Intellectual Capital in the Face of Shocks: Russia and Iran Explore Internationalisation

© HSE University

In today's issue of Schola, Mariya Molodchik, Senior Research Fellow at the International Laboratory of Intangible-Driven Economy and Professor at the School of Economics and Finance at HSE University’s Campus in Perm, discusses a joint project with Iran University of Science and Technology, titled 'Internationalization of Companies from Developing Countries: The Role of Intellectual Resources in Response to Exogenous Shocks.'

The joint project received support from the International Academic Cooperation (IAC) competition, which promotes international academic partnerships, broadens research agendas, and fosters interdisciplinary approaches in research paradigms. The competition also encourages the involvement of students, including doctoral students at HSE University, in collaborative basic research projects. This year, the competition received 30 applications from HSE University’s research subdivisions across all campuses.

The projects’ international partners included 28 research and educational institutions from nine countries: Brazil, China, Ethiopia, India, Iran, Kazakhstan, Qatar, Serbia, and the UAE.

As in the previous year, the largest number of applications were submitted in collaboration with academic teams from Chinese universities. The competition committee ultimately approved eight research projects.

— How did HSE University's collaboration with Iran University of Science and Technology begin and unfold?

— As is often the case in academia, it started with a letter from a research group at Iran University of Science and Technology proposing a joint grant application. Amir Zakery, Head of the Iran Think Tank for Export Development, came across an article I co-authored with my Spanish colleague Carlos Jardon, titled ‘What Types of Intangible Resources Are Important for Emerging Market Firms When Going International?,’ published in the Journal of East European Management Studies (2017. Vol. 22. No. 4. pp. 579–595), and sent a letter proposing a joint project. This was in 2020, when we submitted a joint application for an RSF grant. Unfortunately, it was not approved (as that particular call for applications did not support sociological or humanities projects—ed.). Nevertheless, the collaboration between the research teams continued through knowledge exchange on the study of intellectual resources and mutual peer review of papers. When HSE University announced its International Academic Cooperation competition in 2024, we decided to submit a new joint research proposal with the Iran Think Tank for Export Development at Iran University of Science and Technology.

Winning the funding was certainly very encouraging, as financial support for scientific work enables us to reach a new level of intellectual effort, ensures the regularity of joint events, and makes it possible to involve new participants in our research.

— Please tell us about the project team. In what way do the teams from the two countries complement each other? Have any particular challenges—such as linguistic or methodological ones—arisen during the collaboration?

— On our side, 20 people are expected to participate in the research project. Of these, 12 are already employees of the International Laboratory of Intangible-Driven Economy (IDLab), while eight were specifically invited to carry out the project’s tasks. The project also actively involves students at all levels—bachelor’s, master’s, and doctoral—with half of the Russian participants being students. From Iran University of Science and Technology, five individuals are involved, including two PhD students.

In terms of research competencies, the Russian and Iranian teams complement each other. IDLab’s strength lies in working with open data and employing advanced econometric analysis methods. In turn, our Iranian colleagues excel in applying case study methods and in developing applied analytical materials for government agencies to stimulate non-primary exports.

I would also like to highlight the anticipated exchange of best practices in working with master’s and doctoral students, as well as the organisation of a wide range of scientific and educational events within the framework of the project.

We experience no communication difficulties, as we are accustomed to online meetings, and both our discussions and publications are in English.

The academic community has its own professional style of communication that minimises national differences, enabling productive discussions and effective problem-solving. This, of course, does not diminish either party’s interest in learning about the cultural characteristics of the partner country.

I believe that at this stage we have only a very general understanding of Iran, and our partners know little about Russia. Therefore, we are looking forward to our first face-to-face meetings and conversations that go beyond scientific topics.

A video conference with colleagues from Iran

— What is the relevance of studying the role of intellectual resources in the internationalisation of companies from developing countries? Are there differences in how Russian and Iranian companies approach the use of intellectual resources? Which types of exogenous shocks—such as sanctions, pandemics, or geopolitical conflicts—have the greatest impact on the companies under study?

