Author
Sougata Ray
Other affiliations: Indian Institute of Management Ahmedabad
Bio: Sougata Ray is an academic researcher from Indian Institute of Management Calcutta. The author has contributed to research in topics: Emerging markets & Internationalization. The author has an hindex of 16, co-authored 32 publications receiving 1603 citations. Previous affiliations of Sougata Ray include Indian Institute of Management Ahmedabad.
Papers
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TL;DR: In this article, the authors argue that international acquisitions facilitate internalization of tangible and intangible resources that are both difficult to trade through market transactions and take time to develop internally, thus constituting an important strategic lever of value creation for emerging economy firms.
Abstract: While overseas acquisitions by emerging-economy firms are gaining increased attention from the business press, our understanding of whether and why this inorganic mode of international expansion creates value to acquirer firms is limited. We argue that international acquisitions facilitate internalization of tangible and intangible resources that are both difficult to trade through market transactions and take time to develop internally, thus constituting an important strategic lever of value creation for emerging-economy firms. Furthermore, the magnitude of value created will be higher when the target firms are located in advanced economic and institutional environments: country markets that carry the promise of higher quality of resources, and therefore, stronger complementarity to the existing capabilities of emerging-economy firms. An event study of 425 cross-border acquisitions by Indian firms during 2000–2007 supports our predictions.
554 citations
TL;DR: Using longitudinal data on 206 Indian pharmaceutical firms from 1995--2004, it is found that firms' access to international technological and financial resources enables product market internationalization, and predictions that the association between international resources and markets is conditioned by time and business group affiliation are theorized and found support.
Abstract: This article investigates how Indian pharmaceutical firms, facing discontinuous institutional changes in their domestic environment due to economic liberalization and intellectual property reforms, have undertaken organizational transformation. Internationalization of resources and product markets constitutes an important component of organizational transformation for local firms in emerging economies. Using longitudinal data on 206 Indian pharmaceutical firms from 1995--2004, we find that firms' access to international technological and financial resources enables product market internationalization. Furthermore, we theorize and find support for our predictions that the association between international resources and markets is conditioned by time and business group affiliation, and product market internationalization affects financial performance. Several implications thus emerge for theory and practice associated with the sources of competitiveness in emerging economy firms and their transformation into globally competitive multinational firms.
275 citations
01 Jan 2006
TL;DR: The key to success in the growth phase of an organization is to identify and exploit opportunities as they move from the entrepreneurial stage to the growth stage as mentioned in this paper, however, most organizations find that their ability of identifying and innovatively exploiting opportunities decreases.
Abstract: Most organizations find that their ability to identify and innovatively exploit opportunities decreases as they move from the entrepreneurial to the growth phase. However, the key to success in the...
238 citations
TL;DR: In this article, the authors proposed a conceptual model of internationalization for emerging economy firms through a combination of exploitation and exploration strategies along the dimensions of products and markets, by taking advantage of increasingly liberalized economies, could emerge as Thirdworld multinationals with capabilities that could potentially challenge even MNCs from the developed world.
162 citations
TL;DR: In this paper, the authors investigate whether and how family ownership and management influence firms' internationalization strategies in an emerging economy in which family firms are dominant, and they find that the heterogeneity among family firms in their ownership structures, concentration, and family involvement in management shapes the firm's internationalization strategy.
Abstract: Research Summary: We investigate whether and how family ownership and management influence firms' internationalization strategies in an emerging economy in which family firms are dominant. Anchoring on the willingness and ability framework and drawing on the socioemotional wealth perspective and agency theory, we theorize how the heterogeneity among family firms in their ownership structures, concentration, and family involvement in management shapes the firms' internationalization strategies. We also theorize how certain contingencies, such as the presence of foreign institutional ownership and family management, moderate the relationship between family ownership and internationalization strategy. We test our predictions by using a proprietary, longitudinal panel dataset of 303 leading family firms from India and find support for most of our theoretical predictions.Managerial Summary: Internationalization has emerged as a dominant strategy for firms in a globally interconnected world. We observe that ownership structure and management have significant bearing on internationalization strategies of family firms, as family owners and managers are more averse to internationalization. Family firms' aversion to internationalize is more pronounced when families can exercise greater control on firms' actions through the combined effect of higher family ownership (primarily through strategic control) and family's participation in management (through strategic, administrative, and operational control). However, certain contingencies, such as the higher ownership of foreign institutions and presence of professional managers, help business families improve their understanding of international markets, reduce the fear of the unknown, and better appreciate the benefits of internationalization, thereby aiding greater internationalization of family firms.
109 citations
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3,053 citations
01 Jan 2008
TL;DR: In this article, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Abstract: What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.
2,134 citations
Book•
01 Jan 1935
1,181 citations
TL;DR: A review of the book "Organizations: Rational, Natural and Open Systems" by W.R. Scott is given in this paper, where the authors present a review of their work.
Abstract: This article presents a review of the book “Organizations: Rational, Natural and Open Systems,” by W.R. Scott.
1,010 citations
TL;DR: In this article, a business group taxonomy is proposed, which is used to formulate hypotheses and present evidence about the reasons for the formation, prevalence, and evolution of groups in different environments.
Abstract: Diversified business groups, consisting of legally independent firms operating across diverse industries, are ubiquitous in emerging markets. Groups around the world share certain attributes but also vary substantially in structure, ownership, and other dimensions. This paper proposes a business group taxonomy, which is used to formulate hypotheses and present evidence about the reasons for the formation, prevalence, and evolution of groups in different environments. In interpreting the evidence, the authors pay particular attention to two aspects neglected in much of the literature: the circumstances under which groups emerge and the historical evidence on some of the questions addressed by recent studies. They argue that business groups are responses to different economic conditions and that, from a welfare standpoint, they can sometimes be "paragons" and, at other times, "parasites." The authors conclude with an agenda for future research.
970 citations