Budgetary control, corporate culture and performance of small and medium enterprises (SMEs) in Malaysia

Maelah, Ruhanita; Yadzid, Nor Hadza Nor

doi:10.1504/ijgsb.2018.091831

Cited by 10 publications

(9 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…To address the above objectives, we embrace the goal-setting theory (see Locke and Latham, 1984Pepper and Gore, 2015) to enable us to capture the connections between perceptions of budgeting, drivers of budgeting, budgetary control, budgetary goals and performance. This study adopts the survey method that permits data collection using questionnaires (Balnaves and Caputi, 2001;Maelah and Yadzid, 2018). Our analysis of the data allows us to contribute to the literature by presenting budgetary control as a critical control system for enhancing SMEs' wealth-generating potential among South African manufacturing SMEs.…”

Section: Introductionmentioning

confidence: 99%

An assessment of budgeting and budgetary controls among small and medium-sized enterprises: evidence from a developing economy

Matsoso

Nyathi

Nakpodia

2021

JAEE

View full text Add to dashboard Cite

PurposeThe capacity to plan, manage and control small and medium-sized enterprises (SMEs) is critical to realising their organisational goals. This paper assesses the effectiveness and perception of budgeting and budgetary control systems among SMEs.Design/methodology/approachRelying on the goal-setting theory (GST) and a methodology that accommodates questionnaires, data were collected from 170 manufacturing SMEs located in Cape Town, South Africa.FindingsResearch results affirm that the deployment of budgeting benefits from a positive perception of the value of budgeting and budgetary controls by key SME stakeholders. The study also finds that the perception of budgeting mirrors the level of education of SME operators, as educated respondents understand the value of implementing robust budgeting systems. Despite its focus on manufacturing SMEs, this study suggests that the manufacturing budget is the least utilised budgeting system among these organisations.Practical implicationsThe study reinforces the communication power of budgeting and budgetary controls as SMEs and economic agents are not only aware of corporate objectives but are equally incentivised to support the attainment of these objectives.Originality/valueDespite the extensive application of GST among scholars, its use in budgeting and budgetary control literature, particularly among SMEs in developing contexts, is limited. In line with GST, this study indicates that when agents establish and implement a plan, they are motivated to pursue and realise the set expectations while consistently evaluating themselves for improvement opportunities.

show abstract

Section: Introductionmentioning

confidence: 99%

An assessment of budgeting and budgetary controls among small and medium-sized enterprises: evidence from a developing economy

Matsoso

Nyathi

Nakpodia

2021

JAEE

View full text Add to dashboard Cite

show abstract

“…And SMEs' performance, generally, are reflected mainly through financial indicators. There are several indicators for measuring performance, in which, ROA (return on assets) or ROI (return on investment) are used frequently in many studies (Kamau, 2016;Nyakundi et al, 2014;Maelah & Yadzid, 2018).…”

Section: Smes' Performancementioning

confidence: 99%

The Impact of Internal Control on Performance of Small and Medium-Sized Enterprises in an Emerging Economy

Tam¹,

Tuấn²

2021

APMAJ

View full text Add to dashboard Cite

This research studied the impact of internal control on financial performance of small and medium-sized enterprises (SMEs) in an emerging economy. The studying framework was derived from the Agency Theory to examine the relationship between internal control and organizational performance in SMEs. The paper used a survey and non-probability sampling and applied regression analysis to assess this effect on SMEs in Hanoi, Vietnam. Internal control consisted of five elements (including control environment, risk assessment, control activities, information and communication systems, and monitoring activities) by COSO. SME’s performance was measured by ROA primarily. This research analyzed data using SPSS and SmartPLS softwares. Using a sample of 94 respondents, the results show that the control environment which is a dimension of internal control has a positive influence on the performance of SMEs in this case. Other dimensions of internal control that are control activities, information and communication system, risk assessment, and monitoring activities showed insignificant impacts on performance of SMEs but the results still give some meaningful insights for SMEs in Vietnam. The results of this paper provide practical insights on the role of internal control for researchers and business managers. Keywords: internal control, performance, small and medium-sized enterprises

show abstract

“…The cultural control consists of clans culture, value-based culture, and symbol-based culture [19,20]. The cybernetic control facilitates in achieving long-term business success [19,32]. The rewards and compensation control refers to a system that motivates individuals as well as a groups of workers in increasing overall performance [80].…”

Section: Mcs As a Package (Mcsp)mentioning

confidence: 99%

“…Organizations that desire to attain sustained competitive advantage should pay attention to business strategies like differentiation and cost leadership strategies as these facilitate organizations to receive benefits in the existing market and attain sustained advantages [30,31]. Malaysian SMEs face issues about MCSs and business strategies that have a significant influence on a successful business [32,33]. This is pioneer research that determines a firm's sustainability through MCS packages, cost leadership, and differentiation strategy.…”

Section: Introductionmentioning

confidence: 99%

The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia

et al. 2019

View full text Add to dashboard Cite

The aim of the current study was to ascertain the influence of a management control systems (MCS) package on a firm's sustainability with the help of mediating variables such as differentiation and cost leadership strategy in Malaysian small and medium enterprises (SMEs). Data were collected from managers working in Malaysian SMEs. A total of 384 questionnaires was finally used for analysis using SmartPLS 3.8.2. Area cluster sampling was used for data collection, and seven out of sixteen clusters were selected randomly. These included Selangor, Johor, Kuala Lumpur, Sabah, Penang, Sarawak, and Perak because these seven states cover 73.9% of total SMEs. Structural equation modeling (SEM) was used to test the hypotheses. Confirmatory factor analysis (CFA) was also used to examine the reliability and validity, and structural model assessment was used to test the relationship between variables. Findings revealed that an MCS package had a positive influence on a firm's sustainability, cost leadership, and differentiation strategy. Moreover, cost leadership and differentiation strategy have a significant and positive influence on a firm's sustainability. In addition, cost leadership strategies and differentiation strategies significantly mediate between the MCS package and a firm's sustainability. This research assesses the influence of the MCS package through cost leadership and differentiation strategy on a firm's sustainability of Malaysian SMEs. It helps top management to focus on the MCS package and business strategies in attaining a firm's long-term sustainability. Finally, research recommendations discuss that the present study helps future researchers and academicians.

show abstract

Budgetary control, corporate culture and performance of small and medium enterprises (SMEs) in Malaysia

Cited by 10 publications

References 59 publications

An assessment of budgeting and budgetary controls among small and medium-sized enterprises: evidence from a developing economy

An assessment of budgeting and budgetary controls among small and medium-sized enterprises: evidence from a developing economy

The Impact of Internal Control on Performance of Small and Medium-Sized Enterprises in an Emerging Economy

The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia

Contact Info

Product

Resources

About