Masnawaty Sangkala, Che Zuriana Bt. Muhammad Jamil, Hasnah Kamardin
In the literature, the field study result of budget participation and budget slack was not actually consistent. The inconsistency evidence may reflect the influence of contingency variables. The purpose of the present study is to examine the relationship between budget participation and budget slack, moderated by diagnostic control system and belief control system. In this study, sample of the study is 140 functional managers of Indonesian manufacturing companies. The results of this study, shows that budget participation and budget slack have negative relationship. The result also shows that diagnostic control system and belief control system as individual contingent variables moderate significantly the effect of relationship between budget participation and budget slack. One of the main contributions of the study was its ability to demonstrate that more diagnostic control system and belief control system individually lead to a significant decrease in the amount of budget slack. © 2014 Taylor & Francis Group.
Makassar State University (UNM), Indonesia; College of Business, Universiti Utara Malaysia, Malaysia; Universiti Utara Malaysia (UUM), Malaysia
