Standardized strategy, budget participation through information technology for communication on company performance; A case study of the hospitality industry Indonesia

Abstract

This study analyzes the impact of standardized strategy interpretation processes on company performance and budget participation mediated by information technology for communication to drive budget performance. It uses 135 questionnaire data distributed to cross-functional managers in several hotel companies in Surabaya, East Java Province, Indonesia, using a structural equation model that produces findings that directly and indirectly affect company performance and budget participation. This study expands the literature on economic impact from the point of view of strategic performance appraisal in budgeting and some of the situations that affect firm performance. This research also reveals that correctly interpreting and implementing strategies will reduce managers' distortion in setting targets to encourage budget effectiveness, ultimately creating good company performance.