Publications

Digital Business Services (DBS), industries that have grown rapidly in recent years, played important roles in facilitating the adoption of digital technologies, as well as having applications in innovative products, transforming business processes across the economy. If DBS firms are committed to reducing negative environmental impacts, they should be able to make more positive contributions to their clients’ performance; for instance, promoting the digitalization of businesses process in ways that can reduce greenhouse gas emissions and inefficient energy usage. But what are DBS business practices, in terms of greenhouse gas emissions and related topics? This study examines the Environmental, Social and Governance (ESG) disclosures of leading companies providing consultancy, advertising/marketing, and information technology services. The plans, targets, and actions of DBS companies with above-average ESG scores, as indexed by the Refinitiv dataset, are examined. The results indicate that all of these firms express goals, and almost all of them have set clear targets, in terms of moving to net zero. A wide range of relevant activities is being implemented, including services that promote energy efficiency. The diversity of these actions suggests that these firms can learn from each other, and that companies with lower ESG ratings have models to emulate.

The paper examines how the type of ownership affects the efficiency of Russian banks. Using bank-quarter data for selected banks in the period 2004–2015, we combine stochastic frontier analysis (SFA) methodology with an intermediary approach to assess both profit and cost efficiency scores. Our key findings show that foreign-owned banks are the most profit efficient, and state-owned banks efficiently manage costs compared to other banks. These results are robust when we consider these banks in terms of risk preferences and specialization

Knowledge-intensive business services (KIBS) significantly contribute to the economic growth and competitive advantage of emerging markets, including Silk Road countries. KIBS are not only intermediaries that transfer knowledge through the economy but are also innovators themselves. This paper aims to explore how major innovation drivers influence the implementation of innovation in KIBS. Using a sample of 519 KIBS enterprises from Russia, the results show that human capital increases the implementation of technological innovation, while the link between standardisation and technological innovations is nonlinear (an inverted U-shaped). In addition, the multiregional branch network promotes the implementation of all types of innovation, while advertising investments enhance the implementation of technological and marketing ones. These results help to provide some practical suggestions for both innovation managers and policy-makers.

The scope of research papers on the banking regulation reforms and its effect on conventional bank performance gave the authors the idea to consider Islamic banks in this light. Especially since in 2013 the Islamic Financial Services Board (IFSB) proposed the capital ratio for the Islamic banks. The paper employs the difference-in-differences model (DD) that allows to evaluate the treatment effect of the proposed IFSB regulation on the Islamic bank stock performance. The authors collected annual data on 25 Islamic banks (treatment group) and 41 conventional/mixed banks (control group) from 11 countries in the period of 2005–2020. The results reveal positive sign for the treatment effect. We interpret it that investors perceive the new regulation for the Islamic banks as a signal of increase in these banks' financial stability that much outpace the accompanying costs of higher capital requirements.

COVID-19 pandemic raised the stability challenges for the modern banking systems. As a remedy, the regulators and investors turned their eyes to the Islamic Banking. Many people view it as a full substitute to the dominant conventional banking establishments. We hypothesized that the benefits of the Islamic Banking can be fully enjoyed if and only if it is accompanied with the robust regulatory framework. Such a framework could offer room for the national discretion to define ‘alpha’ parameter within the capital adequacy ratio. The novelty of our paper is the largest collected to date set of alpha value embedded in the Islamic Banking jurisdictions. Based on this unique dataset, we were able to identify the core driver to locally determine the value of alpha. The credit-to-GDP ratio was shown to be such a driver. We demonstrated that the earlier academic research had offered the Vasicek-based theoretical models for the Islamic Banking that had implied right the opposite values of alpha. Thus, the usage of the determinant revealed by us could be of help to the central bankers when shaping the framework for Islamic Banking capital adequacy.

