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Toward convergence in the St. Petersburg hotel industry through the lens of institutional theory

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  • Paeivi Karhunen

Abstract

The article assesses the power of institutional organization theory in explaining enterprise adaptation in post-socialism. Empirical analysis of the hotel sector in St. Petersburg, Russia, shows that industry-level isomorphic forces are not at work during economic transition. Combined with market imperfections, this results in intra-industry strategic diversity. The underlying logic however changes as the transition proceeds. During the transition, diversity is based on local versus foreign management and during the post-transition on the legitimacy of operations. The majority of hotels start operating according to shared norms and practices, whereas the lack of coercive pressures from the state still allows some hotels to operate in the shadow and ignore institutional norms.

Suggested Citation

  • Paeivi Karhunen, 2008. "Toward convergence in the St. Petersburg hotel industry through the lens of institutional theory," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 13(2), pages 106-128.
  • Handle: RePEc:nms:joeems:doi_10.1688/1862-0019_jeems_2008_02_karhunen
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    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2008-2-106
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    Cited by:

    1. Manfred Perlitz & Lasse Schulze & Christina B. Wilke, 2010. "The demographic and economic transition in Central and Eastern Europe – Management implications," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(2), pages 149-176.
    2. Pipan, Karmen Kern & Gomiscek, Boštjan & Mayer, Janez, 2012. "Exploratory study of quality and excellence approaches and continuous improvement from the perspective of new institutionalism," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(3), pages 313-332.
    3. Victoria Golikova & Paeivi Karhunen & Riitta Kosonen, 2011. "Subsidiary evolution in a transition economy: Kemira GrowHow in the Russian fertilizer market," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(1), pages 9-30.
    4. Simon Cadez & Albert Czerny, 2010. "Carbon management strategies in manufacturing companies: An exploratory note," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(4), pages 348-360.

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    More about this item

    Keywords

    Hotel industry; transition economies; Russia; institutional isonorphism; organizational field;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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