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Political and Industrial Relations Turbulence, Competition and Budgeting in the Nationalised Jute Mills of Bangladesh

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  • Zahirul Hoque
  • Trevor Hopper

Abstract

This paper reports an empirical investigation, based on triangulation methods, of how a set of environmental facts affect budgeting characteristics in the nationalised jute mills of Bangladesh. The key factors were derived from intensive fieldwork. Five external factors (political climate, industrial relations, competition, aid agencies and government regulations) were deemed to affect budget-related factors (such as participation, accountability for budget, budget evaluation, budget analysis, interactions among managers and budget flexibility). Data from 38 state-owned jute mills within the Bangladesh Jute Mills Corporation (BJMC) are used to test the propositions. The analyses of data reveal a significant relationship between environmental factors and budget-related behaviour. Political factors, industrial relations and market competition were major influences on how budgeting systems were perceived. The study shows how political volatility and industrial relations can render the formal systems of budgeting and controls ineffective for internal management despite worthy intentions. On the other hand, when managers believed external competition on their mill to be great, they perceived budgeting more positively.

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  • Zahirul Hoque & Trevor Hopper, 1997. "Political and Industrial Relations Turbulence, Competition and Budgeting in the Nationalised Jute Mills of Bangladesh," Accounting and Business Research, Taylor & Francis Journals, vol. 27(2), pages 125-143.
    • Handle: RePEc:taf:acctbr:v:27:y:1997:i:2:p:125-143
    DOI: 10.1080/00014788.1997.9729539
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    17. Chandana Rathnasiri Hewege, 2012. "A Critique of the Mainstream Management Control Theory and the Way Forward," SAGE Open, , vol. 2(4), pages 21582440124, December.
    18. Hoque, Zahirul, 2004. "A contingency model of the association between strategy, environmental uncertainty and performance measurement: impact on organizational performance," International Business Review, Elsevier, vol. 13(4), pages 485-502, August.
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