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A framework of successful organizational practices in Western multinational companies operating in Russia

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  • Koveshnikov, Alexei
  • Barner-Rasmussen, Wilhelm
  • Ehrnrooth, Mats
  • Mäkelä, Kristiina
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    Abstract

    Russian organizations have undergone significant changes since the 1990s. A new generation of Russian managers has come to the fore in Russia, who are eager to learn and open to Western knowledge. In turn, Western multinationals have also learned the fundamentals of doing business in Russia. How these developments are reflected in today's operations of Western multinationals in Russia remains – albeit with a few exceptions – largely unexplored in the academic literature. To address this gap, this paper explores what are the organizational practices and how do Western multinationals utilize them when striving to succeed in today's Russia. Based on two explorative case studies and 64 personal interviews with top and line managers it identifies four organizational practices, such as management training, corporate culture management, intercultural and linguistic training, and HRM practices, and two internalization mechanisms, such as boundary spanning, and reliance on local competence. The analysis elucidates important changes that have occurred in Western-Russian business relations and underscores important practical implications.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 47 (2012)
    Issue (Month): 3 ()
    Pages: 371-382

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    Handle: RePEc:eee:worbus:v:47:y:2012:i:3:p:371-382

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    Related research

    Keywords: Russia; Organizational practices; Multinational; Internalization mechanisms; Boundary spanners;

    References

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    1. Engelhard, Johann & Nägele, Joakim, 2003. "Organizational learning in subsidiaries of multinational companies in Russia," Journal of World Business, Elsevier, vol. 38(3), pages 262-277, August.
    2. Camiah, Natasza & Hollinshead, Graham, 2003. "Assessing the potential for effective cross-cultural working between "new" Russian managers and western expatriates," Journal of World Business, Elsevier, vol. 38(3), pages 245-261, August.
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    12. Klaus Uhlenbruck & Klaus E. Meyer & Michael A. Hitt, 2003. "Organizational Transformation in Transition Economies: Resource-based and Organizational Learning Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 257-282, 03.
    13. Michailova, Snejina, 2002. "When common sense becomes uncommon: participation and empowerment in Russian companies with Western participation," Journal of World Business, Elsevier, vol. 37(3), pages 180-187, October.
    14. Shekshnia, Stanislav, 1998. "Western multinationals' human resource practices in Russia," European Management Journal, Elsevier, vol. 16(4), pages 460-465, August.
    15. Robertson, Christopher J. & Gilley, K. Matthew & Street, Marc D., 2003. "The relationship between ethics and firm practices in Russia and the United States," Journal of World Business, Elsevier, vol. 38(4), pages 375-384, November.
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