Abstract
Purpose – This study aims to investigate the relationships among budget emphasis, budget
planning models, and performance, to determine whether an emphasis on the budget has indirect
effects on performance, in the presence of other budget planning characteristics as mediators.
Design/methodology/approach – A questionnaire survey was conducted and structural equation
modeling was used to test the proposed models among the constructs and related hypotheses.
Findings – The results indicate that while budget planning models entirely mediate the influence of
budget emphasis on the performance of management and the organization, they partially mediate the
influence of budget emphasis on budget satisfaction. In addition, it is determined that differentiation
strategies have a significantly positive influence on budget emphasis, budget planning models and
performance.
Originality/value – The results of this study provide a reference for organizations in the design of
budgeting systems. During the design process, budget planning models should consider the degree of
emphasis an organization places on the budget.
Keywords Budget emphasis, Budget planning models, Differentiation strategies, Budget performance,
Taiwan, Budgets, Management strategy
Paper type Research paper