A comparison of budgetary control systems in American and Japanese manufacturing firms

This article examines and compares some variables considered important in budgetary preparation and performance evaluation by American and Japanese executives of manufacturing firms. The literature asserts that American executives employ management styles and performance evaluation criteria that tend to overemphasise short-term goals, while Japanese executives prefer management philosophy and performance evaluation criteria that emphasise long-term goals. The survey research method is employed to gather evidence to test hypotheses pertaining to such an assertion. The research results provide empirical evidence that supports most of the assertions in the literature.The author expresses his sincere gratitude to Drs James Don Edwards of the J M Tull School of Accounting — University of Georgia, Ato Ghartey of Southeastern Massachusetts University, R S O Wallace of Exter University and annonymous reviewers for their helpful comments and suggestions.