The Mediating Impact of Psychological Capital and Job Relevant Information on the Influence of Budget Participation against Job Performance

Abstract

The purpose of this study was to investigate the mediating impact of psychological capital and job relevant information on the budget participation to job performance at the public sector managers in the provincial government of East Java. Data analyzed using SEM-PLS. The SEM-PLS allows the examination of the direct effects of budget participation on job performance and the indirect effects between budget participation and job performance that run through psychological capital and job relevant information. The findings of this study are that psychological capital fully mediates influence of budget participation to job performance, job relevant information fully mediates influence of budget participation to job performance. Limitations of this study are using questionnaire media to obtain primary data so that it relies on the level of respondent perception so that the subjectivity factor can be contained in it. Second limitation is generalizability of samples. Despite its limitations, this study has both academic and practical implications. The study adds to the job performance literature in a public sector organizations. The study also finds that manager's job performance can be improved by minimizing Psycap and JRI. Future research should study other mediation variables on the effect of budget participation on job performance.

Job Relevant Information on Government Managerial Performance: The Role of Affective Organizational Commitment

“…The findings of this study predict and find that JRI has a significant effect on government managerial performance. This is under the research of Aqmal & Soewarno (2018), Nengsy (2019), andTambunan (2021), which states that the application of JRI can encourage optimal managerial performance. Tambunan (2021) says that superiors must determine the program and how much budget must be spent by comparing the organization's resources.…”

“…JRI assists employees in understanding all conditions related to their duties so that decisions taken can later help achieve organizational goals. The availability of relevant information provides advantages for leaders in developing sound strategies (Aqmal & Soewarno, 2018). This relates to Locke's goal-setting theory (1968), which states that goals can be achieved by using a strategy that has been developed.…”

“…Research developments analyze the effect of JRI on managerial performance (Amrul et al, 2021;Aqmal & Soewarno, 2018;Nengsy, 2019;Pratama & Kurnia, 2017;Tambunan, 2021).…”