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Property rules: State fragmentation, industry heterogeneity and property rights in the Russian oil industry, 1992—2006

School of Management, University of Leicester, UK, o.suhomlinova{at}le.ac.uk

The study examines the interdependence between the state and organizations and develops a proposition that the fragmentation of state structure and industry heterogeneity (defined as the number of organizations and organizational forms) are mutually conducive. The investigation focuses on property rights as an important arena of state—organization interaction and explores how, through the development of rules regarding obJect, subJect, use, enforcement and transfer of property, the state and the industry shape each other. Case study analysis of the Russian oil industry in 1992—2006 shows how the property rights relations between the state and the oil industry affected the U-shaped traJectories of change both in the state structure (from increasing to decreasing fragmentation on spatial and functional dimensions) and in the industry structure (from increasing to decreasing heterogeneity).

Key Words: change • comparative and cross-cultural management • organizational theory • political theories and political sociology • strategic and international management • the state structure

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