Does Managerial Commitment Mediate Budgeting Practices and Financial Performance Relationships in 3D Printing Smmes?

Abstract

This study examined the mediating effect of managerial commitment on the relationships between budgeting practices and financial performance among 3D printing SMMEs in South Africa. The study used the stratified and purposive sampling techniques to select 250 managers and employees of 3D printing SMMEs in South Africa. The results of the study showed that a significant negative relationship exists between budget planning and financial performance, while a non-significant positive relationship exists between budget participation and financial performance. Significant positive relationships exist between budget planning and managerial commitment, budget participation and managerial commitment and also managerial commitment and financial performance. Managerial commitment mediates the relationship between budget planning and financial performance as well as budget participation and financial performance. The study recommends that 3D printing SMMEs must leverage on managerial commitment to enhance their budgeting practices and financial performance.