Beyond budgeting: review and research agenda

Abstract

Purpose Beyond budgeting has received an increased amount of scholarly attention in recent years. However, because most of the published research is discrete and unconnected, an overall picture of what is known about beyond budgeting has not evolved. Therefore, the purpose of this paper is to provide an overview of the available research on beyond budgeting. In particular, the authors compare conceptual papers that mostly stress the benefits of beyond budgeting with empirical evidence on beyond budgeting implementation and offer ideas for future research on beyond budgeting. Design/methodology/approach This paper uses systematic literature review methods. After an extensive database search and examination of references/citations, 32 papers were analysed with regard to bibliographical information, research design and findings. Findings Although proponents of beyond budgeting have put substantial effort into developing and promoting this concept, numerous empirical studies demonstrate that many organizations being investigated would still rather improve traditional budgeting than abandon it completely. This review also highlights the main criticisms of traditional budgeting, development of management control systems under beyond budgeting and factors hindering the implementation of beyond budgeting. Research limitations/implication This paper suggests that further research is needed on the scaling of beyond budgeting, organizational changes under beyond budgeting and challenges resulting from the implementation of beyond budgeting. Originality/value The paper is the first comprehensive literature review on beyond budgeting.

Budget gaming behavior: Evidence in Indonesian manufacturing companies

“…As suggested by the Daumoser, Sohn, & Hirsch (2018) that the topic of budget gaming still requires further investigation, future research can examine deeper and broader about the possibility of budget gaming practices in Indonesia in a wider sample. The result of this study in line with the opinion of Nguyen, Hiebl, & Weigel (2018) that it is still a question whether a control system influences manager behavior. From the findings that budget gaming practice still occurs in Indonesia and it is closely related to performance evaluation systems, it is very relevant if future study examines the relationship between these two variables using samples of manufacturing companies in Indonesia.…”

Peran Beyond Budgeting Entry Scan Untuk Mengatasi Permasalahan Penganggaran Sektor Publik

“…Selain nilai tambahnya rendah, pelaksanaan gaming yang umumnya di akhir tahun menyebabkan inefisiensi pembiayaan karena pembiayaan atau utang sudah diluncurkan di awal tahun anggaran. Oleh karena itu, disebutkan bahwa terlalu mempercayakan pengendalian anggaran dalam pengelolaan kinerja akan berdampak buruk bagi perilaku pimpinan (Henttu-Aho & Järvinen, 2013;Nguyen, Weigel, & Hiebl, 2018). Hal ini tercermin pada upaya meminimalkan target yang sebetulnya dapat dicapai dengan mudah (gaming).…”

When the supply side of a management accounting innovation fails – the case of beyond budgeting in Sweden

“…Finally, our findings contribute to the ongoing debate over the relevance of budgeting, specifically the beyond budgeting and non-budget management debate (see Nguyen et al, (2018) for a review of the literature). Previous research has typically contributed to the budgeting debate by examining the design and use of and planned and actual changes in budgeting practice from the managerial perspective.…”

“…Recent years have witnessed increasing interest in researching BB. Nguyen et al (2018) provide a review and synthesis of what is a largely discrete and disconnected body of conceptual and empirical research, focusing primarily on how management control systems change under BB, the applicability of BB, and the factors that hinder its implementation. Key findings are that the criticism leveled against conventional budgeting is not equally relevant for all organizations and/or is generally overstated, that organizations are selective in the elements of BB they implement, and that the successful implementation of BB requires changes in existing management control systems regarding, for example, targets, planning/forecasting, motivation/rewards, measures/controls and the role of controllers.…”