Budgetary Participation Research Articles

Budget behaviour and cultural contingencies: case study in a Tunisian company

Abstract Background Budgetary participation has a positive impact on a variety of emotional and behavioural responses. However, the review of empirical studies conducted in Tunisia reveals a low participation rate among operating managers in the budget control systems of their companies. Research aims The purpose of this study is to understand, from a contingency perspective, the practices of budgetary participation in Tunisian companies. It aims to explore forms of budgetary participation practised by Tunisian companies and examine to what extent Tunisian cultural variables explain these budgetary behaviours. Methodology A qualitative methodology based on a single case study was used. The data collected were the subject of a thematic content analysis. Findings The results show that the Tunisian companies have serious difficulties engaging in budgetary participation. Several factors hinder the implementation and operation of this budgetary practice. The primary factors include personality variables that, although interact with cultural values rooted in Tunisian society, create a psychological inconsistency between the ideal environment for the development and success of a participative approach and the environment of the Tunisian company.

The Extent of Correlation Between the Budgetary Process Elements of Budgetary Control and Budgetary Participation with Service Delivery in Institutions of Higher Learning in Kenya: The Case of Multimedia University of Kenya

The study was aimed at assessing the extent of correlation between the budgetary process elements of budgetary control and budgetary participation with quality service delivery in public universities in Kenya, focusing on a case study of Multimedia University of Kenya (MMU).

Sustainable Wastewater Management to Reduce Freshwater Contamination and Water Depletion in Mexico

At present, most rivers, lakes, and reservoirs in Mexico have significant anthropogenic contamination. The lack of sanitation infrastructure, the increase in the number of nonoperational or abandoned sanitation facilities, limited enforcement of environmental regulations, and limited public policies for the reuse of treated wastewater all contribute to the contamination and water availability problem. The reasons for this are identified as (1) the high maintenance and operational costs in sanitation facilities (including electricity consumption); (2) poor planning and practices of wastewater management and reuse by municipalities; (3) national policies that do not favor the reuse of treated wastewater for agriculture, industry, and municipal services instead of using groundwater as at present; (4) failure to adopt a governance model at the three levels of government; and (5) transparency in the management of financial resources. Some measures to improve this situation include (a) transparent decision-making; (b) participation and accountability in budgeting and planning at the national, state, and municipal levels; and (c) planning for the reuse of treated wastewater to reduce groundwater extractions and to reduce discharges to surface waters from the beginning of every WWTP project.

PENGARUH PARTISIPASI PENYUSUNAN ANGGARAN, AKUNTABILITAS PUBLIK, DESENTRALISASI DAN SISTEM PENGENDALIAN INTERN TERHADAP KINERJA MANAJEERIAL PEMERINTAHAN DAERAH (Studi Kasus SKPD Kabupaten Bireuen)

This study aims to analyze the effect of budgetary participation, public accountability, decentralization and internal control systems on the managerial performance of local governments in 2020. This type of research is quantitative using secondary data. The population in this study were all SKPDs of Bireun Regency. The sample was selected using a purposive sampling method and obtained 52 SKPDs of Bireuen Regency. The data analysis technique in this study used multiple linear regression analysis and moderated regression analysis were processed using SPSS version 25. The results showed that by means of the t- test of Participation in Budgeting, Public Accountability had an effect on the Managerial Performance of Local Government in SKPD Bireuen Regency in 2020. Decentralization, the Internal Control System has no effect on the Managerial Performance of the Regional Government in the SKPD of Bireun Regency in 2020. The results of the F-test show that Participation in Budgeting, Public Accountability, Decentralization and the Internal Control System have an effect on the Managerial Performance of Local Government in the SKPD of Bireuen Regency in 2020

Self-Efficacy, Work Motivation, Budgetary Participation, Budget Targets, Accountability and Managerial Performance: Evidence from Aceh, Indonesia

Objective– This study aims to analyze the role of self-efficacy and work motivation on the relationship between budgetary participation, clarity of budget targets, and accountability with managerial performance in regional work unit in Aceh province, Indonesia. Design/methodology– The population in this study was all regional work units in Aceh Province while the samples were drawn from all regional work units of Pidie Regency, Pidie Jaya Regency, and Bireun City which has a total of 147 regional work units. The number of respondents in this study was 441 obtained from the sample of each regional work units which consist of 3 respondents. Results –The results showed that budgetary participation, clarity of budget targets, accountability, self-efficacy, and work motivation had an effect on managerial performance in regional work units in Aceh province. Meanwhile self-efficacy moderated the influence of budgetary participation, clarity of budget targets, and accountability on managerial performance and work motivation moderated the influence of budgetary participation, clarity of budget targets, and accountability on managerial performance in regional work units in Aceh province.

