Political and Industrial Relations Turbulence, Competition and Budgeting in the Nationalised Jute Mills of Bangladesh

Abstract This paper reports an empirical investigation, based on triangulation methods, of how a set of environmental facts affect budgeting characteristics in the nationalised jute mills of Bangladesh. The key factors were derived from intensive fieldwork. Five external factors (political climate, industrial relations, competition, aid agencies and government regulations) were deemed to affect budget-related factors (such as participation, accountability for budget, budget evaluation, budget analysis, interactions among managers and budget flexibility). Data from 38 state-owned jute mills within the Bangladesh Jute Mills Corporation (BJMC) are used to test the propositions. The analyses of data reveal a significant relationship between environmental factors and budget-related behaviour. Political factors, industrial relations and market competition were major influences on how budgeting systems were perceived.…