— Studying the internationalisation processes of companies in developing countries and identifying internal sources of growth is particularly relevant given the high instability of the global economy, the long-term consequences of the pandemic, and the additional pressures caused by sanctions from Western countries. It is known from practice that sanctions severely restrict access to international markets, complicate trade relations, and deter foreign investment, significantly aggravating the economic difficulties faced by these countries. Thus, strengthening domestic resources and capabilities becomes essential for maintaining competitiveness in international markets amid numerous environmental pressures. The project aims to examine the role of intellectual resources as a key component of a firm’s internal assets in the internationalisation of Russian and Iranian companies in the context of exogenous shocks. We hypothesise—and plan to test our hypothesis using empirical data—that shocks of different origins have varying effects on companies’ performance in foreign markets; in other words, the shock from the pandemic, the imposition of trade restrictions, and changes in tax legislation are likely to impact firms differently.

The economic and geopolitical landscapes of Russia and Iran share notable similarities, making them highly relevant subjects for fundamental and comparative studies of company behaviour, particularly regarding international expansion driven by intangible resources.

Studies of Russian and Iranian companies show that intellectual resources play a crucial role in shaping competitiveness in both domestic and international markets.

Mariya Molodchik—Project Head

HSE Campus in Perm/Photo by Matvey Efimenko

— What are some of the tasks facing the research teams? What will the project outcomes look like?

— As part of the project, we plan to address the following research questions:

● Is a higher level of intellectual resources in internationalised companies a necessary condition for their efficiency and resilience to external shocks? The project aims to examine the relationship between human, structural, and relational resources and the performance indicators of internationalised companies, including profitability, productivity, market share, and adaptability.

● What are the similarities and differences in the incentives and barriers to the internationalisation of Russian and Iranian companies? This study aims to identify the key factors that motivate or hinder the internationalisation processes of companies in Russia and Iran, taking into account their unique economic, political, and cultural contexts, industry specifics, and historical trade relations.

● Is government support important for effective internationalisation of companies? By examining various forms of government assistance—such as targeted financing, information support, trade agreements, and export capacity-building programmes—we aim to assess their impact on the success of international expansion and identify best practices that other countries can adopt to enhance their global competitiveness.

● What is the impact of knowledge gained from foreign stakeholders on a company’s performance from the perspective of resource dependence theory? This research question seeks to understand how knowledge acquired from foreign partners, suppliers, customers, and board members influences a company’s operational efficiency, innovation capabilities, and strategic decision-making.

● What constitutes the most effective infrastructure for export development at the regional and national levels? By considering the development of transport networks, logistics systems, trade promotion services, and digital platforms that support export activities, the study aims to identify the components that have the greatest impact on enhancing international trade efficiency and competitiveness.

The significance of the project for HSE University lies in:

1. strengthening its international expertise in studying the internationalisation processes of firms under sanctions, with a focus on effective use of intellectual resources. 
2. creating a point of attraction for early-career researchers focused on addressing economic challenges through quantitative data analysis methods, including the use of artificial intelligence tools.
3. producing applied results aimed at addressing practical challenges related to enhancing the internationalisation of Russian companies.

— As part of the project, will you examine how the cultural characteristics of each country affect the internationalisation process? 

— Certainly. Specific practices in the use of human, relational, and structural resources may vary due to cultural differences, institutional and legislative features, and religious traditions. When entering foreign markets, companies need to understand how their competitors manage intellectual resources. We have yet to determine how the tools and methods used to enhance intellectual resources differ between Russian and Iranian companies. It should be noted that our project is not limited to a comparative analysis of the two countries. The methodology for studying the internationalisation of companies based on intellectual resources developed within this project can be applied to companies from any developing country. More information about our methodology will be shared at our seminars and conferences, with the next conference scheduled for the end of October. 

Read the original in Russian on Schola.