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Restructuring with What Success? A Case Study of Russian Firms

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Author Info
Susan Linz

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Abstract

This case study of enterprise restructuring utilizes data collected from thirty-two former state-owned firms in Taganrog, Russia, in the summer and fall of 1999. These data are used to construct three composite measures of enterprise restructuring. When defined broadly to include several dimensions of the restructuring process, the "restructuring threshold" is achieved by half of the privatized firms participating in the project. The firms achieving this threshold are distributed across all industries included in the sample. Regardless of the composite measure used, more than one-third of the former state-owned firms participating in this project attained the "active" restructuring designation. The results indicate that (1) production assortment changes appear to be ongoing among those firms engaged in restructuring activities, (2) employment changes appear to involve a mixed strategy with regard to timely wage payments, workforce size, and the benefits package; and (3) outsider ownership is more prevalent among the group of firms designated as restructuring than among those firms that failed to achieve the "restructuring threshold." To put into perspective the economic and business environment in which these former state-owned firms operate, a comparison is made to a group of de novo firms that were surveyed under the auspices of the same project.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 324.

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Date of creation: 01 Jul 2000
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Handle: RePEc:wdi:papers:2000-324

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Related research
Keywords: Russia; enterprise restructuring; privitization;

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Find related papers by JEL classification:
P2 - Economic Systems - - Socialist Systems and Transition Economies
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andrei Shleifer, 1998. "State Versus Private Ownership," NBER Working Papers 6665, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Ickes, B. & Ryterman, R. & Tenev, S., 1995. "On Your Marx, Get Set, Go: The Role of Competition in Enterprise Adjustment," Papers 11-95-9, Pennsylvania State - Department of Economics.
  3. Blanchard, O. & Aghion, P., 1996. "On insider privatization," European Economic Review, Elsevier, vol. 40(3-5), pages 759-766, April. [Downloadable!] (restricted)
  4. Susan J. Linz, 1998. "Job Rights in Russian Firms: Endangered or Extinct Institution?," William Davidson Institute Working Papers Series 128, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  5. Linz, Susan J, 2000. "Labor Productivity in Transition: A Regional Analysis of Russian Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 685-718, July.
    Other versions:
  6. Roland, Gérard, 1994. "On the Speed and Sequencing of Privatization and Restructuring," CEPR Discussion Papers 942, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Djankov, Simeon, 1999. "Ownership structure and enterprise restructuring in six newly independent states," Policy Research Working Paper Series 2047, The World Bank. [Downloadable!]
  8. Estrin, Saul & Rosevear, Adam, 1999. "Enterprise Performance and Corporate Governance in Ukraine," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 442-458, September. [Downloadable!] (restricted)
  9. J. David Brown & John S. Earle, 2000. "Competition and Firm Performance: Lessons from Russia," William Davidson Institute Working Papers Series 296, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  10. Claessens, Stijn & Djankov, Simeon, 1999. "Enterprise performance and management turnover in the Czech Republic," European Economic Review, Elsevier, vol. 43(4-6), pages 1115-1124, April. [Downloadable!] (restricted)
  11. Barberis, Nicholas & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 764-90, August. [Downloadable!] (restricted)
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  12. Roland, Gerard & Sekkat, Khalid, 2000. "Managerial career concerns, privatization and restructuring in transition economies," European Economic Review, Elsevier, vol. 44(10), pages 1857-1872, December. [Downloadable!] (restricted)
    Other versions:
  13. Djankov, Simeon & Murrell, Peter, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," CEPR Discussion Papers 3319, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Jozef Konings & Patrick Paul Walsh, 1999. "Employment Dynamics of Newly Established and Traditional Firms: A Comparison of Russia an the Ukraine," LICOS Discussion Papers 8199, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  15. Brian Pinto & Marek Belka & Stefan Krajewski, 1993. "Transforming State Enterprises in Poland: Evidence on Adjustment by Manufacturing Firms," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1993-1), pages 213-270. [Downloadable!]
  16. Frydman, Roman & Pistor, Katharina & Rapaczynski, Andrzej, 1996. "Exit and voice after mass privatization: The case of Russia," European Economic Review, Elsevier, vol. 40(3-5), pages 581-588, April. [Downloadable!] (restricted)
  17. Linz, Susan J & Biddle, Jeff E, 1998. "Innovation in Russian Industry: A Case Study of R&D in Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 233-62, January.
  18. Djankov, Simeon, 1999. "Restructuring of insider-dominated firms," Policy Research Working Paper Series 2046, The World Bank. [Downloadable!]
  19. Susan J. Linz, 1996. "Russian Firms in Transition: Champions, Challengers, and Chaff," William Davidson Institute Working Papers Series 10, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  20. Maxim Boycko & Andrei Shleifer & Robert W. Vishny, 1993. "Privatizing Russia," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1993-2), pages 139-192. [Downloadable!]
  21. Susan J. Linz & Gary Krueger, 1998. "Enterprise Restructuring in Russia's Transition Economy: Formal and Informal Mechanisms," William Davidson Institute Working Papers Series 152, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  22. Linz, Susan J, 1995. "Russian Labor Market in Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 43(4), pages 693-716, July.
    Other versions:
  23. Svejnar, Jan, 1996. "Enterprises and Workers in the Transition: Econometric Evidence," American Economic Review, American Economic Association, vol. 86(2), pages 123-27, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Susan J. Linz, 2002. "Motivating Russian Workers: Analysis of Age and Gender Differences," William Davidson Institute Working Papers Series 466, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  2. Frederic Chabellard, 2001. "Dollarization of Liabilities in Non-tradable Goods Sector," William Davidson Institute Working Papers Series 380, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  3. José Noguera & Susan J. Linz, 2005. "Barter, Credit, and Welfare: A theoretical inquiry into the barter phenomenon in Russia," William Davidson Institute Working Papers Series wp757, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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