THE EFFECT OF BUSINESS UNIT STRATEGY AND DIVERSIFICATION ON BUDGETARY SLACK; The Moderating Roles of Manager's Value Orientation towards Innovation and Power Distance

Fuad, Fuad (2004) THE EFFECT OF BUSINESS UNIT STRATEGY AND DIVERSIFICATION ON BUDGETARY SLACK; The Moderating Roles of Manager's Value Orientation towards Innovation and Power Distance. Masters thesis, Program Pascasarjana Universitas Diponegoro.

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Abstract

The main purpose o this study is to figure out the best fit model of determinants of budgetary slack. The exogenous variables - business unit strategy and diversification - were plotted in the budgetary slack through the endogenous variables; budget emphasis and incentive system. The moderated roles of power distance and value orientation towards innovation were then tested in the relationship between budget emphasis and budgetary slack and incentive system and budgetary slack, respectively. A hundred and one usable responses from the independent-subsidiaries companies were gathered and analyzed by Structural Equation Modeling and Moderated Regression Analysis. Although the data were un-normal, the bootstrapped method shows the harmless of the bias that might presence. Since the modified observed variables have shown the best fit model in this study, they were employed to examine the relationship of the variables hypothesized. The study mainly reveals that while both diversification and business unit strategy significantly affect budgetary slack and indirectly through budget emphasis, the intervening variable incentive system is insignificantly affect the presence budgetary slack in all the exogenous variables.

Item Type:Thesis (Masters)
Subjects:H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:Postgraduate Program > Master Program in Accounting
ID Code:10119
Deposited By:Mr UPT Perpus 2
Deposited On:05 May 2010 15:45
Last Modified:05 May 2010 15:45

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