Agribusiness Changes Caused by the Russian Food Embargo: An Interfirm Relationships Perspective
Agribusiness Changes Caused by the Russian Food Embargo: An Interfirm Relationships Perspective

Summary/Abstract: Purpose – The objective of this paper is to identify the main directions of changes in Russian agribusiness caused by the food embargo through the lens of interfirm relationships. Design/Methodology/Approach – Qualitative research in the form of a focus group was conducted. The sample consisted of nine senior management representatives of Russian agribusinesses. Findings and implications – The study revealed that the Russian food embargo contributed to the development of interfirm relationships in Russian agribusiness. Both retailers and producers tend to use a relational approach and develop interfirm relationships in order to build sustainable value chains and long-term relationships with partners. The resulting conclusions represent important changes in interfirm relationships between different actors in Russian agribusiness: (1) retailers tend to interact with providers for the purpose of building sustainable value chains; (2) at the same time, the criteria retailers impose on their suppliers are changing gradually. Limitations – The limitations of the study are related primarily to the method used. Data collected from the focus group are not statistically representative of the entire Russian agribusiness. Additional research beyond this exploratory qualitative study is needed to test the assumptions and generalize the results. Originality – In the context of B2B marketing research, this study is the first to address changes in the value chain in the Russian food market. An analysis of the balance of power among its key players shows that the food embargo has challenged the structure of the Russian food market. The resulting changes in the criteria for building interfirm relationships have been dramatic for both suppliers and producers.

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