The Mediating Effect of Psychological Capital on the Budget Participation – Job Performance Relationship

Venkatesh, Roopa; Blaskovich, Jennifer

doi:10.2139/ssrn.1659126

Cited by 21 publications

(49 citation statements)

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“…Another research stream has focused on the intervening path through the cognitive benefits of the budget process in terms of information sharing (Chong and Chong, 2002;Chong and Johnson, 2007). More recent studies have examined the indirect effects of budgetary participation on work performance, operating through psychological capital (Venkatesh and Blaskovich, 2012), job satisfaction and relevant job information (Leach-López et al, 2007 and role ambiguity (Parker and Kyj, 2006).…”

Section: Introductionmentioning

confidence: 99%

The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance

Nguyen

Evangelista

Kieu

2019

JABES

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Purpose Drawing on equity theory, social exchange theory and goal setting theory, the purpose of this paper is to investigate the contingencies on the link between employees’ budgetary participation and their work performance. Specifically, this study addresses the research questions: whether vertical information sharing and budget goal commitment mediate the relationship between employees’ budgetary participation and their work performance; and whether employees’ perceived budget fairness can strengthen the positive effects of budgetary participation on vertical information sharing and budget goal commitment. Design/methodology/approach Survey data were collected from a sample of 556 low to middle level managers of business organizations in Vietnam. The research model and its hypotheses were tested using PLS-SEM. The standardized root mean squared residual value of the composite model was employed to assess model fit. Common method bias was also checked using the marker-variable approach. Findings This study has two key findings: both vertical information sharing and budget goal commitment partially mediate the positive effects of budgetary participation on work performance; and both dimensions of perceived budget fairness (distributive and procedural) elevate the positive relationships of budgetary participation – vertical information sharing and budgetary participation – budget goal commitment. Practical implications The findings could benefit businesses in Vietnam and similar market contexts. Specifically, top management needs to select a proper level of budgetary participation that can facilitate information sharing vertically within the organization and motivate their employees to be more committed to achieve budget goals. Besides, the top management also needs to ensure that their employees perceive the fairness in the budgeting process. Originality/value The study contributes a greater understanding as regards the mediating roles of vertical information sharing and budget goal commitment as well as the moderating role of perceived budget fairness on the relationship between employees’ participation in the budgetary process and their work performance, especially in the context of an emerging market – Vietnam. Overall, this study contributes to the management and accounting literature with insights concerning a more complex process explaining employees’ work performance and triggered by their budgetary participation.

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Section: Introductionmentioning

confidence: 99%

The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance

Nguyen

Evangelista

Kieu

2019

JABES

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“…This is because a number of aspects of budgeting have moved to other budgeting-relevant contexts, such as budget-based compensation and budget slack (Fisher et al, 2002;Webb, 2002). More recent studies on budgetary participation have examined the mediating effects of psychological capital (Venkatesh & Blaskovich, 2012), job satisfaction and relevant job information (Leach-López et al, 2007), and role ambiguity (Parker & Kyj, 2006) on the link between budgetary participation and job performance.…”

Section: Introductionmentioning

confidence: 99%

Performance implication of budgetary participation and learning goal orientation: Empirical evidence from Vietnam

Phong

2018

JABES

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This study develops and empirically validates a Participation-Learning-Innovation-Performance chain by integrating employees' budgetary participation, learning goal orientation, innovative behaviors, and job performance. In particular, this study evaluates the mediating effect of employees' learning goal orientation on the relationship between their budgetary participation and innovative behaviors, and then examines the performance effect of these innovative behaviors on subsequent job performance. The hypotheses were empirically tested using a sample of 337 mid-and low-level managers from business organizations in Vietnam. Partial least squares-structural equation modeling was performed to test the hypotheses. The findings indicate that: (1) Employees' learning goal orientation acts as a transmitting device that connects their budgetary participation and innovative behaviors, and (2) these behaviors in turn lead to enhanced job performance. From these findings, this study proposes theoretical and managerial implications regarding designing a favorable budgetary environment for positive employees' performance outcomes.

