The Role of Innovative Behaviors in the Relationship between Budget Participation and Employee Performance in the Public Sector
Keywords:
Innovative behaviors, employee performance, budget participationAbstract
This study aimed to investigate the mediating role of innovative behavior in the relationship between budget participation and employee task performance in the public sector. The research was applied in nature and utilized a descriptive-survey design. Data were collected from a sample of 384 employees working in executive agencies of Tehran Province using a standardized questionnaire. The questionnaire measured three variables: budget participation, innovative behavior, and task performance, using a five-point Likert scale. Reliability was confirmed with Cronbach’s alpha coefficients above 0.80 for all variables. Data analysis was conducted using SPSS 24 and AMOS 24 through structural equation modeling (SEM), and confirmatory factor analysis (CFA) was applied to validate the measurement model. The results revealed that budget participation had a significant and positive direct effect on employee task performance (β = 0.516, p < 0.001). Furthermore, budget participation significantly predicted innovative behavior (β = 0.894, p < 0.001), and innovative behavior, in turn, had a strong and positive impact on task performance (β = 1.396, p < 0.001). The Sobel test confirmed that innovative behavior significantly mediated the relationship between budget participation and task performance (t = 9.771, p < 0.001), indicating a robust indirect effect. The findings emphasize the critical role of innovative behavior as a mechanism through which participatory budgeting enhances employee performance in the public sector. Promoting inclusive financial decision-making and cultivating innovative capacities among employees can jointly lead to significant improvements in organizational outcomes. These results offer theoretical and practical insights for reforming public administration through participatory and innovation-driven strategies.
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Copyright (c) 2026 Hadi Ansari (Author); Abolfazl Aminian (Corresponding author)
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