Doctoral Dissertation Research: Organizational Responses to State Failure: Small Russian Firms and Their Attempts to Cope with the Strange New World

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SES-0221100PI(s): Meyer Kestnbaum Elena Vinogradova University of Maryland College ParkOne of the major most profound changes to occur in Europe or Asia in the past century was the fall of communism and the subsequent transition to capitalism of the former Soviet countries. This Doctoral Dissertation Improvement Grant examines organizational adaptation and change in business practices resulting from the changing role of the Russian state in its economy. The project focuses on small individual enterprises, and in particular on relationships between Russian small firms and their trading partners and the Russian state. In western countries the legal system and public authorities guarantee property rights and contracts, but in Russian state enforcement institutions are unable to provide these same protections. The goal of the study is to specify how the inadequacies of state enforcement affects business practices among small and medium sized privately owned business firms in contemporary Russia, what kind of informal enforcement strategies develop, and to trace the roots of these strategies and the implications they may have for the building of capitalism in Russia. The dissertation candidate will interview owners and managers of 72 small and medium-sized firms in St. Petersburg, Russia. Structured interviews will be used to gather information on views and practices. This data will be integrated with similar interviews conducted with owner and managers of 18 small private firms in St. Petersburg as part of a pilot study.