RELATIONSHIP BETWEEN BUDGET UTILITIES AND ORGANIZATIONAL PERFORMANCE MEDIATED BY DYNAMIC CAPABILITIES
DOI:
https://doi.org/10.14392/asaa.2022150305Abstract
Objective: Resource-based Theory (RBT) understands that management control, like the corporate budget, is used as a resource to influence the employee to implement the strategy, which leads to higher performance. This study aims to analyze the relationship between the level of utility of the budget and organizational performance, mediated by the dynamic capacities of entrepreneurship, innovation, organizational learning and market orientation.
Method: A survey was carried out with 200 middle- and high-level managers from the agribusiness organizations that produce grain in Brazil. Structural equation modeling was applied to the collected data, using the Partial Least Squere (PLS).
Findings: The results suggest that planning and dialogue budget utilities influence dynamic capabilities. In relation to the mediation test, it was found that dynamic capabilities mediated the relationship between the level of budget utility and organizational performance.
Contributions: It has been empirically demonstrated that the budget has multiple uses. From this, other priorities can emerge, such as the induction of goals, the instigation of creativity, entrepreneurship and organizational learning, which are a source of competitive advantage as an implication in the practical field, evidence from empirical research can contribute to raising discussions such as the Budget can help agribusiness managers and directors to better understand their role beyond traditional utilities and that have a broader scope.
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