Internationalization of Russian SMEs

This assignment delves into the complexities of internationalization for Small and Medium-Sized Enterprises (SMEs) operating in Russia. It examines the specific challenges these businesses face due to their local institutional environment, including regulatory restrictions and cultural differences. The focus is on understanding how Russian SMEs navigate these obstacles and develop effective strategies for successful international expansion.

Running head: MBA ASSIGNMENT
MBA Assignment:
The Internationalization of SMEs in Emerging Markets: Case Russia
Name of Student:
Student ID:
Name of University:
Author’s Note:

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Executive Summary
Internationalization is the process of expanding in international market for enhancing the
business scope. This research study has research on the topic of the internationalization of SMEs
in emerging markets. In order to narrow down the research study, it has chosen Russia as the
emerging market. The research study has been conducted in systematic manner. In the
introduction section, the research paper has framed effective research objectives and questions
for collecting effective information regarding the topic of the research. In the literature review
section, the research paper has gathered effective information regarding the internationalization
of SMEs in emerging market. Furthermore, the methodology section has selected secondary data
collection method for collecting authentic information about the research topic. In the finding
and analysis section, the research paper has gathered specific information regarding the issues of
internationalization in Russian market. At last, in conclusion and recommendation section, the
research paper has provided effective recommendations towards mitigating the issues of the
research.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.0 Project Statement.......................................................................................................................5
1.1 Background............................................................................................................................5
1.2 Project Topic..........................................................................................................................5
1.3 Purpose of the Research.........................................................................................................6
1.4 Problem of the Study.............................................................................................................6
1.5 Research Aim.........................................................................................................................6
1.6 Research Objective................................................................................................................6
1.7 Research Questions................................................................................................................7
Chapter 2: Literature Review...........................................................................................................8
2.0 Introduction............................................................................................................................8
2.1 Concept of Internationalization.............................................................................................8
2.2 Concept of International Entrepreneurship............................................................................8
2.3 Models for Internationalization.............................................................................................9
2.3.1 Stage Model....................................................................................................................9
2.4 Linking International Entrepreneurship with International Business Case Studies............11
2.5 Challenges of Internationalization of SMEs........................................................................11
2.6 Effective Ways of Internationalization for SMEs...............................................................12
2.7 Summary..............................................................................................................................13

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Chapter 3: Research Method.........................................................................................................14
3.0 Introduction..........................................................................................................................14
3.1 Research Approach..............................................................................................................14
3.2 Research Purpose.................................................................................................................15
3.3 Research Strategy................................................................................................................15
3.4 Data Collection....................................................................................................................16
3.5 Data Analysis.......................................................................................................................16
3.6 Ethical Consideration...........................................................................................................17
Chapter 4: Finding and Analysis...................................................................................................18
4.0 Thematic Analysis...................................................................................................................18
4.1 Introduction..........................................................................................................................18
4.2 Theme 1: Trends of Internationalization of SMEs in Russia..............................................18
4.3 Theme 2: Russia and its Economic Impact on Internationalization of SMEs.....................19
4.4 Theme 3: Main Challenges of Internationalization to Russia.............................................21
4.5 Theme 4: Proper Ways of Internationalization to Russia....................................................21
4.6 Summary..............................................................................................................................22
Chapter 5: Conclusion and Recommendation...............................................................................24
5.0 Conclusion...........................................................................................................................24
5.1 Linking with Objectives......................................................................................................24
5.2 Recommendation.................................................................................................................25

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5.2.1 Enhanced Synergy with Government...........................................................................25
5.2.2 Detailed Documentation during Entering in Russia.....................................................25
5.2.3 Strong Presence in Social Network..............................................................................26
5.3 Further Scope of Study........................................................................................................26
References List..............................................................................................................................27

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Chapter 1: Introduction
1.0 Project Statement
1.1 Background
One of the significant aspects of the growth of the SME’s in the economies of emerging
nature is the process of internationalization. The emerging economies liberalization offered a
prospect for the contribution of the local SMEs within the global economy. SMEs occupied in
international operations often knowledge high growth due to their direction towards niches and
new markets along with their capability in cooperating with foreign partner (He and Karami
2016). Previous studies have reported certain barriers to the Russian SME’s internationalization
associated to the lack of the financial resources, restricted accessibility to significant
infrastructure, and limited knowledge of managerial experience along with issues in finding
probable overseas customers.
1.2 Project Topic
The research of internationalization has been stated to be informed by a diversified range
of theoretical perceptions, inclusive of the foreign trade, foreign direct investment along with the
internationalization theories of the firm. Recent studies within the framework of international
entrepreneurship strongly highlight the significance of the researches on the institutional
diversifications across the economies of emerging nature and the impact it ahs on the variables
that are firm-specific like capabilities, resources along with realized performances. Small and
firms of medium size often require resources within the emerging economies facing bigger

