This study analyzes the role of the Information Processing Theory (IPT) in the budgetary participation with antecedent variables such as environmental dynamism (ED). Furthermore this study examines the influence of budgetary participation on performance (P) in the company. The IPT is used in this study as a contribution to overcome the gap between dynamic environments, information management, budgetary participation and performance. | International Journal of Computer Networks and Communications Security C , , JANUARY 2014, 27–33 Available online at: ISSN 2308-9830 N C S Information Processing Theory in Budgetary Participation: Its Antecedent and Consequence Dian Indri Purnamasari1 and Rahmawati2 1 Pembangunan Nasional University “Veteran” Yogyakarta-Indonesia 2 Sebelas Maret University Solo-Indonesia E-mail: 1indri_mtc@, 2rahmaw2005@ ABSTRACT This study analyzes the role of the Information Processing Theory (IPT) in the budgetary participation with antecedent variables such as environmental dynamism (ED). Furthermore this study examines the influence of budgetary participation on performance (P) in the company. The IPT is used in this study as a contribution to overcome the gap between dynamic environments, information management, budgetary participation and performance. This research concluded that (1) there is a positive relationship between environmental dynamism and task exceptions, information technology, information systems, and budgetary participation, (2) there is no negative relationship between environmental dynamism and task analyzability , (3) there is no positive relationship between task exceptions and budgetary participation, (4) there is a negative relationship between task analyzability and budgetary participation, (5) there is a positive relationship between information technology, and information systems for budgetary participation, and (6) there is a positive relationship between budgetary participation and performance. Keywords: Process, Information, Participation, Budget, Performance. 1 INTRODUCTION Companies today are confronted with dynamic and competitive business environments; therefore they will have to improve their sensitivity to and readiness for any environmental changes. External conditions such as dynamic environments, or turbulent environments in some senses, require the availability of multiple sources of .
