THE EFFECT OF PARTICIPATIVE BUDGETING ON JOB PERFORMANCE AND JOB SATISFACTION WITH LOCUS OF CONTROL AND CULTURAL DIMENSIONS AS MODERATING VARIABLES
Indriantoro, Nur (Adv.Prof.Dr. Donald L. Madden), Prof.Dr. Donald L. Madden
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This study examined relationships between participative budgeting and both job performance and job satisfaction. Of interest were the effects of locus of control and cultural dimensions as possible moderating variables. Prior research found that U. S. managers who had an internal locus of control tended to perform better and to be more satisfied when their companies used participative budgeting systems. On the other hand, U. S. managers with an external locus of control tended to perform better and to be more satisfied when non-participative budgeting systems were being used. In a later study, however, locus of control did not moderate the effect of participative budgeting on job satisfaction of Mexican managers. This study extended prior research by assessing cultural dimensions as additional moderating variables. Indonesian managers in the Jakarta area were used as subjects; all instruments used in the data collection process had been back-translated to improve their effectiveness. Initial findings revealed that participative budgeting had significant positive effects on both job performance and job satisfaction. However, interactions between participative budgeting and locus of control had no significant effects on either job performance or job satisfaction. Analyses of interactions between cultural dimensions and participative budgeting offered two interesting findings. First, no significant interactive effects between selected cultural dimension variables (i.e., power distance, uncertainty avoidance, and individualism/collectivism) and participative budgeting were found to have affected job performance. Second, however, interaction between power distance and participative budgeting did affect job satisfaction. This latter finding suggests that further studies of cultural dimensions as moderating variables might indeed prove revealing.
Kata Kunci : PARTICIPATIVE, BUDGETING, LOCUS, CONTROL, CULTURAL, DIMENSIONS, MODERATING, VARIABLES
