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

Stockholm School of Economics, P.O. Box 6501, S-11383 Stockholm, Sweden
International Institute for Management Development, Chemin de Bellerive 23, Lausanne, Switzerland CH-1001
carl.fey{at}hhs.se
denison{at}imd.ch

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 United States, the paper presents a multimethod analysis of culture and effectiveness in a transition economy. We argue that effectiveness in Russia relies more on adaptability and flexibility than it does in the United States. 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 subcultures 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 United States. 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.

Key Words: Organizational Culture; Effectiveness; Russia; Transition Economies