The Impact of Business Strategy on Budgetary Control
- Details
- Category: Department of Accounting
- Published: Sunday, 08 April 2012 03:00
- Written by Wa´el Abdelfattah AL-Saraireh
- Hits: 3754
ABSTRACT
The Impact of Business Strategy on Budgetary Control System Characteristics
In Jordanian Manufacturing Companies
Wa´el Abdelfattah AL-Saraireh
Mu'tah University, 2011
This research aims at determining budgetary control system characteristics (i.e. practices and usages), and investigating the impact of business strategy on budgetary control system characteristics in Jordanian manufacturing companies.
A survey methodology was utilized using questionnaires to gather data from eighty one Jordanian manufacturing companies listed in Amman Stock Exchange. A total of sixty four usable questionnaires were received and were used for data analysis. Descriptive and regression analyses were used to achieve the research objectives.
The main findings of the descriptive analysis reveal that Jordanian manufacturing companies use budgets in a traditional fashion for performance evaluation and allocating resources rather than for planning, learning and debating ongoing activities and decisions.
The findings also reveal that only low cost strategy has a significant impact on budgetary usages and practices in the Jordanian manufacturing companies.
The findings of this research raise important issues and implications for management accounting researchers and practitioners that is hoped to enhance knowledge on budgetary control system characteristics in Jordanian manufacturing companies.