How does performance-based budgeting enhance sustainable performance? A mediated-moderated model of innovation and information quality
Abstract
Purpose Sustainable performance is increasingly critical in many sectors, particularly in the oil and gas industry, where strategic resource allocation and innovation are essential. Performance-based budgeting links funding to measurable outcomes; however, its effectiveness depends on the quality of accounting information and its ability to foster technological innovation. Guided by goal-setting theory (GST), this study aims to explore the direct and indirect effects of performance-based budgeting on sustainable performance through technological innovation and examines the moderating role of accounting information quality in Iraqi oil companies. Design/methodology/approach Data were collected via a questionnaire administered to 317 managers in Iraqi oil and gas companies. Partial least squares structural equation modeling (PLS-SEM) and moderated mediation analysis were employed to test the research hypotheses. Findings The results reveal that performance-based budgeting positively influences both sustainable performance and technological innovation. Moreover, technological innovation partially mediates the link between performance-based budgeting and sustainable performance. The findings also confirm that accounting information quality strengthens the relationship between performance-based budgeting and technological innovation, with higher levels of information quality enhancing innovation outcomes. Originality/value This study offers a novel contribution by integrating budg…
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Performance-oriented governance mechanisms such as performance-based budgeting increase long-term organizational outcomes through improved innovation capability and increased quality of information, which are important for successful AI implementation.
“Additionally, empirical evidence indicates that performance-oriented governance mechanisms (such as performance-based budgeting) increase long-term organizational outcomes through improved innovation capability and increased quality of information, which are important for the successful implementation of AI (Alhasnawi et al. 2025).”
From AI-driven financial fraud detection in Pakistan’s banking sector: bridging strategic intent and operational implementation (2026) · cites this paper as Alhasnawi et al. 2025
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References 54 · Cited by 46
- Authors
- Alhasnawi, M. Y., Alshdaifat, S. M., Mansour, M., Saleh, M. W. A., & Hu, G.
- Affiliations
- Thi Qar University (IQ)
- Middle East University (JO)
- Amman Arab University (JO)
- Palestine Technical University - Kadoorie (PS)
- Universiti Putra Malaysia (MY)
- Corresponding author
- Alhasnawi, Mushtaq Yousif
- Venue
- International Journal of Innovation Science
- Publisher
- Emerald
- Published
- 2025-10-21
- Pages
- 1-19
- ISSN
- 1757-2223 (ISSN-L)
- 1757-2231
- OpenAlex
- W4415282506
- Cited by
- 46
- References
- 54
- Citations by year
- 2026: 43 · 2025: 3
- FWCI
- 62.81
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of Innovation Science (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management Information Systems › Accounting and Organizational Management
- Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Fiscal Policies
- Keywords
- performance-based budgeting, sustainable performance, technological innovation, accounting information quality, goal setting theory, oil and gas companies, budget reform
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