Budgetary Participation and Village Development Performance (Study at Jayapura City)

Abstract

This study aims to identify and explain the effect of budgetary participation on the performance of village development. This research also examines the procedural justice and organizational commitment as the mediation variables on the relationship between budgetary participation and village development performance. The results of this study are expected to provide recommendations to the local government about the appropriate budgetary participation strategy for refining and improving village development performance.This research is an explanatory research. The data was collected by survey method. This study was conducted in 14 villages in Jayapura Papua province. The respondents are representing each village which consists of cultural leaders, religious leaders, youth leaders, and female leaders, village-heads and secretaries, and also the a companion program PNPM-Respek. The reliable data processed in this study consist of 97 respondents. Analytical methods to test the hypothesis used Generalized Structured Component Analysis.The results show that budgetary participation does not significantly influence the village development performance; yet, procedural justice and organizational commitment are perfect mediations for the relationship between budgetary participation and village development performance. Organizational commitment is also a perfect mediation for the relationship between procedural justice and village development performance. Procedural justice has a greater role than organizational commitment in mediating the relationship between budgetary participation and village development performance. Budgeting procedures when applied consistently in the budgeting process can enhance organizational commitment and further will improve village development performance