RuEn

Journal section "Regional economy"

Adaptation of Companies in the Republic of Karelia to the Economic Recession in Russia in 2014–2015

Timakov I.V.

Volume 10, Issue 6, 2017

Timakov I.V. Adaptation of Companies in the Republic of Karelia to the Economic Recession in Russia in 2014–2015. Economic and Social Changes: Facts, Trends, Forecast, 2017, vol. 10, no. 6, pp. 207-217. DOI: 10.15838/esc.2017.6.54.13

DOI: 10.15838/esc.2017.6.54.13

Abstract   |   Authors   |   References
Regional companies in Russia found themselves in unique conditions of negative consequences of sanctions and reducing resource revenues in resource-driven Russian economy. Regional companies are not ready to the new economic reality, which makes it a hallmark of the economic recession in 2014–2015. Our study captures the reaction of regional companies to sharp market changes and selection of new adaptive patterns of behavior aimed at developing and sustaining business. The purpose for the study is to assess the impact of the economic recession in Russia in 2014–2015 on the adaptation of companies in the Republic of Karelia to recession conditions. The impact of events was recorded directly from the estimates and intentions of management in the process of conducting half-formalized in-depth interviews with companies’ leaders. Based on the method of quota arrangement, we selected key stakeholder companies in 3 regions in the Republic of Karelia and made a list of special respondents occupying leading positions in the companies. Empirical data were collected by in-depth interview method, where the key topics were the condition of business, strategic development plans, launch of new product lines, current partnership capital. Data were analyzed using methods of condensation of meaning, topic grouping, and constant comparisons. The study created a homogeneous database of 18 quality interviews whose content analysis helped identify key categories used by the respondents and the nature of their influence on economic behavior. We formed a typological image of stakeholders depending on the pattern of behavior in the Republic of Karelia and made a conclusion about the reaction of stakeholders to the recession. The research results are applicable in determining the priority areas for supporting stakeholders in a factor-driven region based on the models of their economic behavior amid economic recession. We assess the readiness of international cooperation in the context of the national policy of import substitution. The study includes key stakeholder companies in several regions in the Republic of Karelia during the period of intensive changes. Knowledge about the success of the models of anti-crisis behavior is possible to be improved on the basis of qualitative sociological evaluations by comparing with business models of regional companies in the period of subsequent stabilization

Keywords

stakeholders, regional companies, economic behavior, crisis models, quality interviews

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