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The joint effect of participative budgeting and managerial interest in innovation on departmental performance

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  • Dunk, Alan S.

Abstract

Innovation is frequently argued to be critical to organizational performance in an increasingly competitive international marketplace. The literature suggests that one factor influencing a firm's competitive position is the degree to which subordinates are innovative. Subordinate managers typically have the skills that enable them to bring into their firms new ideas arising from their interest in, and their knowledge of, developments in their areas of expertise. If managers have an interest in innovation, then participation in the budget setting process may enable them to be party to budgets which not only reflect resource commitments and other budgetary provisions associated with their innovation proposals, but also the expectation of benefits arising from innovations in terms of enhanced departmental performance. The results of the study suggest that participation and performance are positively related when subordinate interest in innovation is high, but they are not associated when interest in innovation is low.

Suggested Citation

  • Dunk, Alan S., 1995. "The joint effect of participative budgeting and managerial interest in innovation on departmental performance," Scandinavian Journal of Management, Elsevier, vol. 11(1), pages 75-85, March.
    • Handle: RePEc:eee:scaman:v:11:y:1995:i:1:p:75-85
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    Citations

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    Cited by:

    1. Manuela Macinati & Marco Giovanni Rizzo, 2018. "Il ruolo di moderazione dell?identit? professionale medica nella relazione tra partecipazione al processo di budget e performance dei medici responsabili di struttura," MECOSAN, FrancoAngeli Editore, vol. 2018(106), pages 11-36.
    2. Bonache, Adrien & Maurice, Jonathan & Georgescu, Irène, 2009. "Enseignement d'une meta-analyse sur le lien participation budgétaire-performance managériale [Lesson from Meta-analysis for the relation between budgetary participation and managerial performance]," MPRA Paper 12958, University Library of Munich, Germany.
    3. Emad Harash & Suhail Nassir Al-Timimi & Fatima Jasem Alsaad & Abdulkhaliq Y. Zaier Al-Badran & Essia Ries Ahmed, 2014. "Contingency Factors and Performance of Research and Development (R&D): The Moderating Effects of Government Policy," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 4(2), pages 47-58, February.
    4. Derfuss, Klaus, 2016. "Reconsidering the participative budgeting–performance relation: A meta-analysis regarding the impact of level of analysis, sample selection, measurement, and industry influences," The British Accounting Review, Elsevier, vol. 48(1), pages 17-37.

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