Intervening Role of Performance-Based Budgeting in the Relationship between Transformational Leadership, Organizational Commitment and University Performance

Abstract

This study aims to investigate the influence of transformational leadership and organizational commitment on performance-based budgeting systems of Indonesian universities. It also examines the impact of performance-based budgeting systems on universities' performance and the role of performance-based budgeting as an intervening variable. The population in this study was private universities registered in Indonesian Higher Education Service Institutions (or Lembaga Layanan Pendidikan Tinggi/ LLDikti) region XIII Aceh, Indonesia. The samples were selected using convenience sampling method. There were 130 completed questionnaires collected and analyzed using Partial Least Square. This study found that transformational leadership and organizational commitment have no direct effect on university performance, while the performance-based budgeting system has a significant positive effect on the performance of universities. This study also found that a performance-based budgeting system serves as an intervening variable in the relationship between transformational leadership and organizational commitment concerning higher education performance.

Perceived of Organizational Support for Budget Implementation Based on Performance of Indonesian Private Universities

“…Furthermore, the third hypothesis shows significant positive support that the perception of superior support is accepted as an essential part of implementing higher education performance-based budgets with p-value 0.029 with f2 0.222 (moderate category). The results of this hypothesis support research related to leadership related to the implementation of performance-based budgeting (Purwohandoko et al, 2015;Ibrahim et al, 2016;Pratolo et al, 2021).…”

“…Implementation of performance-based budgeting has been the subject of research in various countries: Iran (Aliabadi et al, 2019), Thailand (Charoenkul and Siribanpitak, 2012), the Netherlands (Bogt et al, 2015), Japan (Yamamoto, 2010), Turkey (Altundemir and Goksu, 2017) and in many other countries (Miao, 2012). There have been many discussions on the implementation of performance-based budgeting in Indonesia (Rusmana and Putri, 2015;Akbar, 2018;Pratolo et al, 2021;Lorensius et al, 2021), but those evaluating the implementation of performance-based budgeting with POS are still limited, especially in private universities. Therefore, we focus on examining the importance of the influence of POS in the commitment to support performance-based budget policies underlies this research.…”

Penerapan Penganggaran Berbasis Kinerja Pada Perguruan Tinggi Di Indonesia

“…Meskipun kajian literatur ini telah banyak dilakukan, namun sebagian besar dilakukan di negara maju, seperti di Amerika Serikat (Lu et al, 2011), Iran (Aliabadi et al, 2019, Inggris (Noman, 2008), Australia dan Selandia Baru (Martí, 2013). Selain itu Pratolo et al, (2021), peneliti di Indonesia, menemukan bahwa sistem penganggaran berbasis kinerja berfungsi sebagai variabel intervening dalam hubungan antara kepemimpinan dan komitmen organisasi terhadap kinerja perguruan tinggi.…”

The Influence of It Governance and It Capability on The Performance of Private Higher Education Institutions: The Mediation Role of Performance Management Systems

“…The role of information technology (IT) is very important in the continuity of an organization to facilitate work to improve organizational performance (Raudeliuniene et al, 2021). Some literature states that information technology has an influence on knowledge management cycles that lead to improved overall organizational performance (Pratolo et al, 2023;Raudeliuniene et al, 2021;Tahar et al, 2022). This suggests that IT development will help every job to be more effective and efficient, further improving the organization's financial and operational performance (Pratolo et al, 2021), as well as to achieve competitive advantage and optimal performance (Chakravarty et al, 2013;Kim et al, 2011;Tahar et al, 2022).…”

“…For example, during the pandemic, HEIs that already have online teaching capabilities are potentially better positioned to attract prospective students, while weaker competitors may be eliminated (Tahar et al, 2022). Since then, the issue of IT governance has become a concern for many parties and a new challenge for HEIs to maintain their quality and performance (Pratolo et al, 2023).…”