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Developing International Business Relationships in a Russian Context

Ron Berger (), Ram Herstein, Avi Silbiger and Bradley R. Barnes
Additional contact information
Ron Berger: College of Law and Business
Ram Herstein: College of Law and Business
Avi Silbiger: Lev Academic Center-JCT
Bradley R. Barnes: Sheffield Business School

Management International Review, 2017, vol. 57, issue 3, 441-471

Abstract: Abstract The collapse of the former Soviet Union has opened up a wealth of business opportunities for companies seeking new markets in the Russian Federation. Despite this, firms intending to do business in Russia have found themselves hampered by cultural differences in business practices and expectations. As Russia integrates into the global economy, understanding such practices and the managerial mindset of business people is crucial for managers who hope to navigate Russia’s complex markets. This study draws on the trust literature and adopts quantitative tools to deconstruct the Russian ‘Sviazi’ system of social capital business networking. We develop a model isolating three dimensions of Sviazi: one an affective or emotional component; the second, a conative component; and the third, a cognitive component. The model provides a useful guide for helping foreign firms to succeed in Russia, while also serving as a basis for further research in the field.

Keywords: Russia; Sviazi; Social networks; Business models; Trust (search for similar items in EconPapers)
Date: 2017
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