The impact of changing individual cultural behaviours on the decision- making model for multinational entities in sub-Saharan Africa

Abstract

As multinational entities (MNEs) seek opportunities and expand into sub-Saharan Africa, they need to understand cultural differences and the impact of this on decision making. This study demonstrated through a literature review as well as through research, that previous assumptions with regard to the homogeneity of cultural value systems in sub-Saharan Africa that manifested as collectivist behaviours by individuals, are not necessarily valid. In fact, managers of MNEs’ subsidiaries displayed idiocentric behaviours associated with individualist cultures as a result of the countries’ rapid economic growth and globalisation. This has a significant impact on the way decision-making models should be built. The purpose of the study was to ascertain the preferred decision-making model for MNEs operating in sub-Saharan Africa, as well as to understand the requirement for role clarity in the decision-making model. The research method used in the study was quantitative. Managers in seven MNEs in Nigeria and Kenya were surveyed to ascertain their views on the preferred decision-making model and role clarity in the decision-making arena. The outcome of the research indicated that these managers prefer a participative decision-making model. Idiocentric managers want to be included in all local decision making while all managers want role clarity. This is relevant for MNEs as it will allow them to develop decision-making models that will meet the requirements of their managers as well as head office