Budget Participation on Managerial Performance: Related Factors in that influenced to Government’s Employee (Study of Indonesian Local Government)

This study aims, first, to examine the effect of participative budget on managerial performance, and to examine the indirect effect of commitment and motivation as intervening variable. Second, it aims to examine the effect of leadership style as a moderating variable in the relationship between participative budget and commitment. The data collected by survey questionnaires. One hundred and fifteen middle level managers, who were randomly chosen from local government’s employee in Indonesia, are participated in this research. Partial least Square (PLS) to run a structural equation modeling (SEM) technique was employed to analyze the data. The finding showed that participative budget does not significantly influence managerial performance. Participative budget increases the managerial performance through the increase of commitment, which has a significant, positive effect on motivation. Furthermore motivation also has a significant, positive effect on managerial performance. Leadership style moderates the relationship between participative budget and goal commitment. Keywords: budget participation, commitment, leadership style, motivation, managerial performanc