Training Needs in Russian Industrial Companies: Assessment by CEOs

The article reports on the results of a recent survey of 740 Russian CEOs on their attitudes towards business education. It was found that the implied demand of Russian CEOs for managerial retraining is consistent, as retraining is seen as a remedy for current rather than fundamental problems in managerial efficiency, and it is insolvent as Russian companies currently are not ready for serious investment in human resources. In addition, there are low chances for dissemination of knowledge and skills within the company as Russian CEOs do not value coaching and mentoring. Some policy recommendations are provided.     

New human resource management practices, complementarities and the impact on innovation performance

In this paper, we take our theoretical point of departure inrecent work in organisational economics on systems of humanresource management (HRM) practices. We develop the argumentthat just as complementarities between new HRM practices influencefinancial performance positively, there are theoretical reasonsfor expecting them also to influence innovation performancepositively. We examine this overall hypothesis by estimatingan empirical model of innovation performance, using data froma Danish survey of 1,900 business firms. Using principal componentanalysis, we identify two HRM systems which are conducive toinnovation. In the first one, seven of our nine HRM variablesmatter (almost) equally for the ability to innovate. The secondsystem is dominated by firm-internal and firm-external training.Of the total of nine sectors that we consider, we find thatthe four manufacturing sectors correlate with the first system.Firms belonging to wholesale trade and to the ICT intensiveservice sectors tend to be associated with the second system.     

Defence Industry Transformation in Russia: Evidence from a Longitudinal Survey

The article is devoted to the new phenomena in the market transformation of the Russian defence-industrial complex. Based on the data generated by the repeated survey of the CEOs (general directors) of defence enterprises in 1995‐99, it examines economic performance of enterprises, their conflicts with the government and efforts at internal restructuring brought about by reductions of Russia's defence spending, mass privatisation and opening up of the domestic market. We found that despite the dramatic reduction in defence orders, inconsistent government policies and extremely unfavourable macroeconomic environment, the Russian defence industry has made significant progress in its adjustment to the market. Even before the devaluation of the ruble in the autumn of 1998 economic performance of defence enterprises had been gradually improving; it entered a virtual boom since then. Contrary to widely held views, the painful experience of the 1990s has not made the top managers of the defence industry more hostile to reforms: at the end of the decade they were generally more supportive of the market than in 1995.     

Do lucky CEOs avoid innovation?

Stock options are one of the most widely used equity-based compensation mechanisms to mitigate misalignment between managers’ and shareholders’ interests. And yet, it is sometimes suspiciously used as a method of extracting shareholders’ wealth to managers (Bebchuk et al., 2009). The typical ways to do so is using opportunistic timing such as backdating, spring-loading, etc. As shown in Bebchuk et al. (2010), opportunistic timing of option grants increases the incidence of lucky grants, or stock option grants that CEOs receive when the price is abnormally low. We investigate whether lucky grants to CEOs impact firm innovations and, by extension, long-term growth. Using patent citations as a proxy variable for innovation (Kogan et al., 2017), we find that innovation decreases if CEOs received lucky grant in the previous year. The results imply that lucky grants may reduce the incentive for CEOs to invest in risky, long-term projects and negatively affect fir innovation.     

Business innovation in Russian industry

This article reports the results of a quasi‐longitudinal survey of 2,800 top corporate executives of Russian industrial enterprises, presenting a snapshot of current innovation attempts in Russian enterprises and indicating economic and institutional factors that foster or hinder innovation. Russian CEOs see the necessity of profound changes in many areas of enterprise management and are not afraid of such changes, as innovations are perceived to be the best competitive weapon. However, their resources for radical innovation are rather limited. Beside lack of finance, the superimposed narrower strategic focus, the rigidities of local business networks, the weakness of external infrastructure for innovation and the absence of state support seriously impede attempts to implement radical changes. However, in every Russian industry surveyed there is a visible presence of innovative companies, which constitute 15–30% of all large and medium‐size companies. Moreover, increasing imports and the growing number of foreign subsidiaries in Russia will continue to push Russian companies towards more intensive changes in all areas of enterprise management.     

