National Culture and Management Control Systems : An Explanatory Study on the Implementations of Foreign MCS in Japan

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Woooseok Suh

Abstract

In a borderless international economy, the relationship between national culture and Management Control Systems (MCS) is inseparable and complex. A multinational corporation faces cultural differences across countries in operating and controlling its subsidiary. And, the differences in cultures infl uence the implementation of organization’s strategies that is characterized as MCS. This study reports two different cases of MCS implementations in a Japanese organization by foreign-owned multinational corporations. The changes of MCS implementation and its interaction with Japanese employees have been observed with American company’s acquisition of a French-Japanese joint-venture. Through the changes, Japanese employees experienced both goal congruence and anxiety between Japanese cultural context and foreign MCS. This paper deliberates the historical events from the perspective of national culture and MCS. Findings provide suggestions for potential directions of future cultural research in MCS.

Article Details

How to Cite
SUH, Woooseok. National Culture and Management Control Systems : An Explanatory Study on the Implementations of Foreign MCS in Japan. Asia-Pacific Management Accounting Journal, [S.l.], v. 9, n. 1, p. 25-42, june 2014. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/25>. Date accessed: 22 july 2018.
Section
Management Accounting