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Institutions to the rescue: Untangling industrial fragmentation, institutional misalignment, and political constraints in the Russian gas pipeline industry

Author

Listed:
  • Claude Ménard
  • Ivan Shabalov

    (Central Research Institute of Ferrous Metallurgy I.P. Bardina, Russia)

  • Andrey Shastitko

    (MSU - Lomonosov Moscow State University, Russian Presidential Academy of National Economy and Public Administration)

Abstract

This article examines the institutional setting implemented by a fragmented industry to face a technologically and politically challenging environment. It does so through the lens of recent developments in new institutional economics building on the Williamsonian contributions about hybrid organizations and the Northian contributions about institutional layers. The resulting analytical framework throws light on the institutional design implemented by the Russian manufacturers of large diameter pipes, a strategic segment of the natural gas supply chain. Examination of this arrangement shows the key role of intermediary institutions, coined ‘meso-institutions,' in coordinating parties that nevertheless remain competitors. However, this ‘economizing strategy,' backed by the central government, collides with the ‘anti-monopoly' strategy that the same government intends to implement. Based on interviews and private and public data and documents, this narrative shows the impact of technology on organizational choices and the theoretical gains to be expected from differentiating institutional layers when it comes to understanding the many challenges an industry faces.

Suggested Citation

  • Claude Ménard & Ivan Shabalov & Andrey Shastitko, 2021. "Institutions to the rescue: Untangling industrial fragmentation, institutional misalignment, and political constraints in the Russian gas pipeline industry," Post-Print hal-04012224, HAL.
    • Handle: RePEc:hal:journl:hal-04012224
    DOI: 10.1016/j.erss.2021.102223
    Note: View the original document on HAL open archive server: https://hal.science/hal-04012224
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    References listed on IDEAS

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    Keywords

    Gas industry; Organizations; Institutions; Regulation; Governance; Political interference;
    All these keywords.

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