Feedback orientation, satisfaction with system feedback reporting and budget performance
This paper examines how feedback orientation affects budgetary performance, and how this relationship operates indirectly via feedback satisfaction. Hypotheses were tested using data collected by a survey administered to 70 budget holders, and a structural equation model with partial least square approach was employed for statistical computation. The results indicate that feedback orientation positively affects feedback satisfaction and budgetary performance. In addition, feedback satisfaction has a direct influence on budgetary performance and mediates the feedback orientation-budgetary performance relationship. These findings are discussed in relation to theory and their managerial implications. In particular, organizations that aim at ensuring the success of the feedback process should support the emergence of employees’ feedback receptivity by workplace interventions that contribute to the emergence of positive feelings of satisfaction with feedback information which, in turn, positively impact on budgetary performance.
Keywords: Feedback orientation, Satisfaction with feedback, Budgetary performance, Reporting system
