Abstract
Governance has undergone a transformation to accommodate accountability and emerging role of citizens in present day Japan. Knowledge-based governance (KBG) is a product of the changing nature of governance, and the development of evaluation and performance measurement. As evaluation in the public sector is being institutionalized both in central and local government, management practices have been geared toward knowledge-based management.
Following an explanation of KBG and its relationship with performance measurement, the background of evaluation and performance measurement is described. Examples of current practices of knowledgebased management and performance measurement in Japan's local governments can lead to a universal governance model supported by an effective performance measurement/management system.
Although KBG remains to be demonstrated by further empirical studies, this model includes management learning processes where people can identify and share their knowledge on objectives based on three key terms: target, intention and outcome. Knowledge sharing and collaboration are the main factors constituting this new governance, and knowledge is a key component as a competitive resource leading to continuous innovations. The cases in Japan confirm that a knowledge-based strategy is also effective in the public sector.
