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

• Published in: Organization science (Providence, R.I.) Vol. 14; no. 6; pp. 686 - 706
• Main Authors: Fey, Carl F, Denison, Daniel R
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.11.2003; Institute for Operations Research and the Management Sciences
• Subjects: Accountability; Adaptation to change; Business structures; Case studies; Comparative analysis; Corporate culture; Correlation analysis; Effectiveness; Elevators; Empowerment; Foreign enterprises; Industrial marketing; Industrial real estate; Industry; Labour force; Local culture; Market economies; Modeling; Organization theory; Organizational Culture; Personal empowerment; Power; Russia; Russian culture; Russian Federation; Studies; Transition Economies; U.S.A; Values; Workers; United States > US; Russia
• ISSN: 1047-7039; 1526-5455
• DOI: 10.1287/orsc.14.6.686.24868

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.