Networks in the Russian Market Economy
Markku Lonkila
Networks in the Russian Market Economy

If Russia has become a market economy, how does it function on a grassroots level? In addition to market mechanisms, what kinds of social and moral principles are at work in the new Russian economy? Is the 'Soviet legacy' still present in post-Soviet business practices? This book searches for answers to these questions, by investigating the networking practices of the Russian software industry. It examines what kinds of resources are transmitted through the personal networks of Russian IT directors and managers, and which mechanisms govern this transmission. The volume opens a rarely available grassroots-level view into the business practices of the new Russian knowledge-based economy. This book is essential reading for all interested in Russian society, culture and economy.

Print edition available from Palgrave.

List of Figures and Tables
Note on Transliteration
1 Introduction
The software industry as an exemplary case of the functioning of the Russian market economy
The role of social networks in the Soviet and Russian economy and society
Incorporating cultural and moral aspects into studies of networks in the Russian economy
Structure of the book
2 Using Networks to Find Out about Networks
The significance of personal networks in studies of the Russian economy
The qualitative approach in social network analysis
Network data and how to get them
Limitations of the study
Problems of generalization
3 The Evolution of Russia's IT Sector
Arcadia: The birth of a St. Petersburg software company
Computing in the Soviet Union
Information technology and the collapse of the Soviet Union
The ICT sector in the Post-Soviet Russian economy
4 The Soviet Legacy and its Transformation in the Russian IT Field
Constraining and enabling aspects of the Soviet legacy
Soviet organizations as platforms for the emerging economy
Entrepreneurship and Soviet legacy
Blat: Transformation of the Soviet-era networking practice
Blat in post-Soviet Russia
Barter: A transitory phenomenon of exchange
Otkat: The role of 'kickbacks' in the Russian economy
Other informal practices in the post-Soviet Russian economy
Prevalence of criminal practices in the Russian economy
5 Social Milieus and Personal Network Growth in the St. Petersburg IT Industry
Schools and universities
Internet milieus
The Russian Software Developers Association (RUSSOFT)
Birthdays as foci of interaction
6 The Types of Economic Resources Transmitted through the Networks of St. Petersburg IT Professionals
Business ideas and partners
Starting capital
Office space
Advice and information
7 Social Mechanisms Governing the Informal Transactions between Russian IT Managers
Reciprocal expectations in Russian managers' transactions
The mixing of personal and professional spheres of life
8 The Spirit of Russian IT Capitalism
The connexionist spirit of Western capitalism
The domestic spirit of Russian IT capitalism
9 Conclusions
Appendix: List of Respondents
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