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

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.

Keywords

• accounting value classification
• corporate culture
• cultural dimensions
• mergers and acquisitions
• resilience