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Transformation of Business Model of Generating Companies in Russian Energy Sector
Purpose: The paper aims at creation of an effective business model of global generating companies performing on Russian market and to develop a transformation plan of business for one of these companies.
Design/methodology/approach: The face-to-face interviews with Russian senior management of foreign generating companies were conducted to define the strategic development directions and the key characteristics of target business model. The literature review enables to systematize knowledge about the challenges of both global and Russian energy market and of the energy companies' strategic initiatives. The analysis assisted to incorporate innovative elements into new business model of generating companies and to determine the stages of its transformation, taking one of these companies as an example.
Findings: Generating companies' performance is influenced by Russian energy market institutional features. The key directions for companies' development are to increase the share of generating capacity working on RES and to diversify activities. According to these findings, the target business model was created and the scalable plan of refined business model adaptation in a particular generating company was suggested.
Research/practical implications: The findings of the paper appear in elaboration of the methodological approach towards the transformation of foreign generating companies' business models on Russian market. Strategic vision of market evolution and key characteristics of business acticities will let managers create state-of-the-art business model. Adoption of the model in diverse foreign generating companies accumulates the data about the challenges of this process. This fact might give the ground for future research in this field.
Originality/value: Review of the differencies between foreign generating companies' business model in both global and Russian energy sectors. New business model including renewed elements of Russian generating companies and a plan for business model adaptation.
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