This study examined the strategies adopted by selected firms in the posttransformation economy in Russia. The aim was to determine (1) if there were substantial commonalities among the strategies employed and (2) if so, was it likely that a theory of the firm could be found which persuasively explained and predicted success under the unusual characteristics of the present Russian economy. This question was pursued through an analysis of the strategies followed by ''successful'' firms, a term that will be defined below. Almost always present in successful firms was some form of diversification, and a variant of network capitalism (NC) was prevalent among market share leaders. First is a description of the economy, which resulted from the political and economic changes the Russian Federation experienced between 1991 and 1998. This economic state is referred to as ''hypocapitalism.''