Dynamic capabilities and growth strategy sustainability

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Companies operating in emerging markets face highly turbulent and complex environments. Russia is no exception; the firms acting on the Russian market perform in the conditions of economic instability, energy export dependence, state bureaucratic constraints and unfair competition from the part of oligarchic groups. However, despite all these challenges, more and more private owned companies manage to enjoy high growth and margins. A critical group of firms are the so-called high-growth private companies. These firms arouse special interest since they are believed to be main growth generators and, particularly in Russia, could become a key to new economic growth model. Operating in a highly turbulent Russian market requires companies to adopt and continually develop their strategies to quickly changing conditions in order to sustain growth and stay competitive in the long term. This can be achieved with the help of dynamic capabilities which serve as one of the sources of sustainable competitive advantage.

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