Budgeting Practices and Performance in Small Healthcare Businesses

44 Pages Posted: 25 Nov 2009

See all articles by Robyn King

Robyn King

University of Queensland - Business School

Peter Clarkson

University of Queensland - Business School; Simon Fraser University (SFU) - Beedie School of Business; Financial Research Network (FIRN)

Sandra Wallace

College of Business, Law and Governance

Date Written: November 24, 2009

Abstract

We present evidence linking primary healthcare business characteristics, budgeting practices, and business performance. Based on a sample of 144 responses from a survey of members of the Australian Association of Practice Managers (AAPM), we find that factors identified by contingency-based research are useful for predicting a business’s budgeting practices. Specifically, we find the adoption of written budgets to be related to size and structure, and for businesses using written budgets, the extent of use is related to business structure, strategy and perceived environmental uncertainty. Finally, we find evidence of a relationship between budgeting practice and performance. Here, we initially find a business’s performance to be positively associated with the use of written budgets. More refined tests of the “fit” between business contingency factors and extent of operating budget use then provide evidence of a positive association between the extent of “fit” and performance.

Keywords: Budgeting, SME, Healthcare Businesses

JEL Classification: M40, M46

Suggested Citation

King, Robyn and Clarkson, Peter and Wallace, Sandra, Budgeting Practices and Performance in Small Healthcare Businesses (November 24, 2009). Management Accounting Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1512242

Robyn King

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Peter Clarkson (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Colombia V5A 1S6
Canada

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Sandra Wallace

College of Business, Law and Governance ( email )

Townsville, Queensland 4811
Australia

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