Purpose – Knowledge-intensive business services (KIBS) firms focus on applying their expert knowledge to help solve the business problems of their clients: these clients confronted major new problems due to the COVID-19 pandemic and policy measures such as social distancing and travel restrictions, designed to reduce the rapid spread of the illness. Many KIBS were reliant upon extensive contact with clients, and within teams working on projects; they found their practices disrupted. This study aims to examine how KIBS are evolving to cope with both the sets of changes: those in their own operations, and those involving the emerging business problems of clients. Design/methodology/approach – The main data sources are material contained in websites of a sample of leading firms in a range of KIBS sectors, and in media reports and other documentation of efforts to confront the pandemic. Findings – The results indicate considerable efforts in KIBS to address emerging client problems, as well as to adapt their own practices. Their substantial role in confronting the pandemic and associated business difficulties has implications for future crises. KIBS are likely to be important players in shaping responses not only to future pandemics but also to the looming climate crisis. Originality/value – The study demonstrates the growing role of KIBS and their ‘‘second knowledge infrastructure’’ in modern economies, exemplified by their role in the context of an emerging crisis

Knowledge-Intensive Business Services (KIBS) are problem-solvers for other organizations. The coronacrisis affects KIBS directly, but also means that their clients are confronting new problems. How are KIBS addressing these two sets of challenges? This paper draws on material available in the trade and industry press, on official reports and statistics, and the early academic studies addressing these themes. We find that KIBS have been active (alongside other organizations) in providing a substantial range of services aimed at helping their clients (and others) deal with various contingencies thrown up by the crisis. Not least among these is the need to conform to shifting regulatory frameworks, and requirements for longer-term resilience. KIBS themselves have had to adapt their working practices considerably, to reduce face-to-face interaction with clients and within teams collaborating on projects. Adaptation is easier for those whose tasks that are relatively standardized and codified, and it remains to be seen how far a shift to such activities - and away from the traditional office-based venues of activity - is retained as firms recover from the crisis. KIBS are liable to play an important role in this recovery from the crisis, and policymakers can mobilize their services. Some KIBS are liable to be critical for rendering economies more resilient in the face of future pandemics and we argue that these firms are also important for confronting the mounting climate crisis.

An Islamic bank may take risks that are not the same as a traditional bank, while their capital adequacy ratio may, on the contrary, be the same. This statement is proved in the article on the example of considering the reporting of an Islamic bank. The role of the parameter а in the regulation of Islamic banks is demonstrated, which has not been previously studied in the Russian-language scientific literature. Islamic banking reporting is very obscure. The examples given in the article show that the total assets of an Islamic bank, for example, can be greater than the total assets of a traditional bank due to the peculiarities of investment accounts. To understand the specifics of accounting, the author for the first time compares Islamic financial transactions with the Russian chart of accounts.

Banks now are facing strong competition from both technological giants and small fintech startups. Under these conditions, banks also have started to implement disruptive technologies in their day-to-day operations. However, in some cases huge investments in different technological systems do not lead to the increase in company performance due to the resistance of employees. In this paper, we focus on both internal and external factors that may influence employees’ labor productivity and performance of the whole company. The sample includes 148 employees with education in banking and finance. The model was estimated based on Partial Least Squares Structural Equation Modelling (PLS SEM). It was shown that both motivation to use disruptive technologies and digital skills have a strong impact of labor productivity, while both labor productivity and organisational support positively contribute to the improvement of company performance that is based on usage of new technologies.

In recent decades, economic growth in developing economies and the growth of the middle class lead to a surge in energy consumption and greenhouse gas emissions. Within the framework of the United Nations (UN) sustainable development goals established in 2015, the solution to poverty and inequality thus comes into conflict with climate change mitigation. The existing international system of climate regulation does not address this contradiction. Today, global climate governance relies on estimates of aggregate emissions by countries without considering their level of development and the distribution of emissions among income groups within each country. Emissions from production are being monitored, while consumption-related emissions, albeit known to experts, rarely underlie decision-making. Meanwhile, income distribution has a higher impact on consumption-based emissions in comparison to production-based ones. Decisions on emissions regulation are made at the national level by countries with different development agendas in which climate change mitigation often gets less priority in comparison to other socio-economic objectives. This paper proposes a set of principles and specific mechanisms that can link climate change and inequality within a single policy framework. First, we highlight the need to modify the global emission monitoring system for the sake of accounting for emissions from consumption (rather than production) by income groups. Second, we suggest the introduction of a new redistribution system to address climate change which would include the imposition of a “fine” on households with the highest levels of emissions. Such a system follows the principles of progressive taxation but supports climate mitigation objectives and should be understood not as taxation of high incomes but rather as payment for a negative externality. Third, we outline the need to adjust climate finance criteria; priority should be given to projects designed to reduce carbon-intensive consumption by social groups entering the middle class, or to help the poorest population groups adapt to climate change. A special role in the implementation of these principles may belong to BRICS (Brazil, Russia, India, China and South Africa), which may view this as an opportunity for a proactive transition to inclusive, low-carbon development.

