The role of trust and budget emphasis in managing degree of autonomy and performance

Sakthi Mahenthiran, Ben Shaw-Ching Liu and Zalina Hashim

International Journal of Business and Systems Research, 2010, vol. 4, issue 1, 62-81

Abstract: This study examines the relationship between supervisor's budgetary style, supervisor's trust in subordinate and their effects on the subunit's performance of two newly privatised Malaysian utility companies. A framework linking uncertainty and organisational growth to subunit's performance is tested using structural equation modelling. In addition, the study examines the mediating role of trust in the relation between supervisor's budgetary style as a control system and subordinate's autonomy, which in turn could affect subunit's performance. Results confirm the hypothesised relationships. These findings contribute to understanding the role that trust plays in institutionalising a participative budgeting process during organisational change.

Keywords: trust; control systems; budgetary style; autonomy; organisational change; performance; supervision; privatised utilities; Malaysia; uncertainty; organisational growth; structural equation modelling; budget emphasis; subordinates; budgeting. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=29948 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbsre:v:4:y:2010:i:1:p:62-81

Access Statistics for this article

More articles in International Journal of Business and Systems Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().