The Effect of Budgetary Participation on Performance:Role Ambiguity and Organizational Commitment as anIntervening Variable

• Main Authors: Kobori Kazuhiko, 小堀和彥
• Other Authors: TsungChii Liu
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/67191052048497746982

碩士 === 國立成功大學 === 企業管理學系碩博士班 === 94 === Japanese overseas subsidiaries are considered as suppliers for headquarters still now. In budgetary process, the total budget is decided by the top down from headquarters. Most headquarters recognize the significance that managements participate in budgetary process, however, they do not make highly use of the process in overseas subsidiaries. This study aims to investigate whether budgetary participating process or appropriation budgetary system is suitable for overseas subsidiaries. The research results show that the relationship between budgetary participation and performance is negative. The result is the same as the outcome of Sterdry (1960), Bryan and Locke (1967), Blumenfield and Leidly (1969) and Cherrington (1973). However, it is different form that of Argyris (1955), Brownell (1982), Brownell and Mclnnes (1986), Govindarajan (1986), Dunk (1990), Kren (1992). Therefore, the relationship between budgetary participation and performance has not reached a consistent conclusion. The results also show that managers in Japanese overseas subsidiaries do not participate in the budgetary processing positively in Taiwan. It brought them low commitment to their organization. The result is correspondent with Mia’s findings (1988) in that point. A manager with low commitment has had negative results about the relationship between budgetary participation and performance with organizational commitment as an intervening variable. It is suitable for the managers to appropriation budget (Mia, 1988). In fact, managers in Japanese overseas subsidiaries have a task to get the excellent results within appropriation budget. These managers are lower to participate in budgetary processing. That is why most hypotheses are rejected in this research. It means that Japanese companies do not think highly of effects of budgetary participation in overseas subsidiaries. The results show that headquarters just gave overseas subsidiaries an allocation budget. However, managers’ intension is higher about their role. They have a mission to product specific goods in Taiwan. They are expected to attain a distinguish goals by headquarters. It reveals that they have a clear role in their organizations. It shows that their budgetary participation opportunities are restricted. On the other hand, they have an intention to perform their duties and organizational goals within appropriation budget. This research presents the unknown their intention of role about budgetary processing in Japanese overseas subsidiaries.