Journal of Accounting and Investment
Vol 21, No 2: May 2020

The Role of Budgetary Participation and Environmental Uncertainty in Influencing Managerial Performance of Village Government

Hafiez Sofyani (Deaprtment of Accounting, Universitas Muhammadiyah Yogyakarta)
Muhamad Fandi Indra Santo Simali (Deaprtment of Accounting, Universitas Muhammadiyah Yogyakarta)
Taufik Najda (MSc in Accounting and Finance, Nottingham University Business School)
Mohammed Saleh Al-Maghrebi (Department of Accounting, University of Malaya)



Article Info

Publish Date
05 May 2020

Abstract

Research aims: This study aims to examine the influence of budgetary participation and environmental uncertainty on the managerial performance of the village government. In addition, it examines the budgetary participation as an intervening variable.Design/Methodology/Approach: The research was conducted using a survey method by distributing questionnaires to village governments in Bantul Regency, Indonesia. Totally, 118 completed questionnaires were returned. Data analysis was carried out using a partial least squares (PLS) approach.Research findings: The results revealed that budgetary participation and environmental uncertainty significantly influenced managerial performance. Besides, environmental uncertainty was found as a determinant of budgetary participation implementation. This study confirmed that budgetary participation had an intervening role in the environmental uncertainty-managerial performance relationship.Theoretical contribution/ Originality: This research pioneered the testing of budgetary participation as the intervening variable in the context of a village government study.Practitioner/Policy implication: Referring to the results, the village government needs to appreciate the practice of budgetary participation to encourage managerial performance, especially to convert the negative impact of environmental uncertainty to be a chance to achieve better performance.Research limitation/Implication: This research was only undertaken in the scope of Bantul regency. Therefore, the generalization ability of this study is limited.

Copyrights © 2020






Journal Info

Abbrev

ai

Publisher

Subject

Economics, Econometrics & Finance

Description

JAI receives rigorous articles that have not been offered for publication elsewhere. JAI focuses on the issue related to accounting and investments that are relevant for the development of theory and practices of accounting in Indonesia and southeast asia especially. Therefore, JAI accepts the ...