Any company doing business in a foreign country must contend with cultural differences—in some places, it’s widespread bribery; in others, a casual attitude toward work. The challenges are particularly acute in economies making the transition to capitalism, such as those of the former Soviet bloc. Research I have conducted as part of the Global Leadership and Organization Behavior Effectiveness project, a study of cultural influences on business organizations and leadership in 62 countries, indicates that Russia—perhaps not surprisingly—has a disproportionate number of drawbacks.

A version of this article appeared in the October 2001 issue of Harvard Business Review.