The Impact of Institutional Formation on Firms’ Strategic Choices in Knowledge Development, Absorptive Capacity and Vertical Integration
Journal: Studies in Comparative International Development
Year: 2022

This study examines the impact of institutional shifts on the strategic choices of Russian firms. It proposes and tests hypotheses of how a shift from a weak to a strong institutional context is likely to affect firms' knowledge accumulation, absorptive capacities and internalisation of operations. Using discriminant analysis, the econometric investigation demonstrates that firms tend to allocate greater resources towards improving their knowledge and absorptive capacity and make more efforts to