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An analysis of budgetary goals impacting organizational performance


  • Cheok MUI YEE

    (University of Malaya, Malaysia)

  • Edward WONG SEK KHIN

    (University of Malaya, Malaysia)

  • Kamisah ISMAIL

    (University of Malaya, Malaysia)


This study proposes a conceptual review of how budgetary goals impact organizational performance. The aim of this study is to get a better understanding of the direct and indirect relationship between the organization’s decision-making process and operational performances. Setting the budget particularly influences subordinates’ budget goal levels and motivations (i.e., budget goal acceptance and budget goal commitment), which ultimately enhances the organization’s performance. To test these relationships, data were collected using the three perspectives approach: budgetary goal, budgetary participation and budgetary evaluation. The study provided evidence that perception of fairness mediates the relation between the levels of budget participation and goal commitment, whereas goal commitment mediates the relation between fairness perceptions and performance. At the end of the article, there are some implications for SMEs industries and some suggestions for future studies.

Suggested Citation

  • Cheok MUI YEE & Edward WONG SEK KHIN & Kamisah ISMAIL, 2016. "An analysis of budgetary goals impacting organizational performance," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(137), pages 551-551, April.
  • Handle: RePEc:aud:audfin:v:14:y:2016:i:137:p:551

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    References listed on IDEAS

    1. Nouri, H. & Parker, R. J., 1998. "The relationship between budget participation and job performance: The roles of budget adequacy and organizational commitment," Accounting, Organizations and Society, Elsevier, vol. 23(5-6), pages 467-483.
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    6. Renn, Robert W., 1998. "Participation's effect on task performance: Mediating roles of goal acceptance and procedural justice," Journal of Business Research, Elsevier, vol. 41(2), pages 115-125, February.
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    Cited by:

    1. Adriana Mihaela IONESCU & Cristina Elena BÎGIOI, 2016. "Performance management through budgets. Drafting and launching the company’s sales budget," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(139), pages 789-789.

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    More about this item


    Budgetary goal; budgetary participation; budgetary evaluation; organization performance.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


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