Carl F. Fey

Organizational Culture and Effectiveness: Can American Theory Be Applied in Russia?

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. We 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 a workforce with a unique time perspective and a unique set of subcultures that often undermine attempts at coordination and integration. We first explore these ideas using survey data on 179 foreign-owned firms operating in Russia and compare the results to those obtained for firms in the United States. We then present four case studies designed to ground the results in the Russian context, and to document cultural dynamics not captured by the model.

The effect of human resource management practices on firm performance in Russia

Based on 101 foreign firms operating in Russia, the effect of human resource management (HRM) on firm performance in Russia is investigated. This is accomplished by developing and testing a model including HR outcomes (motivation, retention development) as a mediating variable between HRM practices and firm performance. Our study provides some support for the use of HRM outcomes as a mediating variable between HRM practices and firm performance. The results also indicate that non-technical training and high salaries will have a positive impact on HR outcomes managers while job security is the most important predictor of HR outcomes for employees. Thus, our study provides support for the importance of including both managers and non-managers in the same study, but treating them separately. In addition, results indicate a direct positive relationship between managerial promotions based on merit and firm performance for managers and job security and performance non-managers.

The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model

The purpose of this study is to examine the relationship between a bundle or system of human resource (HR) practices and firm performance and the processes through which these HR practices affect organizational outcomes. Using a sample of fifty-two Japanese multinational corporation subsidiaries operating in the United States and Russia, we examine the impact of HR systems on firm performance mediated by employee skills, attitudes and motivation in an attempt to shed light on the so-called ‘black box’ through which HR practices lead to firm performance. The results support the notion that employee skills, attitudes and behaviours play a mediating role between HR systems and firm outcomes in multinational corporations. These findings illustrate the varying impact of synergistic systems of HR practices and their generalizability in different national contexts.

Organizational Climate Similarity and Performance: International Joint Ventures in Russia

This study examines how organizational climate dissimilarity between parent firms and the joint venture organization (JVO) affects joint venture performance. Data were obtained from interviews with the general manager of 40 IJVs and questionnaires were completed by top-level managers from both parents and the JVO (6 people / IJV). Results indicate that to have the best chance of success, it is important for a firm starting a joint venture to select a partner with an organizational climate similar to its own. Results also indicate that it is important to create an organizational climate at the JVO that is similar to the foreign parents organizational climate.

Joint venture conflict: the case of Russian international joint ventures

This paper investigates the importance of firms forming joint ventures having similar organizational climates such that the chances of inter-party conflict arising will be minimized. The study is based on 40 Russian international joint ventures (IJVs) and has both qualitative and quantitative elements. Support was provided for inter-party IJV conflict being an important outcome of IJV activity to monitor (and try to minimize) when evaluating IJV success. Further, evidence was presented to show that similar firms forming an IJV are more likely to have less conflict than more dissimilar firms.

Strategies for managing Russian international joint venture conflict

Based on an analysis of the experiences of 40 Russian IJVs, this study presents nine strategies for managing intra-IJV conflict such that it will have a minimal negative impact on IJV performance. Following the strategies suggested in this paper presents an opportunity for other Russian IJVs to learn from the experience of the IJVs in this study and thus avoid some of the problems that conflict can produce.

Important design characteristics for Russian -- Foreign joint ventures

This article investigates design characteristics important to the success of Russian-foreign joint ventures (R-FJVs). The article also presents the major reasons 20 R-FJVs general managers gave for being dissatisfied with their parent firms and for the performance of their IJVs. This information can help managers of firms interested in starting R-FJVs in the future to avoid some of the problems previously encountered. One of the strengths of this article is that it looks at the same twenty R-FJVs at two different points in time (two years apart).

Developing a model of leadership styles: what works best in Russia?

Choosing a leader with an appropriate leadership style is critical for a firms success. Thus, it is important to understand which leadership styles are most effective. Furthermore, past research suggests that different leadership styles are effective in different national contexts. However, little research has focused on which leadership styles are most effective in Russia -- the focus of this paper. This study has two parts. The first part investigates the leadership characteristics most commonly used to describe Russian leaders. Respondents from 90 firms identified task-orientated, relations-orientated, authoritarian, and democratic as the four most commonly chosen descriptors. These descriptors were then used to construct a model (a 2x2 matrix) which identified four different leadership styles (statesman, clergyman, politician, and military-man). In phase 2, middle managers from 101 firms in Russia then evaluated the effectiveness of these four leadership styles. Responses revealed that the statesman style (task-oriented democrat) and the clergyman style (relations-oriented democrat) were considered most effective.

Organization of Research and Development in Large Multinational Firms

This paper examines how research and development is organized in large multinational firms. The paper identifies three key criteria which differentiate the different organizational systems firms use: doing R&D at the corporate level vs. divisions, the degree of geographic dispersion of R&D activities, and the degree of choice in where to conduct R&D. Results are tested on a sample of 107 firms based in the UK and Sweden.

Social Ties and Indigenous Innovation in China's Transition Economy: The Moderating Effects of Learning Intent

This study advances research on innovation by unfolding a particular innovation type, indigenous innovation, into three patterns (i.e., original innovation, integrative innovation and re-innovation). We examine how social network ties (business and institutional) influence indigenous innovation and the moderating effects of learning intent. Results from 270 Chinese firms indicate an inverted U-shaped relationship between business network ties and each pattern of indigenous innovation. In contrast, institutional network ties affect original innovation in the shape of an inverted U, while they facilitate integrative innovation and re-innovation in a linear manner. Learning intent shows significant moderating effects on these main relationships.