Moderating Perspective of Organizational Culture: Leadership Style and Obedience Pressure on Budgetary Slack
Authors: Agustina Heni , Elfita Rizki Amalia , Zhulqurnain Mohamad Rijal Iskandar , Arif Donny , Primasari Niken Savitri 
Published: April 2024

This research examines the impact of leadership style and obedience pressure on budgetary slack, with organizational culture as a moderating variable. By employing a descriptive quantitative approach, the study investigates how these factors interact within organizations to influence the practice of intentional budgetary slack creation. A sample of 110 accounting students who have taken professional and business ethics courses was analyzed, providing significant insights into the dynamics between leadership, obedience pressure, and budgetary slack.

Objective: This research aims to determine the extent to which leadership style and obedience pressure influence budgetary slack and how organizational culture moderates this relationship. It seeks to contribute to understanding budget management within companies, particularly the factors that encourage or mitigate the creation of budgetary slack.

Theoretical Framework: This study is grounded in theories related to leadership styles, organizational culture, and budgetary practices. It examines the concept of budgetary slack within the framework of obedience pressure and leadership influence, highlighting the role of organizational culture as a potential moderating factor.

Method: The research adopts a descriptive quantitative method, with a population comprising all accounting students who have completed professional and business ethics courses. A total of 110 students were sampled for the study. Data were collected and analyzed to assess the relationships between leadership style, obedience pressure, budgetary slack, and the moderating role of organizational culture.

Results and Discussion: The findings indicate that obedience pressure and leadership style positively and significantly impact budgetary slack. Additionally, organizational culture was found to moderate the relationship between leadership style and budgetary slack. However, it does not moderate the impact of obedience pressure on budgetary slack. These results are discussed in the context of existing theoretical frameworks and previous studies.

Research Implications: This study offers practical and theoretical implications for understanding and managing organisational budgetary slack. It highlights the importance of considering organizational culture and leadership style to control or leverage budgetary slack for organizational benefit. This research contributes to the literature by exploring the moderating role of organizational culture in the relationship between leadership style, obedience pressure, and budgetary slack. It provides new insights into how organizational dynamics influence budget management practices, offering valuable implications for both academic research and practical management.

Originality/Value: This research contributes to the literature by exploring the moderating role of organizational culture in the relationship between leadership style, obedience pressure, and budgetary slack. It provides new insights into how organizational dynamics influence budget management practices, offering valuable implications for both academic research and practical management.