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challenges in particular related to the persuasion of underdeveloped regulations, policies related
to taxation and at times adverse societal approaches towards the entrepreneurship phenomenon.
Given the dimension and potency of the developing economy of Russia along with the
high degree of trade between the European countries and Russia, it is certainly reasonable in
arguing that this study can materialize information on new insights and assisting the other
organizations in their endeavor for expansion into Russia (Sandberg 2014).
1.3 Purpose of the Research
The main purpose of this study is in creating a clear understanding of the processes and
issues associated with the establishment of the production units within Russia. This study would
also take in the processes of internationalization of SMEs and the key challenges facing the
SMEs while establishing their operations within Russia.
1.4 Problem of the Study
Internationalization provides huge scope to the small scale retail organization of towards
enhancing their market in international market. However, retail industry is facing extremely
challenging situation towards its internationalization. Most of the time, the retail industry faces
tough challenges in entering to Russia for its internationalization. Declining economy and
corrupted business environment of Russia can be challenging for the retail industry in their
internationalization in this country (Ricard, Le Pennec and Reynaud 2016). The weak economic
condition of Russia also imposes tough challenges for the industry towards operating in Russia.
1.5 Research Aim
The aim of this research is to explore the issues of internationalization of small and
medium scale retail enterprises towards operating in Russia.

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1.6 Research Objective
 To identify the impact of internationalization on small and medium scale enterprises
 To assess the issues faced by small and medium scale retail enterprises towards operating
in Russia
 To recognize the best way for SME retails towards operating in Russia
1.7 Research Questions
 What is the impact of internationalization on small and medium scale enterprises?
 What are the issues faced by small and medium scale retail enterprises towards operating
in Russia?
 How SME retails can internationally operate efficiently in Russia?

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Chapter 2: Literature Review
2.0 Introduction
The literature review of this study would be dealing with the institutional theory and also
taking into consideration the two branches of international entrepreneurship; one being cross-
national border performance of the consumerist actors and the other being cross-national border
comparison of the entrepreneurs and their behaviors (Ricard, Le Pennec and Reynaud 2016).
2.1 Concept of Internationalization
Internationalization is the process of increasing involvement of the organizations in
international markets. According to Felzensztein (2016), internationalization process is involved
in the penetrating the international market and provide products and services to global customers
for meeting the global needs. This process provides scope for wide market expansion for the
organization, which ultimately enhances the profit potentiality of the small and medium scale
organization. On the other hand, Musteen, Datta and Butts (2014) opined that international
diversification of business also enhances the customer base for the organizations. In this way,
internationalization can enhance the sales and revenue of the organizations, which in turn leads
to long term organizational sustainability.
2.2 Concept of International Entrepreneurship
International entrepreneurship incorporates the innovative activities, which have the goal
of value creation and growth of businesses across the national boundaries. According to
Sandberg (2014), international entrepreneurship fosters innovation, supports venturing and takes
interest in risk taking for gaining high level of business success in international markets.
Internationalization in emerging market is extremely significant for selling the products and

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service to international customers, when those products and services have reached their maturity
stage of product life cycle in domestic market. On the other hand, Volchek et al. (2014) opined
that international entrepreneurship is extremely important for improving entrepreneurial
competitiveness and enhance organizational reputation.
2.3 Models for Internationalization
2.3.1 Stage Model
Stage model of internationalization is used for analyzing the small, medium scale and
large sized companies towards explaining their development of internationalization and
international business activities. The international organizations use this model stage by stage for
overcoming the obstacles (Galkina and Chetty 2015). Moreover, the major learning related focus
and knowledge of this model is used for assessing the information about the international market
occupied by a specific market. An effective stage model includes direct
exporting/importing/sourcing, indirect exporting/importing/sourcing, joint venture, licensing and
wholly subsidiary stages (Etemad 2015). Uppsala model and the Innovation model are the two
most widely used stage models in assessing the internationalization of business.
Uppsala Model
Uppsala Model has demonstrated internationalization as series of stages of steps
undertaken by the organizations towards increasing their international involvement. Moreover,
such increased international involvement is occurred through step by step learning process.
According to Volchek, Jantunen and Saarenketo (2013), each increase in the international
involvement is directed towards more progressive stage for complete and deeper understanding
of emerging global markets and their competition. As per this model, the expert market

