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Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 1753 - 1762
The Role of Budget Planning and Control with the Mediating Effect of the Budget Process on Firm Performance
1
Faculty of Business Administration, HUTECH University
Under a Creative Commons license
Open Access
Abstract

This study sets out to explore how budget planning and control affect firm performance in HCMC, with the budget process as a mediator. Qualitative review of related literature has been used to bring to the fore the interaction between budget planning and budget control, informed by relevant works. It approaches the goals aspired to by all stakeholders in the budgeting process and how they affect firm performance. Analyses revealed that good budget planning and control are positively related to the budget process and that, in turn, it significantly affects the overall performance of firms in HCMC. The study identified and described very critical specific essential factors under the budgeting framework concerning performance improvements, reemphasizing the importance of strategic budget management in organizational goal attainment. Findings will provide valuable insights to the implementers and the policymakers of the enterprises in HCMC to earn better financial outcomes by enhancing budgetary practice. The study proved that in an overview integrating a very elaborate budgeting planning and control mechanism, the requirement would be to ensure the effectiveness of each factor in the process of budgeting; therefore, efficiency is embedded in the overall performance of an organization. The study contributes to the extant literature by unveiling the detailed interrelations between budgeting elements and firm performance in Vietnamese companies. It, therefore, provides a basis for further research in exploring more intricately the dynamics of budgeting processes and their implications for organizational effectiveness.

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