The role of pricing and export diversification in global value chains resilience: Evidence from Russian manufacturing firms under dual shocks

This study investigates the impact of pricing and export diversification on the resilience of Russian manufacturing firms within global value chains (GVCs) during two consecutive shocks: the COVID-19 pandemic and the sanctions of 2022. The research examines how pricing affects firms’ ability to sustain exports in times of crisis and analyzes the role of product and geographic diversification in mitigating disruptions. The findings reveal that market-controlled pricing and export diversification significantly enhance GVC resilience, enabling firms to adapt to disrupted supply chains and shifting market conditions. In contrast, rigid pricing controls, including government interventions, undermine export continuity. Single-product firms demonstrate less resilience to external shocks, highlighting the importance of export diversification in enhancing adaptability within GVCs. This study points out the critical role of flexibility and adaptability in pricing and export diversification for navigating external shocks. It provides useful insights for managers and policymakers, emphasizing the balance between resilience and efficiency in maintaining competitiveness. The results contribute to a broader understanding of GVC resilience, with implications for firms in other emerging economies facing similar challenges.