Pengaruh Partisipasi Anggaran, dan Kejelasan Sasaran Anggaran Terhadap Kinerja Manajerial Dengan Komitmen Organisasi Sebagai Pemediasi (Studi kasus pada Pemerintah Daerah di Jawa Tengah)

The aim of this study is to analyze: 1) the influence of budgetary participation on organizational commitment; 2) the influence of clarity of budget targets on organizational commitment; 3) the influence of budget participation on managerial performance; 4) the influence of clarity of budget targets on managerial performance; 5) The influence of organizational commitment on managerial performance. The population used in this study is the Regional Work Unit (Satuan Kerja Perangkat Daerah) of Central Java Province, while the sample in this study is the section head, subdivision head, and department head involved in budgeting in each SKPD of Central Java Province. The results of this study are 1) budget participation has a positive effect on organizational commitment; 2) clarity of budget targets does not affect organizational commitment; 3) budget participation has a positive effect on managerial performance; 4) clarity of budget targets has a positive effect on managerial performance; 5) organizational commitment has no effect on managerial performance.

The Effect of Organizational Politics on Budgetary Participation with Procedural Fairness as a Mediation

Organizational politics and budgeting are the phenomena that exist in every organization. This study aims to examine the effect of organizational politics on budgetary participation through procedural fairness. Organizational politics refers to three dimensions, namely general political behavior, politics of going along to get ahead, and politics of pay and promotion policies. Data were collected through a questionnaire survey to 128 managers in the retail sector of the modern supermarket in Bandung, West Java, Indonesia. The data was processed using the structural equation model and Sobel test. This study shows that, firstly, general political behavior, politics of going along to get ahead, pay and promotion policies have a negative effect on procedural fairness. Second, procedural fairness has a positive effect on budgetary participation. Third, procedural fairness mediates the relationship between each organizational political dimension and budgetary participation. This study supports the theory of organizational politics and procedural fairness and has the implications for budgeting practices, namely that it is important to consider employee's perceptions of organizational politics because it has an impact on reducing the sense of fairness and eventually on budgetary participation.

Pengaruh Partisipasi Penyusunan Anggaran Dan Komitmen Organisasi Terhadap Kinerja Manajerial Dengan Variabel Intervening Budaya Organisasi Pada Pemerintah Kabupaten Bondowoso

This study aims to discuss the Effect of Budgeting Participation and Organizational Commitment on Managerial Performance with Organizational Culture Intervening Variables in Bondowoso Regency Government. This research was conducted to examine the factors that can support managerial performance in budgeting. The focus of this research is on the Bondowoso district government by using a sampling technique that is carried out using a questionnaire. This type of research uses a quantitative descriptive method with a theoretical study of the factors that affect managerial performance. The results of this study indicate that: 1) Budgeting Participation has an effect on Managerial Performance in Bondowoso Regency Regional Apparatus Organizations (OPD), 2) Budgetary Participation has an effect on Organizational Culture of personnel in Bondowoso Regency Regional Apparatus Organizations (OPD), 3) Organizational Committees have an effect on on Managerial Performance in Regional Apparatus Organizations (OPD) Bondowoso Regency, 4) Organizational Committees affect the Organizational Culture of personnel in Bondowoso Regency Regional Apparatus Organizations (OPD), 5) Organizational Culture affects Managerial Performance in Bondowoso Regency Regional Apparatus Organizations (OPD).

KEJELASAN SASARAN ANGGARAN DAN SPIP TERHADAP AKUNTANBILITAS KINERJA INSTANSI DIMODERASI PARTISIPASI PENYUSUN

The purpose of this study was to examine and explain the clarity of budget targets, and the internal control system on performance accountability in OPD Malang City in moderation of budgetary participation. This study uses quantitative research methods. Population of 34 Regional Apparatus Organizations in Malang City. The data analysis technique used multiple regression analysis. The results showed the clarity of budget targets, and the internal control system had an effect on performance accountability in OPD Malang City. A clear budget and according to organizational goals increases the accountability of the performance of government agencies. The implementation of an internal control system in each activity increases the accountability of the performance of government agencies. Participation in budgeting moderates the relationship between the clarity of budget targets and the internal control system that affects performance accountability. Participation in budgeting is very important for the preparation of a government budget in accordance with organizational goals. With participation in budgeting, the clarity of budget targets and the internal control system has increased and has an impact on increasing the accountability of government performance.

