Title: The co-evolution of informal networks, institutions, and corruption in Russia: from an economy of favours to an economy of greed

Authors: Daniel J. McCarthy; Sheila M. Puffer

Addresses: Northeastern University, Boston, Massachusetts, USA ' Northeastern University, Boston, Massachusetts, USA

Abstract: Networks, institutions, and corruption in Russia are the central themes of this article. Our focus will be in the context of the century from 1917 to the present. The article provides background on the country and its culture while looking at three periods individually, and discusses how corruption co-evolved with networks and institutions. The change in institutions and networks that occurs during political upheavals provides fertile ground for variations in the predominant type of corruption. We posit that there is much more to be learned by studying these three phenomena as a linked set of constructs beyond analysing them individually. Additionally, our review of these phenomena co-evolving throughout the past century provides a longitudinal perspective. This article seeks to shed light on these phenomena over three consecutive periods - the Soviet era, the post-Soviet period, and the current Putin era, all of which have markedly different institutional arrangements. In addition to analysing the practices of blat and sviazi, we discuss the concept of sistema that developed during the Putin years, and which provides the current foundation for corruption.

Keywords: informal networks; institutions; corruption; Russia; blat; sviazi; sistema; transition economies; stakeholders; bribery.

DOI: 10.1504/EJIM.2026.154249

European Journal of International Management, 2026 Vol.29 No.3, pp.496 - 519

Received: 17 Nov 2020
Accepted: 13 Jun 2021
Published online: 18 Jun 2026 *

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