Paper info: Evolution of a Russian infrastructure network
Evolution of a Russian infrastructure network
Curtin University of Technology Western Australia
University of Western Australia
Place of Publication
The paper was published at the 25th IMP-conference in Marseille, France in 2009.
One of the outcomes of market transformation in Russia was the cutting of state funding for large infrastructure projects, resulting in a reduction in available resources for economic development. The reduction in public funding requires state officials to approach infrastructure investment in an more 'entrepreneurial' way and has resulted in the need for independent investments from the private sector. Yet, although Russia underwent market transition, facilitating organisations such as financial institutions did not grow to the same extent. This resulted in an inefficient or a non-existence system of long term credits in Russia. But with the opening of the Russian market to western economies came an increase in global competition demand for new management tools and abilities to renew existing and acquire new resources. Generating a requirement for credit to support economic growth. This paper analyses network aspects of Russian modernisation illustrated by the case of comprehensive re-development of the international airport Koltsovo in the City of Yekaterinburg. The airport Koltsovo has been in the program of re-development since the early 2000 with the aim to transfer it into a regional transport hub of a national significance by 2009. We consider structural and process characteristics of modernisation in both planned and market economy in a network perspective. Further, the study examines the role of government in financing large projects and the interplay between personal power and business relationships in transition economies. The purpose of this study is to investigate how Russian business networks are emerging and what is the role of powerful individuals in facilitating business networks. This study contributes into the development of network theory in the context of emergent economies and has implications for international management.