Frontstep Russia (A): High-Tech Start-up and Survival in a New “Time of Troubles”

Published 12 Jun 2002
Reference 5034
Region Other Regions
Length 15 page(s)
Language English

It was long believed that entrepreneurship in Russia is close to impossible without government or mafia connections. This case study argues that, on the contrary, "garage-type" entrepreneurship is possible in Russia. For the Russians at Frontstep, the company in this case study, however, there were no how-to manuals to turn to. When the employees started making demands for Western-level salaries and benefits, matters came to a head. The problem was solved as the founders developed a hybrid organization, with Western incentives and structures, and Russian corporate culture.

Teaching objectives

The objectives of this case is to analyze: 1) Dynamics of growth of entrepreneurial organizations in Russia. 2) Evolution of complexity of managerial challenges faced by entrepreneurs. 3) Naive nature of relationships with foreign partners. 4) Staffing approaches and limitations faced in entrepreneurial organizations. 5) Identity issues (Russian versus multinational company). 6) Managing new generations of professionals. 7) New labor force in Russia (and, by extension, other Eastern European organizations). 8) Career aspirations of young professionals. 9) Career development and growth challenges. 10) Coaching and counseling issues. 11) Owner-manager development in areas beyond functional expertise.

  • Entrepreneurial start-up
  • Russian organisational leadership
  • Corporate culture
  • Russian culture
  • Human resources issues
  • Career development