Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia

Research Article

Support for Transformational Leadership through Fairness and Accountability in the Implementation of Performance-Based Budgeting for Indonesian Private Universities

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  • @INPROCEEDINGS{10.4108/eai.10-8-2022.2320924,
        author={Erna  Handayani and Tiara  Pandansari and Mukhlis Prasetyo Aji and Sri  Wahyuni and Ira  Hapsari},
        title={Support for Transformational Leadership through Fairness and Accountability in the Implementation of Performance-Based Budgeting for Indonesian Private Universities},
        proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2022},
        month={8},
        keywords={performance-based budgeting fairness accountability transformational leadership mediation},
        doi={10.4108/eai.10-8-2022.2320924}
    }
    
  • Erna Handayani
    Tiara Pandansari
    Mukhlis Prasetyo Aji
    Sri Wahyuni
    Ira Hapsari
    Year: 2022
    Support for Transformational Leadership through Fairness and Accountability in the Implementation of Performance-Based Budgeting for Indonesian Private Universities
    ICBAE
    EAI
    DOI: 10.4108/eai.10-8-2022.2320924
Erna Handayani1,*, Tiara Pandansari1, Mukhlis Prasetyo Aji1, Sri Wahyuni1, Ira Hapsari1
  • 1: Universitas Muhammadiyah Purwokerto
*Contact email: rnahandayan1@gmail.com

Abstract

This study examines in depth the role of transformational leadership support in implementing performance-based budgeting. Used a questionnaire compiled using the dimensions for transformational leadership, and the guidelines of the Indonesian National Governance Committee to measure fairness and accountability. Data analysis with structural equation modeling (SEM) with smartPLS 3.0. The results showed positive transformational leadership support for implementing performance-based budgeting with a T-value of 1.967 > 1.96, support for fairness resulted in a T-value of 9.289 in a positive direction. The results of testing the direct effect of fairness produce a statistical T-value of 6.858.. Next is the mediating relationship between fairness and accountability variables between transformational leadership and performance-based budgeting. The results of the statistical T-value support are 5.420 for the significant transformational leadership effect on performance-based budgeting through fairness. On the other hand, the results are not significant, with a statistical T-value of 0.111 to explain the mediation relationship between accountability and transformational leadership and performance-based budgeting. The results of the overall research model are indicated by the R2 value obtained of 0.560; thus, all variables affect the implementation of the performance-based budget of private universities in Indonesia by 56%.