2023 (20), №2

The Impact of Interfirm Institutions, Opportunism, and Coercion on the Effectiveness of Russian Corporations

DOI:

https://doi.org/10.31063/AlterEconomics/2023.20-2.9

For citation: 

Pletnev, D. A., & Kozlova, E. V. (2023). The Impact of Interfirm Institutions, Opportunism, and Coercion on the Effectiveness of Russian Corporations. AlterEconomics, 20(2), 463–484. https://doi.org/10.31063/AlterEconomics/2023.20-2.9

Abstract:

Effectiveness is a crucial issue for economic science, especially for corporations facing challenges posed by the evolving nature of labor in the production process. A viable approach to address these challenges is provided by institutional economics, which offers a means of evaluating intra-company institutions. This article presents the results of applying an original approach based on institutional economics to assess the institutional structure of corporations and its impact on their efficiency. The study relies on the data obtained from an online survey of 500 employees of Russian corporations in 2021. The survey measured the degree of deve­lopment of institutions of coercion, assistance, and opportunism within the corporations, and assessed the degree of proportionality in the development of different institutions. A rank correlation analysis was performed between the characteristics of the institutional structure of the corporations and their performance indicators in 2021 (sales growth rate and sales profitability). The results suggest a direct correlation between the two va­riables in several instances. The study also verified the results by comparing them with an alternative assessment of the institutional structure of Russian corporations based on open data. The strength of the correlation was even higher when the results were verified, which confirms the original thesis that the quality of the institutional environment in corporations affects their efficiency and overall performance. This study contributes to a better understanding of the impact of intra-company institutions on the effectiveness of corporations and provides practical recommendations for enhancing management practices. The findings suggest that the democratization of management and development of transparent and trusting labor relations can improve the institutional environment within corporations.

PDF full
Downloaded: 102

Dmitriy A. Pletnev — Cand. Sci. (Econ.), Associate Professor, Associate Professor of Department of Economics of Industries and Markets, Chelyabinsk State University; https://orcid.org/0000-0002-6494-572X (129, Bratiev Kashirinykh St., Chelyabinsk, 454001, Russian Federation; e-mail: pletnev@csu.ru).

Elena V. Kozlova — Senior Lecturer of Department of Economics of Industries and Markets, Chelyabinsk State University; https://orcid.org/0000-0002-5884-5896 (129, Bratiev Kashirinykh St., Chelyabinsk, 454001, Russian Federation; e-mail: kozlova@csu.ru).

Balabanova, A., Balabanov, V., Dotsenko, E., & Ezdina, N. (2017). Neo-industrialization of Kuzbass economy in innovative development of coal industry and machinery. E3S Web of Conferences, 15. Article Number: 04013. https://doi.org/10.1051/e3sconf/20171504013

Brandl, B., & Ibsen, C. (2017). Instability and Change in Collective Bargaining: An Analysis of the Effects of Changing Institutional Structures. British Journal of Industrial Relations, 55 (3), 527-550. https://doi.org/10.1111/bjir.12207

Buevich, A., Karamova, O., & Sumarokov, E. (2019). Improvement of the Institutional Structure of the Real Sector Under the Conditions of the Digital Economy. In Popkova E. (Ed.) Ubiquitous Computing and the Internet of Things: Prerequisites for the Development of ICT. Studies in Computational Intelligence, 826. Cham: Springer. https://doi.org/10.1007/978-3-030-13397-9_72

Constantine, C. (2017). Economic structures, institutions and economic performance. Economic Structures, 6 (2). https://doi.org/10.1186/s40008-017-0063-1

Henisz, W. J., & Delios, A. (2000). Learning about the institutional environment. In Ingram P., Silverman B. S. (Eds.) The New Institutionalism in Strategic Management (Advances in Strategic Management, Vol. 19 (pp. 339-372). Bingley: Emerald Group Publishing Limited. https://doi.org/10.1016/S0742-3322(02)19011-5

Hodgson, G. (2007). Chto takoye instituty? [What are Institutions?]. Voprosy Ekonomiki, 8, 28-48. https://doi.org/10.32609/0042-8736-2007-8-28-48 (In Russ.)

