MANAGEMENT AND CHANGE IN TURBULENT TIMES: HOW DO RUSSIAN SMALL BUSINESS MANAGERS PERCEIVE THE DEVELOPMENT OF THEIR BUSINESS ENVIRONMENT?

Jari Jumpponen,Timo Pihkala,Markku Ikävalko

doi:10.3846/1611-1699.2008.9.115-122

Jari Jumpponen, Timo Pihkala + Show 1 more

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https://doi.org/10.3846/1611-1699.2008.9.115-122

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Abstract

This paper focuses on the management of small businesses in Russia. Despite the growing importance of the Russian small business sector, there are surprisingly few empirical studies focusing on this topic. As the business environment in Russia is repeatedly noted to be in constant change, the purpose of the paper is to explore Russian owner‐managers perceptions of the development of their business environment from 2000 to 2004. The paper reports the results of a survey conducted among 164 business managers in North‐West Russia. The results indicate that Russian owner‐managers tend to monitor changes in the business environment and adapt their management accordingly, if not beforehand. However, the results are not unambiguous, as the study found wide variations in the extent to which gap the managers monitored and adapted to perceived changes in the business environment.

Highlights

In Russia small businesses have a relatively short operational history
McCarthy et al (1997) noted that new entrepreneurs in Russia come from the State enterprises and ministries or from academic elite, or they have no work experience in the centralized economy
Shama and Merrell (1997) describe Russian managers’ as changing from directors to managers and Czinkota (1997) highlights that education needs among Russian managers are similar to those of managers working in Western organizations

Summary

Introduction

In Russia small businesses have a relatively short operational history. Small business contributes some 20 % of Russian GDP, compared with typically 50 % or more in developed market economies. McCarthy et al (1997) noted that new entrepreneurs in Russia come from the State enterprises and ministries or from academic elite, or they have no work experience in the centralized economy. Change in the management in this sector is evident; as Kets de Vries et al (2004) note, Russian business practices have matured during the past 15 years. Small business and business managers have a relatively short operational history, and the role of small business is still rather mod-

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