The aim of this study is to examine the predictors of effective performance measurement in the context of Turkish municipalities. In the study, mainly the theoretical guidance of context-design-performance model has been utilized to examine the contextual and design factors which have influenced the effective use of performance measurement systems in Turkish municipalities. The following research questions were examined in this study: To what extent do Turkish municipalities implement performance measurement systems effectively?, What are the predictors of effective performance measurement in Turkish municipalities?, and whether or to what extent do quality of performance measures, technical capacity of the municipality for performance measurement, organizational support, and external support for the use of performance measurement have influence on the effectiveness level of performance measurement systems in Turkish municipalities? In the study, the data were collected from Turkish municipalities by a self-administered online survey and were analyzed by using the structural equation modeling (SEM). It is hypothesized in the study that external support and organizational support for the use performance measurement, and technical capacity for the performance measurement are associated with quality of performance measures and effectiveness of performance measurement systems in general. The results of the study supported the hypotheses of the study regarding the relationships among organizational support, technical capacity, quality of performance measures, and effectiveness of performance measurement. Although the results confirmed that external support has an indirect effect on effectiveness of performance measurement via technical capacity and quality of performance measures, the hypothesis regarding the direct effect of it on effectiveness of performance measurement was not supported. Moreover, the study found that support of employees and citizens for the use of performance measurement in Turkish municipalities are relatively low, the municipalities have deficiencies both in the quantity and the quality of staff that are responsible for performance measurement activities, and the level of employee involvement in the development of performance measures is low.