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The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia

The purpose of this study is to investigate a comprehensive model of the relationships between budget participation, procedural fairness, distributive fairness, managerial trust, goal commitment and managerial performance. The analysis using the structural equation model (SEM) is based on 347 indivi...

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Main Authors: Indriani, Mirna, Nadirsyah, Nadirsyah, M Daud, Rulfah
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16774/1/25569-139336-1-PB.pdf
http://journalarticle.ukm.my/16774/
https://ejournal.ukm.my/pengurusan/issue/view/1328
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spelling my-ukm.journal.167742021-06-14T03:58:14Z http://journalarticle.ukm.my/16774/ The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia Indriani, Mirna Nadirsyah, Nadirsyah M Daud, Rulfah The purpose of this study is to investigate a comprehensive model of the relationships between budget participation, procedural fairness, distributive fairness, managerial trust, goal commitment and managerial performance. The analysis using the structural equation model (SEM) is based on 347 individuals who are involved in the budgeting at Regional Apparatus Work Unit (SKPD) in Aceh Province, Indonesia. The results show that participation significantly influences procedural fairness which then managerial trust. Participation however do not influence distribution fairness. The findings also indicate that managerial trust influences budget goals commitment which subsequently enhances managerial performance. It also suggests that increased participation in budgeting fosters a sense of procedural fairness, which in turn increases managerial trust and budget goals commitment which enhances managerial performance. This study is useful in providing an input for local government to design an effective budget planning control process in which procedural fairness can be increased through participation in the process of budgeting and participation becomes a means in the process of increasing trust in management. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16774/1/25569-139336-1-PB.pdf Indriani, Mirna and Nadirsyah, Nadirsyah and M Daud, Rulfah (2020) The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia. Jurnal Pengurusan, 59 . pp. 1-16. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1328
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The purpose of this study is to investigate a comprehensive model of the relationships between budget participation, procedural fairness, distributive fairness, managerial trust, goal commitment and managerial performance. The analysis using the structural equation model (SEM) is based on 347 individuals who are involved in the budgeting at Regional Apparatus Work Unit (SKPD) in Aceh Province, Indonesia. The results show that participation significantly influences procedural fairness which then managerial trust. Participation however do not influence distribution fairness. The findings also indicate that managerial trust influences budget goals commitment which subsequently enhances managerial performance. It also suggests that increased participation in budgeting fosters a sense of procedural fairness, which in turn increases managerial trust and budget goals commitment which enhances managerial performance. This study is useful in providing an input for local government to design an effective budget planning control process in which procedural fairness can be increased through participation in the process of budgeting and participation becomes a means in the process of increasing trust in management.
format Article
author Indriani, Mirna
Nadirsyah, Nadirsyah
M Daud, Rulfah
spellingShingle Indriani, Mirna
Nadirsyah, Nadirsyah
M Daud, Rulfah
The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
author_facet Indriani, Mirna
Nadirsyah, Nadirsyah
M Daud, Rulfah
author_sort Indriani, Mirna
title The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
title_short The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
title_full The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
title_fullStr The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
title_full_unstemmed The role of trust in budgeting processes and managerial performance: an empirical study in the local government of Aceh, Indonesia
title_sort role of trust in budgeting processes and managerial performance: an empirical study in the local government of aceh, indonesia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/16774/1/25569-139336-1-PB.pdf
http://journalarticle.ukm.my/16774/
https://ejournal.ukm.my/pengurusan/issue/view/1328
_version_ 1703961587847528448
score 13.211869

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