Budgetary Participation in Turkey: The Effects of Information Asymmetry, Goal Commitment, and Role Ambiguity on Job Satisfaction and Performance

Abstract

This study empirically investigates the antecedent, mediating, and outcome variables of budgetary participation in Turkey. Turkey is an interesting setting to investigate the impact of budgetary participation on job satisfaction and performance because of its unique cultural and institutional factors. We propose that the information asymmetry between superiors and subordinates creates the need for budgetary participation, and the outcomes of budgetary participation (i.e., job satisfaction and performance) will be mediated by goal commitment and role ambiguity. Based on a questionnaire survey of 194 mid-level managers in Turkey, we find that role ambiguity mediates the budgetary participation–job satisfaction and budgetary participation-performance relationships. The results are consistent with the view that the primary benefit of budgetary participation is to decrease role ambiguity, leading to more job satisfaction and better performance. Furthermore, we find that goal commitment mediates the budgetary participation-performance relationship. This result suggests that participation in the budgeting process increases goal commitment, which in turn leads to better performance. This study will be beneficial for companies in general and for organizations in developing countries in particular to realize that budgetary participation alone does not improve job satisfaction and performance. Rather, it is the increased commitment and decreased role ambiguity that results from managers' participation in the budgetary process that improves job satisfaction and performance. JEL Classifications: D21, G32, L1, M41.

Partisipasi Anggaran dan Kinerja Managerial di Pemerintah Daerah: Anteseden dan Pemediasi

“…Penelitian terdahulu menunjukkan partisipasi anggaran mengarah kepada peningkatan kepuasan kerja dan kinerja yang lebih baik dari bawahan karena mereka merasa telah diperlakukan sebagai partner yang penting dalam proses pengambilan keputusan (Adrianto, 2008;Benny, 2012;Jermias dan Yigit, 2008). Hal ini akan menciptakan motivasi yang lebih besar dan komitmen yang lebih tinggi (Jermias dan Yigit, 2013).…”

“…Salah satu studi yang mengkaji partisipasi anggaran dengan model komprehensif di negara berkembang adalah penelitian Jermias dan Yigit (2013). Penelitian Jermias dan Yigit (2013) menginvestigasi anteseden (asimetri informasi), variabel pemediasi (komitmen terhadap tujuan dan ambiguitas peran), serta variabel outcome dari partisipasi anggaran (kepuasan kerja dan kinerja) menggunakan manager menengah perusahaan semi-privat di Turki (dimiliki oleh Istanbul Metropolitan Municipality) yang memiliki budaya paternalism.…”

“…Motivasi penelitian ini adalah mereplikasi dan mengembangkan penelitian Jermias dan Yigit (2013). Penelitian Jermias dan Yigit (2013) menggunakan sampel manager tingkat menengah pada perusahaan semi-privat.…”

Determinants of Private Saving Level: Evidence from Turkey

“…Although focusing on specific regions and country groups provides important insights into the nature of saving behavior, nationally idiosyncratic factors and differences in historical experiences among countries, which can play important roles (see Jermias & Yigit, 2013) in the eventual fate of the saving rate, can be undervalued and even lost in the process when cross-section analyses are employed.…”

Does Exchange Rate Volatility Really Influence Foreign Trade? Evidence from Turkey

“…Developing countries, which now comprise the larger share of the world economy, were generally ignored. Among them, Turkey, which has a relatively large and vibrant economy, is an interesting case for investigating this relationship because of its unique cultural and institutional factors (see Jermias & Yigit, 2013), which may significantly influence the severity and even the direction of the relationship between exchange rate volatility and foreign trade. (For example, if exporters are not risk-averse, the influence of exchange rate volatility on them could be of little importance.…”