This article presents the results of a research dedicated to the correlation between cultural values and economic attitudes (n = 110 people). The participants belonged to the young (18 – 25 years old) generation and the adult (37 – 63 years) generation of Russian people. The goal of the research was to reveal a correlation between cultural values and economic attitudes among representatives of different generations of Russians. It has been found that for the adult generation, the “Power Distance” value is positively correlated with economic self-determination and the desire of having money. For the young generation, the “Power Distance” value is not associated with the growth of the welfare, and “Uncertainty Avoidance” encourages economic autonomy but does not create more opportunities for increasing personal material income; “Masculinity” does not bring along the economic self-determination. The study has also demonstrated that economic paternalism is most expressed among representatives of the young generation, and they are more ready to take economic risks in order to increase their income, but the chances of making their personal financial income higher are not as big as those of the adult generation.
Purpose: The paper explores factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness.
Design/Methodology: The framework of resources-based view is used to examine causality between the resources employed and competitiveness measured by Economic Value Added. Controlling for the most relevant factors, we place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behaviour of companies, foreign investments, and corporate networks. The dataset of more than 1000 Russian companies benchmarked to the dataset of more than 1600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward.
Findings: Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, like those such as ERP systems and other intangible assets, are considered positive factors that reduce gaps in EVA.
Originality/value: The paper introduces original approach for studying the gap in performance caused by gap in employed resources.
The issue of capital city relocation is a topic of debate for more than forty countries around the world. In this first book to discuss the issue, Vadim Rossman offers an in-depth analysis of the subject, highlighting the global trends and the key factors that motivate different countries to consider such projects, analyzing the outcomes and drawing lessons from recent capital city transfers worldwide for governments and policy-makers.
This research combines theories of civil society and local self-governance in describing citizen participation in solving neighborhood problems. Similar to neighborhood associations elsewhere, in Russia “organizations of territorial social selfgovernance” (TOS) have been formed to facilitate citizen participation in improving their communities. This research presents the first ever study of TOS across all Russian regions, drawing on a range of secondary data, lists of registered groups, and a phone survey of potential collaboration partners conducted in 2015. This paper explores the current state of these groups and their potential for collaboration with other civic organizations, government and business.
In the course of the last few years, the Russian society has been going through a stage of political, cultural and economic transformations that bring changes into the lifestyle, attitudes, and worldview of Russian citizens. The process of development has embraced not only science and technology, but also the social and cultural aspects of life. The contemporary image of Russia is in many ways defined by its younger generation that grew up within new economic, social and political standards. Young people’s values, attitudes and aspirations differ from those of the adult generation of Russians, since the last years have been marked by transformations inside the country, as well as by some global changes. The paper demonstrates the results of a study which aimed to identify the relationship between individual values and attitude towards innovation. 380 respondents, young and adult representatives of the Russian population, took part in the research. The respondents belonged to the younger generation (under 25 years old) or to the adult generation (over 45 years old). The principal instrument used was the method of questionnaires. The methodic inventory consists of three main blocks oriented to the study of the following constructs: the PVQ-R method of measuring individual values (Schwartz et al., 2011) and the method of “Self-assessment of innovative qualities of a personality” (Lebedeva, Tatarko, 2009).The goal of the research is to reveal the age differences in values and attitudes towards innovation, and to find out which values determine positive or negative attitude towards innovations among representatives of different generations of Russians. The younger generation values "Self-Direction Thought", "Stimulation", "Achievement", " Power Dominance" stimulate the adoption of innovations.
People are intent to make similar choices especially in consumer goods markets. To address both explanations of this persistence, i.e. state dependence and heterogeneity in preferences, we use random coefficient logit model based on scanner panel data on juice purchases. The product differentiation of the chosen category allows us to model three dimensions of state dependence on brand, size and flavor characteristics. We provide evidence that the persistence in brand choices is positively correlated with persistence in size and flavor choices, thus the consumer pattern is prone to be inertial or variety seeking in every product characteristics. Simultaneously we show that the more sensitive to price and promotional activities consumers are, the less inertial is their behavior.
This study explores the value creation and agent conflict in a company that employs intangibles. The conceptual model of value creation is used to test how intangibles affect companies' outperforming and simultaneously build investors' expectations. The research is carried out using a sample of more than 1,650 European companies covering the period from 2004 to 2011. The study reveals the diverse impact of intangibles on the outperforming of a company by Economic Value Added (EVA) and its ability to create market value (MVA). The study discovers that managers are prone to set positive signals for investors rather than create sustainable competitive advantages. This work contributes primarily to the field of corporate governance in companies that employ intangibles. The issues to be considered when designing rules and incentives for proper communication between managers and investors that drive both outperforming and sustainable value creation are emphasized.
