Russia- La Relation on Cross-Cultural Management Essay
Russian business mentality and cooperation with countries of Latin America The interest of Russia for Latin America countries is a very old story which can start during the cold war when USRR wanted to implement missile in Cuba. After the collapse of the USSR in 1991, Latin American countries were the best countries as a partner to compete with USA. So Russia’s recent quest for influence throughout Latin America began in 1997.
Since then Russia’s goals have remained remarkably consistent, as have the instruments of its policy: trade, arms sales and political support for governments seeking to escape U. S. influence. We know that all countries have different ways for doing business, thus, let’s explain the main differences between Russia and Latin America with the theories of Lewis and Hoefstede. Within the Lewis Model is the fact that there are 3 types of cultures: Linear active, multi-active and reactive.
The interaction among these kind of cultures can present some inconvenient, but in the case of the relation Russia-Latin American, Latin American countries have a really multi-active culture and Russia is between multi-active and linear active but more on the side of multi-active, which means that there are no such big differences between Latin American countries and Russia to do business but anyway sometimes it is still being difficult.Now talking about the approach of Hofstede’s cultural dimensions, we have that on the power distance?Russia is scoring 93 in a world ranking and is among the 10% of the most power distant societies in the world. Status symbols have a huge importance, while for example, Mexico (a specific country in which we emphasize the implementation of theories in this paper) is scoring 81, the country has a hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification.About individualism Russians often use “We” instead of “I”.
Family, friends are extremely important to get along with everyday life’s challenges. Relationships are crucial in obtaining information, getting introduced or successful negotiations. Mexico has a score of 30 and is considered a collectivistic society.
They are close to family, extended family and extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations.In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link). About the masculinity/feminity regarding Russia, we can talk about a feminine culture. Indeed, even though people in this country tend to enjoy high status and power, they are still talk very modestly about themselves and a dominant behavior cannot be accepted between peers. Mexico, on the contrary, is much more built on a masculine culture. Managers are expected to be directive and an honor point is put on competition and performance.
On the other hand, about the uncertainty avoidance dimension Russia and Mexico tend to be similar. Both cultures struggle to avoid uncertainty. It can be by establishing complex bureaucracy, planning precisely, following very strict rules or even by resisting innovation. And finally, on the long-term orientation dimension, there is not a lot of information provided on whether Mexico or Russia are short or long-term oriented, but the important respect for traditions and uncertainty avoidance tend to lead them to short-term oriented cultures.Although we have discussed that there are some difficulties or differences between Latin American countries and Russia, there are some examples that tell that these two parts have had successful business experiences like: * In Argentina more than a third part of the electricity is produced with equipment supplied by Russian companies. * In Brazil there are more than 20,000 Russian machines.
* In LA countries are used more than 900 Russian aircrafts and helicopters. * In recent years Russia supplied to the region with more than 60,000 cars and more than 16,000 trucks. In Ecuador, Colombia and Uruguay are assembling the car “Niva”. The company “Ulyanovsk Automobile Plant, SA” in Venezuela created a MS to assemble vehicles. The Russian manufacturer of heavy trucks “Kamaz” also is planning to build assembly plants in Venezuela and Cuba.
In Venezuela operates two service centers “Kamaz” and the demand for such vehicles is 8,000 units per year. In conclusion, the business relations between LA and Russia have happened because those cultures are not so different in some dimensions of theories, also the two parts are capable to handle the gaps they have, so they can encourage effective cooperation and successful partnerships.