The Effect of Participation in Budgeting and Internal Control on Managerial Performance in Traditional Market Merchants’ Association with Social Capital as Moderating Variable

Abstract

This study aims to determine the influence of budget participation and intern control through social capital as moderating variable towards the managerial performance of Asosiasi Pedagang Pasar Seluruh Indonesia (APPSI) which located in four traditional market type A in Bantul Regency namely APPSI Pasar Bantul, APPSI Pasar Imogiri, APPSI Pasar Piyungan, dan APPSI Pasar Niten. The result of this study is expected to contribute to informal organizations in the event of maximizing the activities of budget participation and intern control to be able to create a better managerial performance by applying social capital that has a decisive role in the process of institutional development. The data used in this study is primary data collected from 100 respondents who are the administrator of the APPSI in each market who have a direct role and essential responsibility to the organization. Data collection in this study using questionnaires and purposive sampling was chosen as the sampling method. This study uses multiple linear regression and interaction testing or Moderated Regression Analysis (MRA) as the analysis model, which is processed using the SPSS software application. The result of this study indicates that budget participation positively influenced organizational performance. Meanwhile, intern control does not affect organizational performance. Besides, social capital as the moderating variable significantly strengthens the positive effect of budget participation towards managerial performance. Meanwhile, social capital, as a moderating variable, does not enhance the positive influence of intern control on managerial performance.