Title: Budgetary control, corporate culture and performance of small and medium enterprises (SMEs) in Malaysia

Authors: Ruhanita Maelah; Nor Hadza Nor Yadzid

Addresses: School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia ' Faculty of Accountancy, Poly-Tech MARA College, Sekyen 14, Jalan Teras Jernang, 43650 Bandar Baru Bangi, Selangor, Malaysia

Abstract: Small and medium enterprises (SMEs) play an important role in the economic development of Malaysia as they represent 99.2% of businesses in this country. This study attempts to determine the relationship between budgetary control tightness and organisational performance with corporate culture as the moderating variable among SMEs in Malaysia. The study found that budgetary control tightness has positive relationship with performance. Further tests found that budgetary control tightness resulted in low performance for consensual, entrepreneurial and competitive cultures. As for bureaucratic culture, budgetary control tightness does not result in high organisational performance. Practically, the study highlights to the management the importance of budgetary control and corporate culture on performance. Theoretically, this study contributes in the areas of accounting and management control system, especially in the scope of SMEs. Limitations of the study include the regional scope of study and its focus on existing corporate culture.

Keywords: budgetary control; culture; SMEs; small and medium enterprises.

DOI: 10.1504/IJGSB.2018.091831

International Journal of Globalisation and Small Business, 2018 Vol.10 No.1, pp.77 - 99

Received: 10 Nov 2016
Accepted: 12 Oct 2017

Published online: 18 May 2018 *

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