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Using the Cultural Dimension and Accounting Value Classification Frameworks to Investigate Cultural Diversity in a Multi-National South African-Based Company

Author

Listed:
  • Stefan Stander

    (Rainbow Farms Pty, Republic of South Africa)

  • Pieter Buys

    (North West University, Republic of South Africa)

  • Merwe Oberholzer

    (North West University, Republic of South Africa)

Abstract

The developing South African economy provides good business opportunities for global companies. Despite the popularity of mergers and acquisitions as a way to expand into a developing economy, many such business transaction fail to create sustainable organisations due to issues pertaining to national and corporate cross-cultural issues. This study investigated the potential impact of national cultural differences pertinent to the acquisition of a South African-based resource company by a French-based international group. It was evident that there were cultural differences in the manner which certain attitudes and actions were expressed within the workplace, which have led to some conflict that hampered the optimum functioning of the accounting-related functions within the company. By using Hofstede’s cultural dimensions andGray’s accounting value classification frameworks within this case study, the organization’s management was provided with insights into how national cultural orientation affects their functioning.

Suggested Citation

  • Stefan Stander & Pieter Buys & Merwe Oberholzer, 2013. "Using the Cultural Dimension and Accounting Value Classification Frameworks to Investigate Cultural Diversity in a Multi-National South African-Based Company," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 11(3 (Fall)), pages 301-316.
    • Handle: RePEc:mgt:youmgt:v:11:y:2013:i:3:p:301-316
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    References listed on IDEAS

    as
    1. Mantecon, Tomas, 2009. "Mitigating risks in cross-border acquisitions," Journal of Banking & Finance, Elsevier, vol. 33(4), pages 640-651, April.
    2. Chanchani, Shalin & Willett, Roger, 2004. "An empirical assessment of Gray's accounting value constructs," The International Journal of Accounting, Elsevier, vol. 39(2), pages 125-154.
    3. Stan Lees, 2003. "The Human Factor and Strategic Integration," Palgrave Macmillan Books, in: Global Acquisitions, chapter 0, pages 13-23, Palgrave Macmillan.
    4. Slangen, Arjen H.L., 2006. "National cultural distance and initial foreign acquisition performance: The moderating effect of integration," Journal of World Business, Elsevier, vol. 41(2), pages 161-170, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    More about this item

    Keywords

    accounting value classification; corporate culture; cultural dimensions; mergers and acquisitions; resilience; sustainability;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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