Influence of budget participation on budget quality, budget adequacy, and budget goal level of managers with budgetary responsibility in port companies
DOI:
https://doi.org/10.21680/2176-9036.2026v18n1ID42533Keywords:
Budget participation. Budget quality. Budget adequacy. Budget goal.Abstract
Purpose: The present study aimed to analyze the influence of budget participation on budget quality, budget adequacy, and budget goal level of managers with budgetary responsibility in port companies.
Methodology: A methodological approach based on a survey with 101 managers responsible for planning and budget control of port companies in Brazil was used, and structural equation modeling analysis with partial least squares (PLS-SEM) to test the hypotheses.
Results: The results suggest that participation in the budget process exerts a positive and significant influence on both budget quality and adequacy, as well as on budget goal levels. However, although budget quality did not show a significant association with the budget goal level, budget adequacy in terms of the ability to deliver what is expected to emerge as a relevant predictor for achieving these goals.
Contributions of the Study: This study contributes to the literature by presenting new evidence regarding individual participation in the budgeting process and offering insights into the application of Goal Setting Theory. The findings emphasize the importance of managers' participation in budgeting, which directly influences budget quality and adequacy. This engagement significantly affects the achievement of budget goals, providing vital information that enables managers and superiors to make more assertive decisions. Therefore, the research suggests that active participation by managers in the budgeting process is essential for successfully meeting organizational objectives and goals.
Downloads
References
Agência Nacional de Transportes Aquaviários [ANTAQ], 2023. Desempenho portuário. Disponível em: https://web3.antaq.gov.br/portalv3/sdpv2servicosonline/#:~:text=Os%20portos%20brasileiros%20integram%20a,aos%20seus%20usu%C3%A1rios%20e%20clientes
Aguiar, A. B., Dieng, M., & Guerreiro, R. (2024). Group budget‐based bonus scheme and group cooperation: The role of social value orientation, goal alignment, and group identity. Accounting & Finance, 64(1), 1037-1059. https://doi.org/10.1111/acfi.13172
Bernd, D. C., Beuren, I. M., Pazetto, C. F., & Lavarda, C. E. F. (2022). Antecedents of commitment to budgetary goals. Revista de Administração Contemporânea, 26(2), e200018. https://doi.org/10.1590/1982-7849rac2022200018.en
Birnberg, J. G., Luft, J., & Shields, M. D. (2007). Psychology theory in management accounting research. Handbooks of management accounting research, 1, 113 -135.
Chong, V. K., & Johnson, D. M. (2007). Testing a model of the antecedents and consequences of budgetary participation on job performance. Accounting and business research, 37(1), 3.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences. New York: Psychology Press.
Covaleski, M., Evans III, J. H., Luft, J., & Shields, M. D. (2007). Budgeting research: three theoretical perspectives and criteria for selective integration. Handbooks of management accounting research, 2, 587-624.
Covaleski, M. A., Evans III, J. H., Luft, J. L., & Shields, M. D. (2003). Budgeting research: three theoretical perspectives and criteria for selective integration. Journal of Management accounting research, 15(1), 3-49.
Derfuss, K. (2016). Reconsidering the participative budgeting–performance relation: A meta-analysis regarding the impact of level of analysis, sample selection, measurement, and industry influences. The British Accounting Review, 48(1), 17-37.
Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G* Power 3.1: Tests for correlation and regression analyses. Behavior research methods, 41(4), 1149-1160.
Guterres, M., & Lavarda, C. E. F. (2024). Budgetary participation and performance mediated by work satisfaction and engagement at Timor-Leste. Contabilidad y Negocios, 19(38), 64–97. https://doi.org/10.18800/contabilidad.202402.003
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hassan, A.F. and Basiruddin, R. (2023). The moderating effect of environmental uncertainty on the relationship between budgetary participation and budget quality. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-03-2023-0162
Hussein, S. S., Maji, S. G., & Panda, N. M. (2016). The association between budget goal clarity and managerial performance in Iraqi oil refinery: the role of budget goal difficulty and budget participation. Middle East Journal of Management, 3(4), 343 - 358. https://doi.org/10.1504/MEJM.2016.081088
Kenis, I. (1979). Effects of Budgetary Goal Characteristics on Managerial Attitudes and Performance. Accounting Review, 707-721.
