Dear colleagues and friends,
Allow me to share with you the abstracts of papers published in the last two issues of the Journal of East-West Business. I believe we managed to publish some truly exciting and thought-provoking research J
Volume 24-Issue 4, 2018
Subsidiary’s Network Competence: Finnish Multinational Companies in Russia
Maria Uzhegova, Lasse Torkkeli & Olli Kuivalainen
Multinational companies tend to have resources and be capable of establishing subsidiaries across national borders, yet successful foreign operations also require that the established subsidiaries are able to become locally embedded in host-country networks. This study contributes to the international business research by investigating how and when the subsidiary’s ability to develop and manage their local network relationships developed as subsidiaries are established abroad. The empirical part is based on interviews from two Finnish companies operating internationally and in Russia. The findings provide insight into the network competence’s development process in the Russian business environment and in international business.
The Role of Language in the Communication Process Between Business and Government: Evidence from Russian Firms
Sergei Belov, Nikolai Kropachev, Marina Latukha, Elena Orlova, Ekaterina Baeva & Vladimir Bondar
The paper investigates how language facilitates communication process between government and business. We use Russian context to show barriers and challenges of using language in official communication between governmental authorities and Russian companies. In our work, we demonstrate how language may produce employee’s misunderstanding and discuss typical sources of ineffective usage of language. The results indicate that problematic issues of both linguistic and non-linguistic nature can lead to serious implications for successful communication between government and business in Russia. We found that documentations’ complexity, which is perceived as such due to a complicated subject area they belong to (legal, tax, etc.) and language insufficiency applied are most likely to raise multiple problems related to government’s communication with business.
To be Involved or Not to be Involved? HRM Competences for Internationalization Process in Russian Companies
Marina Latukha, Anna Golubkova & Tikhonova Victoria
This paper aims to identify the list of human resource management (HRM) competencies that are crucial for a company during the internationalization process. We focus on the Russian context and investigate the level of human resource (HR) managers’ involvement in the implementation of firm’s internationalization strategy, HRM competencies that facilitate internationalization process of Russian companies, and HR manager’s proficiency level, suitable for these competencies. Based on interviews of 125 HR managers from 110 companies, the study proves that communication competence, HR acumen, and relationship management are the most essential competencies that HR managers should possess. This research demonstrates that, in the field of internationalization there is a shift from more universal models to context-related models in terms of competence importance.
The Impact of Export Promotion Programs on Firms’ Export Competencies and Performance in a Transition Economy: The Case of Russian Manufacturers
Joan Freixanet & Iya Churakova
This study evaluates the effects of export promotion programs (EPPs) in Russian manufacturers. It examines a multi-dimensional set of subjective and objective indicators including the level of awareness, use, the perception of usefulness, as well as different intermediate export marketing results, and final performance indicators. The results show that most EPPs are successful in attaining their goals as to improving firms’ export marketing competencies. Though, at the same time, they point to clear problems, regarding program awareness, availability, and accessibility. The paper concludes with a discussion about managerial and public policy implications.
Value Co-Creation in ICT Services Company: A Case Study of a Cross-Border Acquisition
Irina Heim, Tian Han & Abby Ghobadian
Post-merger and acquisition (M&A) integration is especially important for the services industry, where value co-creation between actors plays a crucial role. This paper is a qualitative single case study of a multinational company (MNE) in information technology (ICT) industry, and the post-acquisition processes of its subsidiary in Russia. The main contribution of this article is the application of a value co-creation view, to the settings of the international business. We also identify the actors and their roles and activities in the value co-creation in the Russian context.
Improvement of Operational Performance of Internationalized Companies through Collaboration in Distribution Networks
Natalia Nikolchenko, Nikolay Zenkevich & Anastasia Lebedeva
The purpose of this paper is to provide theoretical insights on the impact of supply chain collaboration on the operational performance of firms and collaborative advantage as an intermediate variable in the context of the supply networks of internationalized firms. The research is based on a case study of a distribution network constituting Russian and international firms. The obtained results indicate that supply chain collaboration improves operational performance of internationalized firms and firms in domestic market. Moreover, the study advocates that collaboration in distribution networks can be considered as driving factor for international firms to enter the emerging markets through supply networks.
