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Budgetary Participation And Its Impact On Individual Performance

Author

Listed:
  • Yuliansyah Yuliansyah

    (University of Lampung, Faculty of Economics and Business, Indonesia)

  • Biana Adha Inapty

    (University of Mataram, Faculty of Economics and Business, Indonesia)

  • Muhammad Dahlan

    (University of Padjajaran, Accounting Department, Indonesia)

  • Intan Oktri Agtia

    (University of Lampung, Faculty of Economics and Business, Indonesia)

Abstract

Purpose – The study examines the influence of budgeting participation on employee performance. The mediating variables are pride in membership (PIM) and job satisfaction (JS). Design – We distributed a survey to 200 hotel employees in Lombok and gained 108 responses. Methodology – Structural Equation Modelling (SEM) using SmartPLS software was used to analyse these hypotheses, using 88 usable data. Findings – The analysis revealed that budgeting participation has a positive influence on individual performance both directly and indirectly, through pride in membership and job satisfaction. In other words, there is a positive relationship between budgeting participation and employee performance which is fully mediated by pride in membership and job satisfaction. Originality of the research – This study enriches management accounting literature, especially in respect to employee involvement in budgeting in the hotel industry. Prior studies have found difficulties analysing the effect of employees' pride in organisational membership in management accounting studies

Suggested Citation

  • Yuliansyah Yuliansyah & Biana Adha Inapty & Muhammad Dahlan & Intan Oktri Agtia, 2018. "Budgetary Participation And Its Impact On Individual Performance," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 24(2), pages 325-340, December.
    • Handle: RePEc:tho:journl:v:24:y:2018:n:2:p:325-340
    DOI: https://doi.org/10.20867/thm.24.2.10
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    References listed on IDEAS

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    1. Lau, Chong M & Tan, Sharon L C, 2003. "The Effects of Participation and Job-Relevant Information on the Relationship between Evaluative Style and Job Satisfaction," Review of Quantitative Finance and Accounting, Springer, vol. 21(1), pages 17-34, July.
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    5. Agbejule, Adebayo & Saarikoski, Lotta, 2006. "The effect of cost management knowledge on the relationship between budgetary participation and managerial performance," The British Accounting Review, Elsevier, vol. 38(4), pages 427-440.
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    7. Yuliansyah Yuliansyah & Ashfaq Ahmad Khan, 2017. "A revisit of the participative budgeting and employees’ self-efficacy interrelationship – empirical evidence from Indonesia’s public sector," International Review of Public Administration, Taylor & Francis Journals, vol. 22(3), pages 213-230, July.
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    More about this item

    Keywords

    Budgeting participation; Pride in membership; job satisfaction; individual performance; hospitality industry;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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