Behavioural aspects of budgeting and job performance: A conceptual model with organisational culture as a moderator

Abstract

This study develops a conceptual model examining the relationship between behavioural aspects of budgeting and job performance, with organisational culture proposed as a moderating variable. It focuses on four behavioural budgeting dimensions, namely budgetary participation, budgetary goals, motivation, and budgetary slack, and draws on agency theory, expectancy theory, budgetary goal theory, and contingency theory to explain their influence on job performance. Organisational culture is incorporated as a moderator on the premise that strong cultures foster trust, goal congruence, and reduced agency conflicts, whereas weak cultures are more likely to encourage dysfunctional budgeting behaviour. Based on an extensive review of the literature, the study proposes a conceptual framework and eight testable hypotheses linking behavioural budgeting factors, organisational culture, and job performance. The framework offers a theoretical basis for understanding these interrelationships, though it requires empirical validation using real workplace data before practical conclusions can be drawn. Future research is encouraged to test the proposed model across diverse organisational and business contexts to assess its robustness and generalisability.