Abstract
This article reports the results of a study that hypothesized the influence of culture on six aspects of budget control practices in the United States and Japan. Data were collected through questionnaires from 70 manufacturing companies in the United States and 149 such companies in Japan. Results of data analyses indicate that the Individualism-Collectivism dimension would seem to explain why the U.S. companies, compared to the Japanese companies, tend to use communication and coordination more extensively, build budget slack to a greater extent, and use long-term performance evaluations to a lesser extent. The implications of the results for further research and practice are discussed.
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*Susumu Ueno is Associate Professor of Management at Kanazawa College of Economics, Japan. He obtained his D.B.A. in accounting from Southern Illinois University, Carbondale and M.B.A. from the University of Maryland, College Park. His current research interests focus on management and accounting control systems, and cross-cultural comparisons of such systems.
**Uma Sekaran obtained her doctoral degree from UCLA and is Emirata Professor of Management, Southern Illinois University at Carbondale. She has published widely and has been recognized and honored by the International and American Biographical Institutes for her contributions to International Management Research. Dr. Sekaran is currently residing in Concord, California, and her future project envisions the tracing of the history of women's progress in India since the vedic times.
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Ueno, S., Sekaran, U. The Influence of Culture on Budget Control Practices in the USA and Japan: An Empirical Study. J Int Bus Stud 23, 659–674 (1992). https://doi.org/10.1057/palgrave.jibs.8490282
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DOI: https://doi.org/10.1057/palgrave.jibs.8490282