Budget participation and job performance of South Korean managers mediated by job satisfaction and job relevant information

Abstract

Purpose – The purpose of this paper is to extend the participative budgeting literature, and specifically the budgetary participation literature that has examined the casual mechanisms linking participation to satisfaction/performance and the literature that has examined culture as an explanatory factor in the budgetary participation/performance relationship.Design/methodology/approach – This paper employs the path model to examine and compare the budget participation–performance relationship for South Korean managers working for either US controlled or Asian controlled companies in South Korea. The path model allows the examination of the direct effects of budget participation on performance and the indirect effects between budget participation and performance that run through job satisfaction and job relevant information.Findings – The primary findings of this study are that while there are strong associations between budget participation and performance for both samples of managers, the causal mechanis...