Human resource management in Russian manufacturing subsidiaries of multinational corporations

This article reports the results of a survey of top executives at Russian manufacturing subsidiaries of multinational corporations (MNCs). We examine the prevailing types of job contracts and the use of monetary and non-monetary benefits, and compare such arrangements with those in locally-owned industrial companies. We also reveal differences in human resource management (HRM) policies based on the source of authority over HRM issues (global headquarters, regional headquarters, local groups of companies, etc.). These findings can be used to help predict the evolution of HRM policies in Russian manufacturing subsidiaries of MNCs.     

The relative importance of human resource management practices for innovation

Human resource management (HRM) practices are generally expected to stimulate a firm's innovation performance. However, which of these practices really pay off? Based on a unique dataset that includes detailed information for both a firm's innovation activities and a broad set of HRM practices, we find that primarily new workplace organization practices seem to enhance a firm's innovation activities. Flexible practices of working time management and incentive payment schemes show only small effects on both innovation propensity and innovation success. Further training does only affect innovation success, but not innovation propensity. Overall, we find a stronger linkage between HRM practices and innovation propensity than with innovation success. Further, we find that innovation propensity increases, first, with the number of combinations of HRM practices adopted by a firm but not with the number of combinations of HRM practices from different groups of HRM practices adopted by a firm.     

Strategic Technology Alliances: A Way to Innovative Enterprises in Russia?

This article examines whether, how, and to what extent international technology partnerships of Russian enterprises and research institutes contribute to their technological capability building. It presents results obtained by analysis of both a unique survey of Russian enterprises and research institutes co-operating with Western partners in seven selected high-technology fields and four Russian regions with a high concentration of R&D, and additional evidence from 16 in-depth interviews with managers of such Russian high-technology entities (HTE).     

BIG data – BIG gains? Understanding the link between big data analytics and innovation

ABSTRACT

This paper analyzes the relationship between firms' use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms' innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms' investment in IT-specific skills. Overall, the results support the view that big data analytics have the potential to enable innovation.     

Innovative growth: the role of market power and negative selection

ABSTRACT

This paper relies on register-based statistical data from Finland to measure broad research and development (R&D), organizational capital (OC) and information and communication technology (ICT) investments as innovation inputs in addition to formal survey-based R&D and CIS survey data on innovations. The linked panel data are appropriate for a comparison of low-market-share (small) and large-market-share (large) firms. We analyze the productivity growth and profitability of Finnish firms with varying market power. In contrast to high-market-share firms, low-market-share firms are characterized by low profit derived from new innovations. This study suggests that in addition to imitative growth, a ‘negative selection mechanism’ explains the high productivity growth relative to the low profits.     

Direct and configurational paths of open innovation and organisational agility to business model innovation in SMEs

ABSTRACT

Discussions on opportunities and enablers have remained lacking despite the continued growth of business model innovation (BMI) research. In order to investigate the formation mechanism of BMI in small-medium enterprises (SMEs), we proposed an integrated model, which included factors derived from organisational internal resources and capabilities via the resource-based view (RBV) and dynamic capabilities view (DCV). Structural equation model (SEM) and fuzzy set qualitative comparative analysis (fsQCA) were utilised to test the survey data collected from 245 SMEs in China. SEM results support the hypotheses, except that on the impact of outbound open innovation on market capitalising agility and on BMI. The fsQCA analysis revealed that four configurations of open innovations and organisational agilities can sufficiently explain high levels of BMI, and two configurations of these factors lead to low BMI. The theoretical and practical implications of such findings were also provided.     

Understanding the economic,daily functioning,and diabetes management burden of non-severe nocturnal hypoglycemic events in Canada: differences between type 1 and type 2

Objective:

To examine the daily functioning, diabetes management, and economic burden of non-severe nocturnal hypoglycemic events (NSNHEs) in Canada and differences in impacts by diabetes type.

