The study aims to investigate the effect of employees' participation in the budget construction process, through voice and trust, on employee self-efficacy and performance, in public sector organizations. Budgetary participation and employees' performance have been extensively researched in both private sector organizations and from the perspective of top management. We investigated the phenomenon in public sector organizations and from the point of view of lower level participating employees. We gleaned empirical data from 114 respondents in public sector organizations in Lampung, Indonesia, and analyzed it using SmartPLS to test our hypotheses. We found that in the course of budgetary participation, employees' expectancy attitude, in the light of the expectancy theory and Maslow's hierarchy of needs, predicted employees' behavior, and had a significant impact on their self-efficacy and performance. Employees' voice and interpersonal trust in the budget construction process would reap optimal benefit for the organization when participating employees perceive their participation to be objectively appreciated and encouraged by top management. The study has implications for top management's role in the budget construction process, and contributes to the management accounting literature in the context of the public sector in developing countries.

Resorting to the Schatzki's (2002) 'site of the social' theoretical construct and stance on the peculiar 'sites' of construction and institutionalisation of social practices, we aim to locate the use and efficacy of strategic performance measurement system (SPMS) in service sector organizations and at the lower hierarchical level, and its effect on role clarity, employees' psychological empowerment and performance. This study aims to further the relevant literature, which covers the phenomenon in the manufacturing industry and at the upper level of the organizational hierarchy (Hall, 2008). A survey study of employees at the lower hierarchical level in the banking sector of the southern part of Sumatera including the provinces of Lampung, South Sumatera, Bengkulu and Jambi was conducted and data analyzed using SmartPLS. Our analysis of the empirical data we gleaned from our survey of 135 respondents endorsed the hypotheses set for the study confirming a positive impact of the use of CPMS on lower level employees' role clarity and overall performance in service sector organizations, however, did not support CPMS's effect on the employees' 'psychological empowerment'. The effect and efficacy of the use of SPMS on role clarify, performance and psychological empowerment in the manufacturing sector employees at the upper hierarchical level have already been empirically investigated (see Hall, 2008). This current study aims to not only extend such studies to the service industry but also contribute to the management accounting literature through extending the use of the strategic performance measurement system to employees at the lower hierarchical level in the service sector. It aims at apprising practitioners and policy-makers on the utility and limitation of the use of CPMS in these contexts.

This study investigates the effect of the interactive use of performance measurement systems (PMS) on the company's adaptation of its customer-focused strategy. The authors used a self-administered survey study of 69 managers working in the Indonesia Stock Exchange-listed financial institutions. The authors' statistical analyses using SmartPLS 2.0 supported all hypotheses and revealed direct and indirect relationships among the hypothesized variables. However, based on the 'path analysis', using the Sobel's test and the Variance Accounted For (VAF), the empirical data revealed that the organizational members' direct relationship with the customer accounted for a greater contribution to the improvement in the customer-focused strategy compared to the organization's indirect relationship. This study provides evidence that an effective implementation and interactive use of PMS would leverage the organization's customers-focused strategy and help it gain a competitive advantage.