Abstract
The purpose of this study is to identify factors that construct horizontal interactive networks (based on Simons (2005)). We focused on transformational leadership as the factor and performed analysis compared to characteristics of budget use. Based on our questionnaire survey, we obtained three findings: First, transformational leadership had a strong positive association with horizontal interactive networks. Second, some characteristics of budget use had a positive association with horizontal interactive networks. Third, transformational leadership negatively moderated the relationship between characteristics of budget use and horizontal interactive networks.