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Beyond Budget Rationalities: the Social Structure of Performance Budgeting and Its Indirect Effects on Organizational Performance Within Public Organizations

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Beyond Budget Rationalities: the Social Structure of Performance Budgeting and Its Indirect Effects on Organizational Performance Within Public Organizations View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by KU ScholarWorks BEYOND BUDGET RATIONALITIES: THE SOCIAL STRUCTURE OF PERFORMANCE BUDGETING AND ITS INDIRECT EFFECTS ON ORGANIZATIONAL PERFORMANCE WITHIN PUBLIC ORGANIZATIONS BY Copyright 2009 Robert K. Nye Submitted to the graduate degree program in Public Administration and the Graduate Faculty of the University of Kansas in partial fulfillment of the requirements for the degree of Doctor of Philosophy Committee: ____________________________________ Chairperson* ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ Date Defended: The Dissertation Committee for Robert K. Nye certifies That this is the approved version of the following dissertation BEYOND BUDGET RATIONALITIES: THE SOCIAL STRUCTURE OF PERFORMANCE BUDGETING AND ITS INDIRECT EFFECTS ON ORGANIZATIONAL PERFORMANCE WITHIN PUBLIC ORGANIZATIONS Committee: ____________________________________ Chairperson* ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ Date Approved: ii Table of Contents Table of Contents ........................................................................................................................... iii Illustrations ................................................................................................................................... vi Acknowledgements ...................................................................................................................... viii Abstract .......................................................................................................................................... xi Chapter 1 – Introduction ..................................................................................................................1 Performance: The Latest Reform ...............................................................................................2 Theoretical Approach.................................................................................................................7 Economic Sociology ..................................................................................................................9 Expected Contributions ............................................................................................................13 Summary ..................................................................................................................................14 Notes ........................................................................................................................................16 Chapter 2 – Origins of Modern Performance Budgeting ...............................................................17 From Origins to Evolution: Reform Innovations Are Not Static ............................................22 Performance Budgeting: Old or New? .....................................................................................28 Defining Performance Budgeting ............................................................................................35 Contemporary Budgeting…..Or Not…....................................................................................40 Revisiting Performance Budgeting’s Promise .........................................................................43 Is Performance Budgeting Reform Fading or Just Resting? ....................................................46 Notes ........................................................................................................................................50 Chapter 3 – Developing Economic Sociology Theory ..................................................................52 The Lost Art: The Management Function of Budgeting .........................................................52 Theoretical Alternatives and Approaches ................................................................................54 Developing a Starting Point for Exploring a New Alternative Budget Theory .......................59 The Indirect Approach .............................................................................................................61 Introducing Economic Sociology ............................................................................................62 Classical Economic Sociology .................................................................................................66 Embeddedness: The Springboard for New Economic Sociology ............................................78 iii The New Economic Sociology ................................................................................................85 Networks ..................................................................................................................................87 Trust and Social Capital ...........................................................................................................91 Setting the Conditions: Performance Budgeting’s New Approach .........................................95 Notes ........................................................................................................................................99 Chapter 4 – Synthesizing Performance Budgeting and Economic Sociology .............................101 Isomorphism ..........................................................................................................................104 The Meat and Potatoes: The Theoretical Synthesis ...............................................................112 The Social Construction of Budgeting ...................................................................................115 Indirect Effects and Organizational Effectiveness .................................................................126 Notes ......................................................................................................................................131 Chapter 5 – Methodology, Data Analysis and Results ................................................................132 Study Design ..........................................................................................................................132 Research Question and Hypotheses .......................................................................................134 Organizational Performance .................................................................................................135 Independent Variable Survey Questions and Measurements.................................................140 Implementation of Performance Budgeting ...........................................................................140 Information Sharing ..............................................................................................................141 Trust .......................................................................................................................................146 Budget Decentralization ........................................................................................................150 Controls ..................................................................................................................................154 Introducing Methods for Data Analysis .................................................................................156 Defining Mediating and Moderating relationships ................................................................157 Data Analysis .........................................................................................................................160 Data Preparation ....................................................................................................................163 Descriptive Statistics and Pearson Correlation Coefficients .................................................164 Model Results .......................................................................................................................165 Base Model Specifications .....................................................................................................167 Mediated Variable Findings ...................................................................................................168 iv The Persisting Potential for Mediated Findings.....................................................................169 Moderated Variable Findings ................................................................................................173 Predicted Probabilities: “The Rest of the Story” ...................................................................176 Interpretations: What Does it All Mean? ...............................................................................178 Summary ................................................................................................................................180 Information Sharing ...............................................................................................................182 Trust (Role Clarity) ................................................................................................................183 Trust (Value Congruence) ......................................................................................................183 Notes ......................................................................................................................................185
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