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knowledge and resource commitment of the organizations impact on the commitment decision
and current business activities. This process is known as change aspect, which in turn contributes
to the next level of international involvement. Such change aspect then leads to increased market
knowledge and stimulates further resource commitment for international markets (Turunen and
Nummela 2017). After that, this model suggests the organizations towards starting their
international operation having complete knowledge of foreign markets regarding their GDP
growth, human resource index, social development and others.
Figure 1: Uppsala Model
(Source: Caiazza 2016)
Innovation Model
Innovation model of international is associated with development of innovative activities
for penetrating in emerging international markets. Continuous learning process in this model
indentifies the unique needs and demands of the foreign customers. Such learning enhances the
confidence of the organizations towards entering into foreign markets. Innovation models of

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internationalization share three core stages including pre-export stage, initial stage and advanced
export stage (Volchek, Henttonen and Edelmann 2013).
2.4 Linking International Entrepreneurship with International Business Case Studies
According to the Oligopolistic Reaction Theory, the organizations in oligopolistic
industry always react to the business practices of the competitors. Thurner, Gershman and Roud
(2015) pointed out that oligopolistic companies are more likely to imitate their competitor’s
business practices for creating a sense of marketplace harmony. However, Lamotte and Colovic
(2015) argued that oligopolistic theory cannot be applied to internationalization of the
organizations. International entrepreneurship requires high level of innovation and uniqueness in
their business practices, which can differentiate them from their competitors in the emerging
international markets. On the other hand, García-Cabrera, García-Soto and Durán-Herrera (2016)
opined that Monopolistic advantage theory suggests the small scale and medium scale firms
towards investing more on the special assets, which are long lasting, proprietary and defendable.
Such special assets assures long term competitive advantage and of the organizations both in
domestic as well as emerging international markets. However, Chetty, Ojala and Leppäaho
(2015) opined that entrepreneur-based organizations are more ephemeral and narrowly defined
towards grabbing the global opportunities and getting success in emerging international markets.
2.5 Challenges of Internationalization of SMEs
International laws and regulation can be a big challenge for the internationalization of
SMEs in the emerging markets. Wales et al. (2016) pointed out that higher tax rate imposed on
the international business organizations ultimately increases their international business costs.
Furthermore, potential tariff rate and the associated legal cost cause high level of challenges for
the organizations in internationally expanding in emerging markets. On the other hand, Roth and

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Banalieva (2016) opined that the economic condition of the emerging international markets often
seems to be challenge for the internationalization of the SMEs. Moreover, weak economic
condition of the emerging markets can reduce the potential return on investment of the
organizations.
As per Mainela, Puhakka and Servais (2014), instable political condition of emerging
international markets can also be challenge for the internationalization of the SMEs. Moreover,
instable political condition leads to frequent changes in the government policies and regulations
of the markets. Therefore, it hampers the business process of the organizations in the emerging
international markets. On the other hand, Vissak and Francioni (2013) opined that lack of
awareness of the social culture of the international emerging market leads to challenges for the
SMEs in its internationalization process. Moreover, the organizations often fail to understand the
core needs and demands of the customers in the emerging markets. Therefore, the organization
can lag behind the competition due to lack of cultural awareness of the international markets.
2.6 Effective Ways of Internationalization for SMEs
The SMEs should enhance their synergy level with the emerging international countries
for getting support from them. Moreover, high level of synergy with the government will
encourage them towards making special bonding with the SMEs and getting some flexibility in
the business environment. On the other hand, the SMEs should have adequate funding sources
for coping up with the weak economic condition of the emerging markets. The organizations
should also have to adhere to the rules and regulations of the emerging countries in simplified
manner for making their business model adaptable with the changing government rules and
regulations (Laufs and Schwens 2014). It will help the SMEs in effective internationalization of
their business practices in the emerging international countries. On the other hand, the SMEs

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should properly conduct their market researches on the international market to enter. Moreover,
such effective market research will provide high level of social and cultural awareness about the
international customers (Ketkar and Acs 2013). In this way, the SMEs can provide customized
products and services to the international customers towards meeting their core needs and
demands. Hence, such customized products and services foster unique value to the customers for
driving organizational competitive advantage in the emerging markets.
2.7 Summary
While summarizing the literature review, weak economic condition of the emerging
international markets can impose high level of internationalization with low rate of return in
investment. On the other hand, instable political condition of the international countries can also
hamper the business operations of SMEs through frequently changing government rules and
regulation. Therefore, the SMEs should enhance the government synergy with the government of
international markets.

