Cross-Cultural Differences in Logistics and Adaptation To Them: The Case Of A German Logistics Services Provider Entering The Russian Market

Abstract

This paper explores obstacles to doing business related to the logistics industry in the emerging Russian market, ways of dealing with these obstacles and the role of culture in problem definitions and solutions. The paper is based on the case of a German logistics services provider entering and operating in the Russian market. Data were obtained from interviews of top managers of its Russian subsidiary and analyzed using qualitative research methods. Findings show that the firm treats difficult logistics problems in Russia as business opportunities and applies its traditional strengths reflecting its national and organizational culture to overcome the obstacles and problems. However, the firm must rethink its business strategy and step out of its traditional cultural comfort zone to deal with specific obstacles explained by “high power distance” and other dimensions of the Russian national culture.