Do mental model and creativity help employees to improve their job performance from their participation in the budgeting?

Abstract

The purpose of this study is to examine the role of budgetary participation of employees in boosting their performance and through mental model and individual creativity. To address this research question, the study conducts a survey among 78 municipal officers from Lampung regional province using smartPLS method. The study shows that budgetary participation could improve individual performance through mental model building and individual creativity. The direct correlation between budgetary participation and individual performance could be proved statistically. The study reveals that budgetary participation could improve mental model building which in turn will boost individual creativity and performance. This research is the first to empirically examine the positive effect of mental model and creativity for the positive correlation between participation in decision making and individual performance in municipal government.