Pengaruh Partisipasi Anggaran, dan Sistem Pengendalian Intern Pemerintah dengan Komitmen Organisasi Sebagai Variabel Moderasi Terhadap Kinerja Manajerial pada Organisasi Perangkat Daerah (OPD) Di Provinsi Jambi

This study examines the effect of budgetary participation, government internal control systems with organizational commitment as a moderating variable on managerial performance. The purpose of this study was to determine the effect of the above variables, either partial or moderation. The population of this study were all employees of the Regional Apparatus Organization (OPD) of mandatory government affairs related to basic services. The sampling technique used purposive sampling. Of the five OPDs that are included in mandatory government affairs related to basic services, there are 120 employees as respondents in this study. The method used in this research is multiple linear regression analysis and moderated regression analysis (MRA). The software used to process data in this study is SPSS version 25. The results of this study that budget participation has a positive and significant effect on managerial performance, government internal control systems have a positive and significant effect on managerial performance, organizational commitment is unable to strengthen the effect of budget participation on performance. Managerial, and organizational commitment is not able to strengthen the influence of the government internal control system on managerial performance.

The Influence of Budget Participation and Organizational Commitment to the Performance of Regional Government Apparatus

This study aims to determine how much influence of Budget Participation and Organizational Commitment on the Performance of Local Government Apparatus at the Bandung City Government Financial and Asset Management Agency. The method used in this research is descriptive method and verification method with a quantitative approach. The analytical tools used are Multiple Linear Regression, Correlation Analysis Test, Determination Analysis Test, and Partial Hypothesis Test (t test). The sampling technique used is nonprobability sampling technique. The population in this study were employees of the Bandung City Government Financial and Asset Management Agency (BPKA). The number of samples in this study amounted to 30 employees consisting of the Budget Division, the Treasury Division and the Accounting Division. While the method of analysis used in this study is multiple linear regression. The program used in analyzing the data used the Statistical Package for Social Sciences (SPSS) ver.23. Based on the research results, it shows that there is a significant and positive influence between budget participation and the performance of local government officials and organizational commitment has a significant and positive effect on the performance of local government officials.

Internal And External Factors That Affect Village Government Performance

This study aims to examine the effect of Regulation, Organizational Commitment, Human Resources Quality, Internal Control Systems, Participation in Budgeting, and Utilization of Information Technology on Village Government Performance. The population in this study is all village apparatus in Klego Sub-District, Boyolali District, while the samples were selected using the convenience sampling method. The data collection process collected responses from 49 respondents that consist of Village Chief, Village Secretary, Head of Section, and Village Financial System (Siskeudes) Operator. The analysis results concluded that Regulation, Participation in Budgeting, and Utilization of Information Technology have a positive effect on Village Government Performance, while Organizational Commitment, Human Resource Quality, and Internal Control System do not affect Village Government Performance. The finding of this study needs to be a concern for an auditor because the variables that affect Village Government Performance might provide an opportunity for fraud to take place in the Village Budget management.

Psychological Capital Strengthens the Effect of Budget Participation on Budgetary Slack?

This research is based on a phenomenon in the Bandung City Government, where there is still a reasonably significant difference between budget targets and budget realization. The existence of budgetary participation and psychological capital are essential factors that are expected to reduce budgetary slack. For this reason, this study aims to examine the effect of budgetary participation on budgetary slack and the effect of budgetary participation on budgetary slack moderated by psychological capital. This research was conducted in 22 Bandung City Regional Offices using verification research methods and quantitative approaches. This study uses primary data collected through the distribution of questionnaires and the determination of respondents is based on non-probability sampling and purposive sampling. By the established criteria, questionnaires were given to treasurers and parties who participated in budgeting at 22 Bandung City Regional Offices. The proposed hypothesis was tested using moderated regression analysis (MRA). The results showed that budget participation had a positive effect on budgetary slack, and psychological capital strengthened the influence of budgetary participation on budgetary slack. This research has implications especially for the Bandung City Government to pay more attention to setting more measurable budget targets, increase more significant influence, and increase confidence in individuals involved in budgeting. Keywords: Psychological capital, budget participation, budgetary slack DOI: 10.7176/JESD/12-14-07 Publication date: July 31 st 2021

