Analysis the Relationship between Budgetary Planning and Resource Allocation: the Emphasis Moderating Role of Performance Management (Case Study: Municipality of Isfahan)

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Yazd University, Yazd, Iran.

2 PhD. Student of Accounting, University of Urmia, Urmia, Iran.

3 PhD. Student of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

Abstract

Subject and Purpose of the Article: the purpose of this study is to investigate the relationship  between budgetary planning and resource allocation considering the mediating role of performance management in Isfahan municipality.
Research Method: The statistical population of this research includes all managers and experts in the municipality of Isfahan, which is about 110 people. The method used is a descriptive-survey method and applied and correlational type. A questionnaire was used to collect the research data. The hypothesis test was also performed using the Structural Equation Model by Partial Least Squares (PLS) and Smart-Pls2 software
Research Findings: there is a positive and significant relationship between budget planning and resource allocation. There is also a positive and significant relationship between budget  planning and performance management. On the other hand, there is a positive and significant  relationship between performance management and resource allocation. Therefore, performance management has a mediating role in the relationship between budget planning and resource allocation.
Conclusion, Originality and its Contribution to the Knowledge: According to the authors' studies, so far no research has been done on budget planning and resource allocation and the mediating role of performance management in Iran. Therefore, this research will help fill the research gap in this field.
 

Keywords

References

  .ابراهیمی ورکیانی، معصومه. قربانیان، میثم. دشتی، ام البنین. سادات قدمی، صدیقه. (۱۳۹۵). ارزیابی کارآمدی نظام بودجه ریزی شهرداری دامغان. همایش بین المللی افق های نوین در علوم مدیریت و حسابداری، اقتصاد و کارآفرینی. تهران. انجمن افق نوین علم و فناوری.
 .افجه، سید علی اکبر. محمود زاده، سید مجتبی (1390) الگوی اثرگذاری سرمایه اجتماعی بر عملکرد سازمان: شرکت های تابع گروه صنعتی ایران خودرو. مجله پژوهش های مدیریت منابع سازمانی. دوره اول - شماره 2. صص 1-22.
.کردستانی، غلامرضا. پارسیان، حسین. جمشیدی کلانتری، فرشاد (1395). بودجه ریزی بر مبنای عملکرد و پاسخگویی در بخش عمومی. حسابداری دولتی. دوره 5. شماره 5. صص 67-78 .
 .لاری دشت بیاض، محمود. قائم مقامی، کامران. توکلی جویباری، اکرم (۱۳۹۴). بررسی تأثیر ابزارهای کنترل بودجه و ارزیابی عملکرد بر تقویت فرهنگ سازمانی (مطالعه موردی: وزارت فرهنگ و ارشاد اسلامی)، اولین همایش بین المللی حسابداری. حسابرسی مدیریت و اقتصاد. اصفهان. دبیرخانه همایش
 .احمدی، اکبر. بهکیش، محمد مهدی. (1382). الگویی برای تخصیص برنامه ای و کنترل منابع مالی با استفاده از منطق فازی (مطالعه موردی سازمان منطقه آزاد کیش). مجله برنامه ریزی و بودجه. شماره 82. صص 81-120.
                                                                                               
