The effect of budgetary participation on procedural justice perception and goal commitment: evidence from Algeria

Mekeddem, Mostapha; Daddi Addoun, Nacer

مجلة رؤى اقتصادية
Volume 14, Numéro 2, Pages 129-141
2024-12-31

The Effect Of Budgetary Participation On Procedural Justice Perception And Goal Commitment: Evidence From Algeria

Authors : Mekeddem Mostapha . Daddi Addoun Nacer .

Abstract

This paper examines the motivational role of budgetary participation. Based on prior literature, budgetary participation should enhance managers’ commitment to achieving their organisational goal. Also, managers’ perception of procedural justice is identified as a mediator that could possibly explain such relationship. Using survey data collected from 124 middle-level managers of industrial firms in Algeria, PLS-SEM results show that budgetary participation enhances managers’ goal commitment indirectly through the mediating role of procedural justice perceptions. However, this mediation is only partial, as we find that budgetary participation still influences managers’ goal commitment directly after considering the effect of procedural justice perceptions. These findings are consistent with the extant literature and can guide top management on how to design their management control systems.