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Management practices of Russian subsidiaries of multinational corporations: factors of creation, adoption and routinization of effective forms of actions

Priority areas of development: management
2013
Department: Laboratory of Corporate Strategies, Organizational Structures, and Management Innovations

Object of study – Russian manufacturing subsidiaries of multinational corporations.

Goals of study:

  To show practices from developed countries transfering to an emerging economy;

  To describes problems and solutions for management technologies’ transfer,

  Augmenting the general knowledge about the important segment of the Russian economy,

  Increasing knowledge on forms and methods of innovation works in the Russian industry. расширение объема знаний о реально использующихся в российской промышленности формах и методах инновационной деятельности.

Empirical base – synthesis of case studies on 17 enterprises of 15 corporations.  

Results . The starting point for the selection of management practices was their applicability for the launching of manufacturing global brands in Russia The manufacturing should be done with comparable quality and lower costs than in sister-subsidiaries from other countries,   Thus this required the implementation of  new human resource management practices, including new forms of recruitment, selection, performance assessment, remuneration and personnel development. As HRM practices attempted to reproduce corporate-wide standards of quality and process efficiency, some “vintage” practices inherited from the Soviet times remained.  

Currently the actual practices used in Russian manufacturing subsidiaries of multinational corporations are a compromise between global and local practices. There is no transfer of management practices from Russia to other sister-subsidiaries (except to those in CIS countries). The promotion of local managers to executive positions in corporate headquarters is rare. The situation is gradually changing as the flow of “reverse innovations” increases.

The level of originality of the results  – high.

The sphere of application – Russian manufacturing companies that may copy selected effective practices of Russian subsidiaries of foreign multinationals.

Foreign partners – Dr. Sergey Filippov, Assistant Professor of Innovation Managemet, Delft University of Technology, the Netherlands, http://www.tbm.tudelft.nl/index.php?id=31259

Publications:


Gurkov I. B., Kossov V. V., Filippov S. MANAGEMENT PRACTICES IN RUSSIAN MULTINATIONAL SUBSIDIARIES: THE CASE OF KNAUF CIS / Высшая школа экономики. Series MAN "Management". 2013. 
Igor G., Filippov S. Innovation processes in the Russian manufacturing subsidiaries of MNCs – an integrated view from case studies / Высшая школа экономики. Series MAN "Management". 2013. No. WP BRP 11/MAN/2013. 
Gurkov I. B., Filippov S. Innovation management in Russia’s foreign manufacturing subsidiaries: a pilot exploration of creation and implementation of effective innovation routines / Высшая школа экономики. Series MAN "Management". "WP BRP". 2013. No. WP BRP 07/MAN/2013.