. Azzouz Elhamma, (2015), The relationship between budgetary evaluation, firm size and performance, Journal of Management Development, Vol. 34 Iss 8 pp. 973 – 986.
. Amoako Kwarteng, (2018), The impact of budgetary planning on resource allocation: evidence from a developing country, African Journal of Economic and Management Studies, https://doi.org/10.1108/AJEMS-03-2017-0056
. Al Bento and Lourdes Ferreira White (2006).  Budgeting, performance Evaluation, and compensation:  a performance management model.  Advances in management accounting, volume 15.
. Afjeh, S. A; Mahmoodzadeh, S. M. (2011). Model of Effect of Social Capital on Organizational Performance: Companies of Iran Khodro Industrial Group,Journal of Management Research Resource, Vol.1, No. 2, pp. 1-22. (in Persian)
. Ahmadi, A; Behkish, M. M. (2004). A Model for Program Allocation and Fiscal Control Using Fuzzy Logic”. Journal of Planning and Budget, Case Study of Kish Free Zone Organization, No. 82, pp. 81-120. (in Persian)
. Bruno.A, 2013, Harmonizing Budgeting and Accounting: The Case of Italy,Open Journal of Accounting, VOL.3, PP. 38-44.
. Callahan, C. M., & Waymire, T. R. (2007). An Examination of the Effect of Budgetary Control on Performance: Evidence from the Cities (November 2, 2007). AAA 2008 MAS Meeting Paper. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1003930.
. Covaleski, M., Evans, J., Luft, J., & Shields, M. (2003). Three theoretical perspectives and  criteria for selective integration. Journal of Management Accounting Research, 15, 3–49.
. Campos, E., & Pradhan, S. (1996). Budgetary Institutions Expenditure Outcomes: Binding Governments to Fiscal Performance, Policy Research Working Paper 1646, The World Bank, Washington.
. Drucker, P. (1955). The practice of management. London: Heinemann,.
. Ebrahimi Varkiyani, M; Ghorbaniyan, M; Dashti, U.B; Ghadami, S.S. 2017).Efficient evaluation of Damghan Municipality Budgeting System, International Conference on New Horizons in Knowledge Management and Accounting, Economics and Entrepreneurship. Tehran, The New Horizons of Science and Technology.(in Persian)
. Fisher, J. G., Maines, L. A., Peffer, S. A., & Sprinkle, G. B. (2002). Using Budgets for  Performance Evaluation: Effects of Resource Allocation Horizontal Information Asymmetry on Budget Proposals, Budget Slack, Performance. The Accounting Review, 77(4), 847 – 865.
. Frow, Natalie & Marginson, David & Ogden, Stuart, (2010). Continuous budgeting: Reconciling budget flexibility with budgetary control, Accounting, Organizations and Society, Elsevier, vol. 35(4), pages 444-461, May.
. Gustaf,  K.,  &  Sven,  S.  (2016).  The  role  of  management  accounting  control  in  making  professional organizations horizontal, Accounting, Auditing Accountability Journal, 29(3), 428 – 451
. Hansen, S., Otley, D., & Van der Stede, W. (2003). Practice developments in budgeting: An overview and research perspective. Journal of Management Accounting Research, 15, 49–70.
. Hansen, S. C., & Van der Stede, W.A. (2004). Multiple facets of budgeting: an exploratory analysis. Management Accounting research Vol. 15, Issue 4,  415=439
. Holmes, D. S., & Hurley, R. E. (2003). How Statistical Process Control Enhances Budgeting Stardard Costing – Another look. Management Accounting Quarterly, 5(1), 57 – 62.
. King, R. & P. Clarkson. & S. Wallace.,)2010(,Budgeting practices and performance in small healthcare businesses, Management Accounting Research,Vol.21, No. 1, pp. 40 55.
. Kurdestani, G.R; Parsiyan, H; Jamshidi Kalantari, F. (2017).Budgeting based on performance and responsiblity in public sector, Governmental Accounting, Vol. 5, No. 5, pp. 67-78. (in Persian)
. Lu, Yi., Willoughby, K. & Arneet. S. (2011). Performance Budgeting in the American States. What' s Law got to do with it? State and Local Government Review. 43 (2). 79-94.
. Libby, T., & Lindsay, R.M. (2010). Beyond Budgeting or budgeting reconsidered? A survey  of North=American budgeting practice. Management Accounting Research 2(1), 56–75.
. Likierman, A. (1998). Resource Accounting Budgeting – Where Are We Now? Public Money Management, 18:2.
. Lari Dasht Beyaz, M; Ghaem Maghami, K; Tavakoli Jouibari, A. (2016). The Effect of Budget Control and Performance Evaluation Tools on Strengthening Organizational Culture (Case Study Ministry of Culture and Islamic Guidance Secretariat of the Conference), The First International Accounting Conference, Management and Economics AuditEsfahan. (in Persian)
. Meyers, R. T. (1994) Strategic Budgeting, Michigan: University of Michigan Press.
. Neuby, B. (1997). On the Lack of a Budget Theory, Public Administration Quarterly, 21:2.
. Otley, D. T. (1999). Performance management: a framework for management control systems  research, Management accounting research, 10 (4), 363=382.
. Pollitt,  C.  (2001).  Integrating  Financial  Management  Performance  Management.  OECD Journal on Budgeting
. Parulian, S. R. W. (2009). Management control systems: a model for R&D units, Accounting  Research Journal, 22(3), 262 – 274
. Rodgers, J. (2009). Resource allocation in a budget crisis. http://www.line=of=sight.com/wp= content/uploads.  Accessed on 21 June 2016. 
. Shields, M., Deng, F., & Kato, Y. (2000). The design and effects of control systems: Tests of  direct= and indirect=effects models. Accounting, Organizations and Society, 25, 185–202.
. Salim. S, Reid. J, Dulleck. U, Dawson, ED, 2013, “Budget-aware Role Based Access Control”, computers & security, VOL. 3 5, PP. 37 -5 0.
. Wallapha. A, Saowanee. T, Keow Ngang. T,2013, Internal control management in budget of basic school under the office of Kalasin Primary Educational Service Area, Procedia - Social 
Governmental Accounting
Volume 7, Issue 1 - Serial Number 13
January 2021
Pages 177-192

Files

History

  • Receive Date: 06 April 2019
  • Revise Date: 29 January 2021
  • Accept Date: 29 January 2021

Share

How to cite

Statistics