Report Summarizes CDC and FDA Study Findings from Curtin University (The Impact of Institutional Formation On Firms' Strategic Choices In Knowledge Development, Absorptive Capacity and Vertical Integration).

A study conducted by Curtin University in Bentley, Australia, examines the impact of institutional shifts on the strategic choices of Russian firms. The research suggests that a shift from a weak to a strong institutional context can affect firms' knowledge accumulation, absorptive capacities, and internalization of operations. The study finds that firms tend to allocate more resources towards improving their knowledge and absorptive capacity and make efforts to vertically integrate in line with improvements in the institutional environment. The findings support the idea that institutions play a crucial role in allowing the market to operate efficiently, particularly in emerging market environments. However, the study does not consider the impact of sanctions on Russian business and the economy, nor the impact of COVID-19. [Extracted from the article]