Relationship Marketing in a Russian Context: The Significance of “Svyazi”

Maria Khripkova, Master’s Student, Business

Third Place, Student Research Colloquium 2001

 

It is increasingly difficult to succeed in today’s business world by relying on “transaction-based” exchanges. As the society is gradually moving into the post-industrial stage, the trend of establishing ongoing business relationships is gaining wider acceptance. This new approach to marketing has become known as relationship marketing. Relationship marketing is considered “a major shift in marketing theory and practice” paradigm and is defined as “establishing, developing and maintaining successful relational exchanges” (Morgan, 1994).

 

Another important trend affecting direction of business is the increasing significance of internationalization. As firms internationalize, they naturally encounter business cultures that may be vastly different from those prevailing in their home markets. For example, in China, the term “guanxi,” which can most closely be translated as “connections,” represents a way of doing business that is vastly different from Western ways of doing business, and its role, influences, and decision processes are generally poorly understood by foreign investors there. Our understanding of the guanxi concept is largely based on academic research intended to clarify the role of personal relationships in doing business in China. A significant number of studies focused on examining the importance of guanxi in a relationship marketing context.

 

After the end of the Cold War and the collapse of communist regime, a number of emerging economies entered the international arena and now compete for resources and markets. Studies have revealed that business processes in these countries are distinctly different from those observed in Western economies. In particular, the role of networking, relationships, and connections in these nations is one of the most important aspects of daily business. This research project examines the importance of personal relationships in doing business in Russia. Although the notion of networking in business is well-established, the Russian context is quite different than those observed in other nations. Some academicians have already made contribution to this area but no one has attempted to draw a parallel between relationship marketing paradigm and networks in Russia. In the paper we are introducing the term “svyazi,” which describes Russian relationships and which are vital in all aspects of life, but especially in business. Some constructs of relationship marketing (trust, commitment, similar values) will be examined in the context of Russian business and svyazi. Data for this project were collected from in-depth personal interviews with Russians and through questionnaires which were distributed among middle and upper management in a number of Russian companies.

 

References

 

Morgan, R.M., Hunt, S.D., (1994), “The Commitment—Trust Theory of Relationship Marketing,” Journal of Marketing, v. 58, p. 20-38.