Recognizing Cultural Differences: Key to Successful U.S.-Russian Enterprises

Despite the political meandering, economic woes and social upheaval, many U.S and western firms believe this is an ideal time to establish themselves in the vast Russian marketplace. Even with hyperinflation and the newly exchanged currency, there is widespread and growing demand demand for American products of all kinds. There are still many hurdles to overcome for large-scale businesses ventures in raw materials and heavy manufacturing. However, importing, wholesaling/distribution, retailing, education and consulting (both business and government) are just a few of the many high-potential opportunities for U.S. firms. But unlike global ventures in countries with established market economies, U.S managers need to have a clear understanding of the wide differences in the cultural makeup of the American and the Russian people. This article contrasts the two sets of cultural values as they affect work habits, ethics, incentives and personal aspirations. Ten suggestions are included to aid U.S. firms in planning their enterprises, in functioning within the Russian system and in dealing with Russian employees.