The Role of Internal Organizational Factors in Implementing the Budgeting System Based on Performance: An Interpretative Structural Modeling Approach

It is essential to create the context for the strategic change in the organization. One of the necessity of reforming the municipal economic structure, modifying the method of budgeting and distributing resources, from traditional budgeting to an advanced budgeting system. Performance-based budgeting (PBB) by assigning targeted credit to activities can provide operational monitoring and facilitate access to resource allocation results while clarifying the distribution of resources. Accordingly, in this research, while introducing the internal factors affecting the implementation of the PBB, it has been attempted to express the relation between factors in the form of a conceptual model according to the extent of the impact and the effectiveness of each of the factors. This research is qualitative-quantitative in nature and is an applied in target dimension. In the process of identifying the factors, the content analysis method is used and in the classification stage of the known factors, an interpretative structural modeling tool is used. Data collection was gathered through reviewing organizational documents and interviewing managers, advisors and deputies of the Directorate of Program and Budget of Tehran Municipality. The results of the research show that in general, 11 main internal organizations are effective in implementing PBB. The citizenry agent has the least impact on the integrated information systems and has the most impact. According to the results of MICMAC analysis, none of the factors in the self-management area and two factors in the dependent region and eight factors in the communication area and the only factor of "integrated information systems" in the independent region.