Doing Business in Russia
Doing Business In Russia
1
Doing Business In Russia
Hofstede’s Dimensions
Study
Naumov & Puffer (2000)
Bollinger (1994) 92 26 76
Geert Hofstede (1980) 90 50 95 10
Uncertainty Avoidance Individualism/ Collectivism Power Distance Long-term Orientation Masculinity/ Feminity
68 41 40 59 55
28
40
Uncertainty Avoidance Index (UAI) Empirical studies of Naumov and Puffer (68 points) as well as Bollinger (92 points) show that Russia is high on uncertainty avoidance. High points in Bollinger study reflect the economic and political stagnation in 1980s. Centuries of tsar history and egalitarianism where decisions and equality has been handed out through a set organizational layout has brought about preference for social order and authoritative hierarchy. There would be a greater level of preference for tried and tested methods than experimenting with the unknown. This can also be attributed to the earlier sense of security experience by the citizens who were guaranteed job security and a certain standard of living. All this transformed due to the change in Russian society into a marketoriented economy and a more civil society. It gave rise to greater uncertainty and forced decision making on the individual. Equally significant is the ability of rural and urban dwellers to survive challenging conditions of land, climate, and politics. Tens of millions of families depend on food they grow for themselves. The changes observed recently could interpret that the Russian mind-set was certainly changing due to the advent of perestroika.
Individualism The transformation of Russian society into market oriented economy and more civil society gave rise to greater uncertainty and forced decision making to individuals. The study confirmed that the individualism is on rise during perestroika period. The Russians compared with other countries were found to be less individualistic than developed 2
Doing Business In Russia
countries but more
1
Doing Business In Russia
Hofstede’s Dimensions
Study
Naumov & Puffer (2000)
Bollinger (1994) 92 26 76
Geert Hofstede (1980) 90 50 95 10
Uncertainty Avoidance Individualism/ Collectivism Power Distance Long-term Orientation Masculinity/ Feminity
68 41 40 59 55
28
40
Uncertainty Avoidance Index (UAI) Empirical studies of Naumov and Puffer (68 points) as well as Bollinger (92 points) show that Russia is high on uncertainty avoidance. High points in Bollinger study reflect the economic and political stagnation in 1980s. Centuries of tsar history and egalitarianism where decisions and equality has been handed out through a set organizational layout has brought about preference for social order and authoritative hierarchy. There would be a greater level of preference for tried and tested methods than experimenting with the unknown. This can also be attributed to the earlier sense of security experience by the citizens who were guaranteed job security and a certain standard of living. All this transformed due to the change in Russian society into a marketoriented economy and a more civil society. It gave rise to greater uncertainty and forced decision making on the individual. Equally significant is the ability of rural and urban dwellers to survive challenging conditions of land, climate, and politics. Tens of millions of families depend on food they grow for themselves. The changes observed recently could interpret that the Russian mind-set was certainly changing due to the advent of perestroika.
Individualism The transformation of Russian society into market oriented economy and more civil society gave rise to greater uncertainty and forced decision making to individuals. The study confirmed that the individualism is on rise during perestroika period. The Russians compared with other countries were found to be less individualistic than developed 2
Doing Business In Russia
countries but more
References: Book Reference: ‘Walking on Ice’ by Frederick R. Andresen ‘From Nyet To Da, Understanding The Russians’ by Yale Richmond CIA – The World Factbook Suutari, Vesa., International Journal of Human Resource Management, Apr98, Vol. 9 Issue 2, p235, 24p [4176324] Roemer, C., Garb, P., Neu, J., & Graham, J. (1999). A Comparison of American and Russian Patterns of Behavior in Buyer-Seller Negotiations Using Observational Measures. International Negotiation, 4(1), 37-61. doi: 10.1163/15718069920848363. A Country Study: Russia (Federal Research Division, Library of Congress) Russian/American Culture Contrasts - Research by Duane Goehner and Yale Richmond Gilbert, Kate. In Search of Russian Culture: the interplay of organisational, environmental and cultural factors in Russian-Western partnerships. University of Wolverhampton. Working Paper Series 2001 Naumov A, Puffer S. Measuring Russian Culture using Hofstede 's Dimensions. Applied Psychology: An International Review [serial online]. October 2000;49(4):709. Available from: Business Source Complete, Ipswich, MA. Accessed September 26, 2010. Bollinger, D. (1994). The four cornerstones and three pillars in the 'House of Russia ' management system. Journal of Management Development, 13(2), 49-54. Veiga, J.F., Yanouzas, J.N., and Buchholtz, A.K. (1995). Emerging cultural values among Russian managers: What will tomorrow bring? Business Horizons, July-August: 20-27. "Russia Country Insight". globalEDGE. Accessed 3 February 2010. Ivanchuk, Sergei . "Russia - ExecutivePlanet.com." Main Page - ExecutivePlanet.com. Accessed 3 February 2010. http://www.clamart.net/cross-culture/Pages/well2eng.html http://www.worldbusinessculture.com/Business-in-Russia.html 14