Title: Critical success factors for budgeting systems in the German context: an empirical analysis

Authors: Julia Kornacker, Peter Schentler, H. James Williams, Jaideep Motwani

Addresses: Technical University of Dortmund, Dortmund, 44137, Germany. ' Strascheg Institute for Innovation and Entrepreneurship, EBS Universitat fur Wirtschaft und Recht, Oestrich-Winkel, 65375, Germany. ' Seidman College of Business, Grand Valley State University, Grand Rapids, MI 49504, USA. ' Seidman College of Business, Grand Valley State University, Grand Rapids, MI 49504, USA

Abstract: In recent years, the contribution of budgeting to corporate success is being questioned. In spite of this criticism, scholars have hardly presented any context-specific and integrated recommendations about how to design budgeting systems. Instead, most suggestions are mere descriptions of individual aspects which are often based on anecdotal evidence only. This paper provides empirical findings on how companies in Germany organise their budgeting systems and which success factors contribute to an effective and efficient budgeting system. The paper is based on a case study approach. First, four budgeting types are compiled based on an extensive literature review. Second, 12 case studies are used to analyse the configuration of budgeting systems in Germany in order to detect context-specific strengths and weaknesses and to provide recommendations for improvement. The results confirm the four different budgeting types. Their specific configuration is contingent upon company size and rivalry of the industry. The findings provide insights into how to adjust a company|s budgeting system to context-specific requirements. Furthermore, it supports managers in the analysis of their budgeting systems and reveals areas for improvement.

Keywords: budgeting systems; budgeting type; contingency factors; critical success factors; CSFs; Germany.

DOI: 10.1504/IJBEX.2011.042903

International Journal of Business Excellence, 2011 Vol.4 No.6, pp.621 - 644

Available online: 08 Oct 2011 *

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