HCBE Faculty Presentations

Event Location / Date(s)

49th Annual Meeting of the Academy of International Business/Indianapolis, IN

Event Name / Location

Proceedings of the 49th Annual Meeting of the Academy of International Business " Bringing the Country Back In: The Importance of Local Knowledge in a Global Economy"

Presentation Date

6-27-2007

Document Type

Conference Proceeding

Description

We present an empirical study of competency development in a new joint venture, between a western firm and a Russian firm. Using transaction cost and knowledge management approaches, we propose working models for exploring the competency development dimension of a market entry strategy of the western firm in Russia. We consider organizational competency as measurable know-how, skills, behaviors, and attitudes of key employees that allows the company to meet their performance goals. Using a triangular case study approach the paper focuses on the well-site supervisor competency building process within the joint venture. We observe the critical elements of the competency development program, conduct interviews with Russian and western employees, review published data on program success and on the financial and operating performance resulting from the program. Total risk and organizational competency are two major decision elements in determining the mode of entry to the Russian oil and gas industry. We show that Russian and western employees have different views on the competencies needed in a Russian venture. This finding supports the need to include local competencies as an integral part of the organizational competency development program. Leadership and experience play a major role in successful allocation of resources to develop appropriate structures and function in the new joint venture.

First Page

134

Last Page

134

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