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Chapter 3: Research Method
3.0 Introduction
For this particular research study, the case study approach would be taken into
consideration which is mainly associated with the qualitative methods. The significance of the
case study is mainly weighed in understanding the occurrence, and not going about describing
the same. Particularization is being emphasized on instead of the factor of generalization along
with in-depth understanding of the inimitability and personal commitment on the part of the
research. The idiographic method to the case studies generally contributes through provision of
the fresh and unanticipated insights and through forming of new concepts and theories. These
sort of contribution are often been described through in-depth understanding created by broad
descriptions along with time-consuming studies.
3.1 Research Approach
Research approach facilitates in gaining huge knowledge regarding the topic of the
research. The selection of research approach is completely dependent on the research variables
(Tuohy et al. 2013). The most commonly used research approaches are inductive and deductive
approach. Inductive approach facilitates in framing new theories and model as per the research
requirement (Choy 2014). Moreover, it generalizes the information from specific to general. On
the other hand, deductive approach facilitates in collecting information by using the existing
relevant theories and models (Roberts 2013). Moreover, it generalizes research information from
general to specific. This research approach saves the time and budget of the research by using
existing theories and models. Therefore, this research has used deductive research approach for
collecting relevant research information.

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3.2 Research Purpose
Research purpose facilitates in complete and detailed understanding of the research topic
and research variables for effectively completing the research study. Three type’s research
purposes are effectively used in collecting authentic information regarding the research variables.
These research variables are namely exploratory, explanatory and descriptive. Explanatory
research facilitates in indentifying relationship between different research variables. Moreover, it
links the research variables with each other’s (Vamsi Krishna Jasti and Kodali 2014). On the
other hand, exploratory research facilitates in gathering information regarding the background of
the research study. Moreover, it also helps in indentifying the social causes and current issues
relevant to the research topic. Furthermore, descriptive purpose facilitates in getting proper
explanation of the research study through accumulating the actual purpose of the research study
(Farooq and O'Brien 2015). Therefore, this research study has chosen descriptive research
purpose for understanding the research topic properly and framing effective research objectives
and questions.
3.3 Research Strategy
Research strategies are extremely important for collecting authentic and relevant
information regarding the research topic. Various types of research strategies used in collection
of data are like focus group, case study, survey and interview. Focus group and case study
strategies are used in secondary data collection method (Lather and Pierre 2013). On the other
hand, survey and interview method are used in collecting primary data about the research topic.
This research study has used case study strategy for collecting secondary data about the research
topic. Moreover, case study strategy has helped in collecting authentic research information from
various authentic journals, websites and new articles (McCusker and Gunaydin 2015). Moreover,

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the detailed information regarding the research topic has enhanced the quality of research
outcome.
3.4 Data Collection
Data collection is the most significant method of completing research study effectively.
Effective completion of research study requires both primary and secondary data for enhancing
the quality of research outcome. Primary research relies on collection of first hand data from the
primary sources through survey and interview method (Abdulghani et al. 2014). However, this
research paper is majorly based on secondary sources for collection of authentic and detailed
information about the research topic. This research paper has selected various secondary sources
like authentic journals, books, newspaper and websites for constructing effective literature
review. The in-depth information about the research topic collected from secondary sources has
increased the quality of the ultimate research outcome.
3.5 Data Analysis
Data analysis is the process of systematically applying the logical technique for
describing, illustrating, condensing and evaluating the data (Gabriel 2015). It converts the
general information collected from the secondary sources into specific information. This research
paper has analyzed the collected data through thematic analysis. Thematic analysis is the most
commonly used form of qualitative data analysis. This analysis method emphasizes on
examining, pinpointing and recording the pattern of data within the collected data. The thematic
analysis analyzes the collected data in details for reaching at quality research outcome.
Moreover, the research study has framed various effective themes regarding the topic of the
research. Moreover, the data collected from the case study method has been analyzed through
thematic analysis for reaching at meaningful research outcome.

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3.6 Ethical Consideration
Successful completion of research study is highly dependent on proper compliance of
ethical consideration in its data collection process (Pearson, Albon and Hubball 2015).
Moreover, the research paper has ensured that no unethical activity has been conducted during
collection of data. Moreover, the research paper has also ensured that all the data sources are
authentic, which in turn enhances the quality of the research outcome. The research paper has
also ensured that the collected data is used only for personal purpose and not for any commercial
purpose. Furthermore, the research paper has also ensured that it has complied with data
protection act for preventing any unethical access of important information.

