The Effects of Budgetary Control Systems on Organizations Experiencing Decline: an Empirical Study in Taiwan

Among them, the \'threat rigidity theory\' (Staw et al., 1981) has been identified as the widely accepted theory with regard to the response from the declining organizations. In addition, as organizational decline has become a pervasive situation, it\'s obvious that we are facing uneasy time requiring orgnaizations to have at least the same performance with less resouces.

Accounting literature suggests that budget control is among the most used tools in enhancing control and efficiency. The bulk of organization literature, however, argues that the dysfunctional effects of budgetary control systems would be exemplified during the condition of organizational decline. The purpose of the study is to investigate the relationaship between budgetary control systems and organisational decline, and to examine the contingency argument of the dysfunctional effects of budgetary control systems of organizations experiencing decline, taking into consideration the environmental change.