Can Psychological Capital, Leadership Style, and Environmental Complexity Lower The Company's Budget Game?,

European Journal of Buiness and Innovation Research, Vol.9, No.3, pp.17-37, 2021

21 Pages Posted: 14 Aug 2021

See all articles by Hendra Setiawan

Hendra Setiawan

Trisakti University

Etty Murwaningsari

Faculty of Economics and Business, Universitas Trisakti, Indonesia

Yvonne Augustine

Trisakti University

Harti Budi Yanti

Trisakti University

Date Written: July 18, 2021

Abstract

Budget games almost happen to all companies in this world, be it government companies or private companies. This budget game is very detrimental and can reduce the performance of the company. Therefore, the company must make various efforts so that the budget game does not occur because it is very detrimental. This study will analyze the effect of psychological capital, leadership style, and environmental complexity on budget gaming. This study uses a sample of 125 respondents spread across various types of manufacturing sub-industry in Indonesia. The research method used is verificative research and is explanatory research with an analytical method using Structural Equation Modeling (SEM) using variance-based analysis techniques, namely Partial Least Square (PLS). The test results show that psychological capital has a negative effect on the gaming budget of -0.339, leadership style has a negative effect on the gaming budget of -0.25, and environmental complexity has a negative effect on the gaming budget of -0.236. This shows that with the existence of psychological capital, leadership style, and environmental complexity in manufacturing companies in Indonesia, it will be able to reduce the occurrence of budget gaming in these companies.

Keywords: psycology capital, leadership style, environmental complexity, and budget gaming

Suggested Citation

Setiawan, Hendra and Murwaningsari, Etty and Augustine, Yvonne and Yanti, Harti Budi, Can Psychological Capital, Leadership Style, and Environmental Complexity Lower The Company's Budget Game?, (July 18, 2021). European Journal of Buiness and Innovation Research, Vol.9, No.3, pp.17-37, 2021, Available at SSRN: https://ssrn.com/abstract=3888927

Hendra Setiawan (Contact Author)

Trisakti University ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Etty Murwaningsari

Faculty of Economics and Business, Universitas Trisakti, Indonesia ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Yvonne Augustine

Trisakti University ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Harti Budi Yanti

Trisakti University

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

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