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The estimates by both Russian and foreign authoritative organizations show the signs of the transition from stagnation to moderate growth, and this process should be accounted for by the largest transnational corporations (TNCs) traditionally active in Russia, such as Coca-Cola, Nestle, Adidas, and others. However, despite the optimistic predictions of many analysts, macroeconomic (and geopolitical) situation in the world remains unstable. Russia is aiming at the trajectory of economic growth in the face of continuing pressure from the macroeconomic, foreign policy, and internal institutional factors. In response to this strain, the government has intensified efforts to implement the strategy of import substitution, which objectively affects the interests of TNCs at the Russian markets. The objective process of import substitution creates both challenges and opportunities for TNCs. Problems are connected with a direct displacement of their traditional products and brands due to both administrative restrictions and a change in consumer attitudes and preferences (“Buy Russian” approach gaining momentum). However, the opportunities lie within the participation in the future satiation of demand and fulfilling the consumer expectations during the upcoming revival of the positive economic dynamics. It can generally be noted that the TNCs should integrate into a specific project of import substitution in the postcrisis environment despite the variety of their corporate policies. This relatively new situation for TNCs in the context of general economic and geopolitical instability requires scenario modeling of the possible strategies of TNCs depending on both the overall macroeconomic and political situation in the country, as well as the internal factors affecting various commodity markets in Russia.

This paper aims to improve the debate linking the business models of banks to their riskiness by checking if diversification exerts different impacts on the probability of bank distress depending on the level of capital buffers.

The paper focuses on a sample of listed bank holding companies observed between 2007:Q3 and 2022:Q4. The authors use three subindexes of bank diversification. The authors estimate a dynamic model specification using a system generalized method of moments with robust standard errors and consistent estimators under heteroskedasticity and autocorrelation within a panel. Sensitivity and robustness checks are performed.

Asset and income diversification increase the probability of distress in low-capitalized banks during normal periods (excluding periods of crises and high uncertainty). Concerning crisis periods, a marginal increase in asset diversification during the global financial crisis (GFC) and the COVID-19 pandemic crisis induces a more important increase in the probability of failure of well-capitalized banks relative to low-capitalized ones. Contrary to the results obtained for the GFC period, well-capitalized banks were found to pursue more careful funding diversification in reaction to the sudden increase of uncertainty during the Russia–Ukraine war.

Prudential supervision should concentrate on well-capitalized banks to encompass unexpected excessive risk-taking during crisis periods. Regulatory requirements should constrain fragile banks to avoid pursuing assets and income diversification strategies that increase earnings volatility.

The main originality of this paper is to consider the interaction between three different dimensions of bank diversification and capital regulation during stable and unstable periods using the marginal effect analysis. Moreover, this paper uses, initially, the GFC as the reference crisis period to study the impact of capital buffers and diversification interactions on the probability of bank distress. Then, the authors extend the observation period until 2022:Q4 to include two additional major events, namely, the COVID-19 pandemic and the Russia-Ukraine war.

This chapter examines the possibilities of economic growth in Russia from the perspective of the development of organizational capability, namely through the study of best managerial practices of multinational companies (MNCs) doing business in Russia, and their use by Russian companies. With tightening competition, companies are forced to focus on the development of organizational capabilities. Our large-scale empirical research into the managerial capabilities and management practices of MNCs and Russian companies employs a comprehensive sample of 1,530 companies and 1,245 companies in 2016 and 2017, respectively, covering the 10 main sectors of economic activity in Moscow and the Moscow region. The analysis was performed across five managerial capabilities: communication, leadership, problem-solving and decision-making, conflict resolution, and motivation, each subdivided into five management practices. Using statistical methods, we identified the major statistically significant differences in and between the managerial practices of MNCs and Russian companies operating in the Russian market, and their dynamics from 2016 to 2017. Taking MNCs operating in the Russian market as a benchmark, we discover that Russian companies need to close the gap in 17 out of the 25 managerial practices in order to maintain competitiveness in the Russian market and be able to influence their economic growth in Russia.

Derivatives market has been epitomized with gross evil in the wake of the global economic crisis that ensued in 2008. This study argues for more extensive understanding of the phenomena as dynamics previously viewed unrelated now exhibit correlation. As empirical reference, this research relies on recent trends in the commodity futures contracts with analytical relation to the currency exchange rate and by extension the financial and real sectors. With varying intensity often speculative sporadic trading in crude oil, coffee, wheat, rice, sugar, and gold benchmark futures may inflict detrimental effects on the global development efforts. The issue is most acute in the emerging markets facing inflation fears, speculative movements of foreign currency-denominated funds, and underlying domestic currency value. This dynamic reasserts the concept of fundamental uncertainty allowing us to connect the typical risk-return stand with a dialectical unity of the financial, real sector, and social costs. Ultimately, issues raised in this study relate to the problems of social stability and sustained economic development in the postcrisis environment given high frequency and volatility of capital flows. As such, this chapter contributes to the literature that bridges financial empirical analysis with modern socially responsible economic development.

