THE EFFECT OF PARTICIPATION IN BUDGETING, BUDGET OBJECTIVE CLEARANCE, BUDGET TARGET DIFFICULTIES, AND FEEDBACK ON MANAGERIAL PERFORMANCE WITH ENVIRONMENTAL UNSCERTAINTY AS A MODERATING VARIABLE (Empirical Study on Sugar Factory in Indonesia)

Amount: THE EFFECT OF PARTICIPATION IN BUDGETING, BUDGET OBJECTIVE CLEARANCE, BUDGET TARGET DIFFICULTIES, AND FEEDBACK ON MANAGERIAL PERFORMANCE WITH ENVIRONMENTAL UNSCERTAINTY AS A MODERATING VARIABLE (Empirical Study on Sugar Factory in Indonesia)

Authors: STEPHANUS BUDIHARDJA

Memberships: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Airlangga University

Abstract

Pasoloran (2002: 758) suggests that the characteristics of budgeting that affect managerial performance are divided into 4 variables, namely budgetary participation, clarity of budget targets, difficulty of budget targets, and budget feedback. Participatory budgets indicate the level of manager's participation in preparing budgets and influencing budget goals. Clarity of budget targets shows the level of budget targets set specifically and clearly. The difficulty of budget targets shows the level of difficulty in achieving budget goals, while feedback indicates the level of achievement of budgeting targets. The environmental uncertainty variable is used as a moderating variable that moderates the relationship of each budgeting characteristic with managerial performance.

This study uses 2 kinds of analysis. First, to analyze the influence of the characteristics of budgeting factors, namely budgetary participation, clarity of budget targets, budget difficulties, and budgetary feedback on managerial performance partially or simultaneously. Second, is to analyze the effect of moderator variables on the characteristics of budgeting and managerial performance.

This research was conducted on 68 sugar factories throughout Indonesia, both state-owned and private, by sending questionnaires to 100 managers in sugar factories and only 52 questionnaires returned. The analytical model used to support hypotheses I to 5 is a multiple linear regression model, while for hypotheses 6 to 9 the MRA (Moderated regression analysis) model is used.

The results of this study indicate that the four factors of budgeting characteristics, namely budgetary participation (X1), clarity of budget targets (X2), budgetary difficulties (X3), and budgetary feedback (X4) have a significant effect on managerial performance either partially or simultaneously, with the coefficient determination (R Square) = 82,6%. The results also show that environmental uncertainty (Z) is a moderating variable that moderates the relationship between 2 factors characteristic of budgeting, namely budgetary participation (X 1) and clarity of budget targets (X2) on managerial performance. As for the other two characteristic factors, namely the difficulty of budget targets (X2) and budget feedback (X3), it is found that environmental uncertainty is not significant as a moderating variable.

Keywords: Budgetary, budgeting participation, budget goal clarity, budget goal difficulty, budgetary feedback, environmental uncertainty, and managerial performance

sources: http://repository.unair.ac.id/36102/