In this paper we study the influence of insider ownership on firm performance in emerging capital markets of BRIC countries in 2003–2013. We adjusted the classic model of firm performance proposed by Morck, Shleifer, and Vishny (1988) for the inefficient emerging capital markets. To modify the classic model we, first, apply the concept of investor protection rights developed by La Porta (2002) and, second, introduce additional factors controlling the growth rates and risk level. We test two specifications, linear and cubic, of the modified model for the sample of 97 nonfinancial companies in Brazil, Russia, India and China. The results demonstrate that the insider ownership increases the firm performance at low and high levels of insider ownership illustrating the “convergence of interests” hypothesis. When insiders own medium-size blocks of company’s shares (23,2–61,3%), the insider ownership decreases the corporate performance, thus illustrating the “entrenchment effect”. Finally, we demonstrate that the entrenchment effect became stronger in times of global financial crisis of 2008–2009.
This article elaborates upon the paper by O. Tretyak and D. Klimanov published in the Russian Management Journal vol. 14, issue 1. It demonstrates a practical application of the approach to business model (BM) analysis and change management, developed by the authors and based on organizational networks theory. The study is devoted to the example of Russian pharmaceutical market and the international manufacturing company that specializes in ophthalmology, medical aesthetics and neurosciences. The results obtained are based on a number of expert interviews with the representatives of company management. In line with three suggested levels of BM analysis, the authors conducted a sequence of procedures that allowed not only to highlight the specifics of the approach and clarify it, but also to offer concrete directions for BM change in order to increase the value that is jointly created by BM actors for the final consumer.
The entrepreneurial activity might be significantly heterogeneous at the regional level. Cases of economies, which have not been socialistic in the past, demonstrate that spatial differences in entrepreneurship are persistent over time. However, it is still unclear whether such historical effects exist in emerging economies. This study investigates the relationship between entrepreneurial activity in regions of Russia in the late 1980s and the current level of regional entrepreneurship. In order to measure the entrepreneurial activity in Russia we use shares of self-employed in the labor force of a region. This indicator might be a more accurate measure than the traditional one based on the number of small and medium enterprises. In this study we test whether current spatial differences in entrepreneurship might be explained by the official or shadow entrepreneurial activity in the late 1980s. Our findings show that regions with high entrepreneurial activity in a shadow and official sector of Russian economy now demonstrate a high level of self-employment rates. Thus, the entrepreneurial activity has a long-term impact on the self-employment despite to the significant changes.
This study analyses employees search by companies. We focus on channels of search that companies use. Using original data of 2015 survey of 1799 Russian companies on HR we found out that the most popular channels were Internet and informal social connections (friends, co-workers, relatives). State-owned companies use public employment agency while companies with foreign owners prefer formal channels (media ads, private employment agency). Also we don’t identify considerable influence of search costs on company’s choice of search channels. Companies in good financial shape use less channels of search. Interindustry differences are found insignificant.
The significant decrease in the number of banks in the Russian Federation observed recently and arising high social costs of liquidation and sanitation procedures underpin the need for continuous improvement of early-warning systems of bankruptcy. The aim of the article is to identify the key leading indicators of financial insolvency of banks. The study was conducted on a sample of 49 banks from the cluster of medium and small banks in the Moscow region with a license revoked for economic reasons in the period from 2015 to the first half of 2016. The results were tested on a sample of 32 banks, both active and with withdrawn license. We identified the dependence of chosen leading indicators from a number of financial indicators displaying the quality of capital, assets, yield, profitability and liquidity. The results could shed additional light at the causes of financial problems of banks and improve the quality of risk management.
This article presents the results of a comparative qualitative study of talent management systems in six large companies from the information technology industry, conducted by the authors in 2015-2017. Applying a contextual approach to the study of management practices, the aithors have identified the external and internal factors affecting the definition of talented employees and the choice of tools for working with them, as well as a feedback of talent management systems on the context. The article contributs to the theory by describing the interaction between context and management system and explaining the industry model of talent management in the IT sector. The authors also proposed a new concept of "flexible talent pool" and showed a practicle solution to the theoretical dilemma of "inclusivity-exclusivity" when identifying talented employees by IT companies and the dilemma of internal vs. external sources for hiring talents.
The article highlights the results of a study on the use of value-based management as a new approach to the management of Russian companies. Its purpose was to identify similarities and differences in the approaches of Russian companies to create a corporate management system based on values, taking into account the heterogeneous context - the external and internal environment of the organization. study is based on the method of comparative study of case studies of companies or multiple case studies (multiple case studies). as empirical objects selected 3 companies of different sizes and industries ( mining, finance and real estate development business ) . The formation control based on the values considered as a process extending several stages. In addition to the factors of success of the process of creating a system of value-based management and the complexities of the process , the article also discusses the relation between personal and corporate values.
Management and use of available intellectual resources is even more vital for businesses with the growing speed of digitalization, intensification of competition, globalization and progress to the perceived highest level of labor productivity. The ultimate goal is to find out new ways of solving the problems and identificate possible ways of successful performance. Crowdsourcing is one of the instruments of consolidation and activation of creativity of people that are interested in the development of an organization. Due to its novelty, there are only few local attempts of using crowdsourcing in a practical way. Organizations carefully use this instrument for intellectual resources management and successful best practices are kept inside the corporate structures as a knowhow. In Russia, there is one organization that has successfully implemented crowdsourcing, namely the Sberbank Russia. In this paper, we analyze the experience of crowdsourcing implementation in Sberbank and try to find new ways of development of this technology
The article presents peculiarities of client orientation in different industries in Russia. Some practical advices "how to increase client orientation" are given by experts.