Pengaruh partisipasi anggaran, kompensasi finansial dan kompensasi nonfinansial terhadap kinerja karyawan PT. Budi Berlian Motors di Lampung

Abstract Purpose: This study aimed to provide empirical evidence regarding the effect of budget participation, financial compensation and non-financial compensation on the performance of employees of PT. Budi Berlian Motors in Lampung. Research methodology: The population in this study were all employees of PT. Budi Berlian Motors in Lampung, with a sample of 100 respondents. The methods of data analysis were multiple regression with the F test and T-test as a hypothesis test. Results: This study shows empirical evidence that budget participation does not have a positive and significant effect on employee performance, while financial compensation and non-financial compensation have a positive and significant effect on employee performance. Limitations: The results of the questionnaire are based on the respondents' responses to the questions in the questionnaire presented so that the answers generated may not necessarily correspond to actual conditions that occur in the company. Contribution: This study can provide information about the effect of budgetary participation, financial compensation and non-financial compensation on the performance of employees of PT. Budi Berlian in Lampung.

Analisis Pengaruh Partisipasi Anggaran Dan Informasi Asimetri Terhadap Senjangan Anggaran (Budgetary Slack) Pada Perguruan Tinggi Swasta Di Kabupaten Pamekasan

Abstract: Someone's involvement in budgeting will create a budgetary slack. This article aims to analyze the effect of budgetary participation and information asymmetry on budgetary slack. This type of research includes quantitative research, the focus of which will be directed at budgetary participation and information asymmetry in private universities in Pamekasan. Furthermore, the data were analyzed using statistical tests such as data quality tests, classical assumption tests and hypothesis testing. The results showed that the first hypothesis was accepted, which means that there was a significant influence between budgetary participation and budgetary slack. For the second hypothesis it is also accepted that there is a significant influence between information asymmetry on budgetary slack. The third hypothesis is tested simultaneously, the results are budgetary participation and information asymmetry together can create a larger budgetary slack.

PENGARUH PARTICIPATORY BUDGETING DAN INFORMASI ASIMETRIS TERHADAP BUDGETARY SLACK PADA BADAN PENDAPATAN, PENGELOLAAN KEUANGAN DAN ASET DAERAH (BPPKAD) KABUPATEN SUMENEP

In government organizations, the budget is a guideline for financial management in order to achieve goals. Budgeting is an important perspective for the public and private sectors. This study aims to determine the effect of participatory budgeting and information asymmetry on budgetary slack in the Regional Revenue, Financial and Asset Management Agency of Sumenep Regency. Sampling using purposive sampling method, totaling 27 structural employees. Data collection was done through a questionnaire. The analytical technique used in this research is regression analysis with IBM SPSS 20 software for windows.Based on the results of data management, it was obtained that the f-test significance value for the influence of participatory budgeting and information asymmetry on budgetary slack was 0.205 > 0.05. This proves that Ho3 is accepted and Ha3 is accepted. This means that there is no significant effect of budgetary participation and information asymmetry on budgetary slack in a negative direction. Thus, the participatory budget of subordinates and information asymmetry, the difference in information held by subordinates and superiors at the Regional Revenue, Financial and Asset Management Agency in Sumenep Regency does not really affect the existence of budgetary slack.

Usefulness of the budget: the mediating effect of participative budgeting and budget-based evaluation and rewarding

