search query: @author Carr, C. / total: 11
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| Author: | Carr, C. Tomkins, C. |
| Title: | Context, culture and the role of the finance function in strategic decisions. A comparative analysis of Britain, Germany, the U.S.A. and Japan |
| Journal: | Management Accounting Research
1998 : JUN, VOL. 9:2, p. 213-239 |
| Index terms: | STRATEGY INVESTMENTS DECISION MAKING CULTURE MANAGEMENT USA EUROPE JAPAN |
| Language: | eng |
| Abstract: | The paper contrasts strategic decision making styles in Britain, Germany, the U.S. and Japan. Firstly, it reviews cultural and contextual differences, and secondly through an analysis of 78 strategic investment decisions taken by 71 motor component manufacturers in the four countries. Specific formal strategic and financial appraisal techniques, and subsequent control approaches, are analyzed and confirm the longer-term strategic orientation of German and Japanese companies. Anglo-American short-termism reflects a preponderance of strong financial control style companies and over-reliance, particularly in Britain, on high `comfort factor' financial hurdle rates. In many cases this has undermined commitment to international competitiveness and more proactive strategic decisions. Strategic processes of decision making, particularly in Britain, have also been more politicised and less attentive to detail. To counter this, strong financial control style companies should broaden the traditional role of the finance function in strategic investment decisions - a process already under way in the U.S.A. and Germany. Finally, a new model is presented, synthesizing lessons from the study, and contrasted with more traditional approaches. |
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