Sergey Sosnovskikh1; 1 Manchester Metropolitan University, UK
Discussion
State capitalism entails the state actively engaging as an economic agent, shaping companies and markets through complex institutional mechanisms that go beyond simply owning assets. This phenomenon has not been thoroughly examined in various institutional contexts. Rather than a general discussion on types of capitalism, this study deepens our understanding of Russian state capitalism’s mechanisms by analysing formal and informal social networks. Utilising the Orbis database and a unique dataset of Russian state officials, we apply social network analysis to explore networks of formal ownership and informal connections across corporate boards. Findings reveal that while state-owned enterprises (SOEs) in Russia make up only two per cent of firms, they account for a third of total revenue and assets, underscoring the state’s significant economic influence. Interconnected directorates—often including former politicians—serve as informal control channels, extending state influence beyond SOEs. These dual control mechanisms blur the boundaries between the public and private sectors. This study also proposes a new framework, Network State Capitalism, as the prevailing model in autocratic economies like Russia, where formal and informal control mechanisms operate in tandem. These findings offer valuable insights for other emerging markets as well.
