IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v14y2019i2p160-180.html
   My bibliography  Save this article

Beyond Budgeting – A Fair Alternative For Management Control? - Examining The Relationships Between Beyond Budgeting And Organizational Justice Perceptions

Author

Listed:
  • SCHMITZ SVEN OLAF

    (UCAM Universidad Católica San Antonio de Murcia, Spain)

  • MICHNIUK AGNIESZKA

    (UCAM Universidad Católica San Antonio de Murcia, Spain)

  • HEUPEL THOMAS

    (FOM University of Applied Sciences, Germany)

Abstract

Since the seminal work of Chris Argyris research has realized that the design of Management Control Systems (MCS) has a significant impact on the social framework of an organization. This influence has been discussed in literature for decades. But there has been no holistic alternative for budget related MCS until the development of Beyond Budgeting (BB). Even though BB proponents claim that BB empowers organizations to become more adaptable, efficient and fair and is able to reduce unethical behaviors, BB has not been adopted by a considerable amount of organizations. One reason for this conservative attitude of organizations might be the lack of a framework that makes it possible to assess the possible advantages of BB for a specific organization. Current research suggests evaluating MCS in terms of their impact on organizational justice perceptions. Building on these new empirical findings, our paper tries to contribute to a better understanding of the potential advantages and disadvantages of BB by assessing the impact of BB characteristics on organizational justice perceptions. After identifying BB core characteristics, these characteristics are assessed regarding their impact on organizational justice perceptions. Partial least squares regression is applied to evaluate the relationship between BB core characteristics and organizational justice perceptions. Our results suggest that applying BB might enhance informational and interpersonal justice perceptions and therefore be beneficial for knowledge-based organizations.

Suggested Citation

  • Schmitz Sven Olaf & Michniuk Agnieszka & Heupel Thomas, 2019. "Beyond Budgeting – A Fair Alternative For Management Control? - Examining The Relationships Between Beyond Budgeting And Organizational Justice Perceptions," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(2), pages 160-180, August.
    • Handle: RePEc:blg:journl:v:14:y:2019:i:2:p:160-180
    as

