While the field of customer orientation (CO) has been studied extensively since the 1990s,
there have hardly been any attempts to revisit the concept for the specifics of B2B markets,
especially in the context of emerging economies. This paper explores the peculiarities of B2B
firms’ CO on the example of Russia. The empirical survey of 272 Russian B2B firms show
that well-established CO measurement can be used as integrated complex measure. The
results of our analysis demonstrate a critically important aspect of CO, which helps to differentiate
the customer-oriented firms from those with only “declared” CO. The study indicates
a need to critically assess widely used marketing concepts and their measurement in B2B
markets of emerging economies.
This paper is aimed at identifying the role of digital manufacturing in changes of marketing activities of industrial companies from the point of view of a business management system. Authors define and conceptualize the notion of “digital manufacturing”. Research design is based on the Deloitte Company methodology based on value creation approach. Customers, product, economics of production, and value chain are essential methodology parameters. Our analysis shows that implementation of digital manufacturing will necessarily significantly change entire business model and marketing activity of the company. The main drivers of this process are building and maintaining relationship with customers and new opportunities related to product design and production. Interaction with customers without intermediaries, customers’ involvement in the processes of new products development, new technical possibilities of creating personalized product-service solution are main changes in marketing activities caused by the implementation of digital manufacturing at the company.
Competitive strategies of platforms often involve contractual arrangements that might be considered as anticompetitive. Since recent decisions of European Commission after investigations against Google in 2017 and 2018, and Bundeskartellamt against Facebook in 2019, the standards of liability for abuses applied by competition authorities will inflence business models of digital platforms. This paper summarizes theories of harm applied by BRICS competition authorities applied towards multi-sided platforms under investigations. One may expect that BRICS approach to be harsher compared to mature competition jurisdictions. However, a comparison shows that discrimination and tying with exclusionary effcts have been the focus of investigations and decisions in BRICS. Remedies in the infringement decisions are intended to protect rivalry through “no restriction of multihoming” conditions. There is no evidence that BRICS authorities apply a specifi economic theory of multi-sided platforms. At the same time, BRICS competition enforcement could be applied as one of the legal instruments when one platform tries to crowd out another from global markets.
The problem of earnings management is on of most topical issues in accounting practice worldwide. There are many reasons for this phenomenon. In this paper we will follow papers [Fischer, Rosenzweig, 1995; Geiger et al., 2006] to present the results of analysis of a survey of Russian respondents concerning their attitudes on the ethical acceptability of earnings management. It occurs that Russian respondents’ behavior is different from other countries and we find factors that are associated with these differences. On the other hand, it was found that Russia is not significantly different in earnings management perception from market oriented developed countries.
One of the most important factors determining a firm’s profitable growth is scientific and technological progress. In the age of high technology innovations are vitally necessary for companies to compete with one another. Global statistics show that a huge amount of investments are focused on research and development projects in different sectors of the economy such as software and programming, biotechnological products, capital goods, beverages, accessories, restaurants, retail, hotels and motels, and so on.
However, R&D expenses are characterized by high uncertainty and returns in the long run, so not every company can afford such risky investments, for example, most of small and medium enterprises (SMEs). Besides external uncontrollable factors such as crises, disasters, political instability, and armed conflicts, each firm has its own internal problems. Together this can lead to the financial distress or even failure of a firm, and each additional risky asset can increase the probability of insolvency.
Thus, the relevance of the present paper is that each company has to find the optimal tradeoff between investments in innovations and financial distress. The solution to this problem can improve a company’s efficiency and lead to its growth. And vice versa, an unsuccessful selection can result even in the default of a firm.
The purpose of the present paper is to evaluate financial distress costs at innovative companies. In order to achieve stated this aim, the following tasks will be completed in this paper:A detailed literature review on financial distress cost evaluation will be provided; The most appropriate models will be determined for both direct and indirect costs related to financial distress; Explanatory factors will be defined for both types of insolvency; The model for direct distress cost evaluation at innovative companies will be developed; The model for indirect distress cost evaluation in innovative companies will be designed; The results of the conducted analysis will be described; Recommendations for further research studies will be given.
The subject of the investigation is financial distress costs. Our study focuses on companies that spent at least $200 million on research and development in 2015. For the further development of the topic, data was collected from Bloomberg and the financial reports of companies. The novelty of the present paper is that the model for direct and indirect cost evaluation at innovative companies was developed.
