Organizational Culture and Effectiveness: Can American Theory Be Applied in Russia?

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.

Keywords: Organizational Culture, Effectiveness, Russia, Transition Economies

JEL Classification: M14, M12