Small industrial enterprises in Russia: survival in conditions of hypercompetition

Abstract

Nowadays, we can already see that Russian industry steady transition into postindustrial economy causes the development of hypercompetition in a number of sectors. The study focuses on the main characteristics of hypercompetition as the consequence of traditional industrial enterprise environment characteristics changing from bad to worse. The authors also provide the results of degree evaluation of hypercompetition resistance of small enterprises in 5 main industries of manufacturing sector. It is also shown that the small firms that produce electrical equipment have a higher probability of success in protecting their competitive advantages. Pulp and paper production as well as printing and publishing industries have the lowest chances of success. To protect enterprises from hypercompetition, the authors offer a model of enterprise’s dynamic capability development on the basis of resource-based view. From this point of view, they classify enterprise’s resources according to the degree of their influence on the competitive abilities of the latter. More-over, an approach to the evaluation of position of the point of making proactive management decision is formed.