Examining the mediating effects of operational efficiency on the relationship between budgeting practices and financial performance among 3D printing firms in South Africa

Abstract

The focus of this study was to examine the mediating effects of operational efficiency on the relationship between budgeting practices (budget planning and budget participation) and financial performance among 3D printing SMMEs in South Africa. A quantitative, cross-sectional survey design was adopted for the study. The stratified sampling technique was used to select 3D printing SMMEs in South Africa. A total of two hundred and fifty (250) managers and employees of 3D printing SMMEs formed the sample size of the study. Statistical Package for Social Sciences (SPSS) software versions 26 and Smart PLS 4 were used to analyze the data gathered. PLS-Structural Equation Modelling was used to test the hypothesis for both direct and mediation effects. The results indicate that a significant negative relationship exists between budget planning and financial performance, as well as budget participation and financial performance. Significant positive relationships were found to exist between the following variables: budget planning and operational efficiency, budget participation and operational efficiency, and operational efficiency and financial performance. Operational efficiency was found to mediate the relationship between budget planning and financial performance as well as budget participation and financial performance. The results imply that the implementation of budgeting practices such as budget planning and budget participation in 3D printing SMME is not enough to achieve financial performance unless operational efficiency is given the utmost attention in 3D printing SMMEs in South Africa.

Keywords: {'name': 'budget planning'}, {'name': 'budget participation'}, {'name': 'operational efficiency'}, {'name': 'financial performance'}, {'name': '3D printing SMMEs'}

Authors & affiliations

Edinam Agbemava
Affiliation not supplied

Thywill Cephas Dzogbewu
Affiliation not supplied

Dennis Yao Dzansi
Affiliation not supplied

Deon Johan De Beer
Affiliation not supplied

Olawole Fatoki
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

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