Budgetary participation and performance: some Malaysian evidence

Purpose – The purpose of this paper is to explore the budgetary participation and performance (BPP) relationship in a public sector organization in a developing country, Malaysia. It also attempts to examine whether organizational commitment and perception of innovation mediate the BPP relationship....

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Main Authors:	Yahya, Mohd Nor Yahya, Nik Ahmad, Nik Nazli, Fatima, Abdul Hamid
Format:	Article
Language:	English
Published:	Emerald 2008
Subjects:	H Social Sciences (General) HC Economic History and Conditions
Online Access:	http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/1/Budgetary_participation%5B1%5D.pdf

id	iium-432
recordtype	eprints
spelling	iium-4322011-06-17T06:52:14Z http://irep.iium.edu.my/432/ Budgetary participation and performance: some Malaysian evidence Yahya, Mohd Nor Yahya Nik Ahmad, Nik Nazli Fatima, Abdul Hamid H Social Sciences (General) HC Economic History and Conditions Purpose – The purpose of this paper is to explore the budgetary participation and performance (BPP) relationship in a public sector organization in a developing country, Malaysia. It also attempts to examine whether organizational commitment and perception of innovation mediate the BPP relationship. Design/methodology/approach – A total of 111 budget managers in the Ministry of Defence, Malaysia, participated in the survey. Response rate was 74 per cent. A path analysis was utilised to examine the direct and indirect effects of budgetary participation on managerial performance. Findings – Budgetary participation affects managerial performance via the mediating variable of organizational commitment but not perception of innovation. There is a direct relationship between budgetary participation, managerial performance, organizational commitment and perception of innovation. Research limitations/implications – This is a study conducted in the Malaysian Ministry of Defence (MINDEF), thus results may not be generalizable to other organizations. It involves only two intervening variables; organizational commitment and perception of innovation and uses the intervening variable model to explain the budgetary participation and performance relationship. Budgetary participation improves managerial performance in MINDEF in two ways; directly, as a consequence of management involvement in the budgetary process, as well as indirectly, when managers’ commitment to the organization increases due to their participation and involvement in the budgetary process. Originality/value – This paper fills a gap in the literature as very few studies have examined budgetary participation in a developing country and in a public sector organization. Emerald 2008 Article PeerReviewed application/pdf en http://irep.iium.edu.my/432/1/Budgetary_participation%5B1%5D.pdf Yahya, Mohd Nor Yahya and Nik Ahmad, Nik Nazli and Fatima, Abdul Hamid (2008) Budgetary participation and performance: some Malaysian evidence. International Journal of Public Sector Management, 21 (6). pp. 658-673. ISSN 0951-3558 http://www.emeraldinsight.com/0951-3558.htm 10.1108/09513550810896523
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General) HC Economic History and Conditions
spellingShingle	H Social Sciences (General) HC Economic History and Conditions Yahya, Mohd Nor Yahya Nik Ahmad, Nik Nazli Fatima, Abdul Hamid Budgetary participation and performance: some Malaysian evidence
description	Purpose – The purpose of this paper is to explore the budgetary participation and performance (BPP) relationship in a public sector organization in a developing country, Malaysia. It also attempts to examine whether organizational commitment and perception of innovation mediate the BPP relationship. Design/methodology/approach – A total of 111 budget managers in the Ministry of Defence, Malaysia, participated in the survey. Response rate was 74 per cent. A path analysis was utilised to examine the direct and indirect effects of budgetary participation on managerial performance. Findings – Budgetary participation affects managerial performance via the mediating variable of organizational commitment but not perception of innovation. There is a direct relationship between budgetary participation, managerial performance, organizational commitment and perception of innovation. Research limitations/implications – This is a study conducted in the Malaysian Ministry of Defence (MINDEF), thus results may not be generalizable to other organizations. It involves only two intervening variables; organizational commitment and perception of innovation and uses the intervening variable model to explain the budgetary participation and performance relationship. Budgetary participation improves managerial performance in MINDEF in two ways; directly, as a consequence of management involvement in the budgetary process, as well as indirectly, when managers’ commitment to the organization increases due to their participation and involvement in the budgetary process. Originality/value – This paper fills a gap in the literature as very few studies have examined budgetary participation in a developing country and in a public sector organization.
format	Article
author	Yahya, Mohd Nor Yahya Nik Ahmad, Nik Nazli Fatima, Abdul Hamid
author_facet	Yahya, Mohd Nor Yahya Nik Ahmad, Nik Nazli Fatima, Abdul Hamid
author_sort	Yahya, Mohd Nor Yahya
title	Budgetary participation and performance: some Malaysian evidence
title_short	Budgetary participation and performance: some Malaysian evidence
title_full	Budgetary participation and performance: some Malaysian evidence
title_fullStr	Budgetary participation and performance: some Malaysian evidence
title_full_unstemmed	Budgetary participation and performance: some Malaysian evidence
title_sort	budgetary participation and performance: some malaysian evidence
publisher	Emerald
publishDate	2008
url	http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/ http://irep.iium.edu.my/432/1/Budgetary_participation%5B1%5D.pdf
first_indexed	2023-09-18T20:07:33Z
last_indexed	2023-09-18T20:07:33Z
_version_	1777407260090171392

Budgetary participation and performance: some Malaysian evidence

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