Research design and methods:

A 20-min web-based survey, with items derived from the literature, expert and patient interviews, assessing the impact of NSNHEs, was administered to patients with self-reported diabetes aged ≥18 having an NSNHE in the past month.

Results:

Two thousand, two hundred and seventy-nine Canadian persons with diabetes were screened with 200 respondents meeting criteria and included in the analysis sample. Out of 87 working respondents, 15 reported on average 3.5?h of lost work (absenteeism). The reduction in work productivity (presenteeism) reported was comparable to the impact of arthritis. Other functional impacts included sleep and daily activities. Additionally, respondents’ increased their usual blood sugar monitoring practice, on average, 4.2 (SD?=?7.5) extra tests were conducted in the week following the event and reduced their insulin over the following 4.8 days. Increased healthcare utilization was also reported. Increased costs as a result of NSNHE for lost work productivity, increased diabetes management, and resource utilization was CAD 70.67 per person per year in this sample. Limitations of the study include the biases which are associated with a web-based survey and self-reported data.

Conclusions:

NSNHEs have serious consequences for patients and diabetes management practices. Greater attention to treatments which reduce NSNHEs can have a major impact on improving functioning while reducing the economic burden of diabetes.     

Privatisation of the Russian Defence Industry: Ownership and Control Issues

This article analyses the outcome of privatisation in the Russian defence industry in the second part of the 1990s. It is based on the results of the longitudinal survey of defence enterprises conducted over the period 1995‐99 in the main defence production regions of Russia: Moscow, St Petersburg, Central European region, Western Siberia, Volga region, the Urals and the Far East. Using the survey data, we investigate the distribution of ownership in defence enterprises and examine the non-linear relationship between ownership and control inside these enterprises. We also test the hypothesis of the growing criminal influence in defence enterprises and outline a possible future scenario for privatisation in the defence industry.     

Adapting the Asthma Life Impact Scale (ALIS) for use in Southern European (Italian) and Eastern European (Russian) cultures

Abstract

Background:

The Asthma Life Impact Scale (ALIS) is a disease-specific measure used to assess the quality-of-life of people with asthma. It was developed in the UK and US and has proven to be acceptable to patients, to have good psychometric properties, and to be unidimensional.

Objective:

This paper reports on the adaptation and validation of the ALIS for use in representative Southern European (Italian) and Eastern European (Russian) languages.

Methods:

The ALIS was translated for both cultures using the dual-panel process. The newly translated versions were then tested with asthma patients to ensure face and content validity. Psychometric properties of the new language versions were assessed via a test–re-test postal survey conducted in both countries.

Limitations:

It is possible that some cultural or language differences still exist between the different language versions. Further research should be undertaken to determine responsiveness. Further studies designed to determine the clinical validity of the Italian ALIS would be valuable.

Results:

Linguistic nuances were easily resolved during the translation process for both language adaptations. Cognitive debriefing interviews (Russia n?=?9, male?=?11.1%, age mean (SD)?=?55.4 (13.2); Italy n?=?15, male?=?66.7%, age mean (SD)?=?63.5 (11.2)) indicated that the ALIS was easy to read and acceptable to patients. Psychometric testing was conducted on the data (Russia n?=?61, age mean (SD)?=?40.7 (15.4); Italy n?=?71, male?=?42.6%, age mean (SD)?=?49.5 (14.1)). The results showed that the new versions of the ALIS were consistent (Russian and Italian Cronbach’s alpha?=?0.92) and reproducible (Russian test–re-test?=?0.86; Italian test–re-test?=?0.94). The Italian adaptation showed the expected correlations with the NHP and the Russian adaptation showed strong correlations with the CASIS and CAFS and weak-to-moderate correlations with %FEV1 and %PEF. In both adaptations the ALIS was able to distinguish between participants based on self-reported general health, self-reported severity, and whether or not they were hospitalized in the previous week.     

