8.

a. What are the main attributes of the Russian business culture? b. In

what way has the Russian national character affected the business
culture?
informal cultural-cognitive institutions drive business behavior and decision
making in Russia. the mistrust of outsidersthat has led to a lack of
transparency in business dealings.
Hierarchy initiative
One of the defining characteristics of Russian business is the weak legitimacy of
formal institutions, which fosters dependence on informal institutions such as
culture and ethics. This combination of environmental influences severely limits
the range of viable options in bridging mechanisms such as corporate
governance and business strategies. Within business organizations,
organizational actors are affected by these realities and restrict their behaviors to
familiar patterns in key processes such as leadership and knowledge
management. These behavioral patterns manifest themselves in a perpetuation
of conditions in the bridging mechanisms such as nontransparency in corporate
governance and limited competitiveness in business strategies. The influences
from such bridging mechanisms in turn perpetuate environmental circumstances
including the formal institutional void and dependence on informal cultural-
cognitive institutions on the part of business managers.
Studies in the 1990s through the early 2000s examined Russian national and
organizational culture using Hofstedes cultural dimensions (Hofstede, 1980).
Numerous Russian dimensions were found to differ from those of Western
developed nations, with some, such as high power distance, creating obstacles to
successful ventures and operations between Westerners and Russians (Bollinger,
1994; Elenkov, 1997; Fey & Denison, 2003; Michailova, 2000; Naumov & Puffer,
2000; Veiga, Yanouzas, & Buchholtz, 1995). Trust and credibility are important
components of Russian business culture (Hendley, Murrell, & Ryterman, 2000),
with the low level of generalized trust remaining a barrier to the growth of
Russian business. An in-depth field study found that low trust of outsiders
inhibited communication with foreign managers of Western subsidiaries and
undermined organizational initiatives (Ayios, 2004). A consequence of low trust is
that outsiders need to spend considerable time and effort building particularized
trust (Kuznetsov & Kuznetsova, 2005).
Most of these culturally based behaviors are addressed through social networks
or sviazi (connections), including the use of favors known as blat, a practice
embedded in traditional Russian culture for centuries (Ledeneva, 1998;
Michailova & Worm, 2003; Puffer, McCarthy, & Boisot, 2010). The use of blat and
networks is one of the reasons for the rampant corruption that continues to
plague Russian business and society. Thus, Russians continue to be strongly
influenced by the countrys Soviet and even czarist past, and manifest many
cultural influences from those periods. These include collectivism, paternalism,
admiration of strong leaders, fear of responsibility, mistrust of outsiders, and
reliance on ones own networks. Such cultural characteristics could hinder
Russias economic development and integration into the global economy, where
formal institutions typically dictate business practices. Indeed, many Russian
practices are counter to internationally accepted ways of doing business.
Corporate governance is one of the most extensively covered topics in business
and management in Russia, with most works emphasizing differences with other
countries.
Cultural traits that seem to have persisted since Soviet times and long before are
important topics, including paternalism, admiring strong leaders, fear of
responsibility, mistrust of outsiders, and reliance on personal networks.
Research on changes brought on by a more market-oriented system could well
signal a smoother road toward Russias fuller participation in the global economy.
And a recent study concluded that the influence of national culture weakens
when institutional voids are overcome (Chakrabarty, 2009).
Source: Two Decades of Russian Business and Management Research: An
Institutional Theory Perspective by Sheila M. Puffer and Daniel J. McCarthy
Carl F. Fey, Claes Nordahl and Heike Zatterstrom; Organizational culture in
Russia: The secret to success.
Russian Organizational Leadership: Lessons from the Globe Study Mikhail V.
Grachev Western Illinois University Mariya A. Bobina University of Illinois at
Chicago
Culture, Entrepreneurial Orientation, and Global Competitiveness Sang M. Lee
Suzanne J. Peterson
Finding the Common Ground in Russian and American Ethics Sheila M. Puffer
Daniel J. McCarthy
c. Compare China and USA cultures according to Trompanaars cultural
dimensions.
Cultural Dimensions of Trompanaar
1. Universalism versus particularism.
The universalist approach is roughly: What is good and right can be defined and
always applies. In particularist cultures far greater attention is given to the
obligations of relationships and unique circumstances. For example, instead of
assuming that the one good way must always be followed, the particularist
reasoning is that friendship has special obligations and hence may come first.
Less attention is given to abstract societal codes.
2. Individualism versus communitarianism.
Do people regard themselves primarily as individuals or primarily as part of a
group? Furthermore, is it more important to focus on individuals so that they can
contribute to the community as and if they wish, or is it more important to
consider the community first since that is shared by many individuals?
Portuguese
3. Neutral versus emotional.
Should the nature of our interactions be objective and detached, or is expressing
emotion acceptable? In North America and north-west Europe business
relationships are typically instrumental and all about achieving objectives. The
brain checks emotions because these are believed to confuse the issues. The
assumption is that we should resemble our machines in order to operate them
more efficiently. But further south and in many other cultures, business is a
human affair and the whole gamut of emotions deemed appropriate. Loud
laughter, banging your fist on the table or leaving a conference room in anger
during a negotiation is all part of business.
4. Specific versus diffuse.
When the whole person is involved in a business relationship there is a real and
personal contact, instead of the specific relationship prescribed by a contract. In
many countries a diffuse relationship is not only preferred, but necessary before
business can proceed.
5. Achievement versus ascription.
Achievement means that you are judged on what you have recently
accomplished and on your record. Ascription means that status is attributed to
you, by birth, kinship, gender or age, but also by your connections (who you
know) and your educational record (a graduate of Tokyo University or Haute Ecole
Polytechnique).
6. Attitudes to time
The way in which societies look at time also differs. In some societies what
somebody has achieved in the past is not that important. It is more important to
know what plan they have developed for the future. In other societies you can
make more of an impression with your past accomplishments than those of today.
These are cultural differences that greatly influence corporate activities.
7. Attitudes to the environment
An important cultural difference can also be found in the attitude to the
environment. Some cultures see the major focus affecting their lives and the
origins of vice and virtue as residing within the person. Here, motivations and
values are derived from within. Other cultures see the world as more powerful
than individuals. They see nature as something to be feared or emulated.
Source: RIDING THE WAVES OF CULTURE UNDERSTANDING CULTURAL DIVERSITY
IN BUSINESS FONS TROMPENAARS AND CHARLES HAMPDEN-TURNER

