It is important to note that anyone who might have business in Russia should be prepared to deal with a different type of business partner.
“From a business perspective, Russia represents a tremendous universal trust, horizontal as well as vertical, with conscripted labor, conscripted clerical and technical personnel. Nobody has the right strike, to move, or even resign without the permission of his superiors.” (Boublikoff, 1935, p.269) This is a passage from a journal article in 1935 about doing business with Russia. While things have obviously modernized and progressed over the last 86 years, the countries Communist roots from 1918 on are more than just a political party but also representative of their ideas and beliefs. “Culture in a way is a culmination of the personalities within the society.” (Pennsylvania State University, 2021) Russian people has a different social infrastructure than Americans are used too. Understanding this dynamic and being sensitive to their way of life will be important to building a successful relationship.
The work week in Russia is set at Monday-Friday 9am-5pm and retail stores open 8am- 9pm Monday-Saturday. (Abramson & Moran, 2018, p 556) Additionally, it is expected that foreigners show up on time for meetings, while Russian counterparts may be tardy or not show up at all stemming from conditioning in the previous communist party. (Abramson & Moran, 2018, p 556) This means that business meetings are not conducted in equal terms. A foreigner expecting to do business in with a Russian organization will need to have a firm understanding of the differences involved here. If an organization were to acquire an entity with in Russia, you can image any sort of organizational changes would need to have some serious strategizing and time invested if gains were going to be made.
There are several things to consider before approaching a business venture involving either a partnership or a division within your organization in Russia. Ideals and beliefs are different with means work performance and expectations are different. I have said this before and I will say it again, not all stereotypes will reflect your individual experiences, but in an instance such as this, it is highly recommended that you do your research and have contingency plans in place incase there are any misunderstanding so you can be fluid in connecting the dots and achieving your goals.
Thanks,
References
Abramson, N., Moran, R., (2018). Managing Cultural Differences. 10th edition. Routledge. New York, NY. P. 556
jms7581 says
Hello Taylor,
I hope all is well.
Thank you for sharing your takeaways from our lessons, and the basics of doing business in Russia. It is interesting that the idea of universal trust correlates to the inability to strike, move, and even resign. I find this even more interesting given the current state of the United States, as we are in the midst of one of the largest resignations, post-pandemic lockdowns. Moreover, despite the strict guidance and permissions needed to resign from a job, Russia faces extensive unemployment issues.
Russia sounds similar to Great Britain in that the workweek is from 9 A.M. to 5 P.M. Monday through Friday. Additionally, like Great Britain, they expect timeliness from others. However, what I found interesting in your post is the idea that despite the expectation for others to be timely, they themselves may be late due to past conditioning. In the Global Market place, I could imagine this may pose difficulties for leaders working with a mixture of both foreign, and Russian-born employees who have varying viewpoints. Abramson and Moran make is clear Russia does not like the fast pace of the western world. One positive of working through this scenario would be the ability of Russians to be able to speak other languages such as English and French.
I appreciate all of your input into this blog.
Thank You,
Jennifer Surace