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Country Effects on Managerial Practices in Transportation Area: Evidence from Russia and Germany

The competitiveness of individual companies is related not only to their own characteristics, but also to the institutional and economic characteristics of the home countries of these companies. How the business environments of countries affect the results of applying management practices in different companies is a complex research issue, as managerial practices have many characteristics. Nevertheless, Russian enterprises have to use new technologies to increase competitiveness in the world market. We analysed both the sector of transportation where geographic closeness is a key indicator of competition, and transportation facilities where incremental costs and savings can be implemented to build variables of the market structures. The research sample includes 210 specialized logistic firms with variation of ownership structure and collateral agreements. We have examined firms in two markets: Russian and German ones. The analysis is based on the data from 7 Russian regions, and 6 German federal states. We have found that the quality of managerial practices â€” estimated by using a new survey instrument â€” is strongly linked with commercial ratios such as a rate of fail to deliver and a rate of consumer satisfaction. A high level of competitiveness is demonstrated by a greater number of companies in the same region. We have found that this is positively correlated with increased quality of managerial capabilities. This correlation is reinforced when we quantify the number of local firms with local logistic infrastructure. This paper reveals that the increasing the effectiveness of managerial practices are due to the characteristics of the country of origin. The results allow to develop recommendations for policy-makers to improve the business environment.