IJSSH 2013 Vol.3(4): 396-400 ISSN: 2010-3646
DOI: 10.7763/IJSSH.2013.V3.269

Cognitive Effects in the Relationship between Budgetary Participation and Job Performance: A Case Study of Manufacturing Industry in Banten, Indonesia

Imam Abu Hanifah
Abstract—The study focused on budgetary participation in manufacturing companies in Banten Province, Indonesia. The purpose of the study is to find empirical evidence on the cognitive effects of information acquired by local managers related to budgetary participation and job performance. The method of the study is survey method. The sample of the study consisted of 178 middle-level managers of large-scale manufacturing in Banten. The result of the study showed that asymmetry information affects budgetary participation and budgetary participation influence on performance through job relevant information. These findings give some inputs to the company's management when the local information from subordinate is more complete than the superior information. Therefore, the company should open enough space to involve subordinates in the budgeting process. By providing the opportunity to participate in the preparation of the budget, local information obtained will be taken into consideration in deciding the budget.

Index Terms—Asymmetry information, budgetary participation, job relevant information, job performance.

Imam Abu Hanifah is with Accounting Department at Sultan Ageng Tirtayasa University, Indonesia (e-mail: imamabuhanifah@gmail.com).

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Cite:Imam Abu Hanifah, "Cognitive Effects in the Relationship between Budgetary Participation and Job Performance: A Case Study of Manufacturing Industry in Banten, Indonesia," International Journal of Social Science and Humanity vol. 3, no. 4, pp. 396-400, 2013.

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