Budgetary control, corporate culture and performance of small and medium enterprises (SMEs) in Malaysia

Small and medium enterprises (SMEs) play an important role in the economic development of Malaysia as they represent 99.2% of businesses in this country. This study attempts to determine the relationship between budgetary control tightness and organisational performance with corporate culture as the moderating variable among SMEs in Malaysia. The study found that budgetary control tightness has positive relationship with performance. Further tests found that budgetary control tightness resulted in low performance for consensual, entrepreneurial and competitive cultures. As for bureaucratic culture, budgetary control tightness does not result in high organisational performance. Practically, the study highlights to the management the importance of budgetary control and corporate culture on performance. Theoretically, this study contributes in the areas of accounting and management control system, especially in the scope of SMEs. Limitations of the study include the regional scope of study and its focus on existing corporate culture.