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The effect of trust, budget participation and empowerment on organizational performance
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School.
2016 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

There is an ongoing discussion about trusts significance and role in the reliance on accounting performance measures (RAPM) field and organizational behavior. This knowledge gap has led to opposite findings but still many researchers give recognition to the concept that trust may be crucial and significant in management control. Considering previous research a continuation is necessary and since it seems that the researchers have come to an impasse, it is time to include different variables that can help to explain the variation in the relationship.

The main purpose of this study is to challenge the research gap and change the dependent variable; instead of behavioral outcome this study investigates performance. Is it possible that mutual trust, high budget participation and empowerment together have an impact on organizational performance? If so, is it possible that these variables together can lower the information asymmetry and increase performance?

A qualitative research method is used to investigate these questions in form of a critical incident survey and semi structured interviews. To test if there is any connection or correlation between the variables a supportive correlation analysis is conducted in the program SPSS.

The results have shown that there is a connection and correlation between the variables trust, budget participation and empowerment. When these variables function together it is possible to see a greater organizational performance. When there is mutual trust and high budget participation there is more willingness to disclose information directly.

This study has contributed to the current knowledge gap and provided new theoretical and empirical insight.

Keywords: Trust, budget participation, empowerment, information asymmetry, organizational performance.

Place, publisher, year, edition, pages
2016. , p. 53
Keyword [en]
Trust, budget participation, empowerment, organizational performance
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-48039OAI: oai:DiVA.org:kau-48039DiVA, id: diva2:1077527
Subject / course
Business Administration
Educational program
Programme in Business and Economics
Supervisors
Examiners
Available from: 2017-02-28 Created: 2017-02-28 Last updated: 2017-02-28Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
  • html
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  • asciidoc
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