Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks?
We present the dynamics of the position of Russian manufacturing subsidiaries of Western MNCs in 2012–2016. The analysis is based on interviews with the heads of subsidiaries, a repeated survey of plant managers and on secondary data on subsidiaries’ activities. We propose a new portfolio model tha...
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| Format: | Article |
| Language: | English |
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National Research University Higher School of Economics
2018-06-01
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| Series: | Foresight and STI Governance |
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| Online Access: | https://foresight-journal.hse.ru/article/view/19366 |
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| author | Igor' Gurkov Evgeniy Morgunov Zokirzhon Saidov Aleksandr Arshavskiy |
| author_facet | Igor' Gurkov Evgeniy Morgunov Zokirzhon Saidov Aleksandr Arshavskiy |
| author_sort | Igor' Gurkov |
| collection | DOAJ |
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We present the dynamics of the position of Russian manufacturing subsidiaries of Western MNCs in 2012–2016. The analysis is based on interviews with the heads of subsidiaries, a repeated survey of plant managers and on secondary data on subsidiaries’ activities. We propose a new portfolio model that desalinates “the core” and “the periphery” of the corporation and further allocates peripheral subsidiaries into several classes depending on intensity of value transfer from and to a subsidiary and the possibility to apply a “standard” set of instruments for capital allocation decisions. We argue that in the current situation of the Russian economy the only possibility for Russian manufacturing subsidiaries to remain close to the corporate core is to demonstrate high net profitability of assets. Otherwise subsidiaries are downgraded into “sticks”. That position enables subsidiary managers to enjoy high autonomy and wide subsidiary mandates, but endanger the long-term perspectives on maintaining innovativeness and competitiveness of subsidiaries.
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| format | Article |
| id | doaj-art-1b871b4af6e54d6598c9bda533975d7c |
| institution | Matheson Library |
| issn | 2500-2597 |
| language | English |
| publishDate | 2018-06-01 |
| publisher | National Research University Higher School of Economics |
| record_format | Article |
| series | Foresight and STI Governance |
| spelling | doaj-art-1b871b4af6e54d6598c9bda533975d7c2025-07-11T11:28:16ZengNational Research University Higher School of EconomicsForesight and STI Governance2500-25972018-06-0112210.17323/2500-2597.2018.2.24.35Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks?Igor' Gurkov0Evgeniy Morgunov1Zokirzhon Saidov2Aleksandr Arshavskiy3HSE UniversityHSE University; Moscow School of Social and Economic Sciences , 82, bldg 2, Vernadskogo ave., Moscow 119571, Russian FederationHSE UniversityRussian Presidential Academy of National Economy and Public Administration , 82/5, Vernadskogo ave., Moscow 119571, Russian Federation We present the dynamics of the position of Russian manufacturing subsidiaries of Western MNCs in 2012–2016. The analysis is based on interviews with the heads of subsidiaries, a repeated survey of plant managers and on secondary data on subsidiaries’ activities. We propose a new portfolio model that desalinates “the core” and “the periphery” of the corporation and further allocates peripheral subsidiaries into several classes depending on intensity of value transfer from and to a subsidiary and the possibility to apply a “standard” set of instruments for capital allocation decisions. We argue that in the current situation of the Russian economy the only possibility for Russian manufacturing subsidiaries to remain close to the corporate core is to demonstrate high net profitability of assets. Otherwise subsidiaries are downgraded into “sticks”. That position enables subsidiary managers to enjoy high autonomy and wide subsidiary mandates, but endanger the long-term perspectives on maintaining innovativeness and competitiveness of subsidiaries. https://foresight-journal.hse.ru/article/view/19366multinational companiesRussiaforecastmanufacturingsanctionscorporate development |
| spellingShingle | Igor' Gurkov Evgeniy Morgunov Zokirzhon Saidov Aleksandr Arshavskiy Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? Foresight and STI Governance multinational companies Russia forecast manufacturing sanctions corporate development |
| title | Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? |
| title_full | Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? |
| title_fullStr | Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? |
| title_full_unstemmed | Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? |
| title_short | Perspectives of Manufacturing Subsidiaries of Foreign Companies in Russia: Frontier, Faubourg or Sticks? |
| title_sort | perspectives of manufacturing subsidiaries of foreign companies in russia frontier faubourg or sticks |
| topic | multinational companies Russia forecast manufacturing sanctions corporate development |
| url | https://foresight-journal.hse.ru/article/view/19366 |
| work_keys_str_mv | AT igorgurkov perspectivesofmanufacturingsubsidiariesofforeigncompaniesinrussiafrontierfaubourgorsticks AT evgeniymorgunov perspectivesofmanufacturingsubsidiariesofforeigncompaniesinrussiafrontierfaubourgorsticks AT zokirzhonsaidov perspectivesofmanufacturingsubsidiariesofforeigncompaniesinrussiafrontierfaubourgorsticks AT aleksandrarshavskiy perspectivesofmanufacturingsubsidiariesofforeigncompaniesinrussiafrontierfaubourgorsticks |