Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration

Abstract

Budgeting is one of the most extensively researched topics in management accounting and has been studied from the theoretical perspectives of economics, psychology, and sociology. Thus, budgeting offers opportunities for research that chooses between competing theories from these perspectives or combines theories from different perspectives if they are compatible, to create more complete and valid explanations of the causes and effects of budgeting practices. In the first part of the paper we analyze budgeting research in the three theoretical perspectives, focusing on important similarities and differences across perspectives with respect to the primary research question, levels of analysis, assumptions about rationality and equilibrium, budgeting and nonbudgeting variables, and causal-model forms. In the last part of this paper we identify four interrelated criteria for selective integrative research and provide an example of using these criteria for research on participative budgeting.

As Múltiplas Funções do Orçamento Empresarial

“…O orçamento empresarial é um dos artefatos mais utilizados para a gestão e tomada de decisões em empresas de diversos portes, setores e regiões do mundo (Chapman & Kihn, 2009;Covaleski, Evans, Luft, & Shields, 2003;Libby & Lindsay, 2010;Malmi & Brown, 2008). O artefato tem sofrido diversas críticas desde Argyris (1952), que se tornaram mais frequentes a partir da década de 1990 (Hansen, Otley, & Van der Stede, 2003;Hope & Fraser, 2003;Neely, Sutcliff, & Heyns, 2001;Sponem & Lambert, 2010).…”

The Impact of Managers’ Related Variables and Department Features on Budget Characteristics: The Case of Private Jordanian Universities

“…An important benefit of the budgeting process is sharing information between subordinates and their managers (Hopwood, 1974;Covaleski et al, 2003;andKyj, 2006: Thys-Clement &Wilkin, 1998;Mah'd 2010;and Broadbent, 2007). Shield & Shield (1998) and Parker & Kyj (2006) support Shields and Young's (1993) argument that budget participation is used to facilitate the communication of private information from subordinates to superiors.…”

“…Shield & Shield (1998) and Parker & Kyj (2006) support Shields and Young's (1993) argument that budget participation is used to facilitate the communication of private information from subordinates to superiors. A common assumption in the accounting literature (especially agency theory) is that subordinate managers hold private information regarding their task and know about their operational areas more than do their superiors (Merchant, 1981;Nouri & Parker, 1998;Shields & Shields, 1998;and Covaleski et al, 2003). The flow of information up-down has also been addressed in the literature (Kren, 1992;Parker & Kyj, 2006) that superiors generally have private information regarding to achieve strategic budget goals which may facilitate the subordinates achievement of those goals (Gladney et al, 2009).…”

“…The flow of information up-down has also been addressed in the literature (Kren, 1992;Parker & Kyj, 2006) that superiors generally have private information regarding to achieve strategic budget goals which may facilitate the subordinates achievement of those goals (Gladney et al, 2009). Budget participation may enable subordinates and superiors to communicate their private information leading to better decision-making and budget (Nouri & Parker, 1998;Shields & Shields, 1998;Covaleski et al, 2003;and Parker & Kyj, 2006).…”

“…Prior studies demonstrate that the budget is an important tool of management accounting in terms of control, coordination, and decision-making (Drury, 2008;Covaleski et al, 2003;and Mah'd, 2010). Furthermore, great attention has been given to the influence of budgetary systems in the control of organisations in terms of the size, structure, managerial autonomy, and external environment (Merchant, 1981;Ezzamel, 1990;and Bruns & Waterhouse, 1975).…”