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The purpose of this paper is to examine whether political elements affect entry mode decisions of foreign small- to medium-sized manufacturing enterprises (SMMEs) into post-communist Russia.

The paper employs a qualitative research technique. The data were collected using confidential, semi-structured face-to-face interviews.

Smaller manufacturers are more sensitive to the political environment. More specifically, during face-to-face interview, corruption and ineffective law enforcement were found to be the factors of significant concern to SMMEs in Russia.

The research on sensitive topics has limitations largely due to possible political implications for firms operating in Russia.

This study on Russia is significant particularly for foreign small and medium enterprises, it will also raise concerns for firms entry modes into emerging markets of former USSR members.

The paper presents findings that are based on primary sources – interviews with foreign firms currently conducting business in Russia. The research findings will be a valuable source of information to contemporary firms conducting feasibility studies with a view to doing business in Russia. In addition, this study contributes to the limited body of research knowledge on the business environment in Russia and the emerging markets of former USSR members.

The purpose of this paper is to explore areas where business corruption in Russia affects distributors of foreign goods (both local and foreign owned) and whether its effects vary depending on whether the distributor is small or large.

The paper primarily employs a qualitative research technique of face‐to‐face interviews. The in‐depth semi‐structured interview method is chosen because it is the only option for collecting data on such a sensitive topic.

The findings reveal the areas of corruption where distributors of foreign goods in Russia are most likely to be affected and suggest that, though widespread in Russia, corruption may have far greater effect on smaller distributors as compared to large firms. Large distributing firms can avoid involvement in corruption in some of the areas explored. This in turn may limit small‐sized foreign manufacturers' capability to compete in this market, as they are most likely only able to contact small‐sized distributors.

The research could be extended to a broader sample of other sectors of the economy where distribution of foreign‐made goods takes place. Carrying out a study in other emerging economies to test findings of this research would also contribute to the limited body of research on business environment in emerging economies.

The paper presents findings that are based on primary sources – interviews with distributors conducting business in Russia. Hence, its originality and value to contemporary distributors, whether currently in business or conducting feasibility studies to distribute foreign goods in Russia. This research paper can also be considered a valuable platform for further research in this field.

The purpose of this paper is to examine entry modes employed by foreign multinational manufacturing enterprises entering Russia. It is designed to discover how multinational firm decision makers perceive country conditions in Russia and to provide the basis for further study to uncover what factors influence their decision to locate manufacturing in such volatile markets rather than employing other, less riskier modes of entry.

This paper uses in‐depth interviews of decision‐makers operating foreign manufacturing firms in different industries in Russia. Under the author's guidance, the interviewees discuss open‐ended questions concerning country conditions in Russia, their evolution and effect on entry modes. The interviewers take notes which are shown to the interviewees at the end of each interview to make sure the notes represent the true and unbiased views of the interviewees.

Finally, favorable economic conditions and large multinational firms' internal factors seem to have become the single decisive factor affecting these firms decision to use the riskiest mode in Russia which described in some literature as one of the least stable emerging markets.

The paper is limited to a small number of cases and qualitative research.

This paper is an insight into country conditions in emerging economies.

Country conditions in emerging markets have not yet been considered from this perspective and effects of all have been studied. However, effects of globalization on large firms adaptability to country conditions have been overlooked by scholars.