The Impact of Interactive Control in Budget Management on Innovation Performance of Enterprises: From the Perspective of Manager Role Stress

Abstract

This study aimed to study the influence of the interactive budget on enterprise innovation performance from the perspective of managerial psychology, and to examine the mediating effect of managers’ stress and the moderating effect of environmental turbulence in this influence. The study collected 228 managers’ data in the Yangtze River Delta region of China through online questionnaires; the structural equation model is constructed by IBM SPSS Amos 24.0, and the data is analyzed by Mplus 7.4 and IBM SPSS 23.0. The results showed that: (1) an interactive budget positively affects enterprise innovation performance; (2) the role stress of managers plays a partial mediating role in the relationship between an interactive budget and enterprise innovation performance; (3) environmental turbulence positively moderates the relationship between the interactive budget and enterprise innovation performance; and (4) the positive effect of the interactive budget on enterprise innovation performance is more significant in enterprises with a high proportion of female managers, and the negative effect on the role stress of managers is more significant in high-tech enterprises. In theory, the results enrich the research on the impact of an interactive budget on individual managers’ psychology, and further reveals the “black box” of the impact of an interactive budget on enterprise innovation performance; in practice, the results make enterprises attach importance to the influence of control environments on the psychological health of managers, and provides a reference for enterprises to use control methods rationally to promote innovation in budget management.

Differences In The Use of Diagnostic Budget and The Use of Interactive Budget: Case Study of SMEs in Palembang City

“…Meanwhile, when using interactive budgeting, company performance can be affected because interactive budgeting can encourage managers to actively involve themselves in the entire series of company activities, such as decision-making, active discussions, and communication about the opportunities and threats facing the company (Jiao et al, 2023). Then, interactive budgets can provide managers with the information resources they need to improve innovation performance and create a wellresourced work environment for managers, leading to increased dynamic and innovative capabilities (Zeng et al, 2023).…”