Toward convergence in the St. Petersburg hotel industry through the lens of institutional theory

Paeivi Karhunen

Journal of East European Management Studies, 2008, vol. 13, issue 2, 106 - 128

Abstract: The article assesses the power of institutional organization theory in explaining enterprise adaptation in post-socialism. Empirical analysis of the hotel sector in St. Petersburg, Russia, shows that industry-level isomorphic forces are not at work during economic transition. Combined with market imperfections, this results in intra-industry strategic diversity. The underlying logic however changes as the transition proceeds. During the transition, diversity is based on local versus foreign management and during the post-transition on the legitimacy of operations. The majority of hotels start operating according to shared norms and practices, whereas the lack of coercive pressures from the state still allows some hotels to operate in the shadow and ignore institutional norms.

Keywords: Hotel industry; transition economies; Russia; institutional isonorphism; organizational field (search for similar items in EconPapers)
JEL-codes: L83 M11 M20 P31 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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