IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v7y2013i4p85-100.html
   My bibliography  Save this article

Budgetary Participation And Procedural Justice: Evidence From Stretch Budget Condition

Author

Listed:
  • Ertambang Nahartyo

Abstract

This study examines the role of group value element of procedural fairness in explaining how individuals take into account fairness conditions in making judgment regarding budgeting process. Furthermore, the study extends prior research in procedural fairness by observing the individual behavior in a stretch budget condition. College students serve as subjects in an experiment. Manipulations of control and group value are randomly assigned to the participants. Two dependent variables, procedural justice judgments and budget commitment, are measured. The results show that supplying subordinates with information regarding group value enhances procedural justice judgments and budget commitment. Using a stretch budget condition, the study shows that procedural justice has a mediating effect in the relations between group value and budget commitment. Moreover, the study finds that in the stretch budget condition, group value has a negative relation with budget commitment, suggesting that budgetary participation creates a behavioral problem. The study provides empirical evidence that group value along with control element of procedural fairness improve procedural justice judgments to the level beyond that produced by each variable alone. The inclusion of group value judgments fills the gap that previous budgetary participation research produces.

Suggested Citation

  • Ertambang Nahartyo, 2013. "Budgetary Participation And Procedural Justice: Evidence From Stretch Budget Condition," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(4), pages 85-100.
  • Handle: RePEc:ibf:gjbres:v:7:y:2013:i:4:p:85-100
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n4-2013/GJBR-V7N4-2013-7.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ertambang Nahartyo & Intiyas Utami, 2014. "Keeping Self-Interest under Control: Effects of Procedural Fairness and Project Success Rate in a Cost-Reduction Context," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 4, pages 27-47, December.
    2. Tim M. Lindquist & Alexandra Rausch, 2021. "The impact of procedural and distributive justice on satisfaction and manufacturing performance: a replication of Lindquist (1995) with a focus on the importance of common metrics in experimental desi," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(2), pages 161-195, June.

    More about this item

    Keywords

    Budgetary Participation; Stretch Budget; Group Value; Procedural Justice; Budget Commitment;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

    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:ibf:gjbres:v:7:y:2013:i:4:p:85-100. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Mercedes Jalbert (email available below). General contact details of provider: .

    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.