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Actual participation: the effects of information sharing and familiarity team on budget decision quality

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  • Apriwandi
  • R.A. Supriyono

Abstract

This experiment examines the effect of information sharing and team member familiarity on decision quality. Forty students participated in the experiment playing the role of budget managers and teams. The task of the experiment is to translate symbol codes and propose the amount of code to be translated in an online meeting as a measure of actual information sharing and participation. Participants were randomly assigned to each condition (high/low sharing of information and familiarity). The results showed that information sharing and decision quality were better under conditions of information sharing and high familiarity than information sharing and low familiarity. The results are consistent with increased familiarity of team members under information sharing among team members which increases polarisation in budget decision making. The results also suggest that differences in the quality of team decisions may be better explained by psychological factors and cognitive behaviour than by agency contracts.

Suggested Citation

  • Apriwandi & R.A. Supriyono, 2021. "Actual participation: the effects of information sharing and familiarity team on budget decision quality," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 14(2), pages 188-195.
    • Handle: RePEc:ids:ijmefi:v:14:y:2021:i:2:p:188-195
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    Cited by:

    1. Dakhli Anissa, 2021. "Budget behaviour and cultural contingencies: case study in a Tunisian company," International Journal of Contemporary Management, Sciendo, vol. 57(2), pages 19-30, June.

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