Constraints on Capitalism in Russia: The Managerial Psyche,Social Infrastructure,and Ideology

For current perspectives on the socio-economic characteristics of Communism and Capitalism, see: Dobrokhotov L. , “The Key to Understanding Russia Today: Realism,” Russia Today, 1/3 (1993): 1–4; Vanous J. , “Prospects for Economic Reform in Eastern Europe,” Proceedings of the World Bank Annual Conference on Development Economics (Washington, D.C.: IBRD/World Bank, 1992), pp. 71–82; and Aganbegyan A. , Inside Perestroika: The Future of the Soviet Economy (New York, NY: Harper & Row, 1989), pp. 116–150, 173–177. For an historic perspective, see: Salter J. , “On the Interpretation of Bukharin's Economic Ideas,” Soviet Studies, 44/4 (1992), pp. 563–578; Erlich A. , The Soviet Industrialization Debate, 1924–1928 (Cambridge, MA: Harvard University Press. 1960); Schumpeter J. , Capitalism, Socialism and Democracy, 3rd edition (New York. NY: Harper Torchbooks, 1950); von Hayek F. , The Road to Serfdom (London: ARK, 1944): And von Hayek F. , Individualism and Economic Order (London: Routledge and Kegan Paul, 1938).

For further reading on transition change effects, see May A.M. , “Caste, Class, and Social Change: An Institutionalist Perspective,” Journal of Economic Issues, 26 (2), 1992, pp. 553–560; “Helping Russia: Goodwill Is Not Enough,” The Economist, January 3, 1992, pp. 101–104; Harvey D. , “Flexibility: Threat or Opportunity,” Socialist Review, 21/1 (1991): 65–78.

Gligorov V. , “Justice and Privatization,” Communist Economies and Economic Transformation, 4/1 (1992): 45–57.

“Russia's Reforms: As You Were,” The Economist, June 6–12, 1992, pp. 75–76; and L'Vov D.S. , “The Social and Economic Problems of Perestroika,” Communist Economies and Economic Transformation, 4/1 (1992): 75–83.

Vlachoutsicos C. Lawrence P. , “What We Don't Know About Soviet Management,” Harvard Business Review, 68/6 (November/December 1990): 50–63.

The psychology of self worth has been a classic dimension of social and philosophical anthropology, and it has been the underpinning theme of many benchmark books and manuscripts relating to social behavior, creativity, personal psychology, entrepreneurial initiative, and the pathology of a social psyche. A few recommendations include: Ellis S. Kruglanski A. W. , “Self as an Epistemic Authority: Effects on Experiential and Institutional Learning,” Social Cognition, 10/4 (1992): 357–375; Peck M.S. , The Road Less Travelled (London: Arrow Books, 1990); Holbrook D. , Further Studies in Philosophical Anthropology (Hants, U.K.: Gower Publishing Company, 1988); Frankl V.E. , The Unheard Cry for Meaning: Psychotherapy and Humanism (New York. NY: Simon & Schuster. 1978); Fromm E. , Escape from Freedom (New York, NY: Avon Books, 1965); and de Tocqueville A. , The Old Regime and the French Revolution (Garden City, NJ: Doubleday. 1955).

Boeva I. Shironin Y. Dolgopyatova T , “Soviet Arms Manufacturers in the Summer of 1991,” Communist Economies and Economic Transformation, All (1992): 269–278.

Ibid., p. 272; Aslund A. , “Prospects for Economic Reform in the U.S.S.R.,” Proceedings of the World Bank Annual Conference on Development Economics (Washington, D.C.: IBRD/World Bank, 1992), pp. 43–66; and Hewett E.A. , “The New Soviet Plan.” Foreign Affairs, 69/5 (Winter 1990–91): 146–167.

For recent concerns about assistance impact, see: International Monetary Fund, “Monetary Requirements and Development in the Russian Federation,” IMF Summary (January 1993), p. 1; and “More Support for Russia by G7: Tokyo Conference has Subtle Concerns,” Yomiui Shimbun, April 9, 1993, p. 1; and L'Vov , op. cit.

Aslund A. , “The Soviet Economic Crisis,” Problems of Communism, 40/1 (1991): 1–16.

Macrae N. , “A Future History of Privatization, 1992–2022,” The Economist, January 3, 1992, pp. 15–18; Ivancevich J.M. DeFrank R.S. Gregory PR . “The Soviet Enterprise Director: An Important Resource Before and After the Coup,” Academy of Management Executive, 6/1 (1992): 42–55; Kiezun W. , Management in Socialist Countries: USSR and Central Europe (New York, NY: Walter de Gruyter, 1991), pp. 6–7, 128–137; Aganbegyan , op. cit., pp. 45–48, 238–239.

Kordonsky S. , “Pressure Groups in the Social Structure of Reforming Society,” Communist Economies and Economic Transformation, 4/1 (1992): 85–95, and Aslund A. , “Prospects for Economic Reform in the U.S.S.R.,” Proceedings of the World Bank Annual Conference on Development Economics (Washington, D.C.: IBRD/World Bank. 1992), pp. 43–66.

Aganbegyan , op. cit., pp. 60–69; and Sestanovich S. , “Gorbachev's Secret Foe: The Workers.” Washington Post. November 1. 1987, pp. CI.

These conclusions are addressed in: Vance C.M. Zhuplev A.V. , “Myths about Doing Business in the Soviet Union,” Journal of Management Inquiry, 1/1 (1992): 66–69; McCarthy D.J. Puffer S.M. , “Perestroika at the Plant Level,” Columbia Journal of World Business, 21/1 (1992): 86–99; Gligorov V. , “Justice and Privatisation,” Communist Economies and Economic Transformation, 4/1 (1992): 45–57; Wanniski J. , “Boris Yeltsin. Meet Alexander Hamilton,” Audacity, 1/1 (Fall 1992): 16–20; Swaney J.A. , “Market Versus Command and Control Environmental Policies,” Journal of Economic Issues, 26/2 (1992): 623–633; L'Vov , op. cit.; and Aganbegyan , op. cit., pp. 58–64, 239–240.

Sneldor D. , “Visit to ‘Closed’ City Brings Quick Celebrity,” Christian Science Monitor, February 4, 1992, p. 4; and Aganbegyan , op. cit., pp. 33–38.

Galuszka Peter , “A Tractor Factory Tries to Pull Its Own Weight,” Business Week, December 7, 1987, p. 79.

Aganbegyan , op. cit., pp. 34.

Schwartz S.H. Bilsky W. , “Toward a Universal Psychological Structure of Human Values,” Journal of Personality and Social Psychology, 53 (1987): 550–562.

Kiezun W. , op. cit., pp. 84–85.

Ferraro G.P. , The Cultural Dimension of International Business (Englewood Cliffs. NJ: Prentice Hall, 1990), pp. 95–96.

For more information on the psychological dimensions of helplessness and how motivation is affected within an expectancy theory paradigm, see: Summers J. Borland R. Walker M. , Psychology: An Introduction (New York, NY: John Wiley & Sons, 1990), pp. 212–213; Schwartz B. , Psychology of Learning and Behavior, 2nd edition (New York, NY: W.W Norton, 1983); and Abramson L.Y. Seligman M.E.P. Teasdale J.D. , “Learned Helplessness in Humans: Critique and Reformulation,” Journal of Abnormal Psychology, 87 (1978): 49–74. For insights about empowerment, social expectations, and perspectives in developing and affluent cultures, see: May, op. cit.; Blunt P. , “Strategies for Enhancing Organizational Effectiveness in the Third World,” Public Administration and Development, 10/3 (1990): 299–313; and Serageldin I. , “Culture, Empowerment and the Development Paradigm,” World Development Report, World Bank. 1990, pp. 1–4.

The classic argument for self-directed behavior as a determinant of entrepreneurship was put forward by Schumpeter J. A. , The Theory of Economic Development, translated by Opie R. (Cambridge, MA: Harvard University Press, 1934), pp. 42–44, 78–89. Also see Stevenson H. Harmeling S. , “Entrepreneurial Management's Need for a More ‘Chaotic’ Theory,” Journal of Business Venturing, 5/1 (1990): 1–14.

Vlachoutsicos Lawrence , op. cit.

The most recent study concerned, in part, with universalist assumptions also addressed differences in Russian and American behavior. Previous work along similar lines among Western cultures and between Western and Asian cultures supports the viewpoint expressed here. For more, see: Welsh D.B. Luthans F. Sommer S.M. , “Managing Russian Factory Workers: The Impact of U.S.-Based Behavioral and Participative Techniques,” Academy of Management Journal, 36/1 (1993): 58–79; Adler N.J. , International Dimensions of Organizational Behavior, 2nd edition (Boston, MA: Kent Publishing, 1991); Black J. S. Mendenhall M. Oddou G. , “Toward a Comprehensive Model of International Adjustment: An Integration of Multiple Theoretical Perspectives,” Academy of Management Review, 16 (1991): 291–317; and Adler N. J. Doktor R. Redding S.G. , “From the Atlantic to the Pacific Century: Cross-Cultural Management Reviewed,” Journal of Management, 12 (1986): 295–318.

“U.S. Ready to Spend US$1.6b on Russian Aid,” South China Morning Post, April 5, 1993, pp. 1, 5; “U.S. Has Bungled Aid to the Old Soviet Bloc,” The Washington Post, January 17, 1993, p. C1; “Here Comes Reform, at a Price,” The Economist, March 9, 1991, p. 17. Interesting insights also can be gained from Kinzer S. , “7 Leaders Promise $1 Billion for Russia,” The New York Times, July 9, 1992, p. A12: Hofheinz P. , “Let's Do Business.” Fortune, September 23, 1991, p. 64.

There have been several recent articles in which President Yeltsin as well as his critics have voiced concerns of disintegration and social collapse. See, for instance, “Yelstin's Rival Warns of Ruin,” South China Morning Post, quoting Rossiiskaya Gazeta, May 17. 1993, p. 7; Witt Howard , “Yeltsin Crisis Shakes the U.S. Money Tree,” Chicago Tribune, April 3. 1993, p. 17; and “Russia's Reforms: As You Were.” The Economist, June 6, 1992, pp. 75–76. Critiques of Western approaches to doing business in Russia can be found in Shaw J.B. Fisher CD. Randolph W.A. , “From Materialism to Accountability: The Changing Cultures of Ma Bell and Mother Russia,” Academy of Management Executive, 5(1), 1991, 7–20, and Hertzfeld J. , “Joint Ventures: Saving the Soviets from Perestroika,” Harvard Business Review, 69/1 (1991).

“Can Russia Make Democracy Work?” South China Morning Post, reprint of copyrighted editorial by The Economist, October 3, 1993, p. 7; L'Vov , op. cit.; and Eisenstadt S.N. , Revolution and Transformation of Societies: A Comparative Study of Civilizations (New York. NY: The Free Press, 1978), pp. 88–93, 220–232.

Information on government assistance programs and volunteer groups can be obtained from individual organizations and public documents, including: U.S. Department of State. “Technical Assistance to Enterprises (180-0023),” USAJD Project Decisions Papers, March 1991; World Bank. Central and Eastern Europe: Unfinished Revolutions. Atlantic Council Report. January 1993; International Bank for Reconstruction and Development, Privatization: The Lessons of Experience, April 1992; and periodic reports by the U.S. Department of Commerce and the U.S. Department of State.