105
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Decoding task uncertainty: moderating effects on participative budgeting and budgetary slack dynamics

&
Pages 739-757 | Received 29 Jun 2023, Accepted 13 Mar 2024, Published online: 25 Mar 2024

References

  • Alexiev, A. S., Jansen, J. J. P., Van den Bosch, F. A. J., & Volberda, H. W. (2010). Top management team advice seeking and exploratory innovation: The moderating role of TMT heterogeneity. Journal of Management Studies, 47(7), 1343–1364. https://doi.org/10.1111/j.1467-6486.2010.00919.x
  • Amiruddin, R., Auzair, S. M., & Raudhiah, N. (2014). Impact of organisational factors on budgetary slack. Synergizing Knowledge on Management and Muamalah, 1, 20–34.
  • Arumugam, V., Kannabiran, G., & Vinodh, S. (2022). Impact of technical and social lean practices on SMEs’ performance in automobile industry: A structural equation modelling (SEM) analysis. Total Quality Management & Business Excellence, 33(1-2), 28–54. https://doi.org/10.1080/14783363.2020.1791067
  • Bhasin, S. (2012). An appropriate change strategy for lean success. Management Decision, 50(3), 439–458. https://doi.org/10.1108/00251741211216223
  • Bhilawa, L., & Kautsar, A. (2018). The determinants of relationship between budgetary participation and budgetary slack. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(2), 155–163. https://doi.org/10.6007/IJARAFMS/v8-i2/4240
  • Boadu, F., Xie, Y., Du, Y., & Dwomo-Fokuo, E. (2022). Management innovation and firm innovation performance: A moderated moderation effects of absorptive capacity and environmental dynamism. Total Quality Management & Business Excellence, 33(13-14), 1588–1604. https://doi.org/10.1080/14783363.2021.1981131
  • Brink, A. G., Coats, J. C., & Rankin, F. W. (2018). Who’s the boss? The economic and behavioral implications of various characterizations of the superior in participative budgeting research. Journal of Accounting Literature, 41(1), 89–105. https://doi.org/10.1016/j.acclit.2018.03.004
  • Cheah, J. H., Nitzl, C., Roldan, J. L., Cepeda-Carrion, G., & Gudergan, S. P. (2021). A primer on the conditional mediation analysis in PLS-SEM. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 52(SI), 43–100. https://doi.org/10.1145/3505639.3505645
  • Chen, K. J., Chiu, C. K., Liu, C. M., Lin, C. P., & Lyau, N. M. (2023). Understanding vocational passion and learning goal orientation: Workplace training and learning implications. Total Quality Management & Business Excellence, 34(9–10), 1277–1291. https://doi.org/10.1080/14783363.2023.2168531
  • Chen, Y., & Xede, J. (2023). The effect of frontline employee participation in strategic planning on managers’ budget slack creation and evaluation: A lab-in-the-field experiment. Spanish Journal of Finance and Accounting, 52(4), 528–558.
  • Cheng, W. W. H., Lim, C. Y., & Yuen, K. C. K. (2023). Can honesty reminders reduce dishonesty in budgetary slack? In C. Akroyd (Ed.), Advances in management accounting (pp. 203–226). Emerald Publishing Limited.
  • Chong, V., & Chong, K. M. (2002b). The role of feedback on the relationship between budgetary participation and performance. Pacific Accounting Review, 14(2), 33–55. https://doi.org/10.1108/eb037966
  • Chong, V. K., & Chong, K. M. (2002a). Budget goal commitment and informational effects of budget participation on performance: A structural equation modeling approach. Behavioral Research in Accounting, 14(1), 65–86. https://doi.org/10.2308/bria.2002.14.1.65
  • Chong, V. K., Eggleton, I. R. C., & Leong, M. K. C. (2005). The impact of market competition and budgetary participation on performance and job satisfaction: A research note. The British Accounting Review, 37(1), 115–133. https://doi.org/10.1016/j.bar.2004.06.007
  • Chow, C. W., Shields, M. D., & Chan, Y. K. (1991). The effects of management controls and national culture on manufacturing performance: An experimental investigation. Accounting, Organizations and Society, 16(3), 209–226. https://doi.org/10.1016/0361-3682(91)90001-U
  • Costa, M. A. S., Guerino, G. C., Leal, G. C. L., Balancieri, R., & Galdamez, E. V. C. (2022). Exploring performance measurement practices in Brazilian startups. Total Quality Management & Business Excellence, 33(5–6), 637–663.
  • Covaleski, M. A., Evans, J. H., Luft, J. L., & Shields, M. D. (2003). Budgeting research: Three theoretical perspectives and criteria for selective integration. Journal of Management Accounting Research, 15, 3–50.
  • Daumoser, C., Hirsch, B., & Sohn, M. (2018). Honesty in budgeting: A review of morality and control aspects in the budgetary slack literature. Journal of Management Control, 29(2), 115–159.
