Professional networks in the virtual labour market

The publication analyzes the phenomenon of the formation of professional networks in the virtual labor market. The aim of the work is to institutionalize the processes underlying the formation of professional networks. The initial premise is that professional networks with a multi-million audience form a special infrastructure for the virtual labor market, transforming and replacing the infrastructure of the traditional labor market. The study allowed solving the following tasks: to analyze the institutional features of the virtual labor market infrastructure, develop a classification of professional networks, identify trends and directions of their institutional development. The most important result of the study was the substantiation of the dependence of the characteristics of various types of professional networks on the needs underlying the economic behavior of different categories of participants in the labor market. Established the presence of feedback, reflecting the impact of users on the functional and features of various types of professional networks. In addition, institutional inconsistencies and the underlying causes that impede the development of these networks are highlighted. The factors determining the competitiveness of professional networks are determined through the optics of their functional matching to the expectations and needs of different categories of users. A special attention was paid to the influence of the comparative amount of transaction costs on the economic behavior of users. This factor was identified as the root cause of institutional growth and the demand for professional networks. The findings are of continuing importance for employers and users solving employment problems with the help of virtual tools, as well as for professional networks that determine the strategic priorities of institutional development. In addition, the study can be useful in developing policies for institutional regulation of the labor market, addressing career counseling and employment, as well as in the educational process (economic specialties and training areas). 

1. Annual and Transition Report Yandex N.V. 2017. EDGAR Online, 2018. 526 p. URL: https://download.cdn.yandex.net/company/annual_2017.pdf.

2. Doeringer P., Piore M. (1985). Internal labor markets and manpower analysis. New York, M.E. Sharpe. 212 p.

3. Kaluzhsky M.L. (2014). Features of Exogenous Approach to Interpretation of Institutional Cycles. Economic Analysis: Theory and Practice, no. 6 (357), pp. 34–45 (in Russian).

4. Kotler Ph., Keller K.L. (2012). Marketing management. 14th ed. New York, Prentice Hall. 812 p. [14th End. Sanct-Petersbug, Piter, 2014. 800 p.] (in Russian).

5. Labor market survey and salary overview. Russia. 2016. Moscow, Antal Russia. 102 p. (in Russian).

6. Malone T.W. (2004). The Future of Work: How the New Order of Business Will Shape Your Organization, Your Management Style and Your Life. Boston, Harvard Business School Press. 240 p. [Moscow, Olimp Business, 2006. 272 p.] (in Russian).

7. Maslow A.H. (1943). A Theory of Human Motivation. Psychological Review, no. 50 (4), pp. 370–396.

8. Warner M., Witzel M. (2004). Managing in Virtual Organizations. New York, Thomson Learning. 161 p. [Moscow, Dobraja Kniga, 2005. 296 p.] (in Russian).

9. Wind J., Rangaswamy A. (2001). Customerization: The Next Revolution in Mass Customization. Journal of Interactive Marketing, no. 15 (1), pp. 13–32.