IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v57y2017i3d10.1007_s11575-016-0295-6.html
   My bibliography  Save this article

Developing International Business Relationships in a Russian Context

Author

Listed:
  • Ron Berger

    (College of Law and Business
    Sheffield Business School)

  • Ram Herstein

    (College of Law and Business)

  • Avi Silbiger

    (Lev Academic Center-JCT)

  • Bradley R. Barnes

    (Sheffield Business School)

Abstract

The collapse of the former Soviet Union has opened up a wealth of business opportunities for companies seeking new markets in the Russian Federation. Despite this, firms intending to do business in Russia have found themselves hampered by cultural differences in business practices and expectations. As Russia integrates into the global economy, understanding such practices and the managerial mindset of business people is crucial for managers who hope to navigate Russia’s complex markets. This study draws on the trust literature and adopts quantitative tools to deconstruct the Russian ‘Sviazi’ system of social capital business networking. We develop a model isolating three dimensions of Sviazi: one an affective or emotional component; the second, a conative component; and the third, a cognitive component. The model provides a useful guide for helping foreign firms to succeed in Russia, while also serving as a basis for further research in the field.

Suggested Citation

  • Ron Berger & Ram Herstein & Avi Silbiger & Bradley R. Barnes, 2017. "Developing International Business Relationships in a Russian Context," Management International Review, Springer, vol. 57(3), pages 441-471, June.
  • Handle: RePEc:spr:manint:v:57:y:2017:i:3:d:10.1007_s11575-016-0295-6
    DOI: 10.1007/s11575-016-0295-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-016-0295-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11575-016-0295-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    2. Filatov, Alexander, 1994. "Unethical Business Behavior in Post-Communist Russia: Origins and Trends," Business Ethics Quarterly, Cambridge University Press, vol. 4(1), pages 11-15, January.
    3. A. Oleynik., 2003. "The Model of Network Capitalism," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
    4. Berger, Ron & Silbiger, Avi & Herstein, Ram & Barnes, Bradley R., 2015. "Analyzing business-to-business relationships in an Arab context," Journal of World Business, Elsevier, vol. 50(3), pages 454-464.
    5. Marianne Afanassieva, 2015. "Survival Through Networks: The 'grip' of the administrative links in the Russian post-Soviet context," Public Management Review, Taylor & Francis Journals, vol. 17(9), pages 1261-1281, October.
    6. Linz, Susan J. & Semykina, Anastasia, 2009. "Personality traits as performance enhancers? A comparative analysis of workers in Russia, Armenia and Kazakhstan," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 71-91, February.
    7. Wright, Mike & Lockett, Andy & Pruthi, Sarika, 2002. "Internationalization of Western Venture Capitalists into Emerging Markets: Risk Assessment and Information in India," Small Business Economics, Springer, vol. 19(1), pages 13-29, August.
    8. Bertrand Venard, 2009. "Organizational isomorphism and corruption: An empirical research in Russia," Post-Print hal-00771102, HAL.
    9. Kathryn Hendley & Peter Murrell & Randi Ryterman, 2000. "Law, Relationships and Private Enforcement: Transactional Strategies of Russian Enterprises," Europe-Asia Studies, Taylor & Francis Journals, vol. 52(4), pages 627-656.
    10. Estrin, Saul & Prevezer, Martha, 2011. "The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared," LSE Research Online Documents on Economics 33552, London School of Economics and Political Science, LSE Library.
    11. Alexandre Ardichvili & Douglas Jondle & Brenda Kowske & Edgard Cornachione & Jessica Li & Thomas Thakadipuram, 2012. "Ethical Cultures in Large Business Organizations in Brazil, Russia, India, and China," Journal of Business Ethics, Springer, vol. 105(4), pages 415-428, February.
    12. Anton Oleinik, 2004. "A Model of Network Capitalism: Basic Ideas and Post-Soviet Evidence," Journal of Economic Issues, Taylor & Francis Journals, vol. 38(1), pages 85-111, March.
    13. Michailova, Snejina & Worm, Verner, 2003. "Personal Networking in Russia and China:: Blat and Guanxi," European Management Journal, Elsevier, vol. 21(4), pages 509-519, August.
    14. Bahry, Donna & Kosolapov, Mikhail & Kozyreva, Polina & Wilson, Rick K., 2005. "Ethnicity and Trust: Evidence from Russia," American Political Science Review, Cambridge University Press, vol. 99(4), pages 521-532, November.
    15. Alston, Jon P., 1989. "Wa, Guanxi, and Inhwa: Managerial principles in Japan, China, and Korea," Business Horizons, Elsevier, vol. 32(2), pages 26-31.
    16. Snejina Michailova & Kate Hutchings, 2006. "National Cultural Influences on Knowledge Sharing: A Comparison of China and Russia," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 383-405, May.
