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Institutional Choice Factors of a Resource Strategy for Firms

Institutional Choice Factors of a Resource Strategy for Firms

Journal of Institutional Studies, , Vol. 8 (no. 4),

The offered research is devoted to the establishing relationships between specific factors of the institutional environment and the choice of a resource investment model for firms operating in the Russian economy.
The investment order can be explained by the mutual influence of two groups of factors: comparative features of a resource itself and institutional parameters of the market. To justify the choice of a strategy the author offers to use the control criterion over resources. This criterion is determined by a planning horizon and a bungle of property rights of an investor.
Clarifying the resources category from the position of the resource-based view and relational view let the author distinguish 2 models of attracting resources: the model, focused on the acquisition of assets, and the model, focused on the temporary mobilization of resources that are available in a network. The choice of the model is determined by the ratio of transactional and transformational costs when investors obtain property rights over resources.
In the course of the research the influence of two groups of institutional factors were studied: 1) dynamic: the turbulence of the institutional environment, the asynchrony of changes, differently directed short- and long-term economic goals; 2) structural: the use of the ‘rational openness’ model of the economy in Russia, the synthesis of market institutions of developed countries and original Russian coordination mechanisms, the specific mechanisms of economics deformalization, the use of the mechanism of setting strict norms but providing weak enforcement, the low effectiveness and specifics of the property rights institution, the poor institutional trust, the double role of the state as a market regulator and its participant.
The impact of specific and institutional factors led firms to the use of an intermediate model in Russia. It is a network (hybrid) form with strict barriers and institutional coordination mechanisms predominantly. This strategy is not effective. We identify the change's direction of Russia's institutional environment that regulates property rights.

Keywords: resource strategy; property rights; institutional environment; investment; sustained competitive advantages.

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