The paper is focused on the issue of high and low power distance cultures interaction inside domestic and foreign-owned organizations. Empirical data for the research were collected from 623 professionals and managers from 17 private companies in 3 Russian cities. ‘Background influence’ of high power-distance Russian culture provides generally lower participation rates of Russian employees in decision making. However, phenomenon of cultural convergence might be observed in foreign-owned companies: low power-distance culture of owners and top-management in these companies leads to higher; employees here are more motivated to participate and more proactive. Foreign-owned companies are also perceived by their employees as more ‘democratic’ than domestic ones.