An Investigation of the Organizational and Behavioral Effects of Corporate and National Culture on Budgeting Systems
Posted: 16 May 2005 Last revised: 2 Jan 2013
Date Written: January 1, 2013
We investigated the effects of corporate versus national culture by extending Hofstede et al.'s (1990) study of cross-organizational culture in a participatory budgeting environment. We surveyed Egyptian managers who worked for Egyptian or U.S. firms eliciting their perceptions of the budgeting environment. We found support for our hypotheses indicating higher (lower) levels of participation for Egyptian managers working in U.S. (Egyptian) firms, higher (lower) levels of incentive to create slack in U.S. (Egyptian) firms, and more (less) frequent slack creation behavior among Egyptian managers employed by U.S. (Egyptian) firms. Significant differences were found between levels of idealism and relativism between Egyptian subjects employed by U.S. and Egyptian companies. We also found support for our hypothesis that models of slack creation behavior will vary between U.S. and Egyptian companies employing Egyptian subjects.
Keywords: Ethics, slack creation, budgetary participation, corporate culture, national culture
JEL Classification: M49
Suggested Citation: Suggested Citation