The impact of organizational commitment as mediator and moderator relationship between budgeting participation on managerial performance
Evidence from Indonesia
Keywords:
Organizational commitment, Managerial performance, Budgeting participation, Credit union, IndonesiaAbstract
This study aimed at analyzing the role of organizational commitment as moderator as well as moderator relationship between budgeting participation and managerial performance. It was conducted in Savings and Loan Credit Union at Kupang city- Indonesia. The research sample was 62 respondents from a total of 108 leaders of financial divisions and credit union managers. The sample was chosen based on the 5% sampling technique that gained through a purposive sample technique. Next, the data were analyzed by applying regression analysis using mediation and moderation of Macro Process Hayes and Sobel Test with SPSS version 20. The results have shown that budget participation has a positive and significant effect on managerial performance and organizational commitment, but the organizational commitment has no significant effect on managerial performance. Furthermore, organizational commitment mediates a positive and significant relationship between budgetary participation and managerial performance, while organizational commitment weakens the relationship between budgetary participation and managerial performance.
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References
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Az, Hafiz. 2017. Relationship Between Organizational Commitment abd Employees’ Performance Evidence From Banking Sector of Lahore. Arabian Journal of Business and Management Review, Vol. 7, Iss. 2, pp. 1-7. ISSBN. 2223-5833.
Badu, Irman. 2019. Pengaruh Partisipasi Penyusunan Anggaran, Komitmen Organisasi, Profesionalisme, Gaya Kepemimpinan dan Struktur Organisasi Terhadap Kinerja Managerial. Jurnal Progres Ekonomi Pembangunan (JPEP). Vol. 4. No. 1 (3), pp. 99-113. http://ojs.uho.ac.id/index.php/JPEP
Baerdemaeker, Jolien De and Werner Bruggeman. 2015. The Impact of Participation in Strategic Planning on Managers’ Creation of Budgetary Slack: The Mediating role of Autonomus Motivation and Affective Organisational Commitment. Management Accounting Research, pp.1-12. http://dx.doi.org/10.1016/j.mar.2015.06.002
Barron, R.M and Kenny, D.A. 1986. The Moderator-Mediator Variable Distiction in Social Psychological Research: Conceptual Stategig and Statistical. Journal of Personality and Social Psychology. Vol. 51, pp.1173-1182.
Batilmurik, R. W., & Noermijati, A. (2019). Organizational commitment of police officers: A static study technique in Indonesian national police. Journal of Advanced Research in Dynamic and Control Systems, 11(02-Special Issue), 1876-1884.
Becker, Howard. 1960. "Notes on the Concept of Commitment," American Journal of Sociology, Vol. 66, pp. 32-42.
Bollen, K.a and Stine R. 1990. Direct and Inderect Effect: Clasical and Bootstrap Estimate of Variability. Sociological Methdology, Vol. 20, pp. 115-140.
Brownell, Peter and Morris McInnes. 1986. Budgetary Participation, Motivation, and Managerial Performance. The Accounting Review, Vol.61. No. 4, pp. 587-600. http://www.jstor.org/stable/247359
Dunk, Alan S. 1989. Budget Emphasis, Budgetary Participation and Managerial Performance: A Note. Accounting Organizations and Society. Vol. 14, No. 4, pp. 32-324.
Dunk, Alan S. 1990. Budgetary Participation, Agreement on Evaluation Criteria and Manageril Performance: A Research Note.. Accounting Organizations and Society. Vol. 15, No. 3, pp. 171-178.
Dunk, Alan S. 1993. The Effects of Job-Related Tension on Managerial Performance in Participative Budgetary Settings.. Accounting Organizations and Society. Vol. 18, No. 7/8, pp. 575-585..
Eker, Melek. 2006. The Impact of Budget Participation on Managerial Performance Via Organizational Commitment: AStudy on The Tp 500 Firms in Turkey. Ankara Universitesi Dergisi. Pp. 118-130.
Garrison, R. H. and E. W. Noreen. 2012. Managerial Accounting. New York, McGraw-Hill/Irwin
Govindarajan, Vijay. 1986. Impact of Participation in the Budgetrary Process on Managerial Attitudes and Performance: Universalistic and Contingency Perspective. Decision Sciences, Vol. 13, pp. 496-516.
Hansen, Don and Mariyana M. Mowen. 2013. Akuntansi Manajerial Edisi 8. Alih Bahasa Deny arnos Kwary, Penerbit Salemba, Jakarta.
Hariyanto, Eko. 2018. Effect of Participation Budgetingon Manager Performance: Goal Commitment and Motivation as Moderating Variable. Advances in Social Sciences, Education and Humanities Research, Vol. 231. 5th International Conference on Community Development (AMCA 2018), Atlantis Press.
