The globalization of the economy and the constantly growing cooperation across national and cultural borders in education, business, science and technology foster increasing de-pendencies among nations. Furthermore, it necessitates a heightened awareness for inter-cultural issues and a substantial competence to deal with intercultural problems in political, educational, business and science organizations for the individuals involved. Political devel-opments like the unification process in Europe call into questions long established features and boundaries of national identity. Especially, the fall of the Iron curtain suddenly enabled close neighbors who had been separated for roughly two generations and who lost their knowledge of each other, if not, under the influence of the long ideological confrontation, even developed negative stereotypes of each other. The mentioned dramatic political changes in Eastern Europe make Russia an interesting point of interest. Therefore, this paper is intended to introduce and examine the historical, economical, political, societal, cultural and business developments that Russia encountered before and after this radical transition. Although, this paper provides a country overview to some extend, the main emphasis is on cross-cultural management where it is crucial to recognize and understand the covered areas besides business development, for they influence and, in the end, determine the basis of a country’s value and belief system. Finally, this paper provides a cross-cultural study by Geert Hofestede that should showcase the impact of cultural differences on management comparing Russia to other countries in the world on various cultural dimensions.
Table of Contents
1 Introduction
2 Russia in the past and today
2.1 Historical overview
2.1.1 The Ancient Russia
2.1.2 The years of Mongol domination
2.1.3 Imperial Russia
2.1.4 Russia under the Soviet-Union
2.1.5 Russia after the Soviet-Era
2.2 Russia today
2.2.1 Geography and climate
2.2.2 Demographics
2.2.3 Social Structure
2.2.4 Religion, Language and Education
2.2.5 Government and Politics
2.2.6 Economy
2.2.7 Foreign Economic Relations
3 Doing Business in Russia
3.1 The Cultural Environment
3.1.1 Formality, Status and Hierarchies
3.1.2 Business Dress
3.1.3 Greeting and Conversation
3.1.4 Time Behaviour and Appointment Setting
3.1.5 Negotiations
3.1.6 Dealing with business problems and uncertainties
3.2 Cross-Cultural Study: Geert Hofestede’s Value Dimension model
3.2.1 Power Distance (PDI)
3.2.2 Individualism (IDV)/Collectivism (CV)
3.2.3 Masculinity (MAS)
3.2.4 Uncertainty avoidance (UAI)
3.2.5 Long-Term Orientation (LTO)
4 Summary
Research Objectives and Thematic Focus
This paper examines the historical, political, societal, and economic developments in Russia to provide a comprehensive country overview, with a primary focus on cross-cultural management. It aims to identify the values and belief systems that influence Russian business conduct and evaluates cultural differences using Geert Hofstede's model.
- Historical evolution of Russia and the transition to a market economy
- Cultural nuances in Russian business etiquette and social interaction
- Challenges in negotiating and problem-solving within the Russian environment
- Application of Hofstede’s five cultural dimensions to the Russian context
- The impact of cultural values on modern Russian management practices
Excerpt from the Book
3.1.5 Negotiations
In terms of Negotiations, Vladimir M. mentioned that typical of strongly hierarchical societies, involved negotiators usually expect to conduct business with only the highest ranking manager of foreign counterpart. Therefore, it is recommended that the Western company should send its top personnel during the initial visit to achieve a favourable first impression. These representatives should only initiate the relationship. The final negotiations on major deals should be in the hands of a top executive to show the Russians the importance the Western company is placing on this business. Negotiations with Russians usually involve two stages as Vladimir M. pointed it out. During the first one, they go out to receive as many competitive offers as possible, and may play one supplier against another before making a final decision. Again patience is needed from the Western company since it may take considerably longer until the Russians notify the firm they are still interested in and resume to negotiations.
The second negotiation stage is usually shorter than the first one, but it still takes time to settle all the various points within the final contract. Russian negotiators often negotiate with the weakest competitor first. After the concessions are secured they inform the other companies, which also have to accept the current concessions, if they wish to be still considered. Russians have a long history of successful negotiations. Admittedly, the Russians know how to say “No” during negotiation talks. They do it in a number of interesting ways. Sometimes they say no by repeating their statement like a broken record, with very little, if any, change. At other times they may walk out in great anger. Sometimes they do so by keeping silent while letting the other party keep talking. After a while, the silence will be affective and the counterpart may start to think that they better make some further concession to maintain their consideration. What the Russians count on is that a few of us are persistent in testing a firm “no”. It is the nature of human beings to think that if someone says “no”, they probably mean it. It is wise to keep in mind that the Russian “No’s” may well mean “yes” and many of them can mean “maybe”.
Chapter Summaries
1 Introduction: This chapter introduces the global context of the paper and outlines the research focus on Russian history, economy, and cross-cultural management.
2 Russia in the past and today: This section provides a detailed historical overview of Russia and analyzes current conditions, including geography, demographics, social structure, and economic status.
3 Doing Business in Russia: This chapter offers practical insights into the Russian cultural environment, including business etiquette and a cross-cultural analysis based on Hofstede's dimensions.
4 Summary: The final chapter synthesizes the main arguments, emphasizing the necessity of assessing culture-specific performance impacts over relying on generalized national norms.
Keywords
Russia, Cross-Cultural Management, Business Environment, History, Transition Economy, Hofstede, Power Distance, Collectivism, Negotiation, Business Etiquette, Cultural Dimensions, Soviet-Era, Market Economy, Nomenklatura, Uncertainty Avoidance
Frequently Asked Questions
What is the primary focus of this research paper?
The paper primarily focuses on cross-cultural management within the context of the Russian business environment, following an overview of Russia's historical and economic transition.
What are the central themes covered in the study?
Central themes include the influence of history on the Russian mindset, the transition to a market-based economy, the social structure, and the impact of cultural values on management.
What is the research goal?
The research goal is to help readers understand how cultural differences impact performance in Russia and provide guidance for effective cross-cultural business interactions.
Which scientific model is used to analyze Russian culture?
The paper utilizes Geert Hofstede's Value Dimension model to assess cultural variability and compares Russia's scores with other countries across five cultural dimensions.
What does the main body of the work address?
The main body covers a historical overview, an analysis of the contemporary Russian economy, cultural etiquette, and a detailed cross-cultural study based on Hofstede's model.
Which keywords characterize this paper?
Key terms include Russia, Cross-Cultural Management, Market Economy, Hofstede, Business Etiquette, and Cultural Dimensions.
How is formality and hierarchy described in the Russian business culture?
The paper describes Russia as having a formal and hierarchical culture, where respect and titles are important, despite an underlying value of egalitarianism.
What is the Russian approach to uncertainty?
Russia is categorized as a high uncertainty avoidance culture, where managers prefer stability and predictability, often manifesting in strict adherence to written rules.
How do Russian negotiators typically behave?
Russian negotiators are described as often utilizing multi-stage processes and various techniques to say "no" or test the persistence of their foreign counterparts.
- Quote paper
- MSc. Oliver Pausch (Author), 2006, Business & Culture - A study on Russia, Munich, GRIN Verlag, https://www.grin.com/document/70001
