Supervisor Pressure VS Peer Pressure? Which One is The Worst in Creating Slack

Abstract

Social pressure has long been a problem in the budgeting process. Social pressure is predicted to be one of the influencing factors in creating budgetary slack. There are at least three types of social pressure in the budgeting process, supervisor pressure, peer pressure and other pressure. There are many studies that show one type of social pressure has a negative impact on budgetary slack, but there is limited research that aims to compare which social pressures are most influential in creating budgetary slack. An experimental study using accounting students seeks to measure the impact of each social pressure on the budgeting process. The results of this research indicate that supervisor pressure has a higher impact on individuals to create budgetary slack. This research has implications for supervisor to be able to provide pressure that has a positive impact on their subordinates.