Hayes, F.A and Preacher, K.J. 2004. SPSS and SAS Procedures for Estimating Inderct Effects in Simple Mediation Model. Behavior Research, Instrument and Computers. Vol. 36, pp.717-731.
Herebiniak, Lawarennce, G.,c and Joseeph A. Alutto. 1972. "Personal and role-related factors in the development of organizational commitment." Administrative Science Quar-terly, 17: 555-572.
Lau, Chong M and Edmond W. Lim. 2002. The Intervening Effects of Participation on The Relationship Between Procedural Justice and Managerial Performance. British Accounting Review, Vol. 34, pp. 55078. doi:10.1006/bare.2001.0184
Lee, Olivia F., James A. Tan and Rajeshekhar Javalgi. 2010. Goal orientation and organizational commitment: Individual difference predictors of job performance. International Journal of Organizational Anaysis, Vol. 18.Issue: 1,pp.129-150. https://doi.org/10.1108/19348831011033249
Li, Wu., Xia nan and Zhou Mo. 2010. Effects of Budgetary Goal Characteristics on Managerial Attitudes and Performance. IEEE, Vol. 978-1-4244-5326-9.
Mahoney, T. A; Thomas H. J. and Stephen J. Carrol. 1965. The Job (s) of Management. Pp. 97-110
Meyer, J.P. and Allen, N. J. 1991. A Three-Compenent Conzeptualization of Organizatonal Commitment, Human Resource Management Review, Vol. 1, No. 1, pp.61-89.
Mia, Lokman. 1998. The Impact of Participation in Budgeting and Job Difficulty on Managerial Performance and Work Motivation: A Research Note. Accounting Organization and Society, Vol. 14. No. 4, pp.374-357. Pergamon Press plc.
Mowday, R.T., Porter, L.W., and Steers, R.M. 19792, Employee-organization linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press, San Diego, California.
Nainggolan, R. L., Muhyarsyah and Eka Nurmala Sari. 2019. The Analysis of Factors That Influence Managerial Performance at the Private University of Medan. The 1st Multi-Discripinary International Conferens University of Asahan. Pp. 680-691.
Nino, I. J., Manafe, J. D., & Setyorini, T. 2019. Simple bookkeeping model using Microsoft excel for culinary micro-business in East Nusa Tenggara Indonesia. International research journal of engineering, IT & scientific research, 5(2), 29-41. https://doi.org/10.21744/irjeis.v5n2.609
Nouri, H., and R. J. Parker. 1998. The Relationship Between Budget Participation and Job Performance: The Roles of Budget Adequacy and Organizational Commitment. Accounting, Organizations and Society. Vol. 23. No. 5/6, pp. 467-483. Pergamon
Ogiedu, Killian O. and James Odia. 2013. Relationship Between Budget Participation, Budget Procedural Fairnes, Organizational Commitment and Managerial Performance. Review of Public Administration and Management, Vol 2, No. 3, pp. 234-250. Website: www.arabianjbmr.com/RPAM_index.php
Porter, Lyman W., Richard M. Steers, Richard T. Mowday, and Paul V. Boulian 1974 "Organizational commitment, job satisfaction, and turnover among psychiatric technicians." Journal of Applied Psychology, 59: 603-609.
Preacher, K.J., Rucker, D.D. and Hayes, F, A. 2007. Assesing Moderated Hypothesis: Theory, Method and Prescription. Multivariate Behavioral esearch, 42. 387-400.
Purwadinata S, Suman A, Susilo, Manzilati A. 2019. Uncovering Principal-Agent Behavior in the Village Fund Management Technique. Journal of Advanced Research in Dynamic and Control Systems, 11 (08-Special Issue), 1258-1270. http://jardcs.org/abstract.php?id=2193
Rachman, Andry A. 2014. The Effect of Organization Commitment and procedural Fairness on Participative Budgeting and Its Implication to Performance Moderating by Management Accounting Information (A Survey n Provnce Local Government Unit Agencies of West Java). Review of Integrative Business anf Economics research, Vol. 3, Iss. 1, pp. 201-218.
Ritzer, George and Harrison M. Trice. 1969. An Empirical Study of Howard Becker’s Side-Bet Theory. Social Forces, Vol. 47, No. 4, pp.475-478. Oxford University Press. http://www.jstor.org/stable/2574537
Robbins, S.P., and Judge, T.A., 2008, Perilaku Organisasi. Edisi 12. Buku 2. Terjemahan oleh Diana Angelica. Jakarta. Penerbit : Salemba Empat.
