HUMAN RESOURCE MANAGEMENT IN RUSSIAN MANUFACTURING SUBSIDIARIES OF MULTINATIONAL CORPORATIONS
This paper reports on the performance dynamics of Russian manufacturing subsidiaries of foreign multinational corporations that were established in 2012-2016. We collected balance sheets, annual income statements, and other annual reports of the representative sample (141 plants) of the general population of manufacturing plants opened in Russia by foreign multinational corporations in 2012-2016 (196 plants); further, we performed an analysis of the major business indicators, such as exit rate, sales dynamics, and financial results. We found that showing a positive gross profit (revenues minus direct production costs) was a relatively easy task and the majority of companies achieved this in the year of their official opening or shortly afterwards, both prior to, and after the beginning of, the sanctions. However, the majority of manufacturing plants opened in 2012-2014 demonstrated negative net profitability until 2016. We explained the massive shift to profitability in 2016 by the improvement in gross margins, measures taken to save “additional costs,” as well as the changes in the legal framework of foreign subsidiaries’ activities in Russia and the subsequent amendment of financial policies applied to Russian subsidiaries by their corporate parents. In general, multinational corporations demonstrated a high ability to operate under conditions of high market and institutional uncertainty and strategic flexibility in managing their newly established Russian industrial assets.
The book focuses on the new kinds of conflict that arises in the transition to a market economy. Following an editorial introduction, two chapters develop theories from new empirical research into patterns of conflict and forms of trade unionism in Russian enterprises in the transition period. These are folloed by a detailed case study of the development of an independent trade union in one industrial enterprise, and a chapter which explores changes in the status hierarchy of the industrial enterprise. Two chapters then address the much-neglected issue of gender differentiation in the work place and both chapters question the supposed passivity of Russian women workers. The two final chapters address the issue of conflict and change in the external relations of enterprises through case studies of the process of bancruptcy and of conflict insiders and outsiders. Conflict and Change in the Russian Industrial Enterprise is the second volume in the series Management and Industry in Russia, reporning on the results of a unique programme of research into the restructuring of social relations in Russian industrial production.
Russian multinational enterprises (MNE) expanded widely in the late 1990s through the summer of 2008 at the onset of the global financial crisis of 2008. The emerging market MNEs have now become a subject of intensive study with a particular focus on the actions and behaviors of firms from Brazil, Russia, India, China, and South Africa (BRICS). This paper attempts to flesh out the reputational and corporate social responsibility (CSR) aspects of this internationalization process. The paper finds that in select cases the reputation of a Russia MNE does play a role in their activities and that these emergent firms recognize host country stakeholders as an audience for concern when conducting OFDI.
During the last two decades corporate international diversification became a widely used growth strategy. However, the majority of scientific researches insist on its value-destroying pattern. Those of them which were based on accounting studies’ methodology and used current performance measures are likely to make an incomplete evaluation of corporate performance by accounting either for operating performance or financial (cost of capital) effects of internationalization. The current paper proposes a new approach for estimation of internalization-performance relationship which is based on economic profit concept. It allows to control simultaneously both operating and financial effects of internationalization on the firms’ current performance. The proposed model has been empirically tested on a sample of large companies from one of emerging economies - Russia. The results identify a non-linear U-shape relationship between a degree of internationalization and companies’ residual income (economic profit). The relationship is mainly determined by operating performance effects on economic profit while cost of capital has a modest effect. Overall for the majority of companies international diversification refers to decrease in economic profit. The results are compared against the Q-Tobin measure which incorporates expectations about future performance. A joint analysis of current performance (economic profit) and long-term performance (Q-Tobin) allows to expect the internationalization benefits to be realized in future. As an implication of the present research for corporate decision makers it may be stated that at the initial level of international diversification the internationalization decisions should be made with a high degree of caution. There should be a clear internationalization strategy based on definite mechanisms of performance improvement. The prestige and other irrational motives which may lead to the value destruction should be pruned.
The extant literature acknowledges the role of overseas subsidiaries in the growth and development of multinational companies (MNCs). Such subsidiaries are viewed as critical players in the innovation process at MNCs. This topic remains largely underresearched in the Russian context. This study aims to fill this gap by examining the dynamics of the innovation process in Russianbased subsidiaries of global MNCs. We present qualitative findings that indicate Russian subsidiaries are not only recipients of knowledge and technology developed elsewhere in the MNCs.
This report presents the recent development of manufcaturing subsidiaries of multinational corporations in Russia and indicates some promising opportunities of their development.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.
портовый менеджмент, показатели деятельности, анализ эффективности, система учета, распределение издержек, методы анализа деятельности портовой системы
At present many industries reveal tendency for setting up of vertically integrated companies (VIC) the structure of which unites all technological processes. This tendency proved its efficiency in oil industry where coordination of all successive stages of technological process, namely, oil prospecting and production -oil transportation - oil processing - oil chemistry - oil products and oil chemicals marketing, is necessary. The article considers specific features of introduction of "personnel management" module at enterprises of oil and gas industry.
vertically integrated companies; personnel management