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  • Workers' public companies in Russia: in search of balanced development path


TERRA ECONOMICUS, , Vol. 15 (no. 3),

This paper presents the contemporary state of workers’ public companies (public enterprises) development as a special form of performance management, which provides full involvement of the staff in management processes, interest balance of business activity members and high level of corporate solidarity. The authors have analyzed regional and brunch specific features of public enterprises development and have shown the efficiency of workers’ public companies even in negative institutional environment. Such enterprises have the balance of advantage in providing the motivation of efficient labor, in coping with antagonism between labor and capital, in decreasing the level of workers’ opportunistic behavior, in output quality increasing. In the midst of Russian economy public enterprises definitely cannot and do not have to supplant all the commercial organizations. But at the same time they are able to find the effective practice in certain fields and especially in a down economy, when the collective enterprises show their advantages as compared to other commercial companies. The authors come to the conclusion, that one of the main problems for the wide extension of such business pattern as workers’ public companies is the existing legal terrain, which at bottom torpedoes the process of new public companies establishment and prevents the wide extension of the given business pattern. The main legal restrictions, blocking the development of collective business activity in corporate form are revealed. The authors make a critical analysis of the latest academic literature projects on the establishment and development of public enterprises in this country. It is shown that every last of proposed variants of public enterprises non-popularity in Russia have major deficiencies, namely the complication of their real realization in business practice. In order to harmonize the legislation of workers’ public companies the authors propose the improvement actions of regulatory device of public enterprises establishment and development in contemporary Russia.

Keywords: workers’ public companies; collective enterprises; collective entrepreneurship, democratization of management; efficiency, labor collective, institutional environment

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606