Selvina, Mia and Yuliansyah, Yuliansyah. 2015. Relationshi Between Bidgetary Participation and Organizational Commitment: Mediated by Reinforcement Contingency, Evidence From the Service Sector Industries. International Research Journal of Business Studies, Vol. 6, No. 2, pp. 69-80
Steers, Richrd, M. 1977. Antecedents and Outcomes of Organizational Commitment. Administrative Science Quartely, Vol. 22, No. 1, pp. 46-56.
Subramaniam, Nava and Lokman Mia. 2001. The Relation Between Decentralised Structure, Budgetary Participation and Organisational Commitment; The Moderating Role of Managers’ Value Orietnation Towards Innovation. Accounting, Auditing and Accountability Journal. Vol. 14. No. 1, pp. 12-29. MCB University Press.
Subramaniam, Nava., Lisa McManus and Lokman Mia. 2002. Enhancing Hotel Manager’s Organisational Commitment: an Investigation of the Impact of Structure, need for Achievement and Participative Budgeting. Interational Journal of Hospitality Management, Vol. 21, pp. 3-3-320.
Suliman, Abubakr and Paul Iles. 2000. Is Continuance commitment beneficial to organizations? Commitment-performance relationship; a new look. Journal of Managerial Psycchologi, Vol 15 Issue: 5, pp. 407-422. https://doi.org/10.1108/02683940010337158
Suliman, Abubkar and Majid Al Kathairi. 2012. Organizational Justiece, Commitment and Performance in developing countries: The Case of the UAE. Employee Realtions, Vol. 35 Issue: 1.pp.98-115. https://doi.org/10.1108/01425451311279438
Susanti, Nora., Vivina Eprillison dan Jolianis. 2018. Budgeting Participation and Managerla Performance of Government Apparatus. 2nd Padang International Conferenc on Education, Economics, Bussiness and Accounting (PICEEBA)-2), Advances in Economics, Bussiness and Management Research, Vol. 64. Pp.73-79. Atlantis Press.
Syauta, Jack Henry., Efa A. Troena, Margono Setiawan dan Solimun. 2012. The Influence of Organizational Culture, Organizational Commitment to Job Satisfaction and Employee Perfromance (Study at Municipal Waterworks of Jayapura, Papua Indoensia). International Journal of Business and Management Invention, 2319-8028
Zefeiti, Salim M. Bakhir Al and Noor Azmi Mohamad. 2017. The Influence of Organizational Commitment on Omani Public Employees’s Work Performance. International Review of Management and Marketing, Vol. 7, No. 2, pp. 151-160.
Az, Hafiz. 2017. Relationship Between Organizational Commitment abd Employees’ Performance Evidence From Banking Sector of Lahore. Arabian Journal of Business and Management Review, Vol. 7, Iss. 2, pp. 1-7. ISSBN. 2223-5833.
Badu, Irman. 2019. Pengaruh Partisipasi Penyusunan Anggaran, Komitmen Organisasi, Profesionalisme, Gaya Kepemimpinan dan Struktur Organisasi Terhadap Kinerja Managerial. Jurnal Progres Ekonomi Pembangunan (JPEP). Vol. 4. No. 1 (3), pp. 99-113. http://ojs.uho.ac.id/index.php/JPEP
Baerdemaeker, Jolien De and Werner Bruggeman. 2015. The Impact of Participation in Strategic Planning on Managers’ Creation of Budgetary Slack: The Mediating role of Autonomus Motivation and Affective Organisational Commitment. Management Accounting Research, pp.1-12. http://dx.doi.org/10.1016/j.mar.2015.06.002
Barron, R.M and Kenny, D.A. 1986. The Moderator-Mediator Variable Distiction in Social Psychological Research: Conceptual Stategig and Statistical. Journal of Personality and Social Psychology. Vol. 51, pp.1173-1182.
Batilmurik, R. W., & Noermijati, A. (2019). Organizational commitment of police officers: A static study technique in Indonesian national police. Journal of Advanced Research in Dynamic and Control Systems, 11(02-Special Issue), 1876-1884.
Becker, Howard. 1960. "Notes on the Concept of Commitment," American Journal of Sociology, Vol. 66, pp. 32-42.
Bollen, K.a and Stine R. 1990. Direct and Inderect Effect: Clasical and Bootstrap Estimate of Variability. Sociological Methdology, Vol. 20, pp. 115-140.
