International journal of Contemporary Business Studies

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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
International Journal of Contemporary Business Studies Vol: 3, No: 6. June, 2012 ISSN 2156-7506 Available online at http://www.akpinsight.webs.com Appendixes APPENDIX A: Organizational Performance In focusing on the variable 'organizational performance', please check the number that corresponds to the level of business performance following the scale of 1 begins: "lowest" to 6 "above". Compared with its competitors, your business: 1. More prosperous 2. Has the largest market share 3. Has higher growth rate 4. More profitable 5. More innovative APPENDIX B: The budgetary participation In focusing on the variable budgetary participation, please state your opinion on each of the following statements by circling the appropriate number: 1 "totally agree" to 6 "strongly agree". 1. I participate in the budgeting process for my department. 2. My supervisor provides me with reasons and / or explanations when the budget is revised. 3. I encourage discussions with my supervisor about the budget without wondering. 4. I feel I have an influence on the final budget. 5. My contribution to the budget is important. 6. My supervisor asks my opinions and / or my proposals relating to the budget when it is already developed APPENDIX C: The intensity of competitiveness Please indicate, by circling the appropriate number, the intensity of market competitiveness of your business using the following scale (scale: 1 = very poor, 2 = poor, 3 = moderate, 4 = strong, 5: very strong): 1. Competitive prices 2. Competitiveness for development of new products 3. Competitive Marketing (or chain of distribution) 4. Competitive Market Share 5. Actions of competitors 6. Number of competitors in the industry Copyright © 2012. Academy of Knowledge Process 47
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