Khaddafi, M., Raza, H., & Heikal, M. (2015). Effect of budgetary participation and budget adequacy on individual performance with job satisfaction as an intervening variable. International Journal of Economics, Commerce and Management, 3(2).
Lavarda, C. E. F., Sant’ana, S. V., Manfroi, L., & Dagostini, L. (2015). Participação orçamentária e definição das metas orçamentárias em uma cooperativa agroindustrial. ConTexto-Contabilidade em Texto, 15(30).
Locke, E. A., & Latham, G. P. (2006). New directions in goal-setting theory. Current directions in psychological science, 15(5), 265-268. https://doi.org/10.1111/j.1467-8721.2006.00449.x
Locke, E. A., Shaw, K. N., Saari, L. M., & Latham, G. P. (1981). Goal setting and task performance: 1969–1980. Psychological bulletin, 90(1), 125. https://psycnet.apa.org/doi/10.1037/0033-2909.90.1.125
Locke, E. A. (1968). Toward a theory of task motivation and incentives. Organizational behavior and human performance, 3(2), 157-189. https://doi.org/10.1016/0030-5073(68)90004-4
Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task performance. Prentice-Hall, Inc.
Magner, N., Welker, R. B., & Campbell, T. L. (1996). Testing a model of cognitive budgetary participation processes in a latent variable structural equations framework. Accounting and Business Research, 27(1), 41-50. https://doi.org/10.1080/00014788.1996.9729530
Mahama, H. (2006). Management control systems, cooperation and performance in strategic supply relationships: A survey in the mines. Management Accounting Research, 17(3), 315-339. https://doi.org/10.1016/j.mar.2006.03.002
Milani, K. (1975). The relationship of participation in budget-setting to industrial supervisor performance and attitudes: a field study. The accounting review, 50(2), 274-284.
Murray, D. (1990). The performance effects of participative budgeting: An integration of intervening and moderating variables. Behavioral Research in accounting, 2(2), 104-123.
Nouri, H., & Parker, R. J. (1998). The relationship between budget participation and job performance: the roles of budget adequacy and organizational commitment. Accounting, Organizations and society, 23(5-6), 467-483. https://doi.org/10.1016/S0361-3682(97)00036-6
Oliveira, R. S. de, & Lavarda, C. E. F. (2023). Consequentes dos efeitos da participação orçamentária/Consequences of budgetary participation effects. Revista FSA (Centro Universitário Santo Agostinho), 20(9), 91-113. https://doi.org/10.12819/2023.20.9.5
Ringle, C. M., Wende, S., & Becker, J.-M. (2024). “SmartPLS 4.” Bönningstedt: SmartPLS, https://www.smartpls.com.
Shields, J. F., & Shields, M. D. (1998). Antecedents of participative budgeting. Accounting, organizations and society, 23(1), 49-76. https://doi.org/10.1016/S0361-3682(97)00014-7
Steers, R. M., & Porter, L. W. (1974). The role of task-goal attributes in employee performance. Psychological bulletin, 81(7), 434. https://doi.org/10.1037/h0036775
Sugioko, S. (2010). The Impact of budget participation on job performance of university executives: A study of APTIK-Member Universities in Indonesia. Kasetsart Journal of Social Sciences, 31(2), 271-279.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 REVISTA AMBIENTE CONTÁBIL - Universidade Federal do Rio Grande do Norte
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish in this magazine agree with the following terms:
Authors keep the copyrights and concede the right of its first publication to the magazine. The work piece must be simultaneously licensed on the Creative Commons Attribution Licence which allows the paper sharing, and preserves both the author identity and the right of first publication to this magazine.
Authors are authorized to assume additional contracts separately, to not-exclusively distribution of the paper version published in this magazine (e.g.: publish in institutional repository or as a book chapter), with the author identity recognition and its first publication in this magazine.
Authors are permitted and stimulated to publish and distribute their papers online (e.g.: in institutional repository or on their personal webpage), considering it can generate productive alterations, as well as increase the impact and the quotations of the published paper.
Creative Commons - Atribuição-NãoComercial-SemDerivações 4.0 Internacional.
Português (Brasil)
English
Español (España)
