Showing papers by "Indian Institute of Management Ahmedabad published in 1999"

Culture specific and cross-culturally generalizable implicit leadership theories: Are attributes of charismatic/transformational leadership universally endorsed?

Abstract: This study focuses on culturally endorsed implicit theories of leadership (CLTs). Although cross-cultural research emphasizes that different cultural groups likely have different conceptions of what leadership should entail, a controversial position is argued here: namely that attributes associated with charismatic/transformational leadership will be universally endorsed as contributing to outstanding leadership. This hypothesis was tested in 62 cultures as part of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program. Universally endorsed leader attributes, as well as attributes that are universally seen as impediments to outstanding leadership and culturally contingent attributes are presented here. The results support the hypothesis that specific aspects of charismatic/transformational leadership are strongly and universally endorsed across cultures.

Social entrepreneurial leadership

Abstract: Social entrepreneurial leaders are persons who create and manage innovative entrepreneurial organizations or ventures whose primary mission is the social change and development of their client group. The social enterprise’s activities and its client group’s activities can primarily be either economic or non‐economic, but the mission is social change and development. This paper examines research prospects in social entrepreneurial leadership and its relevance to mainstream entrepreneurship research and proposes useful cross‐ fertilization opportunities.

Characteristics of private medical practice in India: a provider perspective.

Abstract: Supply factors, depicted by input market conditions and government regulations, and demand factors, depicted by financing mechanisms and utilization patterns, are likely to determine the shape and character of private medical practice. The interaction of this complex set of factors will have considerable implications for the cost access and quality of services offered by this sector. Understanding these characteristics from a provider perspective is imperative to influence the behaviour of providers in this sector. This paper describes some of the important characteristics of private medical practice using a case study of an urban district in India, Ahmedabad, and analyzes their implications. Using survey data of 130 private doctors in the allopathic system, the paper describes broad characteristics of private medical practice using parameters such as growth of private practice, patient load and referrals within the sector, payment methods and determinants, patient concerns, and risks associated with private practice. The paper presents views on the prevalence of various undesirable practices in the private medical sector. It also discusses the awareness of providers about selected important regulations. The findings suggest that growing capital intensity due to cost of location, medical equipment and technology, and financial sources of capital investments are some unfavourable environmental factors experienced by private providers. The findings also indicate a high prevalence of various undesirable practices and low awareness of the objectives of important legislation among practicing doctors. Lack of awareness of important and relevant legislation raises serious questions about the implementation of these laws. The paper identifies the strong need for instituting and implementing an effective continuing medical education programme for practicing doctors, and linking it with their registration and continuation of their license to practice. The paper also suggests that cost of health care, access and quality problems will worsen with the growth of the private sector. The public policy response to check some of the undesirable consequences of this growth is critical and should focus on strengthening the existing institutional mechanisms to protect patients, developing and implementing an appropriate regulatory framework and strengthening the public health care delivery system. The study also discusses various other policy implications arising.

Implications of the Integral Approach to Quarterly Reporting for the Post-Earnings-Accouncement Drift

Abstract: We provide evidence that the auto-regressive structure of seasonally differenced quarterly earnings is consistent with the requirements of the integral approach to interim reporting. In particular, we show that the auto-regressive coefficients for standardized seasonally differenced quarterly earnings are larger when the quarters employed in the auto-regressions belong to the same fiscal year than when they belong to different fiscal years. We then show that the signs and magnitudes of abnormal stock returns following earnings announcements are systematically related to these differences in the auto-regressive structure of seasonally differenced quarterly earnings. Specifically, stock returns act as if investors underestimate the larger auto-regressive coefficients between quarters in the same fiscal year. Thus, we corroborate and extend the Bernard and Thomas (1990) hypothesis that stock prices fail to reflect the extent to which quarterly earnings series differ from a seasonal random walk.

An Empirical Evaluation of the Usefulness of Non-GAAP Accounting Measures in the Real Estate Investment Trust Industry

Abstract: We conduct three sets of analyses to compare the usefulness of net income, based on generally accepted accounting principals (GAAP), and the industry-advanced funds from operations (FFO) in the context of the real estate investment trust (REIT) industry. In our first set of tests, we find that FFO is more strongly associated with one-year ahead FFO and one-year ahead operating cash flows than is net income. Conversely, we find that net income explains more variation in one-year ahead net income and current stock price than does FFO. Second, in support of the claim that some REITs manipulate FFO, we document that young REITs and REITs that are likely to access capital markets are more likely to manage FFO. Third, we find that, for a sample of firms that disclose current value information, both net income and FFO fail to reflect holding gains or losses on unsold properties in a timely manner. Overall, our analyses suggest that the REIT industry?s claim that FFO is more useful than net income in premature because the superiority of one measure over the other is highly contextual.

