Chapter 2 enrironmental influence on accounting development


Large versus small power distance



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Large versus small power distance. Power distance is the extent to which the members of a society accept that power in institutions and organizations is distributed unequally. This affects the behavior of the less powerful as well as the more powerful members of society. People in Large Power Distance societies accept a hierarchical order in which everybody has a place that needs no further justification. People in Small Power Distance societies strive for power equalization and demand justification for power inequalities. The fundamental issue addressed by this dimension is how a society handles inequalities among people when they occur. This has obvious consequences for the way people build their institutions and organizations.




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