Kirdina, S. (2004). Institutsional’naya struktura sovremennoy Rossii: evolyutsionnaya modernizatsiya [Institutional Structure of Modern Russia: Evolutionary Modernization]. Voprosy Ekonomiki, 10, 89-98. https://doi.org/10.32609/0042-8736-2004-10-89-98 (In Russ.)

Kleiner, G. B. (2008). Sistemnaya paradigma i sistemnyy menedzhment [The System Paradigm and System Management]. Rossiyskiy zhurnal menedzhmenta [Russian Management Journal], 6 (3), 27–50. (In Russ.)

Kleiner, G. B. (2011). Resursnaya teoriya sistemnoy organizatsii ekonomiki [The Resource-Based View and the System Organization of Economy]. Rossiyskiy zhurnal menedzhmenta [Russian Management Journal], 9 (3), 3-28. (In Russ.)

Kleiner, G. B. (2013). Institutsional’noye upravleniye, instituty upravleniya, upravleniye institutami [Institutional Management, Management Institutions, Management of Institutions]. Institutsional’naya ekonomika: razvitiye, prepodavaniye, primeneniye [Institutional Economics: Development, Teaching, Application] (pp. 122–127). Materialy Tret’yey mezhdunarodnoy konferentsii [Proceedings of the Third international conference]. Moscow, Russia: The State University of Management. (In Russ.)

Morozov, O. V., Biryukov, A. G., & Vasiliev, M. A. (2020). Statistika razlichiy institutsional’nogo sostava natsional’noy ekonomiki i voprosy yego garmonizatsii [Statistics on Differences in the Institutional Composition of the National Economy and Issues Related to its Harmonization]. Statistika i Ekonomika [Statistics and Economics], 17 (4), 4–32. https://doi.org/10.21686/2500-3925-2020-4-4-32 (In Russ.)

Morrish, S. C., & Earl, A. (2021). Networks, institutional environment and firm internationalization. Journal of Business & Industrial Marketing, 36 (11), 2037–2048. https://doi.org/10.1108/JBIM-05-2019-0230

Mykolenko, E. (2015). Institutions and Their Impact on Economic Development. Herald of KNUTE, 6, 48–59.

Nikitaeva, A. Y. (2017). Institutsional’naya struktura regiona v kontekste innovatsionnogo razvitiya promyshlennosti [Regional Institutional Structure in the Context of Innovative Industry Development]. Journal of Institutional Studies, 9 (1), 134–149. https://doi.org/10.17835/2076-6297.2017.9.1.134-149 (In Russ.)

North, D. C. (1991). Institutions. Journal of Economic Perspectives, 5 (1), 97–112. https://doi.org/10.1257/jep.5.1.97

Pletnev, D. A. (2013a). Kontseptsiya korporatsii: opyt sistemno-institutsional’nogo issledovaniya [The Concept of Corporation: Experience of System-Institutional Research]. Volume 1. Chelyabinsk, Russia: Publishing House of Chelyabinsk State University, 260. (In Russ.)

Pletnev, D. A. (2013b) Sistemno-institutsional’naya teoriya korporatsii: k razrabotke novoy kontseptsii [The Systematic Institutional Theory of the Corporation: Towards a New Conceptualization]. Ekono­micheskaya nauka sovremennoy Rossii [Economics of Contemporary Russia], 4 (63), 7–18. (In Russ.)

