Influences of Budget Commitments and Incentive Systems to Managerial Performance Mediated by Budget Participation (Study at The Provincial Inspectorate Office of North Sulawesi Province)

Abstract

Indonesia, which is now in the era of industrial revolution 4.0, is experiencing significant changes in various aspects of life, including in the government sector. This era, known as the era of digital technology, brings us into a transitional state of technological revolution which will fundamentally change lifestyles, ways of working and organizational relationships in dealing with each other. This shift has had a positive impact on the government, causing increased effectiveness and efficiency in services. Apart from that, preparing budgets and financial reports is easier to access because it is web-based. Government performance reporting also becomes more transparent and accountable because it is presented via the government web platform.The aim of this research is to analyze budget commitment and incentive systemson managerial performance is mediated by budget participation in the North Sulawesi Provincial Inspectorate. The data analysis technique used is path analysis using the SPSS 25 application.The sampling technique uses purposive sampling technique. The sample for this research was ASN for Certain Functional Officials (Auditors and P2UPD) in the Regional Inspectorate of North Sulawesi Province, totaling 100 respondents. The research results show budget and system commitment incentives influence budget participation at the North Sulawesi Provincial Inspectorate. Meanwhile, budget commitment and incentive systems influence managerial performance at the North Sulawesi Provincial Inspectorate. Although budget participation can act as a mediator between budget commitment and managerial performance, however, this mediating role does not occur in the relationship between the incentive system and managerial performance at the North Sulawesi Provincial Inspectorate.