The present study analyzes Perm, Russia residential housing market supply focusing on sellers' heterogeneity. Many indicators of heterogeneity were consi- dered in the previous research, and all of them were proved to have a great impact on housing prices and time on the market. However, the gap exists in evaluating sellers’ pricing strategies in dynamics mostly because of unavailable data. Current study clears out the effect of time on price using data on asking price dynamics. We employ semiparametric sample selection estimation proce- dure which accounts for the unobserved property characteristics and non-random selection of objects out of the sample. We consider two main types of sellers: real estate agents and property owners, and show that real estate agents appear to be more impatient compared to property owners. Specifically, they set a lower asking price initially and are more likely to revise it over time if the object is not sold.
Purpose: This paper examines heterogeneity of preferences of mortgage borrowers of Russian state-owned supplier of residential housing mortgages.
Methodology: Analysis takes into account the underwriting process and the choice of contract terms of all loans originated from 2008 to 2012. Our dataset contains demographic and financial characteristics for all applications, loan terms and the performance information for all issued loans by one regional bank which operates government mortgage programs. We use a multistep semiparametric approach to estimate the determinants of bank and borrower choice controlling for possible heterogeneity of preferences, sample selection and endogeneity of contract terms.
Findings: We found that demand of low-income households who are unable to afford improving of housing conditions by other instruments than government mortgage is less elastic according to the change both in interest rate and maturity compared with higher incomed households.
Originality: The main contribution to the literature is modeling choice of contract terms as interdependent by structural system of simultaneous equations with heterogeneous marginal effects.
In pursuit of economic growth and development, companies have tried to strike a balance between competition and monopoly power. This paper reviews the evidence on industrial concentration and its economic correlates (notably firms’ performance as measured by innovation output) in frame of emerging markets conditions. Competition theory was developed in countries under assumptions that do not necessarily fit the emerging countries. Our main research question is whether the level of local market concentration influences (and if it does, in which way) on innovation activity undertaken by companies operating on emerging markets. Apart from linear association, the empirical literature suggests that industrial concentration could exhibit an inverted U-relationship as far as its link to certain economic indicators of success, such as innovation output. We measure concentration by using the Herfindahl-Hirshman Index. This paper finds empirical evidence in support of the Schumpeterian hypothesis that more concentrated industries stimulate innovation and observes the inverted U-relationship curve. Further, the empirical model demonstrates the relative importance of technological leadership in concentration industries for enhance innovations. This suggests a role for recalibrating firm and industry policies amend.
This volume deals with one of the most understudied aspects of everyday life in Russian society. Its main heroes are the providers of goods and services to whom people turn for healthcare instead of official medical institutions. A wide range of agents is described—from network marketing companies to 'folk' journals on health as well as healers, complementary medicine specialists, and religious organizations.
Krasheninnikova’s book is based on rich empirical observations and avoids both positive and critical assessment of the analyzed phenomena. Her investigation pays particular attention to the legal, social, and economic status of informal healthcare providers. She demonstrates that these agents tend to flourish in bigger towns rather than in small settlements, where public healthcare is lacking. The study reveals the important role of institutions that are generally not related to alternative medicine, such as pharmacies, libraries, and church shops.
The result is a vivid and thorough introduction to the world of self-medication and alternative healing in contemporary Russia. A special emphasis was made on the flexibility of boundaries between formal and informal healthcare due to the evolution of rules and regulations.
This paper investigates how the recent crisis of 2008 changed relations between innovation and firm performance in Western Europe. We apply a structural framework of CDM modelling, which incorporates different stages of the knowledge creation process and takes into account the complex nature of innovations. The study is based on a balanced panel data of 420 listed manufacturing firms from the U.K., Germany and France. All the information is gathered from common sources, thereby reducing subjectivity, a typical problem in the field. We found, the crisis resulted in appreciable changes in the model. The most important evidence is enhancement of the role of firm resources in the post-recession period. We also reveal larger barriers for innovations, increased uncertainty and lower state dependence in R&D engagement, product creation and economic performance. These results could indicate the ‘cleaning effect’ of the crisis, which has worsened the business environment and enhanced competition.
