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The Behaviour Of Foreign Manufacturing Corporations In Russia After The Launch Of ‘A Special Military Operation’ Of Russia In Ukraine

Author

Listed:
  • Igor Gurkov

    (National Research University Higher School of Economics)

  • Nikolay Filinov

    (National Research University Higher School of Economics)

  • Zokirzhon Saidov

    (National Research University Higher School of Economics)

Abstract

This study examines the behaviour of foreign manufacturing corporations in Russia in the first months after the launch of ‘a special military operation’ of Russia in Ukraine. While service companies and most of the largest industrial corporations operating in Russia announced different types of changes in their operations (e.g., self-restriction of investments, shortening the range of products, intentions to exit from Russian assets, etc.) as well as the temporary cessation of operations due mostly to logistical problems and the deficit of components, the operations of smaller industrial corporations were less affected by the political pressure and economic factors. Notably, less than 17% of the corporations that opened new factories between 2012 and 2019 in Russia announced self-restrictions on operations or intentions to exit from Russian assets. In this study, we reveal the factors that stipulate or impede the intentions to exit from Russian assets and indicate several factors that are missing in the extant literature on foreign subsidiary divestment

Suggested Citation

  • Igor Gurkov & Nikolay Filinov & Zokirzhon Saidov, 2022. "The Behaviour Of Foreign Manufacturing Corporations In Russia After The Launch Of ‘A Special Military Operation’ Of Russia In Ukraine," HSE Working papers WP BRP 66/MAN/2022, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:66/man2022
    as

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    References listed on IDEAS

    as
    1. Li Dai & Lorraine Eden & Paul W. Beamish, 2017. "Caught in the crossfire: Dimensions of vulnerability and foreign multinationals' exit from war-afflicted countries," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1478-1498, July.
    2. Igor Gurkov, 2015. "Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries," HSE Working papers WP BRP 37/MAN/2015, National Research University Higher School of Economics.
    3. Jean J Boddewyn, 1983. "Foreign and Domestic Divestment and Investment Decisions: Like or Unlike?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(3), pages 23-35, September.
    4. Coombs, W. Timothy & Laufer, Daniel, 2018. "Global Crisis Management – Current Research and Future Directions," Journal of International Management, Elsevier, vol. 24(3), pages 199-203.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    manufacturing subsidiaries; international crisis; foreign divestments; Russia;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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