Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries

34 Pages Posted: 1 May 2015

See all articles by Igor Gurkov

Igor Gurkov

National Research University Higher School of Economics

Date Written: April 30, 2015

Abstract

The paper presents the results of a medium-size survey of executives of Russian manufacturing subsidiaries of Western multinational corporations on relationship with the parents and sister-subsidiaries. Manufacturing subsidiaries are completely dependent on parents in financing development projects. At the same time, when the subsidiary receives substantial financing for development projects from the parent, it also gets from the parent intensive support in all stages of implementation of such projects. Intensity of cooperation with sister-subsidiaries strongly coincides with the intensity of support by the parent. However, high intensity of cooperation with sister-subsidiaries was observed only for subsidiaries established before 2009. Several practical implications for new entrants into ownership of Russian industrial assets are presented.

Keywords: manufacturing, multinational corporations, subsidiaries, Russia

JEL Classification: F23, L60, M11

Suggested Citation

Gurkov, Igor, Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries (April 30, 2015). Higher School of Economics Research Paper No. WP BRP 37/MAN/2015. Available at SSRN: https://ssrn.com/abstract=2600849 or http://dx.doi.org/10.2139/ssrn.2600849

Igor Gurkov (Contact Author)

National Research University Higher School of Economics ( email )

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