This paper replicates and extends Chenhall and Brownell (1988) by exploring the potential moderating effects of role ambiguity and role conflict, as two dimensions of role stress, on the budgetary participation and job satisfaction-performance linkages. The responses of 79 middle-level managers, drawn from a cross-section of manufacturing companies in Australia, to a questionnaire survey are analyzed by using a path analysis and moderated regression techniques. The results, in general, failed to support the intervening variable view model of Chenhall and Brownell. The results, however, showed that both role ambiguity and role conflict have an interactive effect on managerial performance but not on job satisfaction. This study, in general, partially supported the contingency model view as suggested by Chenhall and Brownell.

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