Examining the Relationship Between Budgetary Control Mechanisms and Organizational Efficiency in Public Enterprises

Posted: Jun 25, 2023

• Joseph Johnson
• Joseph Taylor
• Joseph Walker

Abstract

This research investigates the complex relationship between budgetary control mechanisms and organizational efficiency within public enterprises, employing a novel methodological framework that integrates traditional financial analysis with behavioral economics and computational modeling. Unlike previous studies that primarily focus on quantitative financial metrics, this paper introduces a multidimensional efficiency assessment model that incorporates both tangible and intangible organizational factors. The study examines how various budgetary control mechanisms—including zero-based budgeting, performance-based budgeting, and participatory budgeting—impact not only financial efficiency but also operational effectiveness, employee motivation, and stakeholder satisfaction. Through a comprehensive analysis of 45 public enterprises across different sectors, the research demonstrates that the effectiveness of budgetary controls is significantly moderated by organizational culture, leadership styles, and digital transformation maturity. The findings reveal that conventional budgetary approaches often fail to capture the full spectrum of efficiency dimensions in public enterprises, leading to suboptimal resource allocation and performance outcomes. This research contributes to public administration literature by providing a more holistic understanding of how budgetary controls function in complex public sector environments and offers practical insights for designing more adaptive and effective financial management systems.