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Chapter 4: Finding and Analysis
4.0 Thematic Analysis
4.1 Introduction
This chapter will find out relevant information regarding the topic of the research topic.
Moreover, the chapter will gather relevant information about the research topic from various
secondary sources. Furthermore, the chapter will also frame some relevant themes regarding the
research topic for finding out authentic information and analyzing the information towards
reaching at quality research outcome.
4.2 Theme 1: Trends of Internationalization of SMEs in Russia
Internationalization provides enhanced business scope in international markets. The trend
of internationalization to Russia is gradually declining with its declining economic condition.
Economic crisis, which has hit Russia in 2013, has reflected on the decline in both imports and
exports (Liuhto and Majuri 2014). The economic issues of Russia have majorly affected the
trading relationship between Russia and Finland (Golikova, Karhunen and Kosonen 2014). As
per the bank of Finland, Russia was the largest export and import trading partners until 2008.
However, after 2015, Russia has become the 5th largest trading partner of Finland (Shirokova,
Vega and Knatko 2015).

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Figure 2: Export and Import of Russia in Relation to World
(Source: Puffer, McCarthy and Jaeger 2016)
It has also been found that worldwide trading has declined by 39% in Russia (Li et al.
2017). The small and medium scale retail organizations are showing less interest towards
expanding in Russian market. Moreover, by 2050, the Russian labor force is expected to shrink
by 20-30 million workers (Mihailova, Shirokova and Laine 2015). Therefore, such potential
labor crisis of Russia is also creating barriers for the SMEs in entering in Russian market.
4.3 Theme 2: Russia and its Economic Impact on Internationalization of SMEs
Russia is the biggest country in the world by its square kilometer. However, the economic
condition of Russia is facing tough challenges. The shadow economy of the country is
unobservable; such shadow economy had covered almost 20% of the Russia’s GDP
(Heritage.org 2017). Moreover, the RTX index of the country has been declined by 30%, which

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has severe impact on the economic condition of the country (Kouznetsov, Dass and Schmidt
2014).
Figure 3: Economic Condition of Russia
(Source: Newburry, McIntyre and Xavier 2016)
The financial crisis of Russia hit the country by the year 2009. Therefore, weak economic
condition of has hindered the internationalization of the SMEs in this country. Moreover, weak
economic condition of Russia has reduced the potentiality of return in investment of the SEMs
(Molodchik et al. 2017). Therefore, the small and medium sized organizations are being
unwilling to show their interest towards the internationalization in Russia (Felzensztein et al.
2015). Furthermore, the weak economic condition of Russia has reduced the earning level of the
customers in the country. Therefore, such customers can be less willing to purchase the products
of an organization, which can also impact on the profit potentiality of the organization.

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4.4 Theme 3: Main Challenges of Internationalization to Russia
Apart from economic crisis, there are several other challenges in Russia, which are
preventing the small and medium scale organization towards internationalizing into this country.
Moreover, the main challenges of internationalization in Russia are bureaucracy, legislation,
corruption, property rights, and economic criminality and lot more (Laine and Galkina 2016).
Moreover, the country is affected by the transparency international, where entrusted power is
abused for private gain. It also encompasses the corrupt practices in both private and public
sectors. The political environment of Russia is extremely hostile and it has clashes with some
least developed countries like Africa and Middle East (Bandeira-de-Mello et al. 2016).
Furthermore, the lack of rule of law, absence of regional autonomy and pervasiveness of
corruption has made any companies to leave the country after entering in Russia. Weak
legislative control, widespread corruption and lack of protection of rights hamper the success of
business in this country. Furthermore, the declining living standard of the Russian people has
resulted in growth of marginal propensity to consumption (Fiedler, Fath and Whittaker 2017).
Relative stabilization of Russian currency also hampers the profitability of the organization.
Therefore, all such negative factors are hindering the SMEs in internationalizing in Russia.
4.5 Theme 4: Proper Ways of Internationalization to Russia
The smalls and medium sized organizations should arrange proper funding sources for
their business towards coping up with the weak economic condition of Russia. Moreover, such
effective funding sources will help the organizations in properly marinating their business
activities even in weak economic condition by removing financial crisis (Musteen, Datta and
Francis 2014). Furthermore, the organizations should maintain effective synergy with the
government for avoiding the legal corruptions of the country. Moreover, such synergy will help

