Budgetary Participation: The Effects of Information Asymmetry, Goal Commitment, and Role Ambiguity on Job Satisfaction and Performance
41 Pages Posted: 22 Oct 2010 Last revised: 10 May 2011
Date Written: October 19, 2010
Abstract
This study proposes a comprehensive model which empirically investigates the antecedent, mediating and outcome variables of budgetary participation. We propose that the information asymmetry between superiors and subordinates creates the need for budgetary participation. Accordingly, this study hypothesizes that the outcomes (i.e., job satisfaction and performance) of budgetary participation will be mediated by goal commitment and role ambiguity.
Based on a questionnaire survey of 194 middle level managers in Turkey, this study found that role ambiguity mediates the budgetary participation-job satisfaction and budgetary participation-performance relationships. The results are consistent with the view that the primary benefit of budgetary participation is to decrease role ambiguity, leading to more job satisfaction and better performance. Furthermore, we found that goal commitment mediates the budgetary participation-performance relationship. This result suggests that participation in the budgeting process increases goal commitment leading to better performance.
Keywords: Budgetary participation, information asymmetry, goal commitment, role ambiguity, job satisfaction, performance
JEL Classification: D21, G32, L1, M41
Suggested Citation: Suggested Citation