The Influence of Budgeting Participation on Managerial Performance in Service Companies: an evidence from Indonesia

As the world is entering the globalization era, service industry is experiencing dynamic changes and growth. As a result, companies within the service industries become more and more competitive. Therefore, in order to be able to survive and expand, the companies should seek for appropriate management methods and techniques. One of the management techniques that can be utilized by the companies is budgeting. In the budgeting process, the involved parties are given certain roles to achieve the target set during budgeting process. Therefore, the managerial performance is closely related to its participation in the budgeting process. First, this research aims to study how budgeting participation influences managerial performance and job relevant information; then the influence of job-relevant information on managerial performance, and finally the influence of budgeting participation on managerial performance through job-relevant information as the intervening variable. The valid sample used in this research is 200 managers who work in various service companies in Surabaya. The analysis technique applied is Partial Least Square (PLS). The research results indicate that budgeting participation has a positive influence on both managerial performance and job-relevant information. Secondly, job-relevant information also positively influences managerial performance. Lastly, the research also shows that budgeting participation also has a positive influence on managerial performance through job-relevant information as the intervening variable