Does the concept of value for money increase budget performance?
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DOIhttp://dx.doi.org/10.21511/pmf.14(1).2025.01
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Article InfoVolume 14 2025, Issue #1, pp. 1-12
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The aim of this study is to assess the factors affecting budget performance through the concept of value for money. This quantitative study uses a rating scale and a survey. The samples included 426 government officials from 43 regional organizations in Makassar City, South Sulawesi Province, Indonesia. The final sample size was 153 respondents. According to the results, participatory budgeting (β = 0.190; p-value = 0.017 < 0.05), budget goal clarity (β = 0.428; p-value = 0.000 < 0.05), and commitment (β = 0.339; p-value = 0.000 < 0.05) have a direct impact on budget performance. As a moderating variable, organizational culture affected participatory budgeting (β = 0.047; p-value = 0.004 < 0.05), budget goal clarity (β = 0.091; p-value = 0.000 < 0.05), and commitment (β = 0.066; p-value = 0.000 < 0.05). Moreover, motivation, as a moderating variable, affected participatory budgeting (β = 0.041; p-value = 0.019 < 0.05), budget goal clarity (β = 0.078; p-value = 0.000 < 0.05), and commitment (β = 0.070; p-value = 0.000 < 0.05). This study offers significant implications for local government officials in selecting the most effective variables to improve budget performance. For policymakers, the findings suggest supporting skill optimization to carry out government tasks. Finally, it is necessary to reconsider the approach to training the local government staff.
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JEL Classification (Paper profile tab)M41, M48, H61
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References47
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Tables7
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Figures1
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- Figure 1. Theoretical framework
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- Table 1. Descriptive statistics
- Table 2. Determinant coefficient before interaction
- Table 3. Determinant coefficient after interaction with organizational culture
- Table 4. Determinant coefficient after interaction with motivation
- Table 5. F test results (ANOVA)
- Table 6. Multiple regression results before interacting with moderating variables
- Table 7. Multiple regression results after interacting with the moderating variables (organizational culture and motivation)
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