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Title: An integrative model of macro and micro level factors affecting budgetary control : a cross-cultural study
Author: Mufti, Mohammed H. A.
ISNI:       0000 0001 3428 664X
Awarding Body: University of Bristol
Current Institution: University of Bristol
Date of Award: 1998
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The effect of budgetary participation on managers' performance and satisfaction has received a considerable amount of attention over the past three decades. Accounting literature has witnessed many contributions that attempted to check the nature of these two relationships and to investigate the variables which may have clear or hidden effects on them. Researchers went beyond accounting literature to study organisational and psychological theories and adopted some dimensions from each and tested these dimensions on those relationships. Scholars found different organisational variables (e. g. organisation size, environment uncertainty, technology, information asymmetry) and also behavioural. variables (e. g. locus of control, budget goals difficulty and clarity, motivation, slack) which affected the relationship between budgetary participation and both managers' performance and satisfaction. Culture has been also used as a possible contingent variable which may play a role in this conflicting area. Behavioural accounting research witnessed many efforts which investigated the effect of culture on budget-related behaviour. Nevertheless, the results were inconclusive. Prompted by the inconsistent results reported in the previous work, this study was designed to provide more insight for this area through three main purposes: 0 Constructing an integrative model which consists of eighteen variables which have been frequently used in the previous work. 0 Testing the proposed model using sample of managers from different cultures. 0 Testing the proposed model using two analytical approaches "moderating and intervening". Twenty eight hypotheses were used to develop the proposed model. Some hypotheses have been replicated, whereas others have been developed because they receivedli ttle attentioni n the previouss tudiesU. K and SaudiA rabiaw erec hosena s sitest o test the proposedm odelb ecauseth ey arec ulturallyd ifferent.I n SaudiA rabia two sampleso f managersS audi( locals) and Arab (non-locals)w ere also used.T he purposeo f usingt wo samplesin SaudiA rabiaw ast o seew hethero r not the resultso f the proposedm odel within the single countrya re different betweenl ocals and nonlocals. The results of this study showed that both macro and micro level variables interact with budgetary participation affecting managers' performance and satisfaction. The results have highlighted the importance of using an integrative model as a way to reconcile the contradictory results reported in the previous work. With respect to the culture, the results provided evidence that budgetary control practices are different between UK and Saudi Arabia in some aspects, whereas no cultural differences were observed in others. For example the results showed that the effect environment uncertainty on budgetary participation, and the effect of budgetary participation on managers' satisfaction are culturally independent. The results of the proposed model showed that some relationships (e. g. the effect of leadership style on budget emphasis) are different between locals and non-locals within the single country. The results of this study also provided evidence that the contradictions in the previous work could be reconciled by using the appropriate analytical approach. Some hypotheses were supported using the moderating approach whereas others were supported using the intervening approach. Therefore, this study showed that these two approaches are complementary and both should be used either to support or reject a hypothesis.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available
Keywords: Management & business studies