Executive Insights: The Russian Aerospace Industry—Survey with Implications for American Firms in the Global Marketplace 1

Abstract

This article highlights the factors that have made the global expansion of Russian aerospace enterprises possible and the importance of “relational networks” as key strategic assets of these companies. Russian aerospace organizations appear to have developed some distinct core competencies, such as state-of-the-art technology, capacity to manufacture high-performance products and systems at relatively low costs, and pragmatic management. These companies also pursue strategies leading to the use of a variety of different types of international strategic partnerships, including joint ventures, joint R&D agreements, co-production agreements, co-marketing alliances, and cross-licensing agreements.

The article concludes with a section on the implications for American companies in the global marketplace. It is argued that international networking, technology sharing, co-marketing, cross-licensing, and the other forms of international strategic partnerships represent an important change in the ways that companies do business. These arrangements necessitate a different approach to corporate management and organization. The potential advantages of value-driven superstructures, cross-functional teams, cross-organizational task forces, and improved understanding of foreign cultures have been specified.