THE IMPACT OF TOLERANCE FOR AMBIGUITY AND THE MODERATING EFFECT OF ATTITUDE TOWARDS CHANGE ON THE ADOPTION OF PERFORMANCE-BASED BUDGETING SYSTEM

Abstract

This paper aims to examine the impact of tolerance for ambiguity on the adoption of Per-formance-Based Budgeting (PBB) in Libyan higher learning institutions. It also examines the moderating role of attitude towards change on the relationship between tolerance for ambiguity and the adoption of Performance-Based Budgeting System (PBBS). The data is obtained from a survey of 432 respondents comprising: financiers, accountants and policy makers in the Libyan higher learning institutions. Hierarchical multiple regression was used to test whether factors such as tolerance for ambiguity and attitude toward change influence the adoption of PBBS. The findings provide support for the hypothesized negative relationship between the adoption of PPBS and tolerance for ambiguity and the importance of attitude toward change as a moderating variable. Keywords: performance-based budgeting, adoption theory, psychology theory and planning behavior