Intercultural influences leading to implementation failure in the Russian automotive industry

Valery Krylov () and Vincent Montenero
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Valery Krylov: CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Vincent Montenero: MENDELU - Mendel University in Brno

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Abstract: This chapter offers an in-depth analysis of the situation of a Western multinational firms which failed to establish itself in Russia. It aims to understand what combined cultural factors influenced progress on the project. In general, the average Russian demonstrates a high level of caution or even fear, leading to the quest, desire and need for some type of protection. Scoring relatively low in terms of assertive and confrontational communication, Russia is moving back to its traditional centralized model. Whereas in the 1990s the time horizon was very limited, the economic and social stability of the 2000s might have encouraged businesses to think more strategically. Cultural values influence organizational practices through attitudes and behaviours. The collectivist dimension emphasizes loyalty, as with decisions based on personal relationships with managers. The decrease in automotive sales in Europe, which started in 2006, seemed to make this project vital for the future of the company.

Date: 2021-02-01
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Published in Nadine Tournois; Philippe Very. Open Internationalisation Strategy, Taylor and Francis, 2021, 9781003095163

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03158224

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