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The moderating effects of hierarchy and control systems on the relationship between budgetary participation and performance

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  • Jermias, Johnny
  • Setiawan, Trisnawati

Abstract

This study investigates the moderating effects that an organizational unit's hierarchical level and control systems have on the relationship between budgetary participation and performance. Using moderated regression analyses, we find a three-way interactive effect on performance between hierarchical levels, types of control systems, and budgetary participation. Further analyses reveal that at the high level of a hierarchy, budgetary participation has a positive relationship with performance and this relationship is stronger for organizational units that use output control than for those that use behavior control. By contrast, at the low level of a hierarchy, budgetary participation has a negative relationship with performance and this relationship is stronger for organizational units that use output control than for those that use behavior control.

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  • Jermias, Johnny & Setiawan, Trisnawati, 2008. "The moderating effects of hierarchy and control systems on the relationship between budgetary participation and performance," The International Journal of Accounting, Elsevier, vol. 43(3), pages 268-292, September.
    • Handle: RePEc:eee:accoun:v:43:y:2008:i:3:p:268-292
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    2. Bonache, Adrien & Maurice, Jonathan & Georgescu, Irène, 2009. "Enseignement d'une meta-analyse sur le lien participation budgétaire-performance managériale [Lesson from Meta-analysis for the relation between budgetary participation and managerial performance]," MPRA Paper 12958, University Library of Munich, Germany.
    3. 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.
    4. Adam Maiga & Anders Nilsson & Fred Jacobs, 2014. "Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 25(1), pages 5-32, September.
    5. Robert Rieg, 2018. "Tasks, interaction and role perception of management accountants: evidence from Germany," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 183-220, August.
    6. Klaus Derfuss, 2015. "Relating Context Variables to Participative Budgeting and Evaluative Use of Performance Measures: A Meta-analysis," Abacus, Accounting Foundation, University of Sydney, vol. 51(2), pages 238-278, June.
    7. Derfuss, Klaus, 2016. "Reconsidering the participative budgeting–performance relation: A meta-analysis regarding the impact of level of analysis, sample selection, measurement, and industry influences," The British Accounting Review, Elsevier, vol. 48(1), pages 17-37.

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