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Toward convergence in the St. Petersburg hotel industry through the lens of institutional theory

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  • Paeivi Karhunen

Abstract

The article assesses the power of institutional organization theory in explaining enterprise adaptation in post-socialism. Empirical analysis of the hotel sector in St. Petersburg, Russia, shows that industry-level isomorphic forces are not at work during economic transition. Combined with market imperfections, this results in intra-industry strategic diversity. The underlying logic however changes as the transition proceeds. During the transition, diversity is based on local versus foreign management and during the post-transition on the legitimacy of operations. The majority of hotels start operating according to shared norms and practices, whereas the lack of coercive pressures from the state still allows some hotels to operate in the shadow and ignore institutional norms.

Suggested Citation

  • Paeivi Karhunen, 2008. "Toward convergence in the St. Petersburg hotel industry through the lens of institutional theory," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 13(2), pages 106-128.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2008_02_karhunen
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    Keywords

    Hotel industry; transition economies; Russia; institutional isonorphism; organizational field;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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