The Interactive Effects of Superior Trust and Subordinate Involvement in Decision Making on Budget Gaming and Budget Value

Hijira, Rifal and SeTin, SeTin (2021) The Interactive Effects of Superior Trust and Subordinate Involvement in Decision Making on Budget Gaming and Budget Value. In: 1st International Conference on Emerging Issues in Humanity Studies and Social Sciences, 1-2 July 2021, Bandung.

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Abstract

This study aims to investigate if the interaction between superior trust and subordinate involvement in decision making has an impact on budget gaming and budget value. A survey questionnaire was conducted and 145 Indonesian managers from manufacturing companies answered-questionnaire. Partial Least Square was used to test the hypotheses. Results indicate that superior trust has a negative effect on budget gaming. The finding suggests that superior trust is stronger in reducing the budget gaming when interacting with subordinate involvement in decision making. In contrast, the relationship between superior trust that interacts with subordinate involvement in decision making and budget value is insignificant. The results also indicate that superior trust has a positive effect on budget value. We also find that the budget gaming significantly mediates the relationship between superior trust and budget value. Specifically, the results find that budget gaming significantly mediates the relationship between budget value and superior trust that interacts with subordinate involvement in decision making. The study provides empirical evidence on how the interactive between superior trust and subordinate involvement in decision making can be stronger in reducing budget gaming behaviour and increasing budget value compared to if there is no involvement of subordinates in decision making.

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Conference or Workshop Item (Paper)

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