Abstract

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. The authors 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 the workforce with a unique time perspective and a unique set of subcultures that often undermine attempts at coordination and integration. These ideas are explored using survey data on 179 foreign-owned firms operating in Russia and compared with the results obtained for such firms in the United States.

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