The Impact of Culture on Management Control System: an Analysis of Brazilian Companies Acquired by Foreign Capital

Abstract

    In the last decades, the role of the national culture begins to be considered in the development of models and management tools, and in the acceptance of changes. This study aims to analyze the influence of national culture in the drawing and the update of organizational structure and system of management control of Brazilian companies acquired by foreign capital, starting from two cases studied. Brazil's international development led to a continuous and increasing rise of the foreign investments in Brazil, as much as to an expansion of Brazilian's organizations investment abroad. In this study, the case of two Brazilian organizations privatized and acquired by American companies is analyzed. One of them was, in a second time, acquired by a Mexican origin organization. The results of this research suggest that all the components of a management system control suffer alterations after a process of international acquisition. Over all, the study is disclosing the role of national culture as a factor of acceptance or rejection of a new control model.