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The Emergence of Organizations and Markets$
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John F. Padgett and Walter W. Powell

Print publication date: 2012

Print ISBN-13: 9780691148670

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691148670.001.0001

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The Emergence of the Russian Mobile Telecom Market

The Emergence of the Russian Mobile Telecom Market

Local Technical Leadership and Global Investors in a Shadow of the State

(p.334) 11 The Emergence of the Russian Mobile Telecom Market
The Emergence of Organizations and Markets

Valery Yakubovich

Stanislav Shekshnia

Princeton University Press

This chapter features a case study of the emergence of the cellular phone industry in Moscow and St. Petersburg. These are local stories about how fragments of the old Communist state—in particular traditional telecoms and a military research lab, both of which had highly qualified engineers—mostly successfully reached out to foreign partners to jointly found six new cellular companies. These are the types of stories that Gorbachev promised but too rarely delivered. This chapter confirms the basic message of the previous chapter that “market formation” in post-Communist Russia was not the spontaneous invisible hand of Adam Smith and Friedrich Hayek but instead was the visible-hand emergence of business alliances and groups.

Keywords:   Russia, cellular phone industry, mobile telecom market, cellular companies, market formation, business alliances, business groups

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