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Article

From the Plan to the Market and Back - Organizational Transformation of the Russian Defence Industry

Kosals L., Izyumov A., Kemelgor B.

The paper reports on the organizational transformation of the Russian defence industry during the period of privatisation and radical market reforms. The study is based on the results of the original large-scale longitudinal survey of the directors (CEOs) of the industry. We find that during a decade of transition, 1996-2006, Russian defence industry managers were able to largely preserve the production potential of their enterprises and make them capable to operate under market conditions. Coupled with the restoration of government orders and the 2020 rearmament program these newly acquired market skills contributed to the impressive revival of the Russian defence industry in the Putin’s era.