PurposeThis paper contributes to budgeting-related literature by investigating whether the participation of operational managers in budgeting, and budget-based evaluations and the rewarding of operational managers, significantly mediate the relationship between budget use for operational management and the perceived usefulness of the budget.Design/methodology/approachThe paper is based on data gathered from a survey of Czech medium- and large-sized companies from the manufacturing sector. The hypothesised relationships are tested using partial least squares structural equation modelling (PLS-SEM).FindingsOverall usefulness of the budget, as perceived by principals (top managers), is positively influenced by the scope of budget use, but, more importantly, the positive mediating effects of participative budgeting and budget-based evaluation and rewarding on this relationship are significant and strong.Research limitations/implicationsThe subjective perceptions of respondents were investigated with the understanding that they may not represent actual situations in their organisations. Companies with well-functioning budgeting systems were more likely to take part in the research. Regarding satisfaction, the authors studied the perceived usefulness of the budget. Only medium- and large-sized manufacturing companies located in a post-communist country were analysed and generalisations should, therefore, be taken with caution.Practical implicationsThe results in the studied sample indicate that satisfaction with budgeting is positively correlated with the rewarding and evaluation of operational managers, and with enabling the participation of operational managers in preparing and updating their budgets.Originality/valueThis research contributes to prior literature on budgeting by investigating the mediating effects of the participation of operational managers in budgeting, and the budget-based evaluation and rewarding of operational managers on the perceived usefulness of the budget by principals in an integrated model using the PLS-SEM approach.

Budget Participation Capacity Configuration (BPCC), Budgeting Participation Requirement and Product Innovation Performance

As the relationship between the execution of budget participation and innovation performance is still full of controversy, and the innovation capability formed by the important control elements of the organization is the key to bring about product innovation performance, this study aims to explore the impact of the formation of product innovation capabilities on product innovation performance under the demand for budget participation. This study proposes the concept of budget participation capacity configuration (BPCC), which is the integration of procedural justice, self-efficacy, and trust in superiors. This study adopted a questionnaire survey to collect sample data from production managers of the electronics-related companies listed on the Taiwan Stock Exchange and employed structural equation modeling to verify measurement model fit and research hypotheses. The study results present that budgeting participation requirement does not directly affect product innovation performance and confirms that the three organizational control elements together constitute BPCC, which plays a fully intermediary role between budget participation requirement and product innovation performance. The contribution of this research for academic theory is to put forward an explanation of the budget participation-innovation performance dispute, and propose an integrated viewpoint for organizational control elements instead of fragmental studies in the past. For practice, this research provides new evidence for budget participation requirements and sources of innovation capabilities.

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Introduction/Main Objectives: The performance of individuals in organizations is generally evaluated based on their success at achieving targets. Furthermore, the role of the budget has a major effect on individual behavior in the preparation of the budget, by allowing unethical actions (budgetary slack). Background Problems: There are a few studies that measure the difference in the influence of social pressure between superiors and peers on individual’s behavior in the organizational budgeting process. On the other hand, there are inconsistencies in the results of the research into the role of religiosity in the creation of budgetary slack. Novelty: To explain why people are not influenced by social pressures to create budgetary slack, we use the Psychological Reactance Theory. We argue that religiosity is one factor that influences people in making decisions about participative budgeting. Religiosity is believed to be able to influence one's personal values, so it impacts on one's judgment and determination of whether a thing is good or bad. Research Methods: This study uses an experimental research method on 65 undergraduate accounting students and a 2x2 factorial design consisting of two factors, social pressure (obedience pressure and peer pressure) and religiosity (high and low). Finding/Results: The results show that religiosity is proven to play an important role in the budget decision-making process, futhermore it minimizes the occurrence of budgetary slack. Conclusion: Individuals who have high religiosity are proven to be better able to avoid creating budgetary slack compared to individuals who have low religiosity, when receiving pressure from superiors and peers. This result has implications for organizational stakeholders dealing with employee recruitment or in the organization's management control system, as religiosity is an important factor that must be prioritized.

The Effect of Participation in Budgeting, Utilization of Information Technology, and Budget Revision on the Effectiveness of Surabaya Government OPD Budget Management

This study aims to examine (1) the effect of budgetary participation on budget effectiveness, (2) the effect of the use of information technology on the effectiveness of budget management, (3) the effect of budget revisions on the effectiveness of budget management. The endogenous variable used is the effectiveness of budget management. This study used a sample of Surabaya City Regional Apparatus Organizations, namely 21 Surabaya City Offices. The method used to collect data was purposive sampling method, by distributing questionnaires. Data analysis techniques used Partial Least Square (PLS) with SmartPLS 3.0 software. The results of this study indicate that (1) budget participation has an effect on the effectiveness of budget management, (2) the use of information technology has no effect on the effectiveness of budget management, (3) budget revision has an effect on the effectiveness of budget management.