Ethical behavior perceptions in Russia: Do ethics-related programs and individual characteristics matter?

This paper aims to analyze how individual differences and ethics-related programs predict Russian business students and working adults' perception of personal business ethics. This research evaluates the business ethics perceptions based on surveys of 1,207 managers, employees, and business students in Russia. This study finds the significant correlations between individual differences (gender, age, education level, and management experience), ethics-related programs (business ethics courses taught in universities, ethics and diversity professional development training), and personal business ethics' perceptions of Russian business students and working adults. We also find that individual differences moderate the relationship between ethics-related programs and how the personal business ethics of Russian business students and working adults are perceived. These findings advance current literature by revealing that age moderates the relationship between ethics-related programs (formal ethic courses, ethics, and diversity trainings) and personal ethical behavior perceptions of working adults and business students in Russia. Our study found that gender had a significant positive moderating effect on relationship of organizational code of ethics, formal ethic courses, and diversity professional development with personal ethical behavior perceptions. The relation between personal ethical behavior perceptions and the presence of an organizational code of ethics was negative and marginally moderated by age and managerial experience. This study contributes to business ethics research by deepening the understanding of the impact of individual differences on the relationship between ethics-related programs and personal business ethics' perceptions.     

3M: Role model for emerging markets

This article focuses on the role of multinational companies in transferring advanced human resource management practices to post‐Communist countries. It reviews the lessons learned from the complex cultural and historical configuration of a transitional economy. The authors analyze 3M's experience in Russia and the results of interviews with the company managers. They summarize innovative solutions in hiring, training, motivating employees, and creating organizational culture, and discuss the company's position as a role model for emerging markets. © 2006 Wiley Periodicals, Inc.     

Changes of control and business reengineering in Russian privatized companies

The success of societal transformation in Russia depends on the ingenuity of Russian managers to link the legacy of the communist regime and the national patterns of industrial organization with the prerequisites of a modern economy. This article reports on a study of management in organizational transformation for 20 privatized industrial companies in Russia and describes the changes in their control structures and strategies. Organizational and economic factors determining the establishing of specific control arrangements and their impact on business reengineering are analyzed by synthesis of surveys and case studies. Implications for western partners and suggestions for further research are drawn.     

The Bathsheba Syndrome: The ethical failure of successful leaders

Reports of ethical violations by upper level managers continue to multiply despite increasing attention being given to ethics by firms and business schools. Much of the analysis of these violations focuses on either these managers'lack of operational principles or their willingness to abandon principles in the face ofcompetitive pressures. Much of the attention by firms and business schools focuses either on the articulation of operational principles (a deontological approach) or on the training of managers to sort their way through subtle ethical dilemmas in the face of competitive pressure (a utilitarian approach). While valuable, these approaches alone are incomplete. This paper suggests that many ethical violations by upper managers are the by-product ofsuccess — not of competitive pressures. Our research suggests that many managers are poorly prepared to deal with success. First, success often allows managers to becomecomplacent and to lose focus, diverting attention to things other than the management of their business. Second, success, whether personal or organizational, often leads toprivileged access to information, people or objects. Third, with success usually comes increasinglyunrestrained control of organizational resources. And fourth, success can inflate a manager's belief in his or her personalability to manipulate outcomes. Even individuals with a highly developed moral sense can be challenged (tempted?) by the “opportunities” resulting from the convergence of these dynamics. We label the inability to cope with and respond to the by-products of success “the Bathsheba Syndrome,” based on the account of the good King David (a story familiar in a variety of traditions). Recognition of this phenomenon implies that we change or broaden our approach to the teaching of business ethics. It also implies that organizations must re-evaluate and change structures, procedures, and practices which enhance the likelihood of managers falling victim to the Bathsheba Syndrome.     

