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Managing international business operations in a changing institutional context: The case of the St. Petersburg hotel industry

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  • Karhunen, Päivi
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    Abstract

    This article advances the institutional view of business strategy by analyzing the post-socialist institutional transition in Russia and its implications for business strategies in the St. Petersburg hotel industry. The development of the institutional context is divided into three periods: socialist, early transition and late transition. The strategies of foreign hotel enterprises characteristic of each period are investigated with respect to entry/ownership mode, product, supply and human resource management strategies, and sales and marketing. The study is based on 24 semi-structured interviews with hotel managers, and a variety of local archival sources. The analysis shows how tightly companies are integrated with the formal and informal macro- and industry-level institutional context of Russia. In the case of the hotel industry, the impact of the change in the institutional context from a centrally planned to a market economy centers on the connections of the hotel enterprise with public and private sector actors. Here, empirical analysis shows that first, the degree of integration varied between the three time periods examined, second, many relevant institutional effects are observed at industry level, and third, foreign and local enterprises differ especially during the period of rapid institutional change.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 14 (2008)
    Issue (Month): 1 (March)
    Pages: 28-45

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    Handle: RePEc:eee:intman:v:14:y:2008:i:1:p:28-45

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    Keywords: Institutions Business strategy Hotel industry Russia;

    References

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    1. Carl F Fey & Ingmar Bj�rkman, 2001. "The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia," Journal of International Business Studies, Palgrave Macmillan, vol. 32(1), pages 59-75, March.
    2. Shekshnia, Stanislav, 1998. "Western multinationals' human resource practices in Russia," European Management Journal, Elsevier, vol. 16(4), pages 460-465, August.
    3. Klaus E Meyer & Mike W Peng, 2005. "Probing theoretically into Central and Eastern Europe: transactions, resources, and institutions," Journal of International Business Studies, Palgrave Macmillan, vol. 36(6), pages 600-621, November.
    4. Pettigrew, Andrew M., 1997. "What is a processual analysis?," Scandinavian Journal of Management, Elsevier, vol. 13(4), pages 337-348, December.
    5. Kontorovich, Vladimir, 1999. "Has new business creation in russia come to a halt?," Journal of Business Venturing, Elsevier, vol. 14(5-6), pages 451-460.
    6. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    7. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    8. Puffer, Sheila M. & McCarthy, Daniel J. & Zhuplev, Anafoly V., 1996. "Meeting of the mindsets in a changing Russia," Business Horizons, Elsevier, vol. 39(6), pages 52-60.
    9. Klaus E Meyer, 2001. "Institutions, Transaction Costs, and Entry Mode Choice in Eastern Europe," Journal of International Business Studies, Palgrave Macmillan, vol. 32(2), pages 357-367, June.
    10. McCarthy, Daniel J. & Puffer, Sheila M., 1997. "Strategic investment flexibility for MNE success in Russia: Evolving beyond entry modes," Journal of World Business, Elsevier, vol. 32(4), pages 293-319, January.
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    Cited by:
    1. Gelbuda, Modestas & Meyer, Klaus E. & Delios, Andrew, 2008. "International business and institutional development in Central and Eastern Europe," Journal of International Management, Elsevier, vol. 14(1), pages 1-11, March.

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