The Moderation Effect of Power Distance Orientation and Leadership Personality on Budget Participation and Relationship of University Performance in Indonesia

Abstract

This study explores the influence of moderating the distance of power and personality of leaders on the relationship between participatory budgeting and university performance. This study broadens previous research by the personalization variable of superiors using the dimensions of the personality of the top five and assessing the dimensions of the power of cultural distance as variables that influence individuals to involve themselves in budgeting. Three hundred fifteen sample questionnaires with research respondents were university faculty managers in Indonesia supporting interaction predictions. The research findings provide evidence that universities with a relatively high power distance culture between ethnic-led faculty managers rather than non-ethnic-led faculty managers in Indonesia influence the budgeting process. Other results provide evidence that a strong personality significantly affects performance. Based on these findings, it shows that in Indonesia, faculty management applies expressions of their ability to communicate and offer choices in budgeting. This, in turn, can hinder the budget decision-making process and reduce the acceptance of every decision by managers. This finding shows that the cultural dimension of power distance and superior personality variables prove to be a moderating variable in participatory budgeting.

Budget Gaming, Superior Trust and Budget Emphasis: The Moderating Effect of Personality (Evidence from Retail Company in Indonesia)

“…Personality cannot be separated from the budget because budgeting requires interaction between humans. Apriwandi et al (2020) recognize the importance of personality in business, especially in the part of preparing the budget itself. Personality factors lead to behavior related to unethical attitudes and behaviors such as callousness, egocentricity and interpersonal manipulation (Bailey, 2019).…”

Öğrenme Çevi̇kli̇ği̇: İş Performansi Ve Memnuni̇yeti̇ Üzeri̇ndeki̇ Etki̇ler

“…The big five traits have been commonly applied as moderators of relationships in organizational psychology (Apriwandi et al, 2019;Correa et al, 2019;Myers et al, 2010;Spalj et al, 2016;Yu et al, 2020;). For example, Liao (2010) showed that each personality trait moderated the relationship between job stress and job burnout.…”