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Performance-based budgeting or budgeting-based performance?

Author

Listed:
  • Erna Handayani

    (Universitas Muhammadiyah Purwokerto)

  • Ira Hapsari

    (University of Muhammadiyah Purwokerto, Indonesia)

  • Tiara Pandansari

    (University of Muhammadiyah Purwokerto, Indonesia)

Abstract

Performance Based Budgeting carried out in Indonesian private higher education found lots of constraints. Apart from factors of cultural work, leadership, and negative perceptions of the community academics, obstacles, and budget limitations are big challenges. This study examines field data related challenge of performance-based budgeting in Indonesian private higher education in particular linked with budget limitations. This study uses a quantitative method with an equipped open questionnaire for getting input about the implementation of performance-based budgeting that is recommended in finance management finance in Indonesian private higher education. Respondents were heads of financial management at 213 private universities in Indonesia. Statistical results show that budget limitations have a significant negative effect on performance-based budgeting in terms of performance orientation of -0.824, implementation flexibility of -0.634, and functional approach of -0.654. Furthermore, proposal optimization of performance-based budgeting with challenging Budget limitations is discussed. Key Words:Performance Based Budgeting, Budget Limitation, Higher Education Institutions

Suggested Citation

  • Erna Handayani & Ira Hapsari & Tiara Pandansari, 2024. "Performance-based budgeting or budgeting-based performance?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(5), pages 643-648, July.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:5:p:643-648
    DOI: 10.20525/ijrbs.v13i5.3526
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    References listed on IDEAS

    as
    1. Suryo Pratolo & Hafiez Sofyani & Misbahul Anwar, 2020. "Performance-based budgeting implementation in higher education institutions: Determinants and impact on quality," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1786315-178, January.
    2. Allen Schick, 2014. "The metamorphoses of performance budgeting," OECD Journal on Budgeting, OECD Publishing, vol. 13(2), pages 49-79.
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