  • Davis, S., DeZoort, F. T., & Kopp, L. S. (2006). The effect of obedience pressure and perceived responsibility on management accountants’ creation of budgetary slack. Behavioral Research in Accounting, 18(1), 19–35. https://doi.org/10.2308/bria.2006.18.1.19
  • De Baerdemaeker, J., & Bruggeman, W. (2015). The impact of participation in strategic planning on managers’ creation of budgetary slack: The mediating role of autonomous motivation and affective organisational commitment. Management Accounting Research, 29, 1–12.
  • Derfuss, K. (2012, December 12–14). Budget slack: Some meta-analytic evidence [Paper presentation]. 8th Conference on New Directions in Management Accounting, Brussels, Belgium.
  • Douthit, J. D., & Stevens, D. E. (2015). The robustness of honesty effects on budget proposals when the superior has rejection authority. The Accounting Review, 90(2), 467–493.
  • Dul, J. (2016). Necessary condition analysis (NCA) logic and methodology of “necessary but not sufficient” causality. Organizational Research Methods, 19(1), 10–52.
  • Dunk, A. S. (1993). The effect of budget emphasis and information asymmetry on the relation between budgetary participation and slack. Accounting Review, 68, 400–410.
  • Dunk, A. S., & Nouri, H. (1998). Antecedents of budgetary slack: A literature review and synthesis. Journal of Accounting Literature, 17, 72–96.
  • Elmassri, M., & Harris, E. (2011). Rethinking budgetary slack as budget risk management. Journal of Applied Accounting Research, 12(3), 278–293.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
  • Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
  • Hall, J. W., Lempert, R. J., Keller, K., Hackbarth, A., Mijere, C., & McInerney, D. J. (2012). Robust climate policies under uncertainty: A comparison of robust decision making and info-gap methods. Risk Analysis: An International Journal, 32(10), 1657–1672. https://doi.org/10.1111/j.1539-6924.2012.01802.x
  • Hayes, A. F., & Rockwood, N. J. (2020). Conditional process analysis: Concepts, computation, and advances in the modeling of the contingencies of mechanisms. American Behavioral Scientist, 64(1), 19–54. https://doi.org/10.1177/0002764219859633
  • Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
  • Her, Y. W., Shin, H., & Pae, S. (2019). A multigroup SEM analysis of moderating role of task uncertainty on budgetary participation-performance relationship: Evidence from Korea. Asia Pacific Management Review, 24(2), 140–153. https://doi.org/10.1016/j.apmrv.2018.02.001
  • Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118
  • Kafetzopoulos, D., Psomas, E., & Skalkos, D. (2019). Innovation dimensions and business performance under environmental uncertainty. European Journal of Innovation Management, 23(5), 856–876. https://doi.org/10.1108/EJIM-07-2019-0197
  • Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101
  • Kramer, S., & Hartmann, F. (2014). How top-down and bottom-up budgeting affect budget slack and performance through social and economic exchange. Abacus, 50(3), 314–340. https://doi.org/10.1111/abac.12032
  • Kren, L. (1992). Budgetary participation and managerial performance: The impact of information and environmental volatility. Accounting Review, 67(3), 511–526.
  • Kren, L. (2003). Effects of uncertainty, participation, and control system monitoring on the propensity to create budget slack and actual budget slack created. In L. Kren (Ed.), Advances in management accounting (pp. 143–167). Emerald Group Publishing Limited.
  • Leach-López, M. A., Stammerjohan, W. W., & Lee, K. S. (2009). Budget participation and job performance of South Korean managers mediated by job satisfaction and job relevant information. Management Research Review, 32(3), 220–238.
  • Leach-López, M. A., Stammerjohan, W. W., & McNair, F. M. (2007). Differences in the role of job-relevant information in the budget participation-performance relationship among U.S. and Mexican managers: A question of culture or communication. Journal of Management Accounting Research, 19(1), 105–136.
  • Lee, J., & Martin, L. (2017). Investigating students’ perceptions of motivating factors of online class discussions. International Review of Research in Open and Distributed Learning, 18(5), 148–172.
