The Role of Organizational Culture, Budgets and Trust in Restructuring Sales Outlets in Asia
35 Pages Posted: 5 Apr 2006
Date Written: February 2006
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
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