Overview

Original Research

DOES SOCIAL EXCHANGE AFFECT BUDGET REVISION DECISION-MAKING?

DIAN INDUDEWI (1), RAHMAWATI RAHMAWATI (2), AGUNG NUR PROBOHUDONO (3) and MUTHMAINAH MUTHMAINAH (4)

Vol 17, No 05 ( 2022 )   |  DOI: 10.5281/zenodo.6582874   |   Author Affiliation: (1) Student in the Doctoral Program of Economics Science, University of Sebelas Maret, Indonesia; (2,3,4) Faculty of Economics and Business, University of Sebelas Maret, Indonesia   |   Licensing: CC 4.0   |   Pg no: 32-45   |   To cite: DIAN INDUDEWI et al., (2022). DOES SOCIAL EXCHANGE AFFECT BUDGET REVISION DECISION-MAKING?. Seybold Report, 17(05), 32–45. https://doi.org/10.5281/zenodo.6582874   |   Published on: 25-05-2022

Abstract

Decision-making during budget revision is crucial because it is critical in determining the success of organizational performance. Revision in the budget can bring up potential changes to the agreement among budget actors that already settled during the budget preparation. The problem can arise when each budget actor tries to defend his/her unit's interests or interests. Social exchange theory is useful to disclose the exchange during budget revision. The results using PLS-SEM show some essential findings. First, the social exchange measured with trust and high context culture positively affects budget revision decision-making. Second, trust and high context culture mediate the relationship between initial budget and budget revision decision making. Meanwhile, the norm of reciprocity does not influence budget revision and does not mediate the relationship between initial budget and budget revision decision-making. This research contributes to the application of social exchange theory in accounting research especially decision making during budget revision.

Keywords

a norm of reciprocity, trust, decision making, initial budget, budget revision, distribution management.