Over the past twenty years, several countries in Europe, Central and South America and Asia have undergone a transition from a planned economy to a market economy. Some observers have described this process as perhaps the biggest economic experiment of the last few centuries. However, knowledge about how this process affects business in these countries remains limited. The task of this book is to increase our understanding about how business changes at the micro level during the transition to a market economy.

The focus of this book is placed on the Russian market, as Russia is one of the biggest countries currently making the transition. The book takes as its point of departure the observation that firms and managers perceive the management of networks of relationships with customers and suppliers to be their greatest challenge. It presents a case study, which covers the period from 1986 to 1998, and analyses and explains how business networks in Russia have changed over the past fifteen years. Moreover, it identifies the driving factors in the process of moving away from plan-governance and toward the development of business relationships characterised by mutuality, stability and identity.


Martin Johanson is associate professor at the Department of Business Studies, Uppsala University, and Mid Sweden University, Sundsvall. He received his Ph.D. from Uppsala University in 2001. He has ten years of experience working as a diplomat and business consultant in Russia. His research interests are transformation of networks in turbulent economies and firms’ entry into emerging markets.