Cross-cultural impact on the budgeting cycle: a preliminary analysis of Anglo-American and Libyan companies operating in Libyan oil sector

Abstract

[Abstract]: Globalization is causing the rapid integration of markets, nations, and technology, which facilitates faster contact between people, corporations, and nations. However, there is a failure to notice cultural differences that exist between workforces across nations. Thus all staff needs to have cultural sensitivity, which could be helped by studying cross-cultural differences. Current understanding of how and why specific budget aspects and budgeting processes are different could be attributed to cultural differences. This study utilizes societal cultural dimensions identified by Hofstede to identify differences in budgets and budgeting process between Libyan and Anglo-American companies operating in Libyan oil sector. Some preliminary analysis is discussed.