Does Beyond Budgeting Enabler of Company Performance

Does Beyond Budgeting Enabler of Company Performance

Purpose: This study investigates the most enabler between beyond budgeting and organizational learning on com-pany performance, mediated by competitive advantage. Design/methodology/approach: Using survey data of 328 companies from 9 industrial sectors of the Indonesia Stock Exchange, this study employs structural equation regression model, sensitivity test and expansion test with Amos, to ensure robust results. Findings: The results show that beyond budgeting and organizational learning capability have a direct influence on company performance. Beyond budgeting is the best enabler of company performance, followed by organiza-tional learning capability. Competitive advantage partially mediates the effects of beyond budgeting and organiza-tional learning capabilities on company performance. Research limitations/implications: Practical implications show cost efficiency increases competitiveness, which ultimately impact on improving company performance. Risk awareness is important to mitigate the risk of the budget. Green budget allocation increases the company's competitiveness to meet sustainability commitments. Limitations of this study show that respondents were not yet familiar with the term beyond budgeting. Future research suggests enhancing training on beyond budgeting in society and exploring other variables such as cost advantage in the next research. Originality/value: The first study that contributes to the development of the beyond budgeting theory by three new indicators, namely risk assessment, cybersecurity, and green budgeting.