Abstract

http://ssrn.com/abstract=893462
 
 

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The Role of Organizational Culture, Budgets and Trust in Restructuring Sales Outlets in Asia


Sakthi Mahenthrian


Butler University

Ben S. Liu


Butler University

Zalina Hashim


Universiti Tenaga Nasional

February 2006


Abstract:     
This is an empirical study of the relations between organizational culture, supervisors' budgetary style, subordinates' autonomy, the level of trust between supervisor-subordinate and how they affect sales growth. Given these variables important to the success of restructuring following privatization, we develop five hypotheses in a conceptual framework. They are tested using survey data from 148 respondents from telecommunication and electric companies in an Asian country. We find that culture affects subordinate's autonomy and budgetary style affects the supervisor's trust in subordinates. Further, trust congruence influences subordinate's autonomy that interacts with outlet's importance to affect sales growth. The results suggest that adjustment to structure and evaluation systems have to be made so that supervisors will adapt a profit conscious budgetary style and subordinates value greater autonomy.

Number of Pages in PDF File: 35

Keywords: Trust, Culture, Budgetary control, Performance, Organizational governance, Asia

JEL Classification: M41

working papers series


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Date posted: April 5, 2006  

Suggested Citation

Mahenthrian, Sakthi and Liu, Ben S. and Hashim, Zalina, The Role of Organizational Culture, Budgets and Trust in Restructuring Sales Outlets in Asia (February 2006). Available at SSRN: http://ssrn.com/abstract=893462 or http://dx.doi.org/10.2139/ssrn.893462

Contact Information

Sakthi Mahenthrian (Contact Author)
Butler University ( email )
4600 Sunset Avenue
Indianapolis, IN 46208
United States
Ben S. Liu
Butler University ( email )
4600 Sunset Avenue
Indianapolis, IN 46208
United States
Zalina Hashim
Universiti Tenaga Nasional ( email )
43009 Kajang, Selangor
Malaysia
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