The influence of budgetary participation by R&D managers on product innovation performances: The effect of trust, job satisfaction and information asymmetry

To high technology manufacturing companies, product innovation is key source of competency and profitability enhancement. This study employs participative goal-setting theory to construct the structural relationship among budgetary participation, asymmetric information, trust, job satisfaction and product innovation performance. Results from a questionnaire survey of 231 R&D managers with budget responsibilities in 135 high technology manufacturing companies listed in the Taiwan Stock Exchange Market, and path analysis is used to test our hypotheses. The empirical evidence of this research revealed the following: Increasing budgetary participation not only raises job satisfaction and sets asymmetric information but also seems to enhance product innovation performance. Trust also plays the mediating role between budgetary participation and product innovation performance. Implications and directions for future research are discussed.