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Subsidiary evolution in a transition economy: Kemira GrowHow in the Russian fertilizer market

Author

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  • Victoria Golikova
  • Paeivi Karhunen
  • Riitta Kosonen

Abstract

This paper illustrates subsidiary evolution in a transition economy through the development of a multinational company’s Russian subsidiary. Building on the concept of subsidiary evolution, we analyze how knowledge transfer from headquarters and application of the subsidiary management’s local knowledge contributed to the process of change. Our empirical analysis is based on four in-depth interviews with senior managers from the company's headquarters and the Russian subsidiary and on documentary evidence. Our results show that the subsidiary capabilities were developed as a combination of knowledge transfer from headquarters at the beginning of the operations and of learning by the Russian management.

Suggested Citation

  • Victoria Golikova & Paeivi Karhunen & Riitta Kosonen, 2011. "Subsidiary evolution in a transition economy: Kemira GrowHow in the Russian fertilizer market," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 16(1), pages 9-30.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2011_01_golikova
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    Cited by:

    1. Karhunen, Päivi & Ledyaeva, Svetlana, 2012. "Corruption Distance, Anti-corruption Laws and International Ownership Strategies in Russia," Journal of International Management, Elsevier, vol. 18(2), pages 196-208.

    More about this item

    Keywords

    subsidiary evolution; knowledge; foreign entry; Russia;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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