<![CDATA[Researches about effects of participative budget on manager’sperformance have been undertaken considerably. However, the results ofwhich have been conflicting. This is due to the differences in theintervening and moderating variables used. The issue of whether higherlevels of participative budget enhance managers’ performance has beenwidely studied in the accounting literature. Current empirical findings,however, have shown that it has indirect relationship, suggesting thatbudgetary participation does not have influence manager’s performance,but rather is conditioned on other intervening variables.This study aims, first, to examine the effect of participative budgeton manager’s performance, and to examine the indirect effect of goalcommitment and motivation as intervening variable. Second, it aims toexamine the effect of leadership style as a moderating variable in therelationship between participative budget and goal commitment.The data collected by survey questionnaires. One hundred andfifteen middle level managers, who were randomly chosen from stateowned enterprises in Indonesia, are participated in this research. Partialleast Square (PLS) to run a structural equation modeling (SEM) techniquewas employed to analyze the data.The finding showed that participative budget does not significantlyinfluence manager’s performance. Participative budget increases themanagers’ performance through the increase of goal commitment, whichhas a significant, positive effect on motivation. Furthermore motivationalso has a significant, positive effect on managers’ performance.Leadership style moderates the relationship between participative budgetand goal commitment.]]>
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