The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations

This article retraces the development of Russian manufacturing subsidiaries of Western multinational corporations from the late 1980s until 2019. Using secondary sources and a unique handcrafted database on significant extensions of manufacturing facilities of Western multinational corporations in R...

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Autores principales:	Igor Gurkov, Zokirzhon Saidov
Formato:	article
Lenguaje:	EN
Publicado:	SAGE Publishing 2021
Materias:	Geography (General) G1-922 Political science J
Acceso en línea:	https://doaj.org/article/2cb25b1d5bcc46efbdcebb0b7c1e6127
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spelling	oai:doaj.org-article:2cb25b1d5bcc46efbdcebb0b7c1e61272021-11-09T22:33:58ZThe past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations1879-36651879-367310.1177/1879366520949886https://doaj.org/article/2cb25b1d5bcc46efbdcebb0b7c1e61272021-07-01T00:00:00Zhttps://doi.org/10.1177/1879366520949886https://doaj.org/toc/1879-3665https://doaj.org/toc/1879-3673This article retraces the development of Russian manufacturing subsidiaries of Western multinational corporations from the late 1980s until 2019. Using secondary sources and a unique handcrafted database on significant extensions of manufacturing facilities of Western multinational corporations in Russia during 2012–2018, we present the position of Russian manufacturing subsidiaries of Western multinational corporations before and after the beginning of sanctions. We also indicate the major strategic challenges that they currently face, including the necessity to maintain dual loyalty (to home country and host country authorities), manage the deteriorating quality of business regulations in Russia, and overcome the increasing shortage of qualified personnel at all levels. The data on the opening of new facilities in 2017–2018 reveal that such issues impede but cannot stop the quantitative development of foreign-owned Russian manufacturing facilities. At the same time, saving on managerial expenses and low “investments in non-current assets” of the established manufacturing subsidiaries may break down “the innovation engine” assembled in many Russian manufacturing subsidiaries of Western multinational corporations and bring them into the periphery of their corporate parents, where the attention and resources from the corporate center are lacking.Igor GurkovZokirzhon SaidovSAGE PublishingarticleGeography (General)G1-922Political scienceJENJournal of Eurasian Studies, Vol 12 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Geography (General) G1-922 Political science J
spellingShingle	Geography (General) G1-922 Political science J Igor Gurkov Zokirzhon Saidov The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
description	This article retraces the development of Russian manufacturing subsidiaries of Western multinational corporations from the late 1980s until 2019. Using secondary sources and a unique handcrafted database on significant extensions of manufacturing facilities of Western multinational corporations in Russia during 2012–2018, we present the position of Russian manufacturing subsidiaries of Western multinational corporations before and after the beginning of sanctions. We also indicate the major strategic challenges that they currently face, including the necessity to maintain dual loyalty (to home country and host country authorities), manage the deteriorating quality of business regulations in Russia, and overcome the increasing shortage of qualified personnel at all levels. The data on the opening of new facilities in 2017–2018 reveal that such issues impede but cannot stop the quantitative development of foreign-owned Russian manufacturing facilities. At the same time, saving on managerial expenses and low “investments in non-current assets” of the established manufacturing subsidiaries may break down “the innovation engine” assembled in many Russian manufacturing subsidiaries of Western multinational corporations and bring them into the periphery of their corporate parents, where the attention and resources from the corporate center are lacking.
format	article
author	Igor Gurkov Zokirzhon Saidov
author_facet	Igor Gurkov Zokirzhon Saidov
author_sort	Igor Gurkov
title	The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
title_short	The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
title_full	The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
title_fullStr	The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
title_full_unstemmed	The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations
title_sort	past, the present, and the foreseeable future of russian manufacturing subsidiaries of western multinational corporations
publisher	SAGE Publishing
publishDate	2021
url	https://doaj.org/article/2cb25b1d5bcc46efbdcebb0b7c1e6127
work_keys_str_mv	AT igorgurkov thepastthepresentandtheforeseeablefutureofrussianmanufacturingsubsidiariesofwesternmultinationalcorporations AT zokirzhonsaidov thepastthepresentandtheforeseeablefutureofrussianmanufacturingsubsidiariesofwesternmultinationalcorporations AT igorgurkov pastthepresentandtheforeseeablefutureofrussianmanufacturingsubsidiariesofwesternmultinationalcorporations AT zokirzhonsaidov pastthepresentandtheforeseeablefutureofrussianmanufacturingsubsidiariesofwesternmultinationalcorporations
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The past, the present, and the foreseeable future of Russian manufacturing subsidiaries of Western multinational corporations

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