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Article

Agribusiness Changes Caused by the Russian Food Embargo: An Interfirm Relationships Perspective

Trziste. 2021. Vol. 33. No. 1. P. 7-24.

The objective of this paper is to reveal the main directions of changes in Russian agribusiness caused by the food embargo through the lens of interfirm relationships.

Design/methodology/approach

Qualitative research in the form of focus group was conducted. The focus group consisted of 9 participants, representatives of the senior management of Russian agribusinesses.

Findings and implications

The study reveals that the Russian food embargo contributes to the development of interfirm relationships in the Russian agribusiness. Both retailers and manufacturers tend to use a relational approach and to develop interfirm relationships in order to build sustainable value chains and long-term relationships with partners. The resulting conclusions represent important changes in interfirm relationships between different actors of agribusiness: (1) retailers tend to interact with providers toward building sustainable value chains; (2) at the same time the criteria imposed by retailers to their suppliers are gradually changing. The possibility to change the supply conditions plays a significant role as does as the ability to operate in a turbulent environment.

Originality

Despite the large number of empirical studies exploring the impact of the embargo from different angles, there is still a lack of research concerning the consequences of embargoes in terms of interfirm relationships. This study extends the literature on the impact of embargoes and fulfills an identified need to study the consequences of embargoes in terms of developing interfirm relationships. This is the first Russian study to empirically examine the impact of the embargo on Russian firms’ interfirm relationships.