Dr. Marianne Afanassieva Lecturer in Organisational - - PowerPoint PPT Presentation

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Dr. Marianne Afanassieva Lecturer in Organisational - - PowerPoint PPT Presentation

Dr. Marianne Afanassieva Lecturer in Organisational Analysis/Behaviour Business School, University of Hull Cottingham Road, Hull, HU6 7RX, UK Email: M.Afanassieva@hull.ac.uk 5 th Workshop on New Institutionalism in Organization Theory, 26 th


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  • Dr. Marianne Afanassieva

Lecturer in Organisational Analysis/Behaviour Business School, University of Hull Cottingham Road, Hull, HU6 7RX, UK Email: M.Afanassieva@hull.ac.uk 5th Workshop on New Institutionalism in Organization Theory, 26th – 27th March 2009, Naples, Italy

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 Russian enterprises restructured –

a result of post-Soviet market reforms:

  • unbundling profitable from non-profitable aspects

(Blanchard et al., 1994; Aghion and Blanchard, 1994; Carlin et al., 1994)

 Defence enterprises – a different case:

  • Production shops shrunk and / or frozen

– not closed

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 Inconsistent and changing legislation

(Levin and Satarov, 2000; Aouzan, 2005)

 Problems complying with the law

(Leitzel, 1997; Prokhorov, 2002)

 „Rules of the game‟ - not transparent

(Ledeneva, 2006)

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 krugo

gova vaya ya poruka (ties of joint responsibility)

in professional circles

 dvoin

inay aya a bukhga galte lteriy iya (keeping two sets of

accounts) and financial scheming

 tenevoi

voi bart rter (shadow barter)

barter chains, and nonmonetary markets

 alternative enforcement and selective use of law

(Ledeneva, 2006)

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 Misztal‟s (1996: 9) conceptualisation:

“a social mechanism which can be explained by people‟s beliefs and motivations”

 is rooted in social relations and the

  • bligations inherent in them

 is linked to uncertainty about other

people‟s motivations

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 Low compared to Western Europe

(Mishler and Rose, 1998; Rose, 1998)

 Networks of personal connections or informal social

networks - necessary components of a survival mechanism in Russia (Rose, 1998)

 The stock of social capital is low in Russia  Exclusionary nature of social capital in

Russia (closer to Bourdieu,1986, rather than to Putnam

et al., 1993)

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 serving as channels of confidential information  forming business reputations  establishing trust and decreasing uncertainty  providing systems of mutual assistance  arranging barter exchanges and mutual offsets

(Radaev, 2002: 69)

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 Examines the conditions

that the enterprises being considered have faced since the beginning of transition

 Applies New Economic Sociology‟s concepts

  • f network, embeddedness and social capital

to the case of the studied companies, identifying „new‟ and „old‟ types of networks

 Applies relevant concepts from the

New Institutionalism in Organisational Analysis

 Conclusion

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From 1995-2000:

 semi-structur

tructured d interv rvie iews ws

with directors and heads of relevant departments at four defence enterprises in one Russian region (oblast‟ ):

 Russ

ssia ian n newspape pers rs – nation

  • nal

l and local

 Chambe

ber r of Commerce and Industr stry - nation

  • nal

l and local

Beyond December 2000:

 report

rts in Russia ian newspapers rs (local l and nationa

  • nal)

l)

 company

ny websites

Company A and Company C – privatised; Enterprise B and Enterprise D - state-owned

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Double uble press ssure ure:

 Transition

from planned economy to market economy

 Conversion

from military to civilian production

http://www.un.org/russian/images/tour-12.gif

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„old‟ „new‟

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… these are an extension of what Raiser calls: “networks based

  • n existing

ties between the previous members of the communist nomenclatura – recombined during the transition to accommodate the reorganisation

  • f the enterprise

sector through corporatisation and privatisation, but continuing to be built primarily

  • n process-based

trust” (Raiser, 1999: 8).

www.transtour-odessa. com/gallery/main.php/d/ 5394-2/krasnaya_ploschad.jpg

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http://www.procurementserviceprovider.com/images/supply_chain.jpg

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Source: van Norman Baer, 1991: 140

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 Company A

  • „new‟ networks - successful development of
  • „old‟ networks - maintained and developed

 Enterprise B

  • „old‟ networks - successful use of
  • „new‟ networks - no perceived necessity to develop

 Company C

  • „old‟ networks - survival based on
  • „new‟ networks - failed to develop them

 Enterprise D

  • „old‟ networks - difficulty maintaining and developing
  • „new‟ networks - difficulty initiating
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 Two types of networks

identified - „old‟ and „new‟

 Dual and contradictory

effect of closed networks:

  • survival mechanism - effective
  • growth and innovation – constrained
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 Past and present  Soviet and post-Soviet  Military and civilian  Maintain and initiate  Grow and stagnate  Survival and ……….. Left: Man, designed by Vladimir Stenberg and Georgii Stenberg for a character in the operetta Day and Night, 1926

(source: van Norman Baer, 1991: 114)

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Aghion, P., and Blanchard, O. (1994) 'On the speed of transition in Eastern Europe', NBER Macroeconomics Annual. Aouzan, A. A. (2005) Institutsional'naya Ekonomika: Novaya Institutsional'naya Ekonomicheskaya Teoriya, Moscow: INFRA-M. Blanchard, O. J., Froot, K. A., and Sachs, J. D. (Eds.) (1994) The Transition in Eastern Europe. Volume 2: Restructuring, Chicago and London: The University of Chicago Press. Bourdieu, P. (1986) 'The forms of capital', in J. G. Richardson (Ed.), Handbook of Theory and Research for the Sociology of Education, Westport: Greenwood. Carlin, W., van Reenen, J., and Wolfe, T. (1994) 'Enterprise restructuring in the transition: an analystical survey of the case study evidence from central and eastern Europe', EBRD Working Paper No.14. Ledeneva, A. V. (2006) How Russia Really Works: The Informal Practices That Shaped Post-Soviet Politics and Business, Ithaca and London: Cornell University Press. Leitzel, J. (1997) 'Rule evasion in transitional Russia', in J. M. Nelson, C. Tilly, and L. Walker (Eds.), Transforming Post-Communist Political Economies, Washington, D.C.: National Academy Press. Levin, M., and Satarov, G. (2000) 'Corruption and institutions in Russia', European Journal of Political Economy, 16, 2: 113-132. Mishler, W., and Rose, R. (1998) 'Trust in untrustworthy institutions: culture and institutional performance in post-Communist societies', University of Strathclyde Centre for the Study of Public Policy, Studies in Public Policy No. 310. Misztal, B. A. (1996) Trust in Modern Societies: The Search for the Bases of Social Order, Cambridge: Polity Press. Prokhorov, A. P. (2002) Russkaya Model Upravleniya, Moscow: Zhurnal Ekspert. Putnam, R. D., Leonardi, R., and Nanetti, R. Y. (1993) Making Democracy Work: Civic Traditions in Modern Italy, Princeton: Princeton University Press. Radaev, V. (2002) 'Entrepreneurial strategies and the structure of transaction costs in Russian business', Problems of Economic Transition, 44, 12: 57-84. Rose, R. (1998) 'Getting things done in an anti-modern society: social capital networks in Russia', World Bank Social Capital Initiative Working Paper, No. 6. van Norman Baer, N. (1991) Theatre in Revolution: Russian Avant-Garde Stage Design 1913-1935, London: Thames and Hudson.