Trajectories of Russian manufacturing firms’ growth after global financial crisis of 2008-2009: the role of restructuring efforts and regional institutional environment
The aim of this paper is to conduct an empirical investigation and reveal what types of modernization strategies and characteristics of regional institutional environment are likely to be associated with different trajectories of firms’ performance in 2007-2012. Using hierarchical cluster analysis we revealed the typical trajectories of firms’ sales growth and found that the dynamic of sales for more than 90% of firms can be described by just two types of performance curve: (a) crisis decline-recovery and the stable growth and (b) crisis decline with weak recovery and stagnation. We test three hypotheses that (1) companies that invested a lot in modernization and restructuring of business before the crisis were more likely to successfully overcome the crisis shock, and (2) that location of firms in the regions with better institutional environment could also matter for the likelihood of successful recovery, and (3) firms with foreign ownership are more likely to overcome quickly and successfully crisis shocks and continue growth in post-crisis period. We found the firms that invested more prior to the crisis are more likely to have positive post-crisis dynamics of sales. Active restructuring accompanied by the rise of the number of employees in pre-crisis period was also a significant factor associated with propensity to be a member of successful cluster. We proved an evidence that firms in the regions with less level of corruption (both administrative and everyday) were more likely to successfully overcome the crisis shock. Contrary to the studies in other countries we found no evidence of significant positive role of foreign ownership.