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in getting political support for the internationalization of the SMEs in this country. Apart from
that, the international organizations should also constantly monitor the changing market
condition of the Russian market towards identifying business opportunities (Gashi, Hashi and
Pugh 2014).
On the other hand, when choosing any entry mode or business partners in Russian, the
international firms should be aimed towards keeping distribution chain rather than just avoiding
problems. The contract between the international company and all part of distribution channel
should be detailed. Regular contract with the distribution chains will help the SMEs in avoiding
the corruption of the business activities (Hilmersson, Sandberg and Pourmand Hilmersson 2015).
Apart from that, the SMEs can also use social media sites for understanding the culture and
demands of the customers towards providing unique products and services to the customers. It
can increase the sales volume of SMEs in the Russian market.
4.6 Summary
While summarizing the findings and analysis, it can be said that there is a declining trend
of internationalization of SMEs in Russian market. The declining trend of internationalization is
majorly reflected in the trading relationship between Russia and Finland. The declining
economic condition of Russia is making the SMEs unwilling to internationalize their business in
this country. Moreover, the shadow economy has covered almost 20% of the Russian Economy.
Furthermore, the weak economic condition of the country had reduced the disposable income of
the people, which has led to marginal propensity of consumption rate. Therefore, the SMEs are
seeing no profit potentiality in internationalization in Russian market. Furthermore, the corrupted
political and business environments also discourage the foreign SMEs in entering into Russia.

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Therefore, the foreign SMEs should make proper synergies and detail documentation in entering
into Russia for avoiding any corruption issue in this market.

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Chapter 5: Conclusion and Recommendation
5.0 Conclusion
While concluding the research study, it can be said that foreign small and medium sized
organizations are showing lack of interest in internationalization of their business in Russian
market. The declining economic condition of Russia shows lack of profit potentiality for the
foreign SMEs. Weak economic condition of Russian has also reduced the earning capabilities of
the people in this country. Therefore, it has reduced their purchasing confidence for the
purchasing the commodities. On the other hand, the political corruption has also huge impact on
both the private as well as public companies of Russia. Therefore, such corrupted political
condition hampers the business activities of the foreign SMEs. Furthermore, the corrupted
business environment of the country also hampers the internationalization of the SMEs. In such
situation, the foreign SMEs should enhance their synergy level with the Russian government for
avoiding political corruption. On the other hand, the foreign SMEs should also make detailed
documentation in entering into Russian market for avoiding the business corruption in their
internationalization.
5.1 Linking with Objectives
Objective 1: To identify the impact of internationalization on small and medium scale
enterprises
This objective has been perfectly aligned with the data analysis section. Moreover, theme
1 has been aligned with this objective. It can be found that internationalization helps in
enhancing the business scope in international market.

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Objective 2: To assess the issues faced by small and medium scale retail enterprises
towards operating in Russia
This objective has been effectively linked with theme 2 and theme 3 of the finding and
data analysis section. It can be found that declining economic condition and corrupted political
and business environment is preventing the SMEs in internationalizing their business in Russian
market.
Objective 3: To recognize the best way for SME retails towards operating in Russia
This objective has been perfectly linked with theme 4 of finding and analysis section. It
can be found that the SMEs should make enhanced synergy with the government of Russia.
Furthermore, the foreign organizations should also make detailed documentation with the
business partners in Russian market for avoiding the corruption in business environment.
5.2 Recommendation
5.2.1 Enhanced Synergy with Government
The foreign SMEs should make enhanced synergy level with the Russian government for
getting government support in their internationalization in this country. Moreover, enhanced the
synergy level with the Russian government will also help in avoiding the impact of political
corruption the internationalization of SMEs.
5.2.2 Detailed Documentation during Entering in Russia
The SMEs of the foreign country is recommended to make proper documentation, while
entering in Russian market. Moreover, the organizations should also make proper documentation

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for making partnership with the Russian business partners. Such documentation will help in
avoiding the impact of corrupted business environment on the business activities of SMEs.
5.2.3 Strong Presence in Social Network
The foreign SMEs should also enhance their presence in the social networks for gaining
high level of market presence in Russian market. Moreover, social network will also help the
SMEs in understanding the customers’ core needs in this country. It will help the attracting the
customers in Russian market.
5.3 Further Scope of Study
This research study can be an effective secondary source for the further research studies,
which are relevant to same types of research topic. Moreover, the research study has also the
scope of accessing more authentic secondary sources for enhancing the quality of the research
outcome in future. Furthermore, the research study can also help the SMEs towards effective
internationalization in Russian market.

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