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Political Survival or Entrepreneurial Development? Observations on Russian Business Networks

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  • 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.

Suggested Citation

  • Huber, Peter & Wörgötter, Andreas, 1998. "Political Survival or Entrepreneurial Development? Observations on Russian Business Networks," MPRA Paper 20412, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20412
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    File URL: https://mpra.ub.uni-muenchen.de/20412/1/MPRA_paper_20412.pdf
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    References listed on IDEAS

    as
    1. Stern, Richard E., 1996. "Policy Analysis of Foreign Direct Investment into the Russian Federation: A Study of the Current State of Affairs and Prospects for the Future," East European Series 34, Institute for Advanced Studies.
    2. Huber, Peter & Nagaev, sergei & Wörgötter, Andreas, 1996. "The Relocation of Russian Industry 1987-1993," MPRA Paper 20534, University Library of Munich, Germany.
    3. Paul L. Joskow & Richard Schmalensee & Natalia Tsukanova, 1994. "Competition Policy in Russia during and after Privatization," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994 Micr), pages 301-381.
    4. 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.
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    Citations

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    Cited by:

    1. Cédric Durand & Marc Lautier, 2013. "Too big, too quick?. An institutional and systemic overview of the rise of Russian metallurgical transnationals," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 41-76.
    2. I. S. Kukaev, 2015. "Analysis of institutional preferences in the cooperative interactions for the development of industrial enterprises," Russian Journal of Industrial Economics, MISIS, issue 2.
    3. William Pyle, 2006. "Collective action and post-communist enterprise: The economic logic of Russia's business associations," Europe-Asia Studies, Taylor & Francis Journals, vol. 58(4), pages 491-521.
    4. 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.
    5. 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.
    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. Klaus E Meyer, 2000. "International Production Networks and Enterprise Transformation in Central Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(1), pages 135-150, April.
    8. 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.
    9. David Stark & Balázs Vedres, 2005. "Sequenze di rete e investimento estero in Ungheria," Stato e mercato, Società editrice il Mulino, issue 3, pages 391-422.
    10. 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, September.
    11. 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.

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    More about this item

    Keywords

    business networks; survival; entrepreneurial networks; rent-seeking; Russia;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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