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The purpose of this case study is to examine a new entrepreneurial business in Kiev, Ukraine. The focus is the difference between employees' espoused values and their deep beliefs, which leads to conflict among and within employees.

A theory is proposed about the interaction of espoused values, theory‐in‐use and cultural beliefs. Observation and interviews with staff demonstrated that there was great effort to live out the new espoused values, and also that cultural beliefs hindered this effort.

The proposed theory was supported. The role of the leader in modeling the espoused values was seen to be important for the employees' ability to live up to the new espoused values, and deserves further research.

Limitations include: replication of the study is needed before findings can safely be generalized. The capital city effect means the findings may apply to organizations in Kiev and not other Ukrainian cities.

The implication of the study is that employees' theories‐in‐use may undermine change, even when employees affirm the change, and the modeling of the leader might be essential in order for employees to change their theories‐in‐use. This may apply in organizations beyond Ukraine.

Understanding the impact of theory‐in‐use shaped by Ukrainian culture might be valuable for non‐Ukrainians doing business in Ukraine.