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Case
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Reference no. 802-020-1
Subject category: Entrepreneurship
Published by: INSEAD
Originally published in: 2002
Version: 04.2014

Abstract

This is the second of a three-case series. It was long believed that entrepreneurship in Russia is close to impossible without government or mafia connections. This case study argues that, on the contrary, 'garage-type' entrepreneurship is possible in Russia. For the Russians at Frontstep, the company in this case study however, there were no how-to manuals to turn to. When the employees started making demands for Western-level salaries and benefits, matters came to a head. The problem was solved as the founders developed a hybrid organisation, with Western incentives and structures and Russian corporate culture. The objectives of this case are to analyse: (1) the dynamics of growth of entrepreneurial organisations in Russia; (2) the evolution of complexity of managerial challenges faced by entrepreneurs; (3) the naive nature of relationships with foreign partners; (4) the staffing approaches and limitations faced in entrepreneurial organisations; (5) identity issues (Russian versus multinational company); (6) managing new generations of professionals; (7) new labour force in Russia (and, by extension, other Eastern European organisations); (8) career aspirations of young professionals; (9) career development and growth challenges; (10) coaching and counselling issues; and (11) owner-manager development in areas beyond functional expertise.
Location:
Size:
Medium
Other setting(s):
2002

About

Abstract

This is the second of a three-case series. It was long believed that entrepreneurship in Russia is close to impossible without government or mafia connections. This case study argues that, on the contrary, 'garage-type' entrepreneurship is possible in Russia. For the Russians at Frontstep, the company in this case study however, there were no how-to manuals to turn to. When the employees started making demands for Western-level salaries and benefits, matters came to a head. The problem was solved as the founders developed a hybrid organisation, with Western incentives and structures and Russian corporate culture. The objectives of this case are to analyse: (1) the dynamics of growth of entrepreneurial organisations in Russia; (2) the evolution of complexity of managerial challenges faced by entrepreneurs; (3) the naive nature of relationships with foreign partners; (4) the staffing approaches and limitations faced in entrepreneurial organisations; (5) identity issues (Russian versus multinational company); (6) managing new generations of professionals; (7) new labour force in Russia (and, by extension, other Eastern European organisations); (8) career aspirations of young professionals; (9) career development and growth challenges; (10) coaching and counselling issues; and (11) owner-manager development in areas beyond functional expertise.

Settings

Location:
Size:
Medium
Other setting(s):
2002

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