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“…In this way, budgeting research can be understood from the perspective of the individual allowing for deviations from rationality, unbiased judgments, and decision making. Chenhall, 1986Chong and Chong, 2002Choo and Tan, 1997Collins, 1978Collins, Munter, and Finn, 1987De Baerdemaeker and Bruggeman, 2015Frucot and Shearon, 1991Hirst and Lowy, 1990Lau and Tan, 2006Macintosh and Williams, 1992Magner, Welker, and Campbell, 1995Marginson and Ogden, 2005Marginson and Bui, 2009Mia, 1989Poon, Pike, and Tjosvold, 2001Simons, 1989Subramaniam and Mia, 2001Venkatesh and Blaskovich, 2012Wentzel, 2002 Wong-On-Wing, Guo, and Lui, 2010 Other (2 papers) Hirst, 1987Poon et al, 2001 Total number of papers 46…”

Section: Psychology-based Budgeting Research With Theorymentioning

confidence: 99%

“…We believe that researchers can expand the use of statistical analysis by employing different causal model forms thus broadening findings and applications of budgeting theory. To some extent, structural equation modeling is being applied to consider relationships beyond independent variable interactions and moderation (e.g., Chong and Chong, 2002;Venkatesh and Blaskovich, 2012). We suggest researchers consider the use of generalized linear mixed models as specified by Judd, Westfall, and Kenny (2017) to advance the study and examination of budgeting research.…”

Section: Opportunities For Future Researchmentioning

confidence: 99%

In Search of a Theory of Budgeting: A Literature Review

Kenno¹,

Lau²,

Sainty³

2018

Accounting Perspectives

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Budgeting is used throughout all types of organizations and is a significant topic of accounting research. In order to advance the discussion of the benefits and drawbacks of budgeting, future budgeting research will benefit from a comprehensive review of the theories used by previous budgeting researchers. This literature review highlights the major theoretical perspectives and specific theories used in budgeting research as well as the common variables used and methodologies, among other observations of budgeting research in 249 articles. Although we find no cohesive theory of budgeting, we identify the importance of a unified thought process to budgeting research and provide insights for future work in the area. EN QUÊTE D'UNE THÉORIE DES PROCESSUS BUDGÉTAIRES : UNE ANALYSE DOCUMENTAIRE RÉSUMÉLes processus budgétaires sont utilisés dans toutes les formes d'organisations et retiennent beaucoup l'attention des chercheurs en comptabilité. Pour faire en sorte que progresse l'analyse des avantages et des inconvénients des processus budgétaires, les chercheurs qui s'intéressent à ce sujet bénéficieront, dans leurs travaux à venir, d'une compilation exhaustive des théories utilisées par les chercheurs précédents. L'analyse documentaire proposée par les auteures met en relief les principales perspectives théoriques dans lesquelles le sujet est abordé et les théories précises adoptées dans la recherche sur les processus budgétaires ainsi que les variables et les méthodologies communément utilisées, entre autres observations tirées des travaux réalisés dans ce domaine, décrits dans 249 articles. Bien que les auteures ne notent pas de cohésion dans les théories avancées relativement aux processus budgétaires, elles mesurent l'importance d'un processus de réflexion cohésif dans la recherche sur les processus budgétaires et proposent des pistes de recherche future dans le domaine.Mots clés : analyse documentaire; comptabilité de gestion; processus budgétaires; théorie * Accepted by Pascale Lapointe-Antunes. We would like to thank Pascale Lapointe-Antunes for the opportunity, anonymous reviewers, Alan Webb, and participants at CAAA for their helpful and insightful comments. All other mistakes are our own. 508ACCOUNTING PERSPECTIVES / PERSPECTIVES COMPTABLES 2. A subjective act at the best of times, we understand that there may be a few discrepancies should another set of researchers choose to do the same literature review that we have done. However, we worked to ensure integrity of the classification process.

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The Mediating Effect of Psychological Capital on the Budget Participation – Job Performance Relationship

Cited by 21 publications

References 0 publications

The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance

The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance

Performance implication of budgetary participation and learning goal orientation: Empirical evidence from Vietnam

In Search of a Theory of Budgeting: A Literature Review

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