Ni, F. Y., and Chiou, B. C. 2001. The Impact of Locus of Control and Task Uncertainty in Participative Budgeting Systems on Managerial Performance. NTU Management Review, 12 (1): 123-148
Feng-Yu Ni, Department of Business Administration, National Sun Yat-Sen University
Being-Chyan Chiou, Department of Finance, National Pingtung Institute of Commerce
Abstract
This study investigated the moderating effect of locus of control and task uncertainty on the relationship between budgetary participation and managerial performance. We also examined the three-way effect of locus of control, task uncertainty and budgetary participation. Data collected from 114 middle-level managers. The result shows a statistically two-way interaction effect between budgetary participation and locus of control; and a three-way interaction effect between budgetary participation, locus control, and task uncertainty affecting managerial performance. That is, internals (externals) perform better performance under the condition of high (low) participation; and the relationship between budgetary participation, locus of control and managerial performance are also moderated by task uncertainty. We anticipated the process of development of hypotheses and results would flourish the literature of behavior accounting and give significant suggesting to firm for implement of participative budgeting.
Keywords
Budgetary participation Locus of control Task uncertainty Managerial performance Interaction effect