The chapter is devoted to the analysis of industrial development in Russia since 2005. Characteristic features of the Russian industry are considered. It is shown that the Russian industry is specific both by its structure and its high heterogeneity. The mining and quarrying sector and related manufacturing industries play a significant role in the Russian economy and major role in industrial production. In the foreseeable future, these sectors can strengthen their leading positions.

Considerable attention is paid to the analysis of the industrial policy of the Russian government, which has traditionally been one of the leading actors of industrial development. The main directions of industrial policy are singled out: compensation of negative changes, catching-up, and advance development. It is noted that the role of the government is ambivalent: on the one hand, it seeks to develop high-performing companies, including new and fast-growing ones, and on the other hand, it often supports large, low-performing enterprises. With the declared continuous emphasis of industrial policy on innovation and modernization, low innovativeness of Russian companies remains. Based on the analysis of modern conditions, as well as new objects and instruments of industrial policy, some prospects for future industrial development have been revealed.

This chapter considers scenarios for the development of the Russian economy in the medium term under the “new reality” conditions, with the latter implying a slowdown in China’s economic growth rate, lower commodity prices, rising geopolitical tensions, and the rapid development of digital technologies leading to the fourth scientific and technological revolution. The results of scenario calculations show that the implementation of the economic growth target scenario requires targeted efforts to increase human capital, increase investment in fixed assets and innovation, export diversification, and achieve perfection in the quality of political and economic institutions. Sustainable growth of 3% per year in the medium term is possible only with the restructuring of the economy; otherwise, even with favorable conditions in the commodity markets and higher efficiency of the existing economic system, it is impossible to achieve high rates of economic growth necessary to significantly improve the quality of life.

Reputational crisis negatively affects brands and companies. This chapter, based on a single case study, aims to explore how prejudicial corporate statements directed toward lesbian, gay, bisexual, and transgender (LGBT) individuals have affected the Italian multinational Barilla S.p.A., as well as how the company responded both internally and to the market in order to attempt to overcome the highly damaging consequences.

This chapter uses a single case-study methodology, which constitutes “a research strategy that focuses on understanding the dynamics present within single settings to create theoretical constructs, propositions and/or midrange theory from empirical evidence” (Eisenhardt, 1989, p. 534). The case-study design was chosen as it has been demonstrated to provide a methodological tool for both theory generation and theory testing (Gibbert et al., 2008).

Conclusions from the chapter indicate that negative, incendiary, and oftentimes comments citing either religious or stereotypical-based ideology negatively impact both the consumers and its associated publics in terms of product branding or reputation image.

The study’s limitations, which rely primarily on a single case study and secondary research data, may motivate further investigative avenues, particularly as similarly referenced events continue to unfold almost daily, such as the study’s referenced incident with Philippine boxer Manny Pacquiao, as well as action taken by social media giants (Apple and Facebook) against the controversial media figure Alex Jones.

This chapter also looks at family succession roadblocks and navigating social media gaffes. These contemporary issues highlight challenges, strategies, sales and market share dynamics for the company, and suggestions for navigating the road ahead. The research concludes with possible linkages and insights for both ongoing management issues and potential areas for future research. Other findings indicate that rapid responses, particularly those citing concrete corporate policy changes or tangible actions, help to reverse and mitigate reputational damage, and contemporary approaches utilizing social media appear to buttress these efforts.

This case study of Barilla as well as other firms mentioned, such as Chick-fil-A and Nike (which have experienced parallel situational crises), indicates that in only the last five years of contemporary international business practice, MNEs are continually and at times unexpectedly challenged by the lack of sensitivity demonstrated by their owners and spokespeople who utter comments which may be seen by the public as potentially harmful to the LGBT community. This study hopes to illuminate this challenge while offering tangible solutions to turning around future, similar situational crises.

We examine the behavior of the Russian stock market as one of the leading indices of economic health, reflecting investors’ expectations about future returns. The sample period includes the global financial crisis, a recovering period, and the recent crisis in the Russian economy 2014–2015.

We assume that the Russian stock market strongly depends on the global market, but the market is not fully integrated. This chapter investigates whether specific risk factors such as high dependence of the Russian economy on oil prices and currency volatility are priced in the Russian stock market, using International CAPM with time-variant parameters and conditional heteroskedasticity. The results show that the global financial crisis has had a profound negative impact on the Russian market, and that the expected return and liquidity has declined. The risk of investing in the Russian market is estimated as higher than in the developed market and even in other emerging markets after the global recession. We find that oil price exposure and currency risk to be priced in the Russian stock market and indicate that international investors require higher compensation for bearing these risks. The price of the currency risk has decreased since the implementation of the floating exchange rate regime by the Central Bank of Russia in 2014, but still significant.

Some opportunities to overcome the present stagnation and drive for a sustainable development are discussed.