Benchmarking the Supply Chain Performance: Development of a Framework

Abstract: In this study, a framework is developed which uses financial metrics to help a firm benchmark its relative position and identify specific supply chain processes that need improvement. The tools outlined in this study not only highlight areas of opportunity for improvement in the supply chain but also help identify specific reasons behind the performance levels in the chain and stimulate discussion among management. Further, this framework can be used to carry out detailed analyses using publicly held information. Subsequently, the analyst may probe further for additional information to focus on the specific reasons behind a given level of performance of the firm. To illustrate the framework, the proposed tools are applied to the paints industry whereby analysis is done on the business information obtained through an electronic database, which is available in public domain. The framework has proved to be robust. The results have also been supported by the industrial information. Using this framework, a firm should be better placed to come up with suitable policies in line with the industrial and competitive environment it faces.

Creating Successful New Products: Challenges for Indian Industry 1

Abstract: In the increasingly competitive environment in India, the development and launch of new products have become an important competitive tool In a crowded marketplace, there is greater need for differentiation; in markets that tend to be stagnant there is pressure to create excitement The development and launch of new products helps in both situationsIn certain industries like the two wheeler industry, new product development has become critical to survival Stringent new emission standards and multi-point competition are pushing two wheeler companies to broaden their product lines and introduce new technologies such as four stroke scooters and mopeds Today, the Indian two wheeler industry has more than fifty models/variants with one or two new launch announcements every month Such developments are happening in other industries as well, though perhaps not as visibly as in the two wheeler industryThis paper is prompted by our belief that there are unique problems faced by Indian companies in rapidly developing a new product development capability While the new product development challenges faced by large, established firms in developed markets have received considerable attention in recent years since the publication of the epochal The machine that changed the world (Womack, Jones and Roos, 1990), the problems faced by 'emerging market companies' are different and have not received enough attentionEmerging markets like India are different from developed markets Emerging markets are often characterised by specific local needs, limited purchasing power and high price sensitivity (Prahalad and Lieberthal, 1998) Khanna and Palepu (1997) have suggested that in emerging economies, to make up for the absence of well-developed markets for labor and capital, firms may have to create their own infrastructure There are thus contextual factors which can potentially influence an important strategic activity like new product development in the emerging market context and make the challenges before companies in these markets different from those in established economiesSpecifically, unlike established companies in developed markets, Indian companies are facing the challenge of structuring, ab initio, the new product development process in an environment of limited design skills and experience, few qualified vendors and inappropriate engineering resources At the same time, they are constrained by limited financial and human resources, a lack of a market orientation, strong centralized control by business family heads, functional chimneys without deep functional expertise, and pressures to change on numerous fronts all at once to cope with the competitive environment Further, over the last eight years, the complexity of strategy formulation and implementation has increased manifold - from merely obtaining an industrial license and preventing others from doing so, to managing growth, cost-competitiveness, knowledge, innovation, and business portfolios simultaneously in a globally competitive environmentIn this paper, our focus will be on the challenges in new product development faced by companies in India, an important emerging economy Our ideas are based on discussions we have had with managers involved in new product development in about twenty Indian companies, reports in the business press and some projects undertaken by our students At the end, we identify questions that remain either partly or fully unanswered in the hope that these can be the subject of research for Indian companies, consultants advising them, and researchersMost of the issues discussed in this paper have their origins in the problems faced by Indian companies manufacturing discrete, engineered goods for either consumer or industrial markets However, we will also discuss some of the challenges faced by Indian companies manufacturing fast moving consumer goods (FMCG), and by Indian firms involved in information technology/software product development

Order Release and Product Mix Coordination in a Complex PCB Manufacturing Line with Batch Processors

Abstract: In this paper, we study the role of order releases and product mix coordination in a complex manufacturing line with batch processors. We develop a planning methodology for synchronizing production in such manufacturing lines and discuss the decision-making process in the context of a PCB production environment at Northern Telecom's Fiberworld Division. The planning methodology includes developing mathematical programming models for determining a configuration of batch processors, order releases to the shop floor, and daily loading decisions at the batch processors. The optimization models are linked to a simulation model of the shop, which provides key statistics like lead time, work in process, and utilization rates. The objective is to reduce lead time for manufacturing different products in this environment while meeting the demand. We analyze the performance of such a line, study the efficacy of various types of shop floor synchronization policies, and establish the role of batch processors in managing such complex lines effectively. We exhibit how batch processors (which are bottleneck operations) could be scheduled effectively to incorporate the logical constraints that govern their operations and react to variabilities in the manufacturing line.

