The Moderating Effect Of Perceived Organizational Culture On The Relationship Between Budget-Related Behaviour And Propensity To Create Slack For Yemeni Managers

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Date
2012-05
Authors
Mohammed Abdulqader, Abdulwahab Yahya
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Publisher
Universiti Sains Malaysia
Abstract
The accounting researchers proposed that the propensity to create slack could leads to inefficient use of the resources that the organization controls. They also suggested that slack can be increased or decreased by several factors, including the budgetrelated behaviour. However, the results of prior studies examining the relationship between budget-related behaviour (such as participation, measure and monitor and evaluation by budget) and propensity to create slack is not clear and have often been found to be contradictory. As a result, many researchers have reconciled the inconsistent results by using the contingency approach. The present study aims to extend this line of research by examining another contingent variable, namely the managers’ perceptions of the organizational culture. This variable is an important factor that could potentially moderate the relationship between budget-related behaviour and propensity to create slack and may influence the extent to which managers create slack. This issue is still unclear in literature. Therefore, this research attempts to bridge that gap. This study was conducted in a developing country, specifically Yemen. The research design for this study was a survey research; a cross-sectional data based on questionnaires which were distributed by hand to 300 middle managers drawn from large-scale organizations operating in Yemen. These managers are actively involved in budgeting. However, the results from factor xvi analysis shows two components of managers’ perceptions of organizational culture emerged namely, managerialist and humanist. The results for budget-related behaviour dimensions remains three components namely, participation, measure and monitor, and evaluation by the budget. For propensity to create slack, factor analysis shows two dimensions emerged namely, safety and easiness.
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Keywords
Effect of perceived organizational culture on the relationship , between budget-related behaviour and propensity
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