Russian MNEs Under Sanctions: Challenges for Upgrading in GVCs (Cases of Energy and IT Industries)
Anna Abramova & Olga Garanina
The article examines upgrading strategies of Russian multinational enterprises (MNEs) under sanctions. We focus on MNEs from energy and information technology industries. Four types of global value chain (GVC) upgrading strategies (process, product, functional, and chain upgrading) are discussed. The paper is based on the case study research. The research questions address the influence of sanctions on Russian MNEs’ upgrading strategies in GVCs and the role of import substitution policies for companies’ upgrading. Research findings show that at microlevel, sanctions do not prevent implementation of upgrading strategies. Import substitution policies provide additional support for MNEs upgrading in GVCs.
Volume 25-Issue 1, 2019
Performance Effects of Technological Dynamism: Private vs. State Enterprises in Russia
Xiaohua Lin, Richard Germain & Konstantin Krotov
How has the privatization-led economic transition transformed Russian firms? Prior to recent economic recession caused by Western sanctions, Russia’s economic performance has been impressive, yet little is known about its micro-level sources. Particularly, while macro-level data suggests a positive effect of privatization, such effect is seldom substantiated at firm-level in Russia. To take a step towards opening the black box, we investigated the performance effect of technology dynamism in Russian firms and the extent to which ownership mattered with regards to the technology dynamism-performance link. Our survey data shows that performance is driven by IT adoption, entrepreneurial orientation, and technological turbulence in Russian firms and that the positive effects of technological turbulence are stronger for private than for state-owned Russian firms. According to our results, Russian private enterprises appear more capable of buffering and gaining from technological turmoil, suggesting that the most significant outcome of organizational transformation in Russia is the firms enhanced capability in managing external environmental dynamism.
Startup Success Factors in the Capital Attraction Stage: Founders’ Perspective
Anatolijs Prohorovs, Julija Bistrova & Daria Ten
Only a small percentage of startups attract capital from venture capital investors. To determine the factors which owners of startups consider the most important for attracting seed venture investments, the founders of 40 startups in Latvia and Russia were questioned. The researchers compared organizational and financial factors’ importance for two groups of entrepreneurs: those who succeeded and those who failed in attracting funding. The results of the study indicate certain differences between the viewpoints of founders and investors regarding success factors. Based on the factor and regression analysis, the authors developed a model to forecast success in capital attraction.
Some see the light and some do not – Understanding the international opportunity recognition of Finnish SMEs in Russia through mental images
This case study explores how two Finnish maritime-sector SMEs recognized business opportunities in Russia. The phenomenon is investigated through the concept of mental image. The data comprise qualitative interviews conducted in 2015–2017, during which one firm continued Russian internationalization efforts despite various challenges and the other ended up abandoning the market. The study contributes to prior studies of international opportunity recognition by emphasizing the role of mental images in the process, opening up the contents of such images and elaborating their dynamics based on events over time.
China, Hungary, and the Belgrade-Budapest Railway Upgrade: New Politically-Induced Dimensions of FDI and the Trajectory of Hungarian Economic Development
Since 2010, Hungarian political agency has become more dominant in determining economic outcomes, rendering the increase in Chinese FDI into Hungary more politically-induced, rather than market-driven making Sino-Hungarian economic relations more important than before Fidesz returned to government. Approaches to understanding Hungarian capitalism have been overly firm-focused and therefore cannot account for (a) politically-motivated decisions on FDI or (b) increasingly significant transnational capital flows from China, both of which have the potential to affect the trajectory of Hungarian economic development. This article investigates the Belgrade-Budapest railway upgrade, the largest infrastructure project funded by Chinese FDI.
Prof. Dr. Desislava Dikova
WU / Vienna University of Economics and Business, IB Institute
Editor in Chief Journal of East-West Business
Senior Associate Editor European Management Review
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