From exploiting to investing: A survey of us firms doing business in russia

US companies have been accused by the Russian media of flooding the Russian markets with their exports, repatriating their revenues or using them to buy Russian resources cheaply, and, as a result, increasing Russia's unemployment and decreasing its standard of living. Russia, argue many Russian experts interviewed in the past several years, is being badly exploited and its culture cheapened with Western candy, which in 1994 took $5 billion from consumers in Russia. On the other hand, US companies, which have been entering the Russian market in increasing numbers, argue that exporting products and services to Russia enhances the satisfaction of Russian consumers and contributes to the country's economy. They further say that as they become more familiar and comfortable with the Russian market, they change their strategies and increase their investment in Russia. Are US companies exploiting Russia or investing in its economic expansion? In this study the author investigated the entry strategies to Russia of 87 large US companies starting in 1989. These were randomly selected corporations, including a cross-section of consumer goods, industrial goods, computers, oil and gas, fast food, and consulting companies. What emerged was a captivating, historical drama, which changes rapidly from making money through exporting to Russia, to commitment through investment in plants and employment. For example, while the most popular entry doors to Russia have been exportlimport and joint ventures, most strategy changes since 1989 have been to wholly-owned subsidiaries, which usually require substantial investment. Yesterday's Snickers Bars exporter, Mars Candy, created a wholly-owned subsidiary, Masterfoods, and spent $70 million to build a chocolate and pet food factory that employs many Russians. In addition, a greater number of US companies entered the Russian market after the 1992 Yeltsin economic shock therapy and had a much needed stabilizing effect on the Russian economy. So, what may have been perceived as a one-sided relationship has been evolving to growth and mutual commitment. And as the Russian economy continues to grow, these companies will grow and prosper, too. Executives who are interested in the Russian market are advised that this market is real, growing, and worth considering. To enter and grow in this market, however, executives are cautioned that business deals in Russia must be structured in unfamiliar ways, and that they must employ local workers and respect Russia's culture and history. © 1997 John Wiley & Sons, Inc.     

Internationalization of Organizational Behavior:

The global structure of today's business environment mandates that business students acquire an awareness of cultural issues that have an impact on the social and business components of organizational life. Emphasizing the need to develop cross-cultural competence, an integrated communication framework is presented as a model for restructuring collegiate organizational behavior to facilitate experiential learning. Consistent with Brislin's (1989) training model, revision of course content can be structured to provide students with opportunities to internalize a set of skills that may facilitate cognition, affect, and behavior to enhance multi-cultural interactions.     

International Success of Business Groups as an Indicator of National Competitiveness

Abstract

Business groups are the dominant form of large private enterprise throughout Latin America. However, relatively little academic research has attempted to identify the dominant characteristics of these groups and even fewer formal studies have examined how these groups are fairing in today's age of increased competition and globalization. While there are numerous characteristics of business groups that are worthy of examination, in this paper we focus on their foreign direct investment (FDI) activities. In order to better understand the potential strengths and weaknesses of Mexican multinationals, we draw upon Dunning's eclectic paradigm of international production and the literature examining developing country multinationals. While this body of knowledge provides a useful theoretical lens, the current FDI activity of Mexican business groups is somewhat at odds with the existing literature.     

A new look at ethics in international business

In many countries there are stated rules that gift-giving and solicitation in business practice are unethical and prohibited. However, except for the American FCPA, all the rules and guidelines seem to govern only domestic business practices and there are no clear-cut rules for international business practices in this respect. This study investigates gift-giving and solicitation in international business practice, using the data collected from 111 New Zealand international business firms. The research findings show variable conduct and contradictory attitudes. These findings suggest that, with the variety of ethical standards and levels of morality which exist in different cultures, neither Deontology nor Utilitarianism could be the answer to the dilemma of ethics and pragmatism that faces today's international business managers. Instead, “Culturalism,” as developed in this study, should be the guiding principle to international business ethics.     

Transformation of marketing management in Russia: A qualitative and theory building approach

Casual observers of Russian management are quick to portray a simplistic, well packaged, and seemingly accurate picture of life of Russian managers. Russia, they say, is imploding and disintegrating. In 1992, the inflation rate was 3,000 percent, and in the first 6 months of 1993, the monthly inflation rate ranged from 25 to 30 percent. The gross national product declined 25 percent in 1992 and continued to decline in 1993. Management life in Russia, these observers say, is unbearable, hell. Russian managers have been order-takers from central planners and regulators for more than 70 years. They have been accustomed to working in a stable and predictable environment, and therefore could not possibly be effective in the shock-therapy-induced market economy that began in January, 1992. However, these observers could not be further from the truth. I concluded from my study of Russian management decision making in 1989, 1991, and 1992 that in a rapidly changing and chaotic environment, Russian managers are quick to recognize the effects of the evolving market economy and take rapid corrective or exploitive action. The 3-year effort is a qualitative study of Russian management transformation and the development of a theoretical framework. What I found was that contrary to my findings in 1989 and 1991, the Russian economic shock therapy, which began in 1992, has infused life into Russian managers. As a result, they have been quick to recognize the effects of such economic forces as inflation, uncertainty, competition, consumer selectivity, credit, cash flow, and raw material on their enterprises. Likewise, they were also quick to respond, for example, by restructuring, downsizing, developing more competitive strategies, increasing promotions and sales force, and seeking foreign investors. In these respects, Russian management behavior resembles Western management behavior. © 1995 John Wiley & Sons, Inc.     

