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Political Survival or Entrepreneurial Development? Observations on Russian Business Networks

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Author Info

  • Huber, Peter
  • Wörgötter, Andreas

Abstract

Networks are hybrid forms between hierarchies and markets. The present article focuses on the structure of Russian business networks and their potential for integration into European business networks. In Russia, two competing types of networks can currently be identified: survival networks and entrepreneurial networks. In the latter, the main interests of the enterprise managers are to improve market performance and profits. But in the former, enterprise managers are involved in a large “rent-seeking” game, in which political and market power are the major means by which rents are extracted. Managers within survival networks evaluate both internal and external business relationships with reference to their effects on rent-extraction capacities. In Russia today, survival networks predominate and entrepreneurial networks are relatively few in number.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20412.

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Date of creation: 01 Jan 1998
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Publication status: Published in Post-Soviet Affairs January-March 1998, Number 1,.Vol. 1(1998): pp. 81-91
Handle: RePEc:pra:mprapa:20412

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Related research

Keywords: business networks; survival; entrepreneurial networks; rent-seeking; Russia;

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References

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  1. Igor Gurkov, 1998. "Ownership and control in Russian privatised companies: New evidence from a repeated survey," Post-Communist Economies, Taylor & Francis Journals, vol. 10(2), pages 259-270.
  2. Huber, Peter & Nagaev, sergei & Wörgötter, Andreas, 1996. "The Relocation of Russian Industry 1987-1993," MPRA Paper 20534, University Library of Munich, Germany.
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Citations

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Cited by:
  1. Zoya Kotelnikova, 2013. "Structural embeddedness and contractual relationships of chain stores and their suppliers in Russian emerging markets," HSE Working papers WP BRP 22/SOC/2013, National Research University Higher School of Economics.
  2. Schwartz, Andrew & Zysman, John, 1998. "Reunifying Europe in an Emerging World Economy: Economic Heterogeneity, New Industrial Options, and Political Choices," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt60w702zc, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
  3. Alf Rehn & Saara Taalas, 2004. "‘Znakomstva I Svyazi’ (Acquaintances and connections) -- Blat , the Soviet Union, and mundane entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(3), pages 235-250, May.
  4. Pyle, William, 2005. "Collective action and post-communist enterprise: The economic logic of Russia’s business associations," BOFIT Discussion Papers 19/2005, Bank of Finland, Institute for Economies in Transition.
  5. Stark David & Vedres Balázs, 2005. "Sequenze di rete e investimento estero in Ungheria," Stato e mercato, Società editrice il Mulino, issue 3, pages 391-422.
  6. Ivanova, Maria & Torkkeli, Lasse, 2013. "Managerial sensemaking of interaction within business relationships: A cultural perspective," European Management Journal, Elsevier, vol. 31(6), pages 717-727.
  7. Bat Batjargal, 2000. "Social Capital and Entrepreneurial Performance in Russia: A Panel Study," William Davidson Institute Working Papers Series 352, William Davidson Institute at the University of Michigan.
  8. John Zysman & Andrew Schwartz, 1998. "Reunifying Europe in an Emerging World Economy: Economic Heterogeneity, New Industrial Options, and Political Choices," Journal of Common Market Studies, Wiley Blackwell, vol. 36(3), pages 405-429, 09.
  9. William Pyle, 2005. "Collective Action and Post-Communist Enterprise: The Economic Logic of Russia’s Business Associations," William Davidson Institute Working Papers Series wp794, William Davidson Institute at the University of Michigan.

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