    Download full text from publisher

    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/14212schmitz.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marko Sarstedt & Erik Mooi, 2014. "The Market Research Process," Springer Texts in Business and Economics, in: A Concise Guide to Market Research, edition 2, chapter 2, pages 11-23, Springer.
    2. Johnson, J.V. & Hall, E.M., 1988. "Job strain, work place social support, and cardiovascular disease: A cross-sectional study of random sample of the Swedish Working Population," American Journal of Public Health, American Public Health Association, vol. 78(10), pages 1336-1342.
    3. Cohen-Charash, Yochi & Spector, Paul E., 2001. "The Role of Justice in Organizations: A Meta-Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 278-321, November.
    4. Langevin, Pascal & Mendoza, Carla, 2013. "How can management control system fairness reduce managers’ unethical behaviours?," European Management Journal, Elsevier, vol. 31(3), pages 209-222.
    5. Martin Messner & Sebastian D. Becker & U. Schäffer, 2010. "The evolution of a management accounting idea: the case of beyond budgeting," Post-Print hal-00554123, HAL.
    6. Pascal Langevin & Carla Mendoza, 2013. "How can management control system fairness reduce managers' unethical behaviours?," Post-Print hal-02313009, HAL.
    7. Burney, Laurie L. & Henle, Christine A. & Widener, Sally K., 2009. "A path model examining the relations among strategic performance measurement system characteristics, organizational justice, and extra- and in-role performance," Accounting, Organizations and Society, Elsevier, vol. 34(3-4), pages 305-321, April.
    8. DeConinck, James B., 2010. "The effect of organizational justice, perceived organizational support, and perceived supervisor support on marketing employees' level of trust," Journal of Business Research, Elsevier, vol. 63(12), pages 1349-1355, December.
    9. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    10. Wallander, Jan, 1999. "Budgeting -- an unnecessary evil," Scandinavian Journal of Management, Elsevier, vol. 15(4), pages 405-421, December.
    11. Marko Sarstedt & Erik Mooi, 2014. "A Concise Guide to Market Research," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-53965-7, June.
    12. Hartmann, Frank & Slapnicar, Sergeja, 2009. "How formal performance evaluation affects trust between superior and subordinate managers," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 722-737, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas J. Steur & Mischa Seiter, 2021. "Properties of feedback mechanisms on digital platforms: an exploratory study," Journal of Business Economics, Springer, vol. 91(4), pages 479-526, May.
    2. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    3. Riffat Ara Zannat Tama & Md Mahmudul Hoque & Ying Liu & Mohammad Jahangir Alam & Mark Yu, 2023. "An Application of Partial Least Squares Structural Equation Modeling (PLS-SEM) to Examining Farmers’ Behavioral Attitude and Intention towards Conservation Agriculture in Bangladesh," Agriculture, MDPI, vol. 13(2), pages 1-22, February.
    4. Habib Mahama & Zhichao (Alex) Wang, 2023. "Impact of the interactive and diagnostic uses of performance measurement systems on procedural fairness perception, cooperation and performance in supply alliances," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3253-3296, September.
    5. Kuppelwieser, Volker G. & Sarstedt, Marko & Tuzovic, Sven, 2014. "The role of context and motivation variables in mobile commerce usage — A further perspective on Chong (2013)," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 156-161.
    6. Marc Dressler & Ivan Paunovic, 2021. "Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    7. Schlägel, Christopher & Sarstedt, Marko, 2016. "Assessing the measurement invariance of the four-dimensional cultural intelligence scale across countries: A composite model approach," European Management Journal, Elsevier, vol. 34(6), pages 633-649.
    8. Yelena Popova & Sergejs Popovs, 2022. "Impact of Smart Economy on Smart Areas and Mediation Effect of National Economy," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    9. Langevin, Pascal & Mendoza, Carla, 2013. "How can management control system fairness reduce managers’ unethical behaviours?," European Management Journal, Elsevier, vol. 31(3), pages 209-222.
    10. Adam Malešević & Dušan Barać & Dragan Soleša & Ema Aleksić & Marijana Despotović-Zrakić, 2021. "Adopting xRM in Higher Education: E-Services Outside the Classroom," Sustainability, MDPI, vol. 13(14), pages 1-20, July.
    11. Costa Synodinos, 2019. "Environmental purchase behaviour concerns of African Generation Y students in South Africa," Proceedings of International Academic Conferences 9912363, International Institute of Social and Economic Sciences.
    12. Marzanna Witek-Hajduk & Tomasz Marcin Napiórkowski, 2017. "Manufacturers’ Benefits from Their Cooperation with Key Retailers in the Context of Business Models: A Cluster Analysis," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 6(1), pages 97-114.
    13. Cäker, Mikael & Siverbo, Sven, 2018. "Effects of performance measurement system inconsistency on managers’ role clarity and well-being," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 256-266.
    14. Ng, Wei Keat Benny & Appel-Meulenbroek, Rianne & Cloodt, Myriam & Arentze, Theo, 2019. "Towards a segmentation of science parks: A typology study on science parks in Europe," Research Policy, Elsevier, vol. 48(3), pages 719-732.
    15. Rafael Robina-Ramírez & M. Isabel Sánchez-Hernández & Carlos Díaz-Caro, 2021. "Hotel manager perceptions about corporate compliance in the tourism industry: an empirical regional case study in Spain," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 627-654, June.
    16. Muhammad Sajjad Bashir & Sajid Haider & Muhammad Ali Asadullah & Munir Ahmed & Muhammad Sajjad, 2020. "Moderated Mediation Between Transformational Leadership and Organizational Commitment: The Role of Procedural Justice and Career Growth Opportunities," SAGE Open, , vol. 10(2), pages 21582440209, June.
    17. Xieyang Chen & Xingmin Shi, 2021. "Support or against coal mining? Host community perceptions of coal mining: a cluster analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6819-6837, May.
    18. Elena Mieszajkina, 2021. "The Impact of Managers' Competences upon the Performance of Small Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 730-740.
    19. Ming Yang & Jinglu Jiang & Melody Kiang & Fangyun Yuan, 2022. "Re-Examining the Impact of Multidimensional Trust on Patients’ Online Medical Consultation Service Continuance Decision," Information Systems Frontiers, Springer, vol. 24(3), pages 983-1007, June.
    20. Meldrick Arjay A. Magsino & Reynold S. Beredo & Arex A. Anza, 2014. "The Motivational Effects of LPU Awards of Excellence: Basis for Improvement," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 371-397, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:14:y:2019:i:2:p:160-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mihaela Herciu (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.