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1 – 5 of 5William W. Stammerjohan, Maria A. Leach and Claire Allison Stammerjohan
This study extends the budgetary participation–performance/cultural effects literature by isolating and examining the moderating effect of one cultural dimension, power distance…
Abstract
Purpose
This study extends the budgetary participation–performance/cultural effects literature by isolating and examining the moderating effect of one cultural dimension, power distance, on the budgetary participation–performance relationship. Isolating the impact of power distance is important to this literature because of the fact that participative budgeting remains a possibly underutilized management tool in high power distance countries.
Methodology/approach
We regroup our multinational sample of managers by power distance level, and employ multigroup structural equation modeling (SEM) and a set of nonparametric bootstrap tests to triangulate our findings.
Findings
We find that the majority of our managers from three high power distance countries (Mexico, Korea, and China) score in the lower half of the power distance scale, that there is significant correlation between participation and performance in both the high and low power distance subsamples, but that the mechanisms connecting participation to performance are quite different. While job satisfaction plays a role in connecting budgetary participation and performance among low power distance managers, job relevant information alone connects budgetary participation and performance among their high power distance counterparts.
Originality/value
The primary contribution of our work is that we not only demonstrate that budget participation can improve the performance of subordinate managers in high power distance cultures, but also provide evidence of how and why this is plausible. First managers may not share the same high power distance tendencies of their countrymen, and second, the communication aspect of budget participation appears to be more important for increased performance among those with high power distance tendencies.
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Maria A. Leach-López, William W. Stammerjohan, Eunsuh Lee and Claire Allison Stammerjohan
The purpose of this paper is to examine the effect of budget participation conflict (BPC) on job performance and the mediating effect of job satisfaction and job tenure on this…
Abstract
Purpose
The purpose of this paper is to examine the effect of budget participation conflict (BPC) on job performance and the mediating effect of job satisfaction and job tenure on this relationship in a South Korean setting. BPC is defined as the difference between a manager’s actual budget participation and the same manager’s preferred level of budget participation.
Design/methodology/approach
Survey data, analyzed using path analysis, were used to measure the direct effect of BPC on performance, and the indirect effects between BPC and performance running through job satisfaction and job tenure.
Findings
Findings suggest that BPC does not directly impact job performance. Overall, this study suggests that BPC has a negative impact on job satisfaction and that job satisfaction in turn can significantly influence job performance. The authors also find some marginal effect of job satisfaction on job tenure, implying that increasing satisfaction can marginally increase job tenure.
Research limitations/implications
Limitations of this study are those usually found in cross-sectional survey research.
Originality/value
Despite its limitations, this study has both academic and practical implications. The study adds to the job performance literature in an Asian country which has not been widely researched. The study also finds that managers’ job performance and job satisfaction can be improved by minimizing BPC. Future research should study other variables that influence job performance of South Korean managers.
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Edward Osei Akoto and Claire Allison Stammerjohan
The purpose of this paper is to draw upon exchange theory to test the moderating effect of perceived inflation on dual commitment among a sample of health professionals in Ghana…
Abstract
Purpose
The purpose of this paper is to draw upon exchange theory to test the moderating effect of perceived inflation on dual commitment among a sample of health professionals in Ghana. The authors test this effect on the unilateral contributions of commitment to the organization and commitment to the professional association.
Design/methodology/approach
Survey questionnaires were used to elicit responses from 141 health professionals in Ghana. Least square moderated regression analysis was employed to test the hypothesized relationships.
Findings
The authors found that respondents do exhibit dual commitment to the organization and the professional association. The findings also supported the hypothesized moderating effect of perceived inflation on the contribution of the unilateral commitments to dual loyalty. Perceived inflation alters the contributions from the predictors, hence, reducing dual commitment.
Research limitations/implications
The study sampled only public sector employees, but the authors do not consider this a fatal flaw since the public sector in Ghana employs a large percentage (51 percent) of the workforce. Future research should focus on the private sector to increase the generalizability of the perceived inflation construct.
Practical implications
Perceived inflation can have adverse effects on workplace attitudes, including dual loyalty to the organization and to the union. But the finding also suggests that, in periods of inflationary pressures, high affective commitment can benefit the organization. The perceived reduction in the value of the economic exchange clearly has implications for compensation policy for the public sector in Ghana.
Originality/value
Researchers have examined the perception of inflation on consumer behavior, but none has investigated the inflationary influence on workplace attitudes. This study extends the conceptualization of the index of perceived inflation and the psychology of inflation to the management literature. This study is the first to investigate the effect of perceived inflation on commitment.
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