ABSTRACT:

Nagari Government is the lowest local government in Indonesia. This type of government plays a crucial role to make the society better in term of social, economic, and security. The term Nagari is similar with Desa in other Province in Indonesia. One of Nagari in West Sumatra is Nagari Pasar Baru which is located in Pesisir Selatan Regency in West Sumatra. Nagari Pasar Baru has several initiatives to build the higher quality relationship with its society. According to the new paradigm in public management (Public value management), service quality, satisfaction of citizen and relationship quality is the focus of this paradigm. However, there is a lack of study that investigate the relationship quality in public sector, such as Nagari goverment. Therefore, this study aims to investigate the effect of the services quality on citizen satisfaction and relationship quality in Nagari Government which is developing the performance measurement system. In addition, this study also investigates the mediating role of citizen satisfaction in the relationship between service quality and relationship quality. By using the 122 respondents from society of Nagari Pasar Baru in Pesisir Selatan Regency, West Sumatra, and apply the hierarchical regression, we find that service quality is associated with the citizen satisfaction and relationship quality significantly. Further, citizen satisfaction has a significant relationship with relationship quality. In addition, citizen satisfaction has a mediating role in the relationship between services quality and relationship quality.