level of the strategy as a continuous process through BSC of employees holding strategic roles is higher than the rest of employees;
H3e. The level of the leadership involvement through a BSC of employees holding strategic roles is higher than the rest of employees.
RQ3. Do the SFO principles within the implementation of the BSC have a relationship with organisational commitment?
H4. The SFO principles within the implementation of the BSC are positively associated with organisational commitment.
H4a. The better the strategy translation through BSC implementation, the more employees’ organisational commitment will increase;
H4b. The better the strategy alignment through BSC implementation, the
• Primary data: survey questionnaires
• Data analysis technique: SEM
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more employees’ organisational commitment will increase;
H4c. The better the realisation of strategy as everyone’s everyday job through BSC implementation, the more employees’ organisational commitment will increase;
H4d. The better the realisation of strategy as a continuous process through BSC implementation, the more employees’ organisational commitment will increase;
H4e. The better the leadership involvement through BSC implementation, the more employees’ organisational commitment will increase.
RQ4. Do the SFO principles within the implementation of the BSC have a relationship with public service motivation?
H5. The SFO principles within the implementation of the BSC are positively associated with PSM.
H5a. The better the strategy translation through BSC implementation, the more employees’ public service motivation will increase;
H5b. The better the strategy alignment through BSC implementation, the more employees’ public service motivation will increase;
H5c. The better the realisation of strategy as everyone’s everyday job through BSC implementation, the more employees’
public service motivation will increase;
H5d. The better the realisation of strategy as a continuous process through BSC implementation, the more employees’
public service motivation will increase;
H5e. The better the leadership involvement through BSC implementation, the more employees’ public service motivation will increase.
• Primary data: survey questionnaires
• Data analysis techniques: SEM
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RQ5. How does public service motivation relate to organisational commitment within an organisation implementing the BSC?
H6. Public service motivation is positively associated with organisational commitment within organisations that apply the BSC as their performance management system.
• Primary data: survey questionnaires
• Data analysis technique: SEM
RQ6. How is BSC implementation associated with organisational performance?
H7. The implementation of the BSC is positively associated with organisational performance.
• Secondary data: performance reports, customer satisfaction survey results, ministerial decrees regarding organisational structure
• Data analysis techniques:
- Panel data regression model - Growth curve analysis
Twelve organisations as the respondents
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