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

35 Pages Posted: 5 Apr 2006  

Sakthi Mahenthrian

Butler University

Ben S. Liu

Butler University

Zalina Hashim

Universiti Tenaga Nasional

Date Written: 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.

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

JEL Classification: M41

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: https://ssrn.com/abstract=893462 or http://dx.doi.org/10.2139/ssrn.893462

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

Paper statistics

Downloads
282
Rank
87,845
Abstract Views
1,937