Barriers to implementing e‐learning: a Kuwaiti case study

The paper reports on a research project that encompasses two key objectives: (1) finding out about the barriers affecting or preventing e‐learning from being adopted by companies as an integral part of their workforce's training and learning processes and (2) establishing a comparison between the barriers and the e‐learning implementation models found in Kuwait and in the practice of Western companies. The practices from Western countries are used as a benchmark for the Kuwaiti experience. The collection of the primary data was carried out through the use of semi‐structured questionnaires with human resources managers as well as IT managers in charge of the e‐learning of 11 of the largest companies in Kuwait. The research results show that the key implementation barriers in Kuwait are (1) lack of management support; (2) language barriers; (3) IT problems; and (4) workload and lack of time. From these, two are common to Western countries (technology and time). The remaining two (management support and language barriers) are specific to Kuwait. Regarding the comparison between the two implementation models, the key finding was that the usual e‐learning development cycle (plan–design–integrate–improve) was not followed in Kuwait. The planning, designing and improving stages were largely ignored, with the emphasis resting almost completely on integrating the e‐learning tools and processes in the rest of the organization. This finding was found to be in line with barrier number one – lack of management support. The key lesson learned from this research is that the problem of e‐learning implementation in Kuwait is not so much one of knowing what the barriers are but one of knowing what the appropriate management processes should be for companies to achieve business success. The paper also provides recommendations for an e‐learning development plan to fit the current business environment in Kuwait.     

Congenital learning in the Spanish telecommunication industry

Knowledge provided by a firm's founder(s) is one of the most important success factors for SMEs. This paper aims to identify the impact of the founder's knowledge on business performance in today's organization. It is with this in mind that we propose a specialized organizational learning process, which we refer to as the congenital learning process, by which the firm transforms the tacit and explicit knowledge of the founder into knowledge which is available to the firm and its members. The research model and hypothesized relationships are empirically tested using the structural equation modeling (SEM) approach, validated by factor analysis of 130 SMEs in the Spanish telecommunications sector. Two structural equation models, derived from the literature, have been used, resulting in the conclusion that organizational performance is positively affected by the transfer and transformation of knowledge as long as the organization has implemented processes that lead to the creation of what we refer to as an open organizational context.     

Facilitating factors in the cross-cultural transfer of management practices: The case of a German multinational in Brazil

The transfer of management practices in multinational companies has been discussed as a central topic in international business. Research has mainly focused on the challenges associated with transfer processes, but little is known about facilitating factors in cross-cultural transfer, even less in emerging markets. Based on a single case study of a German multinational in Brazil, we examine the transfer of quality management practices and map this process into three ideal-typical stages. We identify nine facilitating factors that play different roles during the three stages and highlight their support for the subsidiary’s successful development. Our findings contribute to constructive approaches of cross-border transfer and show that the emergence of a hybrid organizational culture through mutual learning favors the transfer of management practices in multinationals.     

A model for evaluating the effectiveness of middle managers' training courses: evidence from a major banking organization in Greece

Contemporary management thinking embraces the organizational training theory that sustainable success rests, to a great extent, upon a systematic evaluation of training interventions. However, the evidence indicates that few organizations take adequate steps to assess and analyse the quality and outcomes of their training. The authors seek to develop the existing literature on training evaluation by proposing a new model, specific to management training, which might encourage more and better evaluation by practitioners. Their thesis is that training evaluation is best if it can be based on criteria derived from the objectives of the training and they draw on the management effectiveness literature to inform their proposed model. The study seeks to examine the effect of six evaluation levels – reactions, learning, job behaviour, job performance, organizational team performance and some wider, societal effects – in measuring training interventions with regard to the alterations to learning, transfer and organizational impact. The model was tested with data obtained from 190 middle managers employed by a large banking organization in Greece and the results suggest that there is considerable consistency in the evaluation framework specified. The paper discusses these results and draws conclusions about their practical implications. The study's limitations are considered and some future research needs identified.     

