Understanding the Catalysts and Obstacles: The Path to Performance Budgeting in Iraq's Higher Education Sector

Ali Hussein Khudhair; Zaidi Mat Daud; Hasri Abdul Razak Mustafa; Ali Naeem Jasim

Ali Hussein Khudhair 1 School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia; 2 Ministry of Higher Education and scientific Research, Iraq http://orcid.org/0009-0002-8928-8719
Zaidi Mat Daud School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia
Hasri Abdul Razak Mustafa School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia http://orcid.org/0000-0001-9858-2093
Ali Naeem Jasim Ministry of Higher Education and scientific Research, Iraq

Abstract

Amid growing pressures for efficient governance, performance budgeting (PB) emerges as a crucial reform in developing regions, particularly Iraq, where traditional models have faltered. This study investigates the adoption of PB within Iraq's higher education sector, using a quantitative approach. Data from 401 respondents were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore the influence of internal and external pressures and identify adoption barriers. Results revealed that internal pressures significantly promote PB adoption, while external pressures underscore the global trend towards accountable budgeting. However, persistent barriers, such as institutional resistance and resource scarcity, impede effective adoption. These findings underline the necessity for tailored approaches to PB in contexts like Iraq, offering insights for policymakers on overcoming these challenges.

Research Paper

Keywords: Performance Budgeting (PB), Iraqi Ministry of Higher Education (MOHE), Internal pressures (IP), External pressures (EP), Barriers (B), Financial management Reform, Government accounting, Organizational change

Reference to this paper should be made as follows: Khudhair, A.H., Daud, Z.M., Mustafa, H.A.R., & Jasim, A.N. (2024). Understanding the Catalysts and Obstacles: The Path to Performance Budgeting in Iraq's Higher Education Sector. Journal of Entrepreneurship, Business and Economics, 12(1), 124–189.