Purpose: the paper aims to theoretically justify the link between the endowment of intellectual capital and product novelty, and to find empirical evidence for such a link for SMEs in the Russian business environment.
Design/methodology/approach: the study implements an intellectual capital based view and the concept of novelty proposed by Schumpeter to highlight the crucial role of knowledge for transition to a higher level of competition. Drawing on a literature review, the authors determine three specific components of intellectual capital: foreign human capital, ICT capital developed at an international level and cooperation with foreign partners in order to pinpoint a premier position on the next level of the market. For empirical testing of the proposed model, a dataset comprising more than 1400 Russian manufacturing SMEs was used. Estimations were performed with the help of a principal component analysis and ordinal logistic regression.
Findings: the findings reveal that higher intellectual capital endowment promotes the level of product novelty. For Russian manufacturing SMEs, the most important is R&D capital. At the same time, ICT capital developed at an international level and cooperation with foreign partners contribute significantly to the probability of transition to a new market level.
Research limitations/implications: the study employs cross sectional data that restrict the analysis of innovation dynamics.
Practical implications: the study appears to have policy implications for the development of governmental programmes for Russian SMEs such as the creation of IC awareness, training for IC management, special programmes for R&D support and ICT capital accumulation.
Originality/value: this paper proposes a new approach for investigating the “knowledge-innovation” link, shifting the focus from a general analysis of product innovation to a level of novelty for product innovation. This is the first empirical study of the relationship between intellectual capital components and the level of product novelty for SMEs in the context of the Russian business environment.
This paper explores changes of verb valency by means of noun-incorporation. We claim that noun-incorporation in English manifests itself in verbs formed by compression and backformation, such as to baby-sit, to head-hunt, to whistle-blow, and denominal verbs formed by transmutation, for example to doctor, to nest, to knife. Analysis of more than 6500 contexts with English incorporation complexes taken from corpora has shown that noun-incorporation in English leads to simple or complex change of valency. Semantically a sentence with noun-incorporation can be either complicated, due to extra connotations and metaphorical meanings of incorporation complexes, or simplified, due to reduction of semantic valency and morphosyntactic reduction.
This article examines theoretical aspects of the co-production concept and illustrates its applicability within the framework of place marketing and tourism. A theoretical exploratory technique based on literature and discussion is employed to propose a conceptual model on residents’ willingness to be engaged in co-production activities.
Purpose – This study explores company strategies for intangibles. We investigate whether it is reasonable for companies to intensify intangibles when the current strategy is not intangible-intensive. This paper aims to elaborate a theoretical model to describe the strategic decision-making in companies.
Design/methodology/approach – We use the Bellman equation framework to find the conditions under which a change in strategy for intangibles is reasonable.
Findings – The results determine the parameters of returns on intangibles in different strategies, the optimal intangible stock and the influence of external economic shocks. The findings of our study demonstrate that many requirements have to be met to make intangible-intensive strategy beneficial for a company. Moreover negative shocks of crises force a company to postpone a new strategy on intangibles.
Practical implications – This research provides an insight into strategic behaviour of companies under uncertainty. The theoretical findings demonstrate under which conditions companies should decide to switch to a strategy more intangible-intensive. This model can be used to empirically test parameters of different investment strategies of companies using structural estimation techniques.
Originality/value – This work contributes to the theory of managerial economics giving closed form solutions for the dynamic optimization of company behaviour. The findings also show how this behaviour might change when economic crises are faced or expected.
This article describes the gathered experience in using corpora in an IELTS preparation course. The practice demonstrates an attempt to reduce negative washback effects occurring when preparation courses just concentrate on the test format neglecting the importance of development of learners’ language skills and general study skills. Some corpus-based activities, which were used in a group of Russian university students for teaching vocabulary and writing, are provided. The author’s experience in using corpora proves such positive effects of corpus teaching as an increase in the learners’ understanding of usage patterns, drop in the number of collocation errors they make, enhancement of the students’ autonomy and self-correction skills.
An analysis of the opinions of the teachers of the Perm Krai schools about the classroom's educational achievements showed that teachers prefer to work in "homogeneous" classes. They preferred a class with a low average score, without "excellent students", but without underachieving students. And they perceived a class with a high average score, with a large share of "excellent students", but with the underachieving student as the worst. The presence of "excellent" individual results of students in external monitoring turned out to be unimportant in determining the level of class achievements and in assessing the success of the teacher's work.