How Russian Enteprises Cope With Payments Problems

Abstract

An American specialist on Russian economic law and managerial behavior examines the means by which enterprise directors cope with non-payments. Analysis is based primarily on evidence from six in-depth case studies of industrial enterprises in Moscow, Saratov, and Yekaterinburg. On-site observation of managerial routines complements intensive interviews with a range of managerial personnel and examination of sales contracts and other documentary records. The author identifies three basic patterns of adaptation to the threat of insolvency, the factors that explain the managers' behavioral choices, and the implications of these changes for the broader banking, inter-enterprise, and legal systems.