Frontstep Russia (C): Epilogue: Ownership Transition


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: • Evolution of complexity of managerial challenges faced by entrepreneurs. • Naïve nature of relationships with foreign partners. • Staffing approaches and limitations faced in entrepreneurial organizations. • Identity issues (Russian versus multinational company). 2. Managing new generations of professionals: • New labor force in Russia (and, by extension, other Eastern European organizations). • Career aspirations of young professionals. • Career development and growth challenges. • Coaching and counseling issues. • Owner-manager development in areas beyond functional expertise.

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