International journal of Contemporary Business Studies

International Journal of Contemporary Business Studies
Vol: 3, No: 6. June, 2012 ISSN 2156-7506
Available online at http://www.akpinsight.webs.com
competitiveness.The question, posed now is: which dimension of budgetary participation has a
significant effect in the studied relationship?
The answer to this question will depend on the results of subsequent regressions.
4.2.3. Dimensional analysis: effect of the “involvement”
Panel C of Table 7 shows an adjusted R2coefficient equal to 15.1%.
The regression coefficient α is 0.451, it is positive and significant (t = 3.29 at 5% level). This
result confirms the hypothesis 2 that there exists a positive relationship between the size of
"involvement" of budgetary participation and organizational performance of the company when
there is a high level of competitiveness. In a similar context, Jermias & Setiawan (2008) and
Chong et al., (2005) find same results.
4.2.4. Dimensional analysis: effect of the “influence” dimension of budgetary participation
Hypothesis 3 posits that the dimension "influence" of the budgetary participation, in interacting
with the intensity of competitiveness, hasn‟t a significant effect on organizational performance.
The model referred to this case (Panel D of table 7) doesn't present a sizeable explanatory power
(adjusted R ² = 10.2%).
The regression coefficient is positive (0.076) but not significant with a value t-statistic equal to
1.23. So the dimension "influence" of the budgetary participation has no significant effect on
organizational performance of firms in a context of strong competitiveness. This confirms the
third hypothesis. The results of linear regressions are aligned with those obtained by Hassel &
Cunningham (1993, 1996).
CONCLUSION
This study examined the impact of budgetary participation on organizational performance
through the intensity of market competition. It offers a combination of strong budgetary
participation and a high level of competitiveness will enable to improve organizational
performance of firms. The conduct of this work was largely influenced by the study of Chong
and al., (2005) and that of Jermias & Setiawan (2008). In general, the results obtained confirm
the hypotheses developed in this study. They showed that the "involvement" dimension of the
budgetary participation is a source of improved organizational performance especially under
conditions of high competitiveness. A dimensional analysis of the budgetary participation into
two factors "involvement" and “influence” showed that only the first dimension involve in
interaction with the intensity of market competition to increase organizational performance. The
contribution of this work appears in two levels. From a theoretical perspective, the results of this
study may enrich the management accounting literature, and introducing of "market competition"
as new contingency factor. In practical terms, the results are an encouragement tool of company
managers to budgetary participation especially in situations of high competitiveness to improve
the performance of their businesses. It is important to remember that this research suffer from a
number of limitations. Indeed, the sample size is limited which makes it difficult to generalize
the results. On the other hand, instruments for measuring variables even if they are to criticism,
our choice are justified for the sake of comparison.
Copyright © 2012. Academy of Knowledge Process
46