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

Abstract

The failure to implement performance-based budgeting in universities is evaluated for internal and external perception factors. This study examines the relationship between the perception of budget actors through perceived organizational support (POS) on the implementation of performance-based budgeting. Adopting POS as part of organizational psychology and related to resource conservation theory, this research looks at aspects perceived of fairness, perceived organizational rewards, and perceptions of supervisor support. The study used a questionnaire compiled using POS theory and intention to use to translate acceptance and support for the implementation of performance-based budgeting. After expert validation, questionnaires were distributed to 252 budget actors from 7 (seven) universities that implement performance-based budgeting. Data analyzed by structural equation modeling (SEM) with smartPLS 3.0 showed significant positive support results from the perception of fairness with p-value 0.000 and T value 7.617 and supervisor support with p-value 0.029 and T value 2.190. In contrast to the two dimensions of POS, perceptions of organizational rewards and job conditions have no significant effect. This study is a performance-based budget review by linking POS as a unique and limited study; therefore, the researcher recommends developing this research.