RESEARCH METHODOLOGY
3.2 Operational Definition
3.2.1 Independent Variables
An independent variable is defined as the variable that is changed or controlled in research. It represents the cause or reason for an outcome. Independent variables are the variables that the experimenter changes to test the dependent variable. A change in the independent variable directly causes a change in the dependent variable. The effect on the dependent variable is measured and recorded. A budget may be described as a quantitative expression of a plan and the process of converting the plan into a budget planning procedure. IBP is one of the most widely used tools for planning and controlling public and private organizations. The budgeting process may be quite formal in a large institution, with committees set up to perform tasks. On the other hand, in a very small firm the owner may write down the budget on a piece of paper or just budget in his head about the items which he can remember easily. A properly managed budget can promote sustainable profits in many organizations. The actions that follow managerial decisions normally involve several aspects of organizational units, such as marketing, production, purchasing and finance functions, and it is important that the management coordinate these various interrelated aspects of decision-making. If management fails to try and do this, there's the danger that managers could build selections that they believe are within the best interests of that organization when, in fact, all along they're not; as an example, the sales department could introduce a promotional campaign that's designed to extend sales demand that the assembly department will have to handle. The assorted activities at intervals in an organization ought to be coordinated by integrated arrangement. In this research, there are 11 independent variables and 1 dependent variable which is derived from the literature stream as described in Table 3.1, below:
Table 3.1 Abbreviations
Abbreviation Meaning
SP Strategic Planning
LP Long Term Planning
MP Medium Term Planning
PPI Performance Indicator
SGP Stability of Government Policy
CP Complexity of Policy
LS Leadership
NA Number of Agencies
DA Diversity of Agencies
CR IBP Resource
FOC Flexibility and openness to changing circumstances of collaboration
EIB Effective Management of Integration Budgeting Plan
Table 3.2 Overview of Definitions and Dimension of Independent Variables
Variable Definition Dimension of measurement Ground Theory
1. Strategic Planning The processes by which a community, an agency or individual establishes the goals or objectives it wishes to achieve and the necessary steps to achieve them.
Significance of Strategic
planning toward effectiveness of management for an Integrated Budgeting Plan.
OECD (1996, pp. 41-42), Jones and Pendlebury (1992, pp. 50-51), Osborne and Gaebler (1993), World Bank (2004), Wildavsky (2003).
2. Long Term Planning It states mission, goals, and objectives, and the strategy for achieving those goals and objectives (over 5 years in length).
Significance of Long term planning toward effectiveness of management for an Integrated Budgeting Plan.
Marc Robinson and Duncan Last (2009), Tosun and Lang (2017), Schaffrin et al. (2015), World Bank (2004), Wildavsky (2003).
3. Medium Term Planning States mission, goals, and objectives, and the strategy for achieving those goals and objectives (3-5 years).
Significance of Medium term planning toward effectiveness of management for an Integrated Budgeting Plan.
Marc Robinson and Duncan Last (2009), Tosun and Lang (2017), Schaffrin et al. (2015), World Bank (2004), Wildavsky (2003).
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Table 3.2 (Continued)
Variable Definition Dimension of measurement Ground Theory
4. Performance Indicator The objective of this linkage is to boost performance.
Significance of Performance indicators toward effectiveness of management for an Integrated Budgeting Plan.
Hou and Brewer (2010), Marc Robinson and Duncan Last (2009), Tosun and Lang (2017), Schaffrin et al. (2015), World Bank (2004), Wildavsky (2003).
5. Stability of Government Policy
Difficulty for existing policies to be changed.
Significance of Performance indicators toward effectiveness of management for an Integrated Budgeting Plan.
Laffan and O’Mahoney (2007), Jochim and May (2010), May, Jochim, and Sapotichne (2011), Tosun and Lang (2017), Tsebelis 2002
6. Complexity of Policy Complexity of integrated planning, with its many drivers and actors.
Significance of Complexity of Policy toward effectiveness of management for an Integrated Budgeting Plan.
Agranoff (1996), Alter and Hage (1993), Clinton and Gore (1997), Schaffrin et al. (2015), Wildavsky (2003), World Bank (2004).
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Table 3.2 (Continued)
Variable Definition Dimension of measurement Ground Theory
7. Leadership Representativeness and commitment power of representatives
of agencies within a network.
Significance of Leadership toward effectiveness of management for an Integrated Budgeting Plan.
Kickert and Koppenjan (1997), Marc Robinson and Duncan Last (2009), OECD (1996, pp. 41-42), Tosun and Lang (2017), Schaffrin et al. (2015), Wildavsky (2003).
8. Number of Agencies Actors involved in interaction processes.
Significance of number of agencies toward effectiveness of management for an Integrated Budgeting Plan.
Andrews et al. (2009), Kickert and Koppenjan (1997), Roberts and Wargo (1994), Sanchirico et al.
(2009), World Bank (2004).
9. Diversity of Agencies The success of network management depends on the degree to which efforts to influence the process take account of the multi-form of the network and the actors who operate within it.
Significance of Diversity of agencies toward effectiveness of management for an Integrated Budgeting Plan.
Keiser and Meier (1996), Kickert and Koppenjan (1997), May et al.
(2005), May, Sapotichne, and Workman (2006), OECD (1996, pp.
41-42).
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Table 3.2 (Continued)
Variable Definition Dimension of measurement Ground Theory
10. IBP Resource Process by
which parties who see different aspects of a problem can constructively explore their differences and search for solutions that go beyond their own limited vision of what is possible.
Significance of IBP Resources toward effectiveness of
management for an Integrated Budgeting Plan.
Alter and Hage (1993, p. 87), Huxham (1996), Gray (1989, p. 5), Marc Robinson and Duncan Last (2009), OECD (1996, pp. 41-42), Tosun and Lang (2017), Schaffrin et al. (2015).
11. Flexibility and Openness to changing circumstances of collaboration
The actors involved are usually developing formal IBP relationships because of their collective goals, and to create flexibility to
implement solutions to complex problems.
Significance of Flexibility and openness to changing
circumstances of collaboration toward effectiveness of
management for an Integrated Budgeting Plan
Guo & Acar, (2005), Lawrence, Hardy, & Phillips (2002), Marc Robinson and Duncan Last (2009), Selden et al., (2006), Tosun and Lang (2017), Schaffrin et al. (2015).
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