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date: 25 May 2020

Abstract and Keywords

This chapter provides an overview of the business climate in Russia, which in turn depends upon the country’s political-economic environment. The chapter also focuses on the conditions for doing business by both domestic and foreign firms. The chapter consists of four sections: (1) introducing the institutional environment for doing business in Russia, focusing on the political-economic conditions that comprise that environment; (2) discussing entrepreneurship in this relatively negative environment; (3) describing the circumstances for Russian multinationals, noting progress made in internationalization and outward foreign direct investment; and(4) focusing on implications for managers in both domestic and foreign firms dealing with activities including knowledge transfer, management and leadership, and innovation. In summary, the chapter provides an overview for doing business in Russia that is challenging for both domestic and foreign firms due to the country’s negative institutional environment, except for those Russian multinationals favored by the government.

Keywords: Russia, hostile business environment, institutions, Russian MNEs, Russian entrepreneurship

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