How Russian MNEs navigate institutional complexity at home

Abstract

Purpose
This paper examines how Russian multinational enterprises (MNEs) operating in the metallurgical industry strategise under the highly complex conditions of their home institutional environment.

Design/methodology/approach
The findings are based on a qualitative multiple-case study of eight Russian metallurgical MNEs that took place in 2014–2015. The authors conducted 34 semi-structured interviews, made observations and took reflexive field notes.

Findings
The analysis reveals that Russian MNEs utilise four different strategies–cooperation, persuasion, avoidance and adaptation–when dealing with federal and regional home governments. These MNEs simultaneously utilise multiple strategies while capitalising on their own organisational attributes.

Originality/value
Unlike many other studies, this paper examines institutional complexity within two distinct layers of the Russian Government, regional and federal, rather than considering the aggregate notion of “home government”. The paper also identifies and analyses MNEs’ specific strategies to navigate different layers of institutional complexity.

Keywords: institutional complexity, Russian MNEs, reginal government, federal government, strategies, metallurgic industry