IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2023-04-9.html
   My bibliography  Save this article

The State of Art in the Effective Budget Process for Small and Medium-Sized Enterprises

Author

Listed:
  • Tuan Khanh Vuong

    (Faculty of Marketing and International Business, HUTECH University, Ho Chi Minh City, 700000, Vietnam.)

Abstract

The budget process plays a crucial role in the implementation of all the functions within small and medium-sized enterprises (SMEs), such as business, management, operation, manufacturing, etc. The results from this study, identifies that in the budget process the top-down approach of SMEs occupies 33.7%, and the bottom-up approach occupies 26.3%. Meanwhile, SMEs method for budget process is the "across approach" (participative), which resulted in 40%, this method is the most popular in comparison with others. Therefore, in the development of the budget process, it is vital to link all the sector functions within the SMEs, as this will facilitate the achievement of the nominated goals and objectives and provide higher-levels of performance. When management and employees work together to develop an effective budget, it improves the key outcomes and overall performance of SMEs. Furthermore, a unified participation approach to budget preparation process development ensures full cooperation and commitment for avoiding asymmetric information and achieving an effective budget process. This study offers academics and practitioners with essential insights for managing company performance, assisting SMEs in evolving as sustainable and competitive players in this new era.

Suggested Citation

  • Tuan Khanh Vuong, 2023. "The State of Art in the Effective Budget Process for Small and Medium-Sized Enterprises," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 66-72, July.
    • Handle: RePEc:eco:journ1:2023-04-9
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/14490/7358
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/14490
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rob Kim Marjerison & Jong Min Kim, 2022. "MSE Response during Times of Crisis: The Roles of Budgeting Micro Functions and Guanxi," Sustainability, MDPI, vol. 14(17), pages 1-19, September.
    2. Laras Dwi Novlina & Mirna Indriani & Indayani indayani, 2020. "The effect of organizational commitment and Cost management knowledge on the relationship between budget participation and managerial performance," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 24(1), pages 55-66.
    3. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    4. Laras Dwi Novlina & Mirna Indriani & Indayani indayani, 2020. "The effect of organizational commitment and Cost management knowledge on the relationship between budget participation and managerial performance," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 24(1), pages 55-66, Juni.
    5. Yuserrie Zainuddin & Sofri Yahya & Noor Nasir Kader Ali & Abdalmunaem Saleh Abuenniran, 2008. "The consequences of information asymmetry, task and environmental uncertainty on budget participation: evidence from Malaysian managers," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 1(1), pages 97-114.
    6. Thi Tu Oanh Le & Thi Ngoc Bui & Manh Dung Tran, 2018. "Management Accounting Information in Vietnamese Small and Medium Sized Enterprises," Accounting and Finance Research, Sciedu Press, vol. 7(1), pages 130-130, February.
    7. Lara Al-Haddad & Muhammad Safdar Sial & Imdad Ali & Rahmat Alam & Nguyen Vinh Khuong & Thai Hong Thuy Khanh, 2019. "The Role of Small and Medium Enterprises (SMEs) in Employment Generation and Economic Growth: A Study of Marble Industry in Emerging Economy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 174-187, October.
    8. Vuong Khanh Tuan & Premkumar Rajagopal, 2022. "The mediating effect of the budget process on the performance of small- and medium-sized enterprises in Ho Chi Minh City, Vietnam," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(1), pages 65-92.
    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. Kar, Sabyasachi & Pritchett, Lant & Raihan, Selim & Sen, Kunal, 2013. "Looking for a break: Identifying transitions in growth regimes," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 151-166.
    2. Vos, Rob & Frenkel, Roberto & Ocampo, José Antonio & Palma, José Gabriel & Marfán, Manuel & Ros, Jaime & Taylor, Lance & Correa, Nelson & Cimoli, Mario, 2005. "Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability," IDB Publications (Books), Inter-American Development Bank, number 347, December.
    3. Motoyama, Yasuyuki & Cao, Cong & Appelbaum, Richard, 2014. "Observing regional divergence of Chinese nanotechnology centers," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 11-21.
    4. Justin Lin & Peilin Liu, 2006. "Economic Development Strategy, Openness and Rural Poverty: A Framework and China's Experiences," WIDER Working Paper Series RP2006-43, World Institute for Development Economic Research (UNU-WIDER).
    5. Mihály Borsi & Norbert Metiu, 2015. "The evolution of economic convergence in the European Union," Empirical Economics, Springer, vol. 48(2), pages 657-681, March.
    6. Andres Rodriguez-Clare, 1996. "The role of trade in technology diffusion," Discussion Paper / Institute for Empirical Macroeconomics 114, Federal Reserve Bank of Minneapolis.
    7. Fernando Mayoral & Carlos Garcimartín, 2013. "The impact of population on the reduction of steady-state disparities across Spanish regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 49-69, February.
    8. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    9. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 563-606.
    10. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    11. Irwan Shah Zainal Abidin & Nor Aznin Abu Bakar & Muhammad Haseeb, 2014. "An Empirical Analysis of Exports between Malaysia and TPP Member Countries: Evidence from a Panel Cointegration (FMOLS) Model," Modern Applied Science, Canadian Center of Science and Education, vol. 8(6), pages 238-238, December.
    12. Zaheer Abbas, 2020. "Re-assessing the Contribution of Energy Consumption to GDP Per- Capita: Evidence from Developed and Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 404-410.
    13. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Bar-Ilan University, Department of Economics.
    14. Nakajima, Tomoyuki, 2003. "Catch-up in turn in a multi-country international trade model with learning-by-doing and invention," Journal of Development Economics, Elsevier, vol. 72(1), pages 117-138, October.
    15. Nelson, Kelly P. & Parton, Lee C. & Brown, Zachary S., 2022. "Biofuels policy and innovation impacts: Evidence from biofuels and agricultural patent indicators," Energy Policy, Elsevier, vol. 162(C).
    16. Jakub Borowski & Adam Czerniak & Beáta Farkas, 2023. "Diverse Models of Capitalism and Synchronization of Business Cycles," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(4), pages 681-712, December.
    17. Oukhallou, Youssef, 2019. "Military Expenditure and Economic Development," MPRA Paper 98352, University Library of Munich, Germany.
    18. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
    19. Zak, Paul J. & Feng, Yi & Kugler, Jacek, 2002. "Immigration, fertility, and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(4), pages 547-576, April.
    20. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.

    More about this item

    Keywords

    SMEs; performance management; asymmetric information; budget process; sustainable development;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

    Statistics

    Access and download statistics

    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:eco:journ1:2023-04-9. 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.