Determinants of Enterprise Restructuring in Transition: Description of a Survey in Russian Industry

The survey described in this article collects data on enterprise restructuring, ownership, competition, budget constraints and, particularly, institutions in Russian industry, covering the period between the start of 1992 and September 1999. On their own, the survey answers show a devastating restructuring crisis, massive privatisation, rather weak competition, unexpectedly hard budget constraints, an overwhelmingly negative and relatively positive assessment of formal and informal institutions respectively, and largely the same ruling networks as before the start of market reforms. Ironically, tentative results based on this survey indicate that important determinants of enterprise restructuring in Russian industry are exactly those on which least reform has been accomplished: stronger competition and better institutions go with more restructuring, while privatisation and harder budget constraints do not. The substitution, to some extent, of informal for formal institutions may have prevented even worse restructuring figures, but better formal institutions in general would have led to further improvements.     

The Russian Crisis: A Debt Perspective

On 17 August 1998 the Russian authorities devalued the ruble, suspended repayments of ruble-denominated government paper and announced a moratorium on the Russian foreign debt. By doing so the government brought the domestic banking sector to the edge of bankruptcy and risked losing the little international faith still remaining in its abilities to restructure the economy. In this article we examine the deeper causes of the crisis. After having analysed its antecedents we gather our new insights into a basic stylised model of the crisis. The outcome of the model is then linked to the actual data and events.     

Deconstructing border practices in the Estonian‐Russian borderland

The Estonian‐Russian borderland is a relatively fragile, fairly contested and highly politicised arena in which a number of vital issues for both countries meet and are negotiated. This fact makes the borderland a part of the (geo)political process, including bargaining over social space and resource access, where one can find actors located on different spatial levels and situated among various interests groups. The present article attempts to study how borders with a multitude of meanings and roles can be understood and crossed in time, scale and from different geographical settings. It illuminates the conflicting visions and asymmetric interests among the local borderland population, regional authorities, central governments and international actors. Lastly, it will be argued that border negotiations are unlikely to succeed or intensify where conflicting visions and asymmetric interests dominate, different actors talk ‘different languages’, or boundary‐producing practices simply prevail over border‐crossing practices.     

Determinants of innovation behaviour and investment estimates for west-german manufacturing firms

In this paper, the determinants of innovation behaviour and investment are explored with a large micro-data panel from West-German manufacturing firms. The estimates are discussed within a microeconomic model with monopolistic competition, demand uncertainty and a delayed adjustment of capacities and the production technology. The estimates reveal positive firm-size effects which hint towards scale economies associated with innovations. Market power promotes innovations but not investment, and exporters innovate more but exhibit less investment expenditures. Finally, excess demand promotes innovations. This indicates a complementarity of innovations and investment and hints towards permanent productivity effects of temporary demand shocks.     

Environmental management practices: good or bad news for innovations delivering environmental benefits? The moderating effect of market characteristics

We examine empirically whether environmental management practices (EMPs) (environmental audits, ISO 14001 standard, etc.) promote (or not) additional innovations delivering environmental benefits. Using a large sample of French firms (N=4114) and simultaneous equations model (SEM), we found that EMPs positively influence the decision of firms to introduce innovations delivering environmental benefits, but this positive relationship is moderated by market characteristics. The findings indicate that EMPs promote such environmental-related innovations when the market of the main activity of the firm is growing. However, when the market is uncertain or competitive, this relationship turns out to be negative.     

HRM as a Significant Factor for Achieving Competitiveness through People: The Croatian Case

This paper evaluates the quality of human resource management (HRM) in Croatia because excellent human resource (HR) policies, programs and activities enable enterprises to maximize their workforce productivity. The research was conducted in enterprises with more than 200 employees. The value of HRM was assessed using the HR audit approach. Fifty-five HR indicators were analyzed from the top 10 Croatian HR enterprises to serve as benchmarks for the final sample of 80 enterprises. Results indicate Croatian enterprises have deficient HR practices, on average. Independent sample t-tests showed 61.82% of HR indicators were significantly better in the benchmark firms. Consequently, HRM in Croatia can not be considered solid ground for achieving competitiveness through people.