The interaction between motivational disposition and participative budgeting: Evidence from a bank

Abstract

Purpose – The purpose of this paper is to report the findings of a study of how dispositional factors of motivation rooted in personality interact with participative budgeting to affect budget goal commitment.Design/methodology/approach – The study is based on a survey among bank managers from a Scandinavian regional bank. To assess the motivational disposition of the bank managers, the short version of the multi‐motive grid test (MMG‐S) is used. The management accounting variables are measured by traditional and well‐tested instruments.Findings – The results indicate that the effect of increased budgetary participation on budget goal commitment is largest for subordinates with a high need for power or a low need for affiliation. For subordinates with a low need for power or a high need for affiliation the effect of budgetary participation is small.Research limitations/implications – The study confirms that the interaction between personal‐level psychological variables, e.g. motives, and situational varia...