  • Lengnick-Hall, C. A., & Beck, T. E. (2005). Adaptive fit versus robust transformation: How organizations respond to environmental change. Journal of Management, 31(5), 738–757. https://doi.org/10.1177/0149206305279367
  • Lukka, K. (1988). Budgetary biasing in organizations: Theoretical framework and empirical evidence. Accounting, Organizations and Society, 13(3), 281–301. https://doi.org/10.1016/0361-3682(88)90005-0
  • Lunardi, M. A., Costa da Silva Zonatto, V., & Constâncio-Nascimento, J. (2019). Relationship between leadership style, encouragement of budgetary participation and budgetary participation. Estudios Gerenciales, 35(150), 27–37. https://doi.org/10.18046/j.estger.2019.150.2974
  • Maiga, A. S., & Jacobs, F. A. (2007). The moderating effect of manager’s ethical judgment on the relationship between budget participation and budget slack. Advances in Accounting, 23, 113–145. https://doi.org/10.1016/S0882-6110(07)23005-6
  • McLean, R. S., Antony, J., & Dahlgaard, J. J. (2017). Failure of continuous improvement initiatives in manufacturing environments: A systematic review of the evidence. Total Quality Management & Business Excellence, 28(3-4), 219–237. https://doi.org/10.1080/14783363.2015.1063414
  • Merchant, K. A. (1985). Budgeting and the propensity to create budgetary slack. Accounting, Organizations and Society, 10(2), 201–210. https://doi.org/10.1016/0361-3682(85)90016-9
  • Migchelbrink, K., & Van de Walle, S. (2022). Serving multiple masters? Public managers’ role perceptions in participatory budgeting. Administration & Society, 54(3), 339–365. https://doi.org/10.1177/00953997211014476
  • Namazi, M., & Rezaei, G. (2023). Modelling the role of strategic planning, strategic management accounting information system, and psychological factors on the budgetary slack. Accounting Forum, https://doi.org/10.1080/01559982.2022.2163040
  • Nguyen, O. T. K., Liu, L. Y. J., Haslam, J., & McLaren, J. (2023). The moderating effect of perceived environmental uncertainty and task uncertainty on the relationship between performance management system practices and organizational performance: Evidence from Vietnam. Production Planning & Control, 34(5), 423–441. https://doi.org/10.1080/09537287.2021.1934586
  • Parker, R. J., & Kyj, L. (2006). Vertical information sharing in the budgeting process. Accounting, Organizations and Society, 31(1), 27–45. https://doi.org/10.1016/j.aos.2004.07.005
  • Rafi, M., JianMing, Z., & Ahmad, K. (2020). Digital resources integration under the knowledge management model: An analysis based on the structural equation model. Information Discovery and Delivery, 48(4), 237–253. https://doi.org/10.1108/IDD-12-2019-0087
  • Ramos Pires, A., Novas, J., Saraiva, M., & Coelho, A. (2017). How companies use the information about quality-related costs. Total Quality Management & Business Excellence, 28(5-6), 501–521. https://doi.org/10.1080/14783363.2015.1099427
  • Santos, V., Beuren, I. M., & Skrepitz, S. (2022). Influence of budgetary slack and elements of the budgetary process on perceptions of justice. Revista Contabilidade & Finanças, 33(89), 200–215. https://doi.org/10.1590/1808-057x202113780
  • Sanusi, Z. M., Iskandar, T. M., Monroe, G. S., & Saleh, N. M. (2018). Effects of goal orientation, self-efficacy and task complexity on the audit judgement performance of Malaysian auditors. Accounting, Auditing & Accountability Journal, 31(1), 75–95. https://doi.org/10.1108/AAAJ-12-2015-2362
  • Shields, J. F., & Shields, M. D. (1998). Antecedents of participative budgeting. Accounting, Organizations and Society, 23(1), 49–76. https://doi.org/10.1016/S0361-3682(97)00014-7
  • Shields, M. D., & Young, S. M. (1993). Antecedents and consequences of participative budgeting: Evidence on the effects of asymmetrical information. Journal of Management Accounting Research, 5(1), 265–280.
  • Van der Stede, W. A. (2000). The relationship between two consequences of budgetary controls: Budgetary slack creation and managerial short-term orientation. Accounting, Organizations and Society, 25(6), 609–622. https://doi.org/10.1016/S0361-3682(99)00058-6
  • VandeWalle, D. (2001). Goal orientation: Why wanting to look successful doesn’t always lead to success. Organizational Dynamics, 30(2), 162–171. https://doi.org/10.1016/S0090-2616(01)00050-X
  • Webb, R. A. (2002). The impact of reputation and variance investigations on the creation of budget slack. Accounting, Organizations and Society, 27(4-5), 361–378. https://doi.org/10.1016/S0361-3682(01)00034-4
  • Weiss, M., Hoegl, M., & Gibbert, M. (2011). Making virtue of necessity: The role of team climate for innovation in resource-constrained innovation projects. Journal of Product Innovation Management, 28(s1), 196–207. https://doi.org/10.1111/j.1540-5885.2011.00870.x
  • Young, S. M. (1985). Participative budgeting: The effects of risk aversion and asymmetric information on budgetary slack. Journal of Accounting Research, 23(2), 829–842. https://doi.org/10.2307/2490840
  • Yuen, D. C. Y. (2004). Goal characteristics, communication and reward systems, and managerial propensity to create budgetary slack. Managerial Auditing Journal, 19(4), 517–532. https://doi.org/10.1108/02686900410530529
  • Zia, N. U. (2020). Knowledge-oriented leadership, knowledge management behaviour and innovation performance in project-based SMEs. The moderating role of goal orientations. Journal of Knowledge Management, 24(8), 1819–1839. doi:10.1108/JKM-02-2020-0127

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.