Greening strategies in Russia's manufacturing – from compliance to opportunity
Despite increasing interest, strategic firm-level decisions about greening of manufacturing companies are far from being understood. This paper follows claims for more empirical studies of strategies manufacturing firms choose to become green based on a sample of over 600 Russian eco-innovative firms. We apply latent class analysis and find the presence of six strategic options. The largest cluster includes highly innovative firms in energy-intense industries which extend their greening emphasis on both product and process improvements and their activities stretch throughout their whole supply chain. On the opposite end are state-owned companies focused on improving their resource efficiency. We find evidence for strategies described in earlier contributions, and could identify some Russian particularities. Also, we identify strategies that have so far not been empirically described. One group of highly innovative companies identifies green product development as a way to raise their ailing sales figures.
There co-exist several problems when measuring the level of competitiveness. The major one is that it represents an integral indicator of the enterprise performance. The indicator has something in common with the notion of the utility function used in economics. The latter one stamps a numerical equivalent of the utility associated by an individual from the consumption (or possession) of certain goods. Nevertheless, it stays an implicit (non-observable) function.
I report the results of observations of management practices in 20 Russian manufacturing subsidiaries of Western multinational corporations (MNCs). I argue that to counterbalance the higher country-specific risks associated with investing in Russia, MNCs impose on their Russian subsidiaries high demands for superior performance in terms of both technical and economic efficiency. My observations confirm that in most cases such demands are successfully met by the implementation of highly effective practices. Thus, I challenge several beliefs about industrial management in Russia, including the myths that Russian firms are hostile towards knowledge sharing and are wary of talent.
The chapter focuses on the alternative measures of the relative competitiveness of Russian manufacturing enterprises and on assessing the changes in the distribution of manufacturing firms by those measures between 2005 and 2009.
This study presents a snapshot of investment projects in manufacturing that were implemented by foreign investors in Russia during 2017–2018. We assemble a unique database of all new plants opened by foreign companies in Russia during 2012–2018 to clarify the distribution of investment projects implemented during 2017–2018 across industries and territories with different tax regimes. We also identify the most interesting individual investment projects, interrelated investment projects, and elements of collective actions. In general, foreign investors in manufacturing demonstrate high ingenuity in discovering and exploiting the remaining emerging growing market segments and promising niches in consumer and professional markets and express significant persistence in realizing investment projects. We also demonstrate the methods applied to decrease the uncertainty of the project costs by establishing partnerships with local foreign- and domestically owned companies and the attempts to correct the government’s decisions and regulatory measures that are uncomfortable for foreign investors.
To help countries achieve their full industrialization potential and fulfil the sustainable development goals (SDGs) and thereby improve their general welfare, UNIDO is promoting the concept of comprehensive and sustainable industrial development (ISID), which was established in the Lima Declaration adopted by UNIDO Member States on 2 December 2013. The UN General Assembly recognizes the significance of ISID as an important strategic direction for fostering global development in the future. ISID is a key instrument for achieving sustainable economic growth, the creation of quality jobs, the building of equal societies, the protection of the environment, and the active shaping of comprehensive sustainable globalization. The promotion of ISID as the key driver for successful integration of economic, social and environmental factors necessary to achieve full implementation of sustainable development by creating and improving countries’ industrial potential is the main priority of UNIDO’s current activities. To successfully implement ISID, UNIDO acts as a global forum for industrial development and the establishment of relevant international standards, including standards on industrial statistics [UNIDO, 2014; 2013a]. Accordingly, UNIDO has been implementing the regional project “Improvement of industrial statistics and development of statistical indicators for the analysis of industrial development in the CIS countries” since 2013. The project’s main objective is to provide methodological assistance to the Commonwealth of Independent States’ (CIS) national statistical services in implementing international standards on industrial statistics in the statistical practice and presentation of modern, internationally comparable information for a qualitative and reliable reflection of industrial development processes. This report presents the results of the statistical analysis describing the availability, quality and measurement capabilities of official statistics in the CIS countries accumulated over the period 2005-2014.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.