Impact of budget participation and leadership style on managerial performance with organizational commitment as intervening variable

Hosam Alden Riyadh, Fadhlilah Rahmaningtyas Nugraheni and Mohammed Ghanim Ahmed

Cogent Business & Management, 2023, vol. 10, issue 1, 2175440

Abstract: This study aims to scrutinize the impact of the independent variables, i.e., budget participation and leadership style, on managerial performance mediated by organizational commitment. For this reason, the quantitative research approach was utilized to examine the hypotheses, and such an approach is considered appropriate for this study. This study adopted to cover the field side by using the questionnaires; thus, the total population was 42 people with a saturated sample, which means that all population members were involved as research samples, and the analysis of the data employed statistical tests and the coefficient of determination and path analysis. In brief, the findings revealed that budget participation had a positive but not significant effect on managerial performance at the Public Works and Public Housing Office of Wonogiri Regency, and Tax Service Office, Wonogiri Regency, Indonesia. Thus, the variable of leadership style had a positive and significant effect on managerial performance. Besides, the organizational commitment had a positive but not significant effect on managerial performance. Furthermore, organizational commitment did not mediate the significance of the effect of budgetary participation and leadership style on managerial performance. In addition, leadership style is the dominant factor influencing managerial performance and is explained by budget participation and leadership style with intervening organizational commitment.

Date: 2023
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DOI: 10.1080/23311975.2023.2175440

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