    17. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    18. Janine R. Wedel, 2003. "Clans, cliques and captured states: rethinking 'transition' in Central and Eastern Europe and the former Soviet Union," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 427-440.
    19. Hunter, Jeffrey G., 2003. "Determinants of business success under "hypocapitalism": Case studies of Russian firms and their strategies," Journal of Business Research, Elsevier, vol. 56(2), pages 113-120, February.
    20. Koveshnikov, Alexei & Barner-Rasmussen, Wilhelm & Ehrnrooth, Mats & Mäkelä, Kristiina, 2012. "A framework of successful organizational practices in Western multinational companies operating in Russia," Journal of World Business, Elsevier, vol. 47(3), pages 371-382.
    21. Sheila M. Puffer & Daniel J. McCarthy & Max Boisot, 2010. "Entrepreneurship in Russia and China: The Impact of Formal Institutional Voids," Entrepreneurship Theory and Practice, , vol. 34(3), pages 441-467, May.
    22. Chacko, Thomas I. & Wacker, John G., 2001. "An examination of strategic goals and management practices of Russian enterprises," International Business Review, Elsevier, vol. 10(4), pages 475-490, August.
    23. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    24. Daniel McCarthy & Sheila Puffer & Denise Dunlap & Alfred Jaeger, 2012. "A Stakeholder Approach to the Ethicality of BRIC-firm Managers’ Use of Favors," Journal of Business Ethics, Springer, vol. 109(1), pages 27-38, August.
    25. Veiga, John F. & Yanouzas, John N. & Buchholtz, Ann K., 1995. "Emerging cultural values among Russian managers: What will tomorrow bring?," Business Horizons, Elsevier, vol. 38(4), pages 20-27.
    26. Puffer, Sheila M. & McCarthy, Daniel J. & Naumov, Alexander I., 1997. "Russian managers' beliefs about work: Beyond the stereotypes," Journal of World Business, Elsevier, vol. 32(3), pages 258-276, October.
    27. Sidorov, Alexey & Alexeyeva, Irina & Shklyarik, Elena, 2000. "The Ethical Environment of Russian Business," Business Ethics Quarterly, Cambridge University Press, vol. 10(4), pages 911-924, October.
    28. Elfring, Tom & Hulsink, Willem, 2003. "Networks in Entrepreneurship: The Case of High-Technology Firms," Small Business Economics, Springer, vol. 21(4), pages 409-422, December.
    29. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    30. Andy Lockett & Mike Wright & Harry Sapienza & Sarika Pruthi, 2002. "Venture capital investors, valuation and information: A comparative study of the US, Hong Kong, India and Singapore," Venture Capital, Taylor & Francis Journals, vol. 4(3), pages 237-252, July.
    31. Judge, William Q. & Naoumova, Irina & Koutzevol, Nadejda, 2003. "Corporate governance and firm performance in Russia: an empirical study," Journal of World Business, Elsevier, vol. 38(4), pages 385-396, November.
    32. Buck, Trevor & Filatotchev, Igor & Nolan, Peter & Wright, Mike, 2000. "Different paths to economic reform in Russia and China: causes and consequences," Journal of World Business, Elsevier, vol. 35(4), pages 379-400, January.
    33. Mavondo, Felix T. & Rodrigo, Elaine M., 2001. "The effect of relationship dimensions on interpersonal and interorganizational commitment in organizations conducting business between Australia and China," Journal of Business Research, Elsevier, vol. 52(2), pages 111-121, May.
    34. Garry D. Bruton & David Ahlstrom & Kulwant Singh, 2002. "The impact of the institutional environment on the venture capital industry in Singapore," Venture Capital, Taylor & Francis Journals, vol. 4(3), pages 197-218, July.
    35. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    36. Saul Estrin & Martha Prevezer, 2010. "The Role of Informal Institutions in Corporate Governance: Brazil, Russia, India and China Compared," Working Papers 31, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    37. Fey, Carl F. & Nordahl, Claes & Zatterstrom, Heike, 1999. "Organizational culture in Russia: The secret to success," Business Horizons, Elsevier, vol. 42(6), pages 47-55.
    38. Eckhard Dittrich & Heiko Schrader & Christo Stojanov, 2008. "The development of small enterprises in Bulgaria, Czech Republic and the Russian Federation," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 13(2), pages 129-153.
    39. Eckhard Dittrich & Heiko Schrader & Christo Stojanov, 2008. "The development of small enterprises in Bulgaria, Czech Republic and the Russian Federation," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 13(2), pages 129-153.
    40. 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.
    41. Daphne W. Yiu & Chung–Ming Lau, 2008. "Corporate Entrepreneurship as Resource Capital Configuration in Emerging Market Firms," Entrepreneurship Theory and Practice, , vol. 32(1), pages 37-57, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aykol, Bilge & Leonidou, Leonidas C., 2018. "Exporter-importer business relationships: Past empirical research and future directions," International Business Review, Elsevier, vol. 27(5), pages 1007-1021.
    2. Jia‐Wei Tang & Chih‐Jou Chen & Pei‐Hsuan Tsai, 2022. "Development of hybrid fuzzy multi‐criteria decision approach to evaluate key factors for marketing strategic alliance formation based on multiple theories," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 241-261, January.
