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Organizational Culture And Effectiveness: Can American Theory Be Applied In Russia?

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  • Carl F. Fey
  • Daniel R. Denison

Abstract

This paper examines the link between organizational culture and effectiveness for foreign-owned firms operating in Russia. Beginning with a model of organizational culture developed in the USA, the paper presents a multi-method analysis of culture and effectiveness in a transition economy. We argue that effectiveness in Russia relies more on adaptability and flexibility than in the USA. Furthermore, the legacy of the communist era forces firms in Russia to deal with a workforce with a unique time perspective and a unique set of sub-cultures that often undermine attempts at coordination and integration. We first explore these ideas using survey data on 179 foreign-owned firms operating in Russia and compare the results to those obtained for firms in the USA. We then present four case studies designed to ground the results in the Russian context, and to document cultural dynamics not captured by the model.

Suggested Citation

  • Carl F. Fey & Daniel R. Denison, 2003. "Organizational Culture And Effectiveness: Can American Theory Be Applied In Russia?," William Davidson Institute Working Papers Series 2003-598, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-598
    as

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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39984/3/wp598.pdf
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    References listed on IDEAS

    as
    1. Shekshnia, Stanislav, 1998. "Western multinationals' human resource practices in Russia," European Management Journal, Elsevier, vol. 16(4), pages 460-465, August.
    2. Chol Lee & Paul W Beamish, 1995. "The Characteristics and Performance of Korean Joint Ventures in LDCS," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 637-654, September.
    3. May, Ruth & Bormann Young, Carol & Ledgerwood, Donna, 1998. "Lessons from Russian human resource management experience," European Management Journal, Elsevier, vol. 16(4), pages 447-459, August.
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    5. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 235-254, June.
    6. Fey, Carl, 1995. "Important design characteristics for Russian -- Foreign joint ventures," European Management Journal, Elsevier, vol. 13(4), pages 405-415, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Organizational Culture; Effectiveness; Russia; Transition Economies;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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