Areas of Corruption in the Distribution of Foreign-Made Goods Where a Firm's Size and Origin Play a Role: The Russian Experience

Drawing on interview evidence, this article explores areas whereby business corruption in Russia affects distributors of foreign goods with both local and foreign ownership and whether its effects on distributors of small and large sizes vary. The findings reveal the areas of corruption wherein distributors of foreign goods in Russia are most likely to be affected and suggest that, though widespread in Russia, corruption may have far greater effect on smaller distributors as compared to large firms. Large distributing firms can avoid involvement in corruption in some of the areas explored. This in turn may limit small-sized foreign manufacturers' capability to compete in this market, as they are most likely to be able to contract only to small-sized distributors. The study presents findings that are based on interviews with the distributors of foreign-made goods operating in Russia. The findings of the study can help to explain activities of corruption as related to the size of business firms involved in distribution of foreign products in Russia. Hence, its value to firms contemplating export to Russia. The research can also be considered a valuable platform for further research in this field.