    3. Srivastava, Saurabh & Singh, Shiwangi & Dhir, Sanjay, 2020. "Culture and International business research: A review and research agenda," International Business Review, Elsevier, vol. 29(4).
    4. Nyamrunda, Frank Charles & Freeman, Susan, 2021. "Strategic agility, dynamic relational capability and trust among SMEs in transitional economies," Journal of World Business, Elsevier, vol. 56(3).
    5. Child, John & Karmowska, Joanna & Shenkar, Oded, 2022. "The role of context in SME internationalization – A review," Journal of World Business, Elsevier, vol. 57(1).
    6. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris & Pereira, Vijay, 2022. "Examining the industrial buying behavior in Indian market: From behavior and cultural perspective for B2B buyers and suppliers," Journal of Business Research, Elsevier, vol. 151(C), pages 86-99.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbara Krug & Alexander Libman, 2015. "Commitment to local autonomy in non-democracies: Russia and China compared," Constitutional Political Economy, Springer, vol. 26(2), pages 221-245, June.
    2. Li, Haiyan, 2020. "Role of overseas ethnic and non-ethnic ties and firm activity in the home country in the internationalization of returnee entrepreneurial firms," Journal of International Management, Elsevier, vol. 26(1).
    3. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris & Pereira, Vijay, 2022. "Examining the industrial buying behavior in Indian market: From behavior and cultural perspective for B2B buyers and suppliers," Journal of Business Research, Elsevier, vol. 151(C), pages 86-99.
    4. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    5. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    6. M. Kamil Kozan & Levent Akdeniz, 2014. "Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy," Administrative Sciences, MDPI, vol. 4(1), pages 1-16, February.
    7. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    8. Snejina Michailova & Elena Sidorova, 2010. "Knowledge Management In Transition Economies: Selected Key Issues And Possible Research Avenues," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    9. Sheila Puffer & Daniel McCarthy & Alfred Jaeger & Denise Dunlap, 2013. "The use of favors by emerging market managers: Facilitator or inhibitor of international expansion?," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 327-349, June.
    10. Berger, Ron & Silbiger, Avi & Herstein, Ram & Barnes, Bradley R., 2015. "Analyzing business-to-business relationships in an Arab context," Journal of World Business, Elsevier, vol. 50(3), pages 454-464.
    11. David Ahlstrom & Garry D. Bruton, 2006. "Venture Capital in Emerging Economies: Networks and Institutional Change," Entrepreneurship Theory and Practice, , vol. 30(2), pages 299-320, March.
    12. Wafa N. Almobaireek & Ahmed A. Alshumaimeri & Tatiana S. Manolova, 2016. "Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 87-114, March.
    13. David Ralston & Carolyn Egri & Charlotte Karam & Irina Naoumova & Narasimhan Srinivasan & Tania Casado & Yongjuan Li & Ruth Alas, 2015. "The triple-bottom-line of corporate responsibility: Assessing the attitudes of present and future business professionals across the BRICs," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 145-179, March.
    14. Daniel McCarthy & Sheila Puffer & Denise Dunlap & Alfred Jaeger, 2012. "A Stakeholder Approach to the Ethicality of BRIC-firm Managers’ Use of Favors," Journal of Business Ethics, Springer, vol. 109(1), pages 27-38, August.
    15. Koveshnikov, Alexei & Barner-Rasmussen, Wilhelm & Ehrnrooth, Mats & Mäkelä, Kristiina, 2012. "A framework of successful organizational practices in Western multinational companies operating in Russia," Journal of World Business, Elsevier, vol. 47(3), pages 371-382.
    16. Michael Young & Terence Tsai & Xinran Wang & Shubo Liu & David Ahlstrom, 2014. "Strategy in emerging economies and the theory of the firm," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 331-354, June.
    17. Charlotte Karam & David Ralston & Carolyn Egri & Arif Butt & Narasimhan Srinivasan & Ping Fu & Chay Lee & Yong-lin Moon & Yongjuan Li & Mahfooz Ansari & Christine Kuo & Vu Hung & Andre Pekerti & Phili, 2013. "Perceptions of the ethicality of favors at work in Asia: An 11-society assessment," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 373-408, June.
    18. S. De Prijcker & S. Manigart & M. Wright & W. De Maeseneire, 2009. "The influence of international human capital and international network relationships on the cross-border investment behaviour of private equity firms," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/597, Ghent University, Faculty of Economics and Business Administration.
    19. Nobuya Fukugawa, 2006. "Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan," Small Business Economics, Springer, vol. 27(2), pages 181-193, October.
    20. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:57:y:2017:i:3:d:10.1007_s11575-016-0295-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.