This paper builds on earlier studies indicating a need for new management approaches in post-Soviet companies. Clearly, contextual factors have been influencing firms' adaptation to the new environment. Therefore, this paper takes a step beyond internal developments and explores how contextual aspects influence adaptation and change in local companies. Contextual influence may need time to be detected. The observations analyzed in this study cover seven years (1997 to 2003) of the transition period involving four companies from Russia and four from the Ukraine. This study's findings indicate that new management approaches need “space” for testing and adaptation in local companies. The development of “space” is linked to employees receiving clear signals from the market. It is suggested that signs of competition, customer demand, and the market's basic cash flow provide legitimacy for new work methods and approaches.