Organizational Commitment and Culture of Tri Hita Karana Moderating the Effect of Budget Participation in Budgetary Slack

Abstract

This study aims to test empirically the effect of budgetary participation on budgetary slack and the ability of Tri Hita Karana's organizational commitment and culture in moderating the effect of budgetary participation on budgetary slack. The number of samples used was 44 people consisting of the Head of OPD in the Badung Regency Government, using the purposive sampling method. Data collection was carried out by means of a questionnaire. The data analysis technique used is multiple linear regression analysis containing interaction or the Moderating Regression Analysis (MRA) test. Based on the analysis, it is found that budgetary participation has a positive effect on budgetary slack. This shows that the higher the participation in budgeting, the higher the budgetary slack that will occur. Organizational commitment weakens the effect of budgetary participation on budgetary slack. High participation in budgeting reduces budgetary slack due to high organizational commitment. The Tri Hita Karana culture weakens the influence of budgetary participation on budgetary slack. High budgeting participation reduces budgetary slack due to the high implementation of Tri Hita Karana culture.

Analysis of the Effect of Budget Participation on Budgetary Slack: Study Literature Review

“…According to research by Sulistyawati et al (2023), Budgetary slack is positively impacted by budget participation, meaning that the more budget participation that is done, the more opportunities there are to take advantage of budgetary slack. Renggadewi (2020) has demonstrated through additional study that budget participation positively impacts budgetary slack. Budget takers have the power and chance to choose what goes in their budget when they participate in budgeting.…”

“…In budget participation, each individual involved in the budgeting process tends to look for ways to facilitate the achievement of the budget targets that have been set. This often leads to the practice of increasing costs or reducing income from the proper level so that the budget is more easily achieved (Renggadewi, 2020) . Budgetary slack is positively impacted by budget participation activities, according to research by (Tyas et al, 2022).…”

“…Previous research examining the relationship between budget participation and budgetary slack showed inconsistent results. Research conducted by Agustina & Suhaidar (2021), Christina & Akbar (2019), Handoyo et al, (2022), Jati & Widhiyani (2020), Precilia & Mimba (2020), Renggadewi (2020), Sulistyawati et al (2023) and Tyas et al (2022) shows that budget participation has a positive influence on the budgetary slack, where the higher the budget participation in preparing the budget, the higher the opportunity or opportunity to make budgetary slack. Different things were shown by research by Ardianti et al (2021) and Okoye & Nwamaka, (2022) which show that budget participation results have a negative influence on the budgetary slack.…”