Relationship between organizational life cycle and budgeting process in mechanical metal company of high and middle Valley Itajaí

Abstract

The objective of this study was investigate the relationship of the different stages of organizational life cycle of companies in the field of mechanical metal in Alto and Médio Vale do Itajaí, with the profile of the budgeting process. The methodology used was characterized as descriptive performed by means of a survey, with a quantitative approach. We used a questionnaire with 54 questions divided into four blocks, adapted from Frezatti et al. (2010). The life cycle model in the implement of research is to Miller and Friesen (1984). Questionnaires were sent to 193 companies in the metal mechanic industry of the Alto and Médio Vale do Itajaí. We obtained 31 answers who were treated statistically by means of descriptive statistics, discriminant analysis and correlation analysis. The results show that most companies are in stages of birth and rejuvenation. It was also found that the budgeting process most commonly used by companies is budgetary control. It was identified that there is a relationship between budgeting process artifacts and the stage of life cycle that the company is, but this use occurs differently in each stage. Thus it is concluded that, as the company becomes more complex and advanced stages of the life cycle, the greater is the use of budgeting process, with significant drop in the use of these artifacts when the company is at the stage of decline.