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Purpose: The growth of mobile phones penetration have built the great opportunities for increasing the financial inclusion around the world. Digital channels help banks attract new customers as well as hold the existing ones loyal. The paper aims at studying the incentives to use mobile banking by smartphones and tablets users.   Design/methodology/approach: An online survey is conducted in order to explore possible relations between the potential determinants of the intention to use mobile banking. The model is assessed with Partial Least Squares Structural Equation Modelling (PLS-SEM) technique. Findings: The results show that perceived usefulness and perceived efforts tend to be the most significant factors explaining the adoption of mobile banking. However, such factors as perceived risks, compatibility with lifestyle and social influence are found to be insignificant due to some cultural and institutional features attributed to CIS countries.  Originality/value: This paper contributes to the field of m-banking studies by focusing on both smartphone and tablet users. At least, the majority of respondents represent y and z generations who seem to move traditional banking to digital channels. 

Economic growth in developing economies and the transition of large population groups to the middle class lead to a surge in energy consumption and hence in greenhouse gas emissions. The solution to such issues as poverty and inequality comes therefore into conflict with climate change mitigation. The existing international climate change regime does not address this contradiction. The existing international system of climate regulation does not address this contradiction. Today, the global climate governance relies on the estimates of aggregate emissions of countries not considering the level of development and the distribution of emissions among income groups within each country. Emissions from production are being monitored, while consumption-related emissions, albeit known be experts, rarely underlie decision-making. Meanwhile, income distribution has a higher impact on consumption-based emissions in comparison to the production-based ones. Decisions on the emission regulation are made at the national level by countries with different development agendas where the climate change mitigation often gets less priority in comparison to other socio-economic objectives.

The paper proposes a set of principles and specific mechanisms that can link both climate change and inequality within a single policy framework. Firstly, we highlight the importance of modification of the global emission monitoring system for the sake of accounting for emissions from consumption (rather than production) by income groups. Secondly, we suggest the introduction of a new redistribution system to address climate change including a "fine" imposed on households with the highest levels of emissions. Such a system follows the principles of progressive taxation but underlies climate mitigation objectives and can rather be treated not as taxation of high incomes but as payment for negative externality. Thirdly, we outline the need for adjustment of climate finance criteria: priority should be given to projects aimed at 1) reducing the carbon intensity of consumption of the social groups entering the middle class, and 2) at adaptation of the poorest population groups to the climate change. The special role in the implementation of these principles may belong to BRICS countries which could use it as a chance for proactive transition to the inclusive low-carbon development.

In this paper we analyse the influence of innovation drivers and barriers on the introduction of various types of innovation by knowledge-intensive business services (KIBS) companies. The analysis based on a survey of 449 Russian companies that was conducted in 2015. It was found that different types of innovation (technological, marketing, and organisational) are influenced by different drivers and barriers. 

All world upward trends and cycles have a lot in common while crises significantly differ. In the case of this research the recession was sparked not by the shock of financial sector but by the restrictions imposed on consumption that previously was not inclined to fluctuate that much. Oil price shock has increased negative influence on the world energy market and economy overall. The decline in employment and personal consumption has struck more on most vulnerable social classes but the decreased volume of demand can be also attributed to the wealth (catering, tourism and others). Once began, the recession develops by its own rules — a sharp fall in the world trade, fixed capital formation, growth of budget deficits, and particularly strong impact on developing countries most dependent on tourism and financial assistance.

Keywords: pandemic, coronavirus, COVID-19, business cycle, social inequality, personal consumption, capital formation, finance.

JEL: A14, D11, F02, T32.

The research is aimed at studying the applying of disruptive technologies by financial analysts in Russia and their impact on labor productivity and company productivity. Using structural equation modeling (SEM), we found that labor productivity and organizational support have almost identical indicators of a strong positive impact on company performance. Personal motivation stronger than digital skills affects labor performance. 

