The Effect of National Culture on Budgeting in Ghana

Abstract

This study applies a qualitative approach to examine the moderating effects of national culture on budgeting processes and practices among Ghanaian Multinational Companies. Interview responses from twenty Ghanaian respondents from ten companies were analyzed. Applying logical inferences, the evidence suggests that budgeting processes and practices are affected by the concept of ‘self’, the acceptance of logical contradictions, abstractness in language, high priority for non-verbal communication, the cultural need for receivers of information to be good perspective takers, polychromic, and the prioritization of in-groups among others. This study also describes how Ghanaian respondents weave through ethical dilemmas and form an ethical perspective especially when there are conflicts within and between cultural values and beliefs by prioritizing certain cultural values over others, espousing dissonance and rationalization.