Pletnev, D. A. (2022). Opyt issledovaniya institutsional’noy struktury rossiyskikh korporatsiy [Institutional Structure of Russian Corporations: Research Case]. Zhiznesposobnost’ ekonomicheskikh teoriy: proverka poryadkom i khaosom [Viability of Economic Theories: Through Order and Chaos] (pp. 100-109). Ekaterinburg, Russia: Institute of Economics of the Ural Branch of RAS. https://doi.org/10.31063/EASET/2022/Pletnev.DA-9

Pletnev, D. A., & Kozlova, E. V. (2020). K voprosu otsenki otchuzhdeniya i povedencheskogo opportunizma rabotnikov predpriyatiy i korporatsiy [Towards Evaluation of Alienation and Behavioral Opportunism of Enterprises and Corporations Workers]. Nauchno-tekhnicheskiye vedomosti SPbGPU. Ekonomicheskie nauki [St. Petersburg State Polytechnical University Journal. Economics], 13 (3), 141–157. https://doi.org/10.18721/JE.13311 (In Russ.)

Pletnev, D. A., & Kozlova, E. V. (2021). Institutsional’naya struktura korporatsii: teoriya voprosa i rossiyskiye keysy [Institutional Structure of Corporations (the Case of Large Russian Corporations)]. Zhurnal ekonomicheskoj teorii [Russian Journal of Economic Theory], 18 (1), 87–102. https://doi.org/10.31063/2073-6517/2021.18-1.6 (In Russ.)

Pletnev, D., & Kozlova, E. (2022). Employee’s Behavioral Opportunism and Alienation: Exploring the Factors. Contemporary Economics, 16 (1), 106–120. https://doi.org/10.5709/ce.1897-9254.471

Polterovich, V. M. (2016) Pozitivnoye sotrudnichestvo: faktory i mekhanizmy evolyutsii [Positive Collaboration: Factors and Mechanisms of Evolution]. Voprosy Ekonomiki, 11, 5–23. https://doi.org/10.32609/0042-8736-2016-11-5-23 (In Russ.)

Polukhina, O. A. (2016). Institutsional’nyye osnovy formirovaniya regional’nogo rynka IT-uslug [Institutional Foundations in the Formation of the Regional Market for IT-services]. Problemy sovremennoy ekonomiki [Problems of Modern Economics], 4 (60), 150-154. (In Russ.)

Popov, E. V. (2011). Institutional Atlas. Atlantic Economic Journal, 39 (4), 445–446.

Popov, E. V. (2015). Instituty [Institutions]. Ekaterinburg, Russia: Institute of Economics of the Ural Branch of RAS, 712. (In Russ.)

Romashchenko, T. D., & Gersonskaya, I. V. (2021). Institutsional’naya struktura gosudarstvennogo sektora ekonomiki na sovremennom etape razvitiya [The Institutional Framework for the Public Sector of Economy at the Current Stage of its Development]. Vestnik VGU. Seriya: Ekonomika i upravleniye [Proceedings of Voronezh State University. Series: Economics and Management], 2, 5-14. https://doi.org/10.17308/econ.2021.2/3462 (In Russ.)

Swaminathan, A., & Wade, J. B. (2016). Institutional Environment. In Augier, M., Teece, D. (Eds.). The Palgrave Encyclopedia of Strategic Management. London: Palgrave Macmillan. https://doi.org/10.1057/978-1-349-94848-2_608-1

Vasilenko, N. V. (2008). Institutsional’naya sreda organizatsiy: kharakteristiki i urovni regulirovaniya [Institutional Environment of Organizations: Characteristics and Levels of Regulation]. Problemy sovremennoy ekonomiki [Problems of Modern Economics], 3 (27). http://www.m-economy.ru/art.php?nArtId=2081 (Date of access: 10.12.2022). (In Russ.)

Volchik, V. V., & Oganesyan, A. A. (2010). Instituty, informatsiya i institutsional’naya struktura ekonomiki [Institutions, Information and Institutional Structure of the Economy]. Journal of Economic Regulation, 1 (2), 30–42. (In Russ.)

Zobova, I., Zagladina, E., Safiullin, L., & Malganova, I. (2014). Institutional Aspects of State Regulation in Cyclic Development of Economy Conditions. Mediterranean Journal of Social Sciences, 5 (28). https://doi.org/10.5901/mjss.2014.v5n28p40