Title: THE EFFECT OF PARTICIPATION IN BUDGET PREPARATION, CLARITY OF BUDGET TARGETS, DIFFICULTY OF BUDGET TARGETS, AND FEEDBACK ON MANAGERIAL PERFORMANCE WITH ENVIRONMENTAL UNCERTAINTY AS A MODERATING VARIABLE (Empirical Study of Sugar Factories in Indonesia)
Author: STEPHANUS BUDIHARDJA
Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Universitas Airlangga
Abstract
Pasoloran (2002: 758) suggests that budgeting characteristics that influence managerial performance are divided into 4 variables, namely participation in budget preparation, clarity of budget targets, difficulty of budget targets, and budget feedback. Participative budgeting indicates the level of manager participation in preparing the budget and influencing budget targets. Clarity of budget targets shows the level of budget targets that are set specifically and clearly. The difficulty of budget targets shows the level of difficulty in achieving budget goals, while feedback shows the level of achievement of budgeting goals. The environmental uncertainty variable is used as a moderator variable that moderates the relationship between each budgeting characteristic and managerial performance.
This research uses 2 types of analysis. First, namely analyzing the influence of budgeting characteristic factors, namely participation in budget preparation, clarity of budget targets, budget difficulties, and budget feedback on managerial performance partially or simultaneously. Second, namely analyzing the influence of moderator variables on budgeting characteristic factors and managerial performance.
This research was conducted at 68 sugar factories throughout Indonesia, both state-owned and private, by sending questionnaires to 100 managers at sugar factories and only 52 questionnaires were 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 show that the four characteristic factors of budgeting, namely participation in budget preparation (X1), clarity of budget targets (X2), budget difficulties (X3), and budget feedback (X4) have a significant effect on managerial performance both partially and simultaneously, with coefficients determination (R Square) = 82.6%. The research results also show that environmental uncertainty (Z) is a moderator variable that moderates the relationship between 2 budgeting characteristic factors, namely participation in budget preparation (X1) and clarity of budget targets (X2) on managerial performance. Meanwhile, for the other 2 characteristic factors, namely budget target difficulty (X3) and budget feedback (X4), it was found that environmental uncertainty was not significant as a moderator 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/
