Do staff capacity and performance-based budgeting improve organisational performance? Empirical evidence from Chinese public universities

This study investigates the relationship between staff capacity, performance-based budgeting (PBB), and organizational performance in Chinese public universities, also examining the moderating role of top management support. Using a survey of 271 participants and a multi-method approach (PLS-SEM, PROCESS macro, NCA), the study finds that PBB positively impacts university performance and mediates the relationship between staff capacity and performance. Top management support moderates these relationships. Both staff capacity and PBB are necessary conditions for high university performance. The study offers valuable insights for improving funding efficiency and reducing costs in higher education.

Liying He, Kamisah Ismail