EFFECT OF PARTICIPATORY BUDGETING ON MANAGER PERFORMANCE: GOAL COMMITMENT AND MOTIVATION AS MODERATING VARIABLE

摘要

This study aims, first examine the effect of participative budget on manager's performance, and to examine the indirect effect of goal commitment and motivation as intervening variables. The data collected by survey questionnaires. Fifty eight-level managers, from state owned enterprises in Banyumas, Purbalingga, Cilacap and Banjarnegara, who were randomly participated in this research. Partial least square (PLS) to run a structural equation modeling (SEM) technique was employed to analyze the data. The finding showed that participative budget did not significantly influence manager's performance. Participative budget increase the managers' performance through the increase in goal commitment, which has a significant, positive effect on motivation. Furthermore, motivation has a significant, positive effect on managers' performance.