Influence of Budgetary Support and Teamwork on Organizational Commitment and Performance: Evidence from Malaysia and the United States

Abstract

This study examines how budgetary support (BS), teamwork, and organizational commitment to employees (OCE) affect firm performance across two countries, Malaysia and the United States. By surveying senior managers of 165 small and medium enterprises, this study finds that teamwork and BS each has a direct effect on OCE and firm performance. Further, results indicate that OCE mediates the relationship between BS, teamwork, and firm performance. In Malaysia, but not in the United States, we find that teamwork affects performance directly. In the United States, but not in Malaysia, we find that BS affects performance, and there is an interaction effect between BS and management influence. We attribute the effects to the different national cultures and social-exchange relations and highlight the contributions to the budgeting research, organizational commitment literature, and to practice.