Abstract:
The isssue of whether budget I'urlicipaliori increase in(tnii\^eruil i'erforiniiiu e hii\
(illrd'led die iiilen'sl of iiniiiv /•.•srr//(7/<v.s Ihiwevi'r, <i\ iiidi-oinl l>i i, MUIII hiT\ /'r/'"''.
thus far studies examining the impact of participation on hiana^eruil /)ei/oriiunice has
not produced c<msistent resuUs. Several study found that punicipation reduce managerial
performance, while others found that participation increased iiiaiuiy^eruil perl<irinance.
Adopting a Conlin}i,ency Approach, this study argues that the <•//•'<v ^>f
participation on Mana^^erial Performance is affected hy other factor. In parliciilar, lhi\
study examined the extent to which paternalistic culture moderated the relationsliif>
between participation and Managerial rerformance. It is liypotesized that, in situation of
high paternalistic culture, participation reduces managerial perjormance, hut in
situation of low paternalistic culture, participation increases managerial performance.
The results shows that paternalistic culture moderated the relationship between
palricipation and managerial performance.
