The phenomenon of budgetary slack in Indonesia: Analyzing mapping causes and mitigation strategies

Abstract

Purpose: This study analyzes the phenomenon of budgetary slack in Indonesian organizations by mapping its determinants, behavioral foundations, and mitigation strategies, as well as examining its implications for governance quality reflected in Indonesia’s Corruption Perceptions Index (CPI).

Design/methodology/approach: This study employs the charting the field method and follows the PRISMA protocol. A total of forty-two articles published between 2014 and 2024 were reviewed from SINTA 1–2 accredited national journals and SCOPUS-indexed journals. The articles were classified based on research topics, methods, causal relationships among variables, behavioral theories, and mitigation approaches.

Findings: The findings show that budgetary slack research in Indonesia is dominated by quantitative methods and produces inconsistent results across key variables, indicating the strong influence of behavioral and contextual factors. Budgetary slack is not only a managerial inefficiency but also a potential indicator of opportunistic behavior and weak governance.

Practical implications: The study highlights the importance of behavioral-based controls, ethical leadership, and transparency to reduce budgetary slack and support accountability improvements related to CPI performance.

Originality/value: This study provides a comprehensive behavioral mapping of budgetary slack research in Indonesia.