Relationship of budget participation conflict and job performance of South Korean managers

Abstract

Purpose

The purpose of this paper is to examine the effect of budget participation conflict (BPC) on job performance and the mediating effect of job satisfaction and job tenure on this relationship in a South Korean setting. BPC is defined as the difference between a manager’s actual budget participation and the same manager’s preferred level of budget participation.

Design/methodology/approach

Survey data, analyzed using path analysis, were used to measure the direct effect of BPC on performance, and the indirect effects between BPC and performance running through job satisfaction and job tenure.

Findings

Findings suggest that BPC does not directly impact job performance. Overall, this study suggests that BPC has a negative impact on job satisfaction and that job satisfaction in turn can significantly influence job performance. The authors also find some marginal effect of job satisfaction on job tenure, implying that increasing satisfaction can marginally increase job tenure.

Research limitations/implications

Limitations of this study are those usually found in cross-sectional survey research.

Originality/value

Despite its limitations, this study has both academic and practical implications. The study adds to the job performance literature in an Asian country which has not been widely researched. The study also finds that managers’ job performance and job satisfaction can be improved by minimizing BPC. Future research should study other variables that influence job performance of South Korean managers.

Citation

Leach-López, M.A., Stammerjohan, W.W., Lee, E. and Stammerjohan, C.A. (2015), "Relationship of budget participation conflict and job performance of South Korean managers", Cross Cultural Management: An International Journal, Vol. 22 No. 4, pp. 608-629. https://doi.org/10.1108/CCM-02-2014-0026