CHINA USA
Universalism vs Particularism Universalism
particularism
Individualism vs Communitarianism Individualism
communitarianism
Neutral vs emotional Emotional Emotional
Specific vs diffuse Diffuse Specific
Achievement vs Ascription Achievement
ascription.
Attitudes to time Sequential Synchronic
(Sequential time vs
Synchronous time)
Attitudes to the Outer Inner
environment (Internal
direction vs Outer
Direction)

According to the table above, we can say that general good is more important for
USA while personal relations are more important in China. This also leads us
second dimension of Trompenaars study, because of being universalist American
citizens are individualistic where communitarianism life style is more suitable for
Chinese culture. Even though both USA and China shows emotional aspects their
scores are different from each other. Per their scores USA citizens are low
emotional (affective) while Chinese citizens are emotional. Chinese people are
extremely diffusive while Americans prefer to be specific. As we all know, status
you earned from your family is much more important in Chinese culture than your
accomplishments while American citizens mostly care about achievements of
individuals. Sequential cultures see time as a continuous process which means
that one thing must be accomplished in one time. Time is strict in these types of
cultures. In synchronic cultures multitasking is appreciated. Time is more flexible
in these types of cultures which means that a goal can be reached by several
different ways. Outer direction claims that virtues are not inside people, it is a
part of outside of ourselves which is a part of Chinese culture. While in American
culture, people believe that power they need to accomplish things are inside of
human beings. Difference between these dimensions can be seen usage of words
such as destiny, luck and fate.
Source: Inner vs Outer Direction Resolving Dilemmas from Conflicting Values in
Cultural Diversity Based on: Hampden-Turner & Trompenaars
Comparison of the Studies on Intercultural Communication* LUAN Ming-xiang
China Youth University for Political Sciences, Beijing, China
Culture, entrepreneurial orientation, and global competitiveness
RIDING THE WAVES OF CULTURE UNDERSTANDING CULTURAL DIVERSITY IN
BUSINESS FONS TROMPENAARS AND CHARLES HAMPDEN-TURNER
US-China Foreign Language, ISSN 1539-8080 May 2012, Vol. 10, No. 5, 1207-1213
Comparison of the Studies on Intercultural Communication* LUAN Ming-xiang