Corporate budget governance through the operating managers engagement: Does locus of control matter?

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Anissa Dakhli ORCID logo

https://doi.org/10.22495/cbv17i1art4

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Abstract

The current study aims to investigate the relationship between budgetary participation and job satisfaction, moderated by the personality variable, locus of control. The data is gathered via a questionnaire administered to 75 managers from Tunisian hotels. To test the hypothesis of this study, moderated regression analysis was performed. Our results in a developing country setting confirm the contingent aspect of budgetary participation and show that the locus of control moderates the budgetary participation effects on job satisfaction. Budgetary participation was found to have a positive effect on internal managers while having a negative effect on external managers. The results suggest that it is necessary for Tunisian hotels to focus on the broader context in which budgetary participation is used. This latter has two aspects: structural and behavioral. The success of budget participation certainly depends on the organizational setting in which it is used but also on the psychological willingness of actors involved to develop and succeed in such budgetary practice.

Keywords: Budgetary Participation, Job Satisfaction, Locus of Control, Contingency Theory, Tunisian Hotels

Authors’ individual contributions: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M40, M41, M42, M54, Z30

Received: 22.03.2021
Accepted: 12.05.2021
Published online: 14.05.2021

How to cite this paper: Dakhli, A. (2021). Corporate budget governance through the operating managers engagement: Does locus of control matter? Corporate Board: Role, Duties and Composition, 17(1), 39–50. https://doi.org/10.22495/cbv17i1art4