Russian Multinationals: Entry Strategies and Post-Entry Operations

Abstract

The first part of the paper explains the main issues of the development of Russian economy with the focus on the internationalization of industries and the rise of Russian MNEs. The special focus is made on the outward FDI from Russia. The role of western MNEs in the internationalization of Russian economy, and the emergence of Russian MNEs are discussed in the chapter. The second part presents the main approaches of Russian MNEs to the foreign markets entry and post entry strategy development on the basis of the company cases within particular industry. Each chapter contains the brief explanation of the industry (main players – internationally and in Russia, methods of competition, product and customers) and two cases, first is with the focus on the entry solution, and the second is more about post entry operation models. Brief intersection with the theory of the entry modes and investment strategies will be given in each chapter within the description of the Russian MNEs operations. The choice of industries illustrates the internationalization dynamics of Russian economy. The choice of case companies will help better explain the selection of the Russian MNEs strategies and orientations. The third part contains ‘special’ issues of the genesis of Russian MNEs. One is about companies that are global by nature (being set to connect trade to West or being established in the global e-industry). Second is about the strong focus / supporting asset of the international strategy (marketing/brand in one case and government involvement in another case). The main findings are generalized in the conclusion with the stress on the focus of outward FDI, policy context, and forms of entry and presence in foreign markets by various Russian enterprises.