Title: Leadership style, decentralisation and managerial performance: Does the management accounting system mediate the relationship?

Authors: Andika Rante; Ari Warokka

Addresses: Faculty of Economics, Department of Accounting, Universitas Cenderawasih, Jayapura, 99358, Indonesia ' Centro Internacional "Carlos V", Universidad Autonoma de Madrid, Madrid, 28049, Spain

Abstract: This study tested the effects of leadership style and decentralisation on managerial performance. Specifically, it focused on the management accounting system (MAS) in mediating those effects. By using a sample of 39 senior government officers in the Local Government Task Force Office of Jayapura Municipality and applying a path analysis, we found that leadership style and decentralisation significantly affected managerial performance. The study also revealed that the MAS mediated this relationship. The findings imply that a participative and consultative leadership style effectively influences managerial performance. The degree and characteristics of managerial style in the MAS mediate significantly the effect of leadership style and decentralisation on managerial performance. Those findings suggest that an effective MAS plays an important role in improving and elevating managerial performance in decentralised and autonomous-based regions. In other words, an appropriate MAS implementation is a precondition for higher managerial governance and performance.

Keywords: leadership styles; decentralisation; managerial performance; management accounting systems; Indonesia; participative leadership; consultative leadership.

DOI: 10.1504/JGBA.2016.074897

Journal for Global Business Advancement, 2016 Vol.9 No.1, pp.79 - 89

Available online: 22 Feb 2016 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article