Politics, Industrial Relations,Competition and Budgeting in Jute Mills in Bangladesh

What is it about?

This paper uses triangulation methods to reveal howenvironmental facts affect budgeting in the nationalised jute mills of Bangladesh. Five external factors (political climate, industrial relations, competition, aid agencies and government regulations) to affected budget-related factors (such as participation, accountability for budget, budget evaluation, budget analysis, interactions among managers and budget flexibility). Data from 38 state-owned jute mills within the Bangladesh Jute Mills Corporation (BJMC) reveal a significant relationship between environmental factors and budget-related behaviour. Political factors, industrial relations and market competition were major influences on how budgeting systems were perceived. The study shows how political volatility and industrial relations can render the formal systems of budgeting and controls ineffective for internal management despite worthy intentions. On the other hand, when managers believed external competition on their mill to be great, they perceived budgeting more positively

Featured Image

Why is it important?

The paper uses qualitative methods to derive variables for statistical testing in a contingency theory approach. It tries to demonstrate how triangulated methods can produce results with greater validity.