Managerial Success Factors

Abstract

This article reports on an exploratory study conducted in the People's Republic of China (PRC) to identify the managerial success factors perceived by Chinese managers to be important in their market economy. The study also looked at how these factors are exhibited by recent graduates of Chinese universities now working in Chinese firms. Questionnaire responses were collected from managers in 113 Chinese state-owned exnterprises (SOEs) and private firms. Managers in both types of firms agreed on the relative importance and presence of the following factors: work habits, teamwork, creativity, ethics, communication, leadership, and business area knolwedge. Respondents gave higher ratings to the importance of each factor than to its presence in the recently hired gradutes. The results of this study provide a management profile of knowledge, skills, and abilities considered desirable by Chinese managers for today's market economy in the People's Republic of China. The identification of gaps between importance ratings and presence ratings provides valuable insight into changes that should be considered by educators in the design of business area currucula in Chinese universities.     

Can Russia's state-managed,network capitalism be competitive?: Institutional pull versus institutional push

In the fall of 2005, former chairman of Yukos Oil, Mikhail Khodorkovsky, was sentenced to prison, after being found guilty of fraud and tax evasion. Many viewed the trial as the government's attempt to gain control of the energy sector which Putin had declared as strategically crucial to the country. This article examines the role of the state and the type of capitalism that is evolving in Russia. We view this system as consisting of three forms of network capitalism that coexist in this transition economy – market, oligarchic, and siloviki – and the relationships among them, all existing within the pervasive environment of the Russian state. We argue that the Russian economy will continue to be based for some time on the cognitive institutional pillar rather than the regulative pillar. The article concludes with implications of government policy decisions for the various forms of capitalism, for the country's competitiveness and attractiveness for foreign investment, and for Russian managers.     

A New World Order: The Role of Advertising in Russia and the NIS

Changes in worldwide political and economic strategies have contributed to the changing role of advertising as an institution in Russia. One result is the rapid growth of Russia's advertising industry and its similarity to Western classical liberalism and neoliberalism propositions of marketing communication. This article builds on the author's previous studies on the role of advertising in what is now Russia through participants' own words and visions of advertising. In-depth interviews with business and industry professionals, academicians and government representatives provided insight into changes in the perception and practice of advertising in Russia.     

Interview: Leadership,global management,and future challenges: An interview with Peter Brabeck‐Letmathe,chief executive officer of Nestlé SA

The interview with Peter Brabeck‐Letmathe, Chief Executive Officer of Nestlé S.A., focuses on three core business concepts: Nestlé's leadership style in today's global environment, the importance of Nestlé's core values, and some future challenges to Nestlé. Nestlé's ideal leaders are dynamic, multicultural, and open‐minded; they continuously seize the opportunities that a changing environment offers. Nestlé's Basic Management and Leadership Principles are the foundation upon which changes are enacted and implemented. Nestlé's organizational structures are tailored to facilitate business in many different product categories. © 2000 John Wiley & Sons, Inc.     

Young managers' interpersonal stress and its relationship to management development practices: an exploratory study

This exploratory study investigates whether there is a relationship between young managers' interpersonal stress and various management development practices. In recent years, practitioners and researchers have focused on stress studies and related practices in the workplace. However, stress encountered by young managers has received less attention. We examine possible sources of young managers' interpersonal stress and develop a scale through exploratory factor analysis. Participants are less than 35 years old, mainly from the financial, high‐tech and service industries in Taiwan. Organizational managerial development practices are discussed to understand their relevance to young managers' interpersonal stress. The results suggest that the more opportunities young managers have to make decisions, the more their opinions will differ from those of their middle‐aged fellow managers and senior subordinates. However, organizations with formal assessment may lessen disagreements with middle‐aged fellow managers. Future studies regarding young managers' interpersonal stress can be carried out using this scale and can explore whether other, specific organizational management development practices are related to lower stress levels among young managers.     

Headquarters parenting advantage in Chinese MNEs: The moderating role of top managers’ political and International experience

This study explores the relevance of top management teams’ experience to support the headquarters parenting advantage in the context of Chinese multinationals. Specifically, it studies how the political and international experience of headquarters’ top management teams moderates the relationship between headquarters involvement in knowledge transfer processes – a key aspect of value creation in the parenting advantage logic – and the extent of reverse knowledge transfer from subsidiaries. Based on the data from two complementary surveys of senior managers in 99 Chinese multinationals and managers in their 177 subsidiaries, our analysis indicates a contrasting effect of top managers’ experience as their political experience weakens, but their international experience strengthens the positive effect of headquarters involvement in reverse knowledge transfer. This study contributes to the parenting advantage logic, by introducing the relevance of different top managers’ experiences, and to our understanding of top management teams in the context of both reverse knowledge transfer and Chinese multinationals, particularly by showing the important implications of top management teams’ experience for Chinese enterprises’ international strategies.