An implementation model of performance-based budgeting

Amirkhani, Tayebe; Aghaz, Asal; Sheikh, Alireza

doi:10.1108/ijppm-05-2018-0171

Cited by 11 publications

(25 citation statements)

References 41 publications

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“…They note that while national laws required entities to adopt PBB, local laws still promoted incremental budgeting. Studies that shed light on the implementation of reforms (at an organizational level) and the barriers to implementation include works by Amirkhani et al (2019). They develop a conceptual model for the successful implementation of PBB using the case of the Iranian Ministry of Health and Medical Education.…”

Section: Institutional Workmentioning

confidence: 99%

Institutional work and the interplay of stability and change in public budgeting reform: the case of public universities in Iran

Jalali

Farooq

Sharma

et al. 2021

AAAJ

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PurposeThe purpose of this study is to understand the efforts of key social actors in influencing the reform of Iranian public universities budgeting system, from incremental to performance-based budgeting (PBB), the tensions that arose as competing efforts of institutional change were undertaken, and ultimately the impact of these efforts on the extent to which the Iranian government transitioned to a system of PBB in public universities.Design/methodology/approachData comprises of semi-structured interviews with managers and experts involved in the budget setting process and an analysis of budgetary policy documents, reports and archival material such as legislation. An institutional work lens is employed to interpret the findings.FindingsWhile actors advocating the change were engaged in institutional work directed at disrupting the old budgetary rules by disassociating the rules moral foundations and creating new budgetary rules (through new legislation), universities undertook subtle resistance by engaging in extended evaluation of the new proposed PBB rules thereby maintaining the old budgetary rules. The reforms undertaken to introduce PBB in Iranian universities achieved minimal success whereby incremental budgeting continued to constitute by far a larger percentage of the budget allocation formula for university budgets. This finding illustrates change and continuity in university budgetary systems resulting from institutional work of actors competing to control the basis of resource allocation under the proposed PBB system by proposing contradicting models.Practical implicationsThe findings highlight the importance of understanding the interplay of institutional work undertaken by competing social actors as they seek to advance their goals in shaping budgetary reforms in the public-sector. Such an understanding may inform policy makers who intend to introduce major reforms in public-sector budgeting approaches.Originality/valueUnlike prior studies that largely focused on how organization-level budgeting practices responded to changes in public budgeting rules (i.e. at the site of implementation of the rules), this paper highlights how strategies of change and resistance are played out at the site of setting budgetary norms.

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Section: Institutional Workmentioning

confidence: 99%

Institutional work and the interplay of stability and change in public budgeting reform: the case of public universities in Iran

Jalali

Farooq

Sharma

et al. 2021

AAAJ

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“…In organisations, one crucial issue that may limit innovation adoption is the abilities and competencies of the available human resources. Previous studies have highlighted the importance of qualified staff as a critical factor associated with the adoption and development of innovations (Amirkhani et al, 2019 ). López and Hiebl ( 2015 ) stated that accounting staff must have multiple responsibilities and roles rather than simply focusing on one managerial area.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Staff capacity is an essential factor hindering business practice implementation in the public sector (Haldma and Lääts, 2002 ). Previous research (Amirkhani et al, 2019 ; Douglas, 2000 ; Egan and Tweedie, 2018 ; López and Hiebl, 2015 ; Melkers and Willoughby, 2001 ; McNab and Melese, 2003 ; Schick, 2007 ) has highlighted the importance of staff capacity for innovative practices. However, there have been few studies of staff capacity in higher education institutions, especially in Chinese public universities.…”

Section: Introductionmentioning

confidence: 99%

“…However, there have been few studies of staff capacity in higher education institutions, especially in Chinese public universities. The relationship between staff capacity and PBB is supported only by descriptive research (Amirkhani et al, 2019 ; Douglas, 2000 ; Schick, 2007 , 2014 ). Therefore, the motivation for this study was to fill these gaps and provide empirical evidence on the causal relationship among staff capacity, PBB, and university performance in different cultural contexts.…”

Section: Introductionmentioning

confidence: 99%

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Do staff capacity and performance-based budgeting improve organisational performance? Empirical evidence from Chinese public universities

Ismail

2023

Humanit Soc Sci Commun

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The COVID-19 pandemic has raised many issues for higher education institutions, one of which is the continued decline in funding and an increased emphasis on effectiveness and efficiency. Performance-based budgeting is being adopted in organisations to allocate resources more efficiently, and Chinese public universities are no exception. The present study explicitly aimed to examine the relationship among staff capacity, performance-based budgeting, and organisational performance in Chinese public universities. It also investigated the role of top management support as a moderator. A purposive sampling method was used to select a total of 271 participants who agreed to participate in an online survey. A multimethod approach combining partial least squares-structural equation modelling (PLS-SEM), the PROCESS macro and necessary condition analysis (NCA) was adopted. The PLS-SEM results indicated that performance-based budgeting had a positive relationship with university performance and served as a mediator between staff capacity and university performance. The moderated mediation results showed that top management moderated the relationship among the selected variables. The NCA results suggested that both staff capacity and performance-based budgeting are meaningful and significant necessary conditions for university performance. The combined results indicated how researchers and practitioners can identify the factors that are critical for university performance and result in the best possible outcomes. This is possibly the first study to use this multimethod approach in accounting research. Overall, this study offers valuable insights into performance-based budgeting implementation in higher education institutions and may serve as a guideline for public universities to improve the efficiency of funding, reduce costs and increase revenues.

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“…Unfortunately, this debate has been limited to the developed world, with little empirical research in developing countries, despite many of them having adopted it (Mauro et al 2017;Moynihan & Bealey, 2016). Studies that have attempted to look at PBB in developing countries have restricted themselves to one or two organizations, and to a single sector, or to local governments, rather than to the broader public sector (Amirkhani et al, 2019;Govender & Reddy, 2019) 1 , thus leaving an incomplete literature. In doing so, such studies have looked at the process of developing or institutionalizing a performance-based accountability system, which has not been sanguine to only meet formal legal requirements (Andrews, 2003).…”

Section: Introductionmentioning

confidence: 99%

The perception of employees on performance‐based budgeting reforms in developing countries: The perspective from Ghana

Ohemeng

Asiedu

Obuobisa‐Darko

et al. 2022

Public Budgeting & Finance

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In the last few decades, the use of performance management to correct state finances has led to the (re)emergence of performance‐based budgeting (PBB), with the belief that it will reveal where scarce resources should be concentrated. The efficacy of PBB, however, continues to be debated. This paper attempts to contribute to the discussion, by examining the case of Ghana from the perspective of budget officers. How do budget officers perceive the PBB? It is argued that while PBB is professed as a useful budgetary mechanism, there are challenges that need to be addressed if it is to achieve its objectives.

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An implementation model of performance-based budgeting

Cited by 11 publications

References 41 publications

Institutional work and the interplay of stability and change in public budgeting reform: the case of public universities in Iran

Institutional work and the interplay of stability and change in public budgeting reform: the case of public universities in Iran

Do staff capacity and performance-based budgeting improve organisational performance? Empirical evidence from Chinese public universities

The perception of employees on performance‐based budgeting reforms in developing countries: The perspective from Ghana

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