This study is focused on gaps in the theory of capital structure research regarding the phenomenon of zero-debt behavior. On the sample of firms from 21 countries with emerging capital markets over the period of 2010–2015, we show that the zero-debt policy choice is firstly driven by financial flexibility motive, while financial constraints could be regarded as the second motive. We show that major determinants of the zero-leverage choice are growth opportunities, profitability, business risk and cash holdings. We find that all these firms are smaller, less profitable, riskier and possess high cash holdings. Moreover, we find that macroeconomic conditions have lower influence on the debt policy decision in comparison with corporate determinants.
Many researchers believe that knowledge is the most important resource in the contemporary economy, but empirical studies show that knowledge management is not among the most used managerial tools. This gap can be explained with the hypothesis that knowledge management produces the significant impact on the effectiveness of organization only with the accompanying development of change management. Herewith the critical element of change management is a change readiness that allows to assess the possibility and feasibility of changes, consolidate and focus efforts, assess the adequacy of resources. This hypothesis is empirically tested using the partial least squares structural equation modeling (PLS-SEM) method on data for 103 Russian organizations. The results show that the empirical sample includes two statistically different datasets. The separating variable is the type of owner, so separate models were built for state-owned and private-owned organizations. For privateowned organizations, the hypothesis that knowledge management and changes readiness jointly affect effectiveness is fully confirmed. For state-owned organizations, knowledge management is not a factor of effectiveness. These results have two practical implications. First, managers who rely on the organizational knowledge should focus on the joint and coordinated implementation of knowledge management and change management. Special attention should be paid to the organizational context that supports individual change readiness. Second, state-owned organizations in Russia are less effective rather private ones, it is due to the fact that knowledge management for them is not the factor of effectiveness, that is in its turn a consequence of suppression of initiatives at the individual level.
515The International Business Management Environment in the BRIC(S) BlocРоссийский журнал менеджментаRussian Management JournalТом 15, No 4, 2017. С. 515–536Vol. 15, No. 4, 2017, pp. 515–536The InTernaTIonal BusIness ManageMenTenvIronMenT In The BrIc(s) BlocR. F. LittReLL*National Research University Higher School of Economics at St. Petersburg, RussiaaP. RambuRuthUNSW Business School, University of New South Wales, AustraliabThe BRIC countries (Brazil, Russia, India and China) were identified as the fastest growing emerging economies by the economist Jim O’Neill in 2001. He created the acronym BRIC (which became BRICS in 2010 to include South Africa) and raised their profiles. Some researchers viewed the rise of BRIC(S) as phenomenal, others were more cautious. Scholars such as [Sinha, Dorschner, 2010] noted the disparate nature of the BRIC countries, being separated geographically, culturally and politically. Others (e.g. [Armijo, Burges, 2007; Tudoroiu, 2012]) noted a lack of conceptualization of BRIC(S) as a group, that is having an array of similar characteristics. This article reviews the international business management environment in the BRIC(S) bloc, finding uncertainties about the sustainability of their upward trajectories. Historically and statistically, emerging economies that secure rapid economic growth seem unable to sustain it after a decade, evident in the decline of the economic fortunes of BRIC(S). This paper provides statistical insights into BRIC(S) individual and bloc performance and discusses alternate clusters of emerging economies and predictions (e. g. FIG, MINT, MIST, etc.). The discussion briefly considers the role of the New Development Bank (2015), provision of development finance to BRIC(S) and other emerging economies, and positioning in relation to existing financial institutions. The paper concludes with suggestions for a more considered assessment of emerging economies and their role in the global economy.
High-growth companies, also known as gazelles, are an important source of economic growth. The development conditions of such companies differ by country. In case of Russia, it is enhanced by a special population structure: about 80% of Russian gazelles are affiliated with business groups. The authors set themselves the task of understanding how dependence or independence of gazelles is related to their chances of becoming fast-growing. The study shows that in Russia the standard factors that determine the likelihood of transition of independent firms to the rapid growth are statistically insignificant for affiliated firms, and even approximately do not explain the process of their transformation into high-growth companies. The authors offer a hypothesis that the most important factors of the transformation of affiliated firms into gazelles should be sought on the demand side (the possibility of growth on intracorporate orders; access to government orders; the availability of technologies that open the ways to unsaturated markets, etc.).
This paper analyses the impact of two reforms dealt with transparency improvement and adoption of more flexible regulation on effectiveness of procurement of a large state university (Higher School of Economics) in the period from 2008 to 2012. We evaluate the impact of two significant changes in the public procurement regulation: transfer to electronic auctions and adoption by this organization of its own Procurement Provision. We show that transfer to electronic auctions leads to higher competition and more significant price decreases, whereas the adoption of Procurement provision has an opposite effect. Regarding such indicator as delays in contracts execution, the first reform has no effect and the second regulation changes result in decreasing of delays.