The development of service industries in emerging economies has been attracting more attention in recent years, but to date there have been few studies of knowledge-intensive business services (KIBS) in these countries. (The main exception is the case of a specific sector – software and related Information Technology services, with most focus here being on India. KIBS as a whole have received little examination.) This paper aims to study how conditions for innovation influence innovation activities in KIBS in one of the largest emerging countries, Russia. The study draws on survey data from firms belonging to ten KIBS subsectors, based in major Russian cities in 2015. The results contrast with those generally reported in Western developed economies. In this particular emerging economy, firms experiencing negative market and knowledge conditions are actually more liable to undertake nontechnological innovations. We consider various explanations for this apparent anomaly. The institutional framework appears to be less essential for KIBS than has been earlier documented for manufacturing enterprises in Russia. Implications for innovation management and policy are outlined: both government and corporate, strategies here would benefit from more attention to these sectors.

Purpose – The literature on knowledge-intensive business services (KIBS) shows them to be major innovators; this is confirmed with recent data, which the authors use to examine the various types of innovation that KIBS undertake. The implications for employment and work in highly innovative industries are important topics for analysis, not least because we are in a period where dramatic claims are being made as to the implications of new technologies for professional occupations. Thus, this paper aims to address major debates and conclusions concerning innovation patterns in KIBS and the evolving structures of professional and other work in these industries.

Design/methodology/approach – This essay combines literature review with presentation and discussion of statistics that throw light on the patterns of innovation that characterise KIBS. The authors also consider data that concern trends in the organisation of work in these industries; while the focus is mainly on KIBS firms, they also pay some attention to KIBS-like work in other sectors. Even though KIBS are distinctive industries in modern economies, these analyses can be related to more general studies of, and forecasts about, changes in work organisation.

Findings – The authors show that innovation patterns and employment structures vary substantially across different types of KIBS, with the distinction between technological, professional and creative KIBS proving to be useful for capturing these differences. The authors are also able to demonstrate important long- and medium-term trends in the structure and activities of the KIBS industries. In particular, data clearly demonstrate the increasing share of professional as against associate and clerical workers in most KIBS. Evidence also suggests that polarisation trends across the economy are mirrored, and in some cases amplified, in KIBS. The future prospects for employment in KIBS, and for professional work in particular, are seen to involve multiple factors, which together may bring about substantial change.

Research limitations/implications – The study involves literature review and industry-level statistical analysis. Future work would benefit from firm-level analysis and validation and explication of results via consultation with practitioners and users of KIBS. Some puzzling variations across countries and sectors will need to be explored with national and sectoral experts.

Practical implications – Research into KIBS activities, and their future, should make more use of the extensive statistics on employment and other structural features of the industries that have become available in recent years. KIBS firms and practitioners will need to take account of the forces for change that are liable to restructure their activities.

Originality/value – The literature on KIBS has been concentrated on a rather narrow range of issues, while analysis of the current contributions and future development of the industries requires attention to a wider range of topics. This paper suggests how these topics may be investigated and their implications explored and presents results of enquiries along these lines

The study of economic growth and social inequality goes back to the works of S. Kuznets, A. Atkinson, P. Krugman, J. Stiglitz, T. Piketti, and B. Milanovic. Statistical analysis of social inequalities for a large set of countries, divided into seven clusters, was conducted for the period 2000–2016. The share of incomes of the 10th decile was used as a measure of inequality. The hypothesis of the positive impact of economic growth on the reduction of social inequality was tested. Stylized facts on an array of 106 countries for the period under review indicate a high degree of stability of the level of inequality in most groups, especially in the most developed countries, and in particular in the Anglo-Saxon ones. The distribution of key socioeconomic and even political indicators for clusters shows their strong relationship with the structure of cluster inequality. This makes it possible to significantly deepen the analysis, in particular the one concerning the stages of world development.

As a result of the transformation of the labor market, the constant development of human capital has become crucial. This paper considers the role of human capital in professional development through the prism of 16 semi-structured interviews with both Russian and foreign graduates of a master’s program focused on training experts in the field of science, technology, and innovation. Most of the graduates of the program found jobs in the corporate sector and at research centers, but among the interviewees, there were also representatives who chose self-employment or public service. The contribution of undergraduate and master’s degrees to the professional development of these interviewees was assessed and they noted that if studying at the undergraduate level contributed primarily to obtaining subject knowledge, then studying at the master’s level contributed to the development of missing competencies and the opening of new professional opportunities. Interviewees identified emotional and social intelligence as key skills in their professional development and noted the critical importance of digital skills and subject knowledge. In turn, the most popular way of training, in the opinion of respondents, is online education.