Mediating Factors That Influence The Relation Between Budget Congruence and Managerial Performance in Public Services Universities in Indonesia

Abstract

This study aimed to examine whether budget goal commitment, psychological capital, and management accounting system were able to play a role in mediating the relation between budget congruence and managerial performance in public services universities in Indonesia. This study used a quantitative survey approach; the sample of the study consisted of 82 leaders from State Islamic Universities in the province of East Java, Indonesia. The data were analyzed by using a causal mediation analysis procedure. The result found that psychological capital and management accounting systems were able to mediate the budget congruence-managerial performance relation. Meanwhile, budget goal commitment in the context of public sector budgeting has not succeeded in proving its role as a mediating variable. Further analysis showed that contingency theory is still relevant to be used in business and public budgeting in relation to different behavioural conditions. In addition, this research has implications for evaluating the managerial performance of leaders in public services universities in Indonesia to pay attention on managerial involvement at lower levels in achieving organizational goals.