The Influence of Organisational Culture on Performance Measurement Systems in Libyan Higher Education

This research attempts to study the influence of organisational culture (OC) on the acceptance,
importance and use of performance measurement systems (PMS) in Libyan higher education. To achieve the objectives of this research, a contingency theory is adopted. Organisational culture as a contingent variable was identified from the literature and appropriate statistical tests were undertaken to ascertain its influence. The organisational culture assessment instrument (OCAI) devised by Cameron & Quinn (2011) was chosen to be the conceptual model for determining the organisational culture type of institutions. Using the OCAI, an organisational culture profile could be verified by determining the organisation's dominant culture type characteristics. The Competing Values Framework (CVF) model developed by Cameron & Quinn (2011) was chosen to be a measurement tool for Organisational Culture (OC) to examine aspects of dominant organisational culture types in the Libyan higher education sector. A mixed methods quantitative and qualitative) approach, involving a survey questionnaire and interviews, was adopted. Descriptive statistics, which include frequencies and percentages, were utilized to present the main characteristics of the sample, the profiles of organisations’ cultural types, and the information gained in relation to the acceptance, importance and use of performance measurement systems. The sample of this study consists of three types of Libyan higher education (universities, higher institutions and technical collages). The intended participant lists covered the entire population of all groups in Libyan higher education. The study revealed that the three types of Libyan higher education are not homogeneous. In addition, the study showed that job titles and positions, experience and education levels are among the factors that influence organisational culture and thereby PMS acceptance, importance and use. While Libyan higher education in general, which includes public universities and technical colleges, was dominated by a Hierarchy culture that favours a centralised management style, the private and higher institutions were dominated by a Clan culture which is often found in ‘family-type’ organisations.
Hierarchy culture exhibited a significant negative direct relationship with the acceptance and importance of performance measurement systems in Libyan universities. On the other hand, Clan culture exhibited a significant negative direct relationship with the acceptance and use of performance measurement systems in Libyan higher institutions.
The contingency theory of performance measurement systems is based on the assumption that there is
no universally appropriate use of performance measurement systems that applies equally to all
organisations in all circumstances and the findings of this thesis are consistent with this contingency
theory assumption. Therefore, organisational culture as a factor of contingency theory has influence on
some aspects of performance measurement systems and does not influence others, and this depends on
a given organisation’s circumstances.