The relationship between budget participation and job performance: The roles of budget adequacy and organizational commitment

Abstract

This study explores the linkages between budget participation and job performance. In the proposed theoretical model, budget participation affects job performance via two intervening variables: budget adequacy and organizational commitment. Accordingly, budget participation leads to high budget adequacy which, in turn, increases job performance directly and indirectly via organizational commitment. To test the proposed relationships, a survey questionnaire was administered to managers of a large American corporation. The results of path analysis support the hypothesized relationships.