Budgetary participation effectiveness and firm survival: Evidence from food manufactoring businesses in Thailand

Abstract

This research aims to investigate the effects of budgetary participation effectiveness on firm survival through mediating influences of business excellence, uncertainty reduction, and collaboration encouragement. Budgetary participation effectiveness consists of operational practice efficiency, resource allocation justice, performance evaluation fairness and business goal congruence. Data were collected by survey questionnaires administrated to the accounting managers of the food industry in Thailand. 72 completed questionnaires are used in the analysis. The results of OLS regression analysis show performance evaluation fairness and business goal congruence have a significant positive effect on business excellence, uncertainty reduction, collaboration encouragement. Moreover, business excellence, uncertainty reduction, and collaboration encouragement have significant positive effects on firm survival. Likewise, teamwork experience is moderator of performance evaluation fairness positive effect on business excellence. In contrast, teamwork experience moderator of business goal congruence and collaboration encouragement negative relationship. The implication, suggestions for further research, and limitations are discussed.