Brownell, Peter and Morris McInnes. 1986. Budgetary Participation, Motivation, and Managerial Performance. The Accounting Review, Vol.61. No. 4, pp. 587-600. http://www.jstor.org/stable/247359
Dunk, Alan S. 1989. Budget Emphasis, Budgetary Participation and Managerial Performance: A Note. Accounting Organizations and Society. Vol. 14, No. 4, pp. 32-324.
Dunk, Alan S. 1990. Budgetary Participation, Agreement on Evaluation Criteria and Manageril Performance: A Research Note.. Accounting Organizations and Society. Vol. 15, No. 3, pp. 171-178.
Dunk, Alan S. 1993. The Effects of Job-Related Tension on Managerial Performance in Participative Budgetary Settings.. Accounting Organizations and Society. Vol. 18, No. 7/8, pp. 575-585..
Eker, Melek. 2006. The Impact of Budget Participation on Managerial Performance Via Organizational Commitment: AStudy on The Tp 500 Firms in Turkey. Ankara Universitesi Dergisi. Pp. 118-130.
Garrison, R. H. and E. W. Noreen. 2012. Managerial Accounting. New York, McGraw-Hill/Irwin
Govindarajan, Vijay. 1986. Impact of Participation in the Budgetrary Process on Managerial Attitudes and Performance: Universalistic and Contingency Perspective. Decision Sciences, Vol. 13, pp. 496-516.
Hansen, Don and Mariyana M. Mowen. 2013. Akuntansi Manajerial Edisi 8. Alih Bahasa Deny arnos Kwary, Penerbit Salemba, Jakarta.
Hariyanto, Eko. 2018. Effect of Participation Budgetingon Manager Performance: Goal Commitment and Motivation as Moderating Variable. Advances in Social Sciences, Education and Humanities Research, Vol. 231. 5th International Conference on Community Development (AMCA 2018), Atlantis Press.
Hayes, F.A and Preacher, K.J. 2004. SPSS and SAS Procedures for Estimating Inderct Effects in Simple Mediation Model. Behavior Research, Instrument and Computers. Vol. 36, pp.717-731.
Herebiniak, Lawarennce, G.,c and Joseeph A. Alutto. 1972. "Personal and role-related factors in the development of organizational commitment." Administrative Science Quar-terly, 17: 555-572.
Lau, Chong M and Edmond W. Lim. 2002. The Intervening Effects of Participation on The Relationship Between Procedural Justice and Managerial Performance. British Accounting Review, Vol. 34, pp. 55078. doi:10.1006/bare.2001.0184
Lee, Olivia F., James A. Tan and Rajeshekhar Javalgi. 2010. Goal orientation and organizational commitment: Individual difference predictors of job performance. International Journal of Organizational Anaysis, Vol. 18.Issue: 1,pp.129-150. https://doi.org/10.1108/19348831011033249
Li, Wu., Xia nan and Zhou Mo. 2010. Effects of Budgetary Goal Characteristics on Managerial Attitudes and Performance. IEEE, Vol. 978-1-4244-5326-9.
Mahoney, T. A; Thomas H. J. and Stephen J. Carrol. 1965. The Job (s) of Management. Pp. 97-110
Meyer, J.P. and Allen, N. J. 1991. A Three-Compenent Conzeptualization of Organizatonal Commitment, Human Resource Management Review, Vol. 1, No. 1, pp.61-89.
Mia, Lokman. 1998. The Impact of Participation in Budgeting and Job Difficulty on Managerial Performance and Work Motivation: A Research Note. Accounting Organization and Society, Vol. 14. No. 4, pp.374-357. Pergamon Press plc.
Mowday, R.T., Porter, L.W., and Steers, R.M. 19792, Employee-organization linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press, San Diego, California.
Nainggolan, R. L., Muhyarsyah and Eka Nurmala Sari. 2019. The Analysis of Factors That Influence Managerial Performance at the Private University of Medan. The 1st Multi-Discripinary International Conferens University of Asahan. Pp. 680-691.
Nino, I. J., Manafe, J. D., & Setyorini, T. 2019. Simple bookkeeping model using Microsoft excel for culinary micro-business in East Nusa Tenggara Indonesia. International research journal of engineering, IT & scientific research, 5(2), 29-41. https://doi.org/10.21744/irjeis.v5n2.609
Nouri, H., and R. J. Parker. 1998. The Relationship Between Budget Participation and Job Performance: The Roles of Budget Adequacy and Organizational Commitment. Accounting, Organizations and Society. Vol. 23. No. 5/6, pp. 467-483. Pergamon
Ogiedu, Killian O. and James Odia. 2013. Relationship Between Budget Participation, Budget Procedural Fairnes, Organizational Commitment and Managerial Performance. Review of Public Administration and Management, Vol 2, No. 3, pp. 234-250. Website: www.arabianjbmr.com/RPAM_index.php
Porter, Lyman W., Richard M. Steers, Richard T. Mowday, and Paul V. Boulian 1974 "Organizational commitment, job satisfaction, and turnover among psychiatric technicians." Journal of Applied Psychology, 59: 603-609.
Preacher, K.J., Rucker, D.D. and Hayes, F, A. 2007. Assesing Moderated Hypothesis: Theory, Method and Prescription. Multivariate Behavioral esearch, 42. 387-400.
Purwadinata S, Suman A, Susilo, Manzilati A. 2019. Uncovering Principal-Agent Behavior in the Village Fund Management Technique. Journal of Advanced Research in Dynamic and Control Systems, 11 (08-Special Issue), 1258-1270. http://jardcs.org/abstract.php?id=2193
Rachman, Andry A. 2014. The Effect of Organization Commitment and procedural Fairness on Participative Budgeting and Its Implication to Performance Moderating by Management Accounting Information (A Survey n Provnce Local Government Unit Agencies of West Java). Review of Integrative Business anf Economics research, Vol. 3, Iss. 1, pp. 201-218.
Ritzer, George and Harrison M. Trice. 1969. An Empirical Study of Howard Becker’s Side-Bet Theory. Social Forces, Vol. 47, No. 4, pp.475-478. Oxford University Press. http://www.jstor.org/stable/2574537
Robbins, S.P., and Judge, T.A., 2008, Perilaku Organisasi. Edisi 12. Buku 2. Terjemahan oleh Diana Angelica. Jakarta. Penerbit : Salemba Empat.
Selvina, Mia and Yuliansyah, Yuliansyah. 2015. Relationshi Between Bidgetary Participation and Organizational Commitment: Mediated by Reinforcement Contingency, Evidence From the Service Sector Industries. International Research Journal of Business Studies, Vol. 6, No. 2, pp. 69-80
Steers, Richrd, M. 1977. Antecedents and Outcomes of Organizational Commitment. Administrative Science Quartely, Vol. 22, No. 1, pp. 46-56.
Subramaniam, Nava and Lokman Mia. 2001. The Relation Between Decentralised Structure, Budgetary Participation and Organisational Commitment; The Moderating Role of Managers’ Value Orietnation Towards Innovation. Accounting, Auditing and Accountability Journal. Vol. 14. No. 1, pp. 12-29. MCB University Press.
Subramaniam, Nava., Lisa McManus and Lokman Mia. 2002. Enhancing Hotel Manager’s Organisational Commitment: an Investigation of the Impact of Structure, need for Achievement and Participative Budgeting. Interational Journal of Hospitality Management, Vol. 21, pp. 3-3-320.
Suliman, Abubakr and Paul Iles. 2000. Is Continuance commitment beneficial to organizations? Commitment-performance relationship; a new look. Journal of Managerial Psycchologi, Vol 15 Issue: 5, pp. 407-422. https://doi.org/10.1108/02683940010337158
Suliman, Abubkar and Majid Al Kathairi. 2012. Organizational Justiece, Commitment and Performance in developing countries: The Case of the UAE. Employee Realtions, Vol. 35 Issue: 1.pp.98-115. https://doi.org/10.1108/01425451311279438
Susanti, Nora., Vivina Eprillison dan Jolianis. 2018. Budgeting Participation and Managerla Performance of Government Apparatus. 2nd Padang International Conferenc on Education, Economics, Bussiness and Accounting (PICEEBA)-2), Advances in Economics, Bussiness and Management Research, Vol. 64. Pp.73-79. Atlantis Press.
Syauta, Jack Henry., Efa A. Troena, Margono Setiawan dan Solimun. 2012. The Influence of Organizational Culture, Organizational Commitment to Job Satisfaction and Employee Perfromance (Study at Municipal Waterworks of Jayapura, Papua Indoensia). International Journal of Business and Management Invention, 2319-8028
Zefeiti, Salim M. Bakhir Al and Noor Azmi Mohamad. 2017. The Influence of Organizational Commitment on Omani Public Employees’s Work Performance. International Review of Management and Marketing, Vol. 7, No. 2, pp. 151-160.
Published
31.10.2019
How to Cite
Manafe, J. D., & Setyorini, T. (2019). The impact of organizational commitment as mediator and moderator relationship between budgeting participation on managerial performance: Evidence from Indonesia. The International Journal of Social Sciences World (TIJOSSW), 1(1), 11–20. Retrieved from https://www.growingscholar.org/journal/index.php/TIJOSSW/article/view/4
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