The effect of budget participation on the management performance through management commitment as an intervening variable

Abstract

This study conducted a test to see the influence of budgeting participation on working performance through managers’ commitment as an intervening variable of managers manufacturing companies listed on Indonesia Stock Exchange (IDX). This study used descriptive analysis and statistical method Structural Equation Modeling (SEM)-Lisrel. The data was collected by using questionnaires given to 124 managers from 108 manufacturing companies listed on Indonesia Stock Exchange. The result showed that budgeting participation has a positive and significant influence on the managers’ performance through managers’ commitment as an intervening variable. The findings of this study added to the limitations of the research literature on the elaboration of variables that determine managers’ commitment and manager’s performance in manufacturing companies.

The Influence of Budget Participation and Budgeting Procedural Justice on Kendari City Government Management Performance with Job-Relevant Information as an Intervening Variable

“…According to (Joseph, 2020), budgeting participation carried out by managers who have good access to accurate and complete information about tasks will improve their managerial performance in achieving the set budget targets. This study was supported by research conducted by (Jatiningsih et al, 2023) The results of this study indicate that job-relevant information weakens the effect of budgetary participation on managerial performance. The interpretation of the findings of this study indicates that job-relevant information (JRI) acts as a variable that moderates the effect of budgetary participation on managerial performance, but its moderation weakens the influence of both.…”