Effects of information sharing and budget adequacy on the relationship between budget participation and managerial performance
DOI:
https://doi.org/10.22478/ufpb.2318-1001.2024v12n2.69178Abstract
Objective: This research evaluates the intervening effects of information sharing and budget adequacy on the relationship between budget participation and managerial performance.
Background: Studies on the subject have not evaluated the antecedents to budget adequacy, as well as the effects of the informative roles of the budget and information sharing as determining aspects of budget adequacy and managerial performance, a theoretical gap explored in this work.
Method: Descriptive research was conducted through a survey and quantitative data approach (MEE), with a sample of 166 professional controllers from industrial organizations operating in Brazil.
Results: The results show that not all organizations adopt a participatory budget configuration. In the same way, it was found that some organizations have difficulty in promoting the sharing of information between senior managers and subordinates, and in adjusting the allocation of budget resources to the needs presented in their different areas of responsibility. The results revealed that budget participation positively influences information sharing and budget adequacy. However, its effects do not occur directly on managerial performance. Information sharing improves controllers' performance, just as budget participation improves resource allocation and budget adequacy.
Contributions: This evidence shows that when the organization adopts a participatory budgeting configuration, and is able to promote the sharing of information among managers (superiors and subordinates), adjusting the budget to their work needs, professional controllers become more likely to achieve a high managerial performance.
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