History of Family Business in Russia: Bogdanovs and E. N. Shaposhnikova

Abstract

Family business presented a major economic factor in the Russian Empire. The article illustrates its importance and problems associated with the efficiency of the family firms on the basis of the empirical data on the Bogdanovs’ and E. N. Shaposhnikova’s tobacco factories (the XIX and early XX centuries). In practice, family firms were distinguished from nonfamily firms by their pursuit of group (family-related) interests and goals. This study analyzes the relationship between family preferences and future family company performance. The author demonstrates that in a certain market situation a set of institutional regulators (both formal and informal) stimulated development of family businesses and their subsequent transformation into large corporations. The findings show that interests and goals, relationships between family members, management styles and practical experience significantly influenced family business performance levels.