Standardization of the strategy translation process, procedural fairness in budgeting and firm performance
Wenxuan Duan, Hezun Li, Jian Sun, Guang Yang
This paper studies the effect of the standardization of the strategy translation process on procedural fairness in budgeting and firm performance. Analysis of 250 valid questionnaires using a structural equation model shows that the strategy translation process (STP) affects firm performance not only directly but also indirectly, through budget participation and procedural fairness in budgeting. This study enriches the literature on the economic consequences of strategic performance measurement systems and expands research on procedural fairness in budgeting and the factors influencing firm performance. This study shows that the standard translation and implementation of strategy will decrease managers' bias in the target-setting process, thus increasing manager's sense of fairness in the budget process and ultimately improving firm performance.
Year of publication: |
2022
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Authors: | Duan, Wenxuan ; Li, Hezun ; Sun, Jian ; Yang, Guang |
Published in: |
China journal of accounting research : CJAR. - Guang dong sheng guang zhou shi : [Verlag nicht ermittelbar], ISSN 2214-1421, ZDB-ID 2548343-2. - Vol. 15.2022, 3, Art.-No. 100254, p. 1-18
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Subject: | Budget participation | Firm performance | Procedural justice in budgeting | Strategy translation process | Kosten-Nutzen-Analyse | Cost-benefit analysis | Unternehmenserfolg | Gerechtigkeit | Justice | Öffentlicher Haushalt | Public budget | Betriebliche Budgetierung | Corporate budgeting | Haushaltsplanung | Public budgeting | Strategisches Management | Strategic management |
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