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The impact of market competition and budgetary participation on performance and job satisfaction: a research note

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  • Chong, Vincent K.
  • Eggleton, Ian R.C.
  • Leong, Michele K.C.

Abstract

This paper examines the impact of the intensity of market competition and budgetary participation on performance and job satisfaction. The responses of 77 senior managers, drawn from a cross-section of the Australian financial services sector, to a questionnaire survey were analysed using a multiple regression technique. The results of our global analysis, which was based on the composite score of budgetary participation as the independent variable, showed that the higher the intensity of market competition, the more positive is the relationship between budgetary participation and performance and job satisfaction. In addition, the results of our dimensional analysis, which was based on the involvement and influence dimensions of budgetary participation as the independent variables, revealed that it was the involvement dimension of budgetary participation, which was principally responsible for the results of our global analysis. More specifically, our results revealed that the higher the intensity of market competition, the more positive is the relationship between the involvement dimension of budgetary participation and performance and job satisfaction. Our results, however, suggested that the influence dimension of budgetary participation and the intensity of market competition do not interact to affect performance and job satisfaction.

Suggested Citation

  • Chong, Vincent K. & Eggleton, Ian R.C. & Leong, Michele K.C., 2005. "The impact of market competition and budgetary participation on performance and job satisfaction: a research note," The British Accounting Review, Elsevier, vol. 37(1), pages 115-133.
    • Handle: RePEc:eee:bracre:v:37:y:2005:i:1:p:115-133
    DOI: 10.1016/j.bar.2004.06.007
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    3. Marco Giovanni Rizzo, 2014. "La relazione tra il livello di coinvolgimento nel processo di budget, il commitment verso gli obiettivi, la soddisfazione lavorativa e i relativi risvolti sulla performance manageriale. I risultati di," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(1), pages 9-34.
    4. Lau, Chong M. & Martin-Sardesai, Ann V., 2012. "The role of organisational concern for workplace fairness in the choice of a performance measurement system," The British Accounting Review, Elsevier, vol. 44(3), pages 157-172.
    5. Daniele Cristina Bernd & Ilse Maria Beuren & Celliane Ferraz Pazetto & Carlos Eduardo Facin Lavarda, 2022. "Antecedents of Commitment to Budgetary Goals," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(2), pages 200018-2000.
    6. Naranjo Gil, David & Rodríguez Rivero, Edilberto J. & Rabazo Martín, Aurora E., 2017. "Efecto del locus de control en la relación entre participación presupuestaria y rendimiento: un estudio experimental," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 20(1), pages 73-81.
    7. Kunnathuvalappil Hariharan, Naveen, 2019. "Elements and success factors for an efficient budgeting," MPRA Paper 109507, University Library of Munich, Germany.
    8. Weetman, Pauline, 2006. "Discovering the ‘international’ in accounting and finance," The British Accounting Review, Elsevier, vol. 38(4), pages 351-370.
    9. Stefan Hofmann & Andreas Wald & Ronald Gleich, 2012. "Determinants and effects of the diagnostic and interactive use of control systems: an empirical analysis on the use of budgets," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(3), pages 153-182, December.
    10. Klaus Derfuss, 2015. "Relating Context Variables to Participative Budgeting and Evaluative Use of Performance Measures: A Meta-analysis," Abacus, Accounting Foundation, University of Sydney, vol. 51(2), pages 238-278, June.
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