There is an indication that foreign and Russian partners have different
views of underlying business principles. Due to the emphasis of Russian
management on collectivistic approaches to business and reliance on
capital and functional aspects over human assets (Katsioloudes and
Isichenko, 2007), a large number of foreign investment companies started
joint ventures with Russian companies. The Russian market's orientation
had previously focused on processing inventory with emphasis placed on
supply rather than on consumer demand. As a result, Russian companies
largely ignored the consumer (Hisrich, 1996). In the changing economic
conditions, many firms in Russia were forced to create new methods of
doing business.