Power and Politics in Grievance Resolution: Managing Meaning of Due Process in an Organization

Abstract: This paper studies the relatively less explored issue of the actual process of grievance resolution from a political perspective. In a steel plant in India, six grievance cases were analyzed from the filing of a grievance to its final resolution. Cases were reconstructed through semistructured interviews and analyzed from a political perspective. The sources of power of the key actors and their influence tactics vis-A-vis one another were found to determine whether the case would be decided in favor of or against the grievant. The understanding of the dynamics in grievance resolution was enhanced when we analyzed cases as episodes nested in the ongoing political process of the organization. A comprehensive understanding of political behavior required analysis at two levels: the explicit-dealing with apparent behavior; and the implicit-exploring the underlying concerns and intents of the actors often manifested through symbols. Implications of multiple levels of political behavior for institutionalizing du...

Social Entrepreneurial Leadership

Abstract: Social entrepreneurial leaders are persons who create and manage innovative entrepreneurial organizations or ventures whose primary mission is the social change and development of their client group. The social enterprise’s activities and its client group’s activities can primarily be either economic or non‐economic, but the mission is social change and development. This paper examines research prospects in social entrepreneurial leadership and its relevance to mainstream entrepreneurship research and proposes useful cross‐ fertilization opportunities.

Supply Chain Strategies for Small Firms Facing High Demand Uncertainty and Seasonality

Abstract: Several innovations in operations strategy and supply chain management have taken place, including outsourcing, postponement, quick response and so on. However, research has focused on the large fi...

Alternate Means of Financing Railways

Abstract: This paper by Raghuram and Ravi Babu focuses on the financial requirements of Indian Railways and the means of providing for them. Drawing lessons from the existing modes of finance, the pros and c...

A decision support system to forecast cement demand

Abstract: The Indian cement industry has experienced phenomenal growth in the last decade, following the decontrol of cement in 1989. The degree of competitiveness within the industry has increased significantly. The industry scenario is changing rapidly from an era of shortages to that of surplus. The future scenario for cement industry is likely to be characterized by growing competition, significant corporate thrust on modernization, changing pattern of demand and uncertainties regarding prices as well as growth of demand in a liberalized economy dominated by market forces. Under such dynamic conditions and changing economic environment, the task of forecasting the level and the pattern of demand for cement becomes very important for the industry planning at a macro-level as well as the corporate planning at the micro-level. A computer based Decision Support System (DSS) would provide the policy makers with the necessary flexibility to analyze and derive meaningful demand forecasts for cement. Central to our DSS is a model base which has a rich library of forecasting models based on Time Series and Econometric methodology. This DSS is being used by the officers in the planning department at the Cement Manufacturers Association. It is also serving as a permanent model with enough flexibility to incorporate annual variations in the relevant factors affecting cement demand to generate revised and updated estimates on a year to year basis.

Understanding and Use of Credit Rating In India: A Survey of Individual and Institutional Investors

Abstract: Credit rating, although a relatively new concept in the Indian financial market, have gained wide acceptance among investors. At the same time, casual and anecdotal evidence suggests that there are concerns among investors and regulators about the performance of rating agencies in India. This paper examines investors' awareness, perception, understanding level and usage of credit rating through a questionnaire based sample survey covering individual as well as institutional investors. We discover a high diffusion of rating usage among all class of investors, though there is a perceptible disenchantment with reliability of ratings, propensity of subsequent downgrading and timeliness of rating surveillance. The survey also reveals that the institutional investors possess superior knowledge and understanding about ratings than individual investors. Thus, the survey underlines the need for rating agencies to work on educating the common investors to propagate proper understanding and usage of credit rating.

Organizational Commitment In Software Service Firms: The Impact of Organizational Demography

Abstract: Research has established the importance of including demographic considerations in organizational analysis to provide a more comprehensive explanation of organizational phenomena. Most empirical studies have focused on a single perspective and the impact of a few demographic characteristics on outcomes of interest. This study uses multiple perspectives and incorporates a broader range of demographic characteristics and examines their impact on organizational commitment.The study was conducted in software companies in India. Data was collected from software engineers, team/module leaders, and project leaders from seven software firms in Bangalore, Chennai and Hyderabad, India. Of a total of 600 instruments distributed, 386 completed questionnaