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Doing business in Russia: Lessons from early entrants
Author(s) -
Puffer Sheila M.,
McCarthy Daniel J.,
Zhuplev Anatoly V.
Publication year - 1998
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.4270400504
Subject(s) - marketing , power (physics) , business , term (time) , horizon , business environment , market economy , economics , business administration , quantum mechanics , astronomy , physics
The business climate in Russia during the first half of the 1990s has been uncertain and difficult. Many companies would hesitate to invest in such a risky environment. Yet some have, and many others will do so, in light of President Boris Yeltsin's continued commitment to a market economy, and other positive developments. A survey of 49 American firms compares 24 American early entrant companies which began doing business in Russia before 1990, with 25 later arrivals. Companies in both groups shared many views about doing business there. However, differences between the two groups concerning motives, attitudes, and strategies suggest characteristics which might contribute to longer term staying power in this uncertain environment. Analyses are supplemented with examples of recent company activities, particularly those of early entrants. The article concludes with lessons based on early entrants' experiences. These lessons may benefit other firms like the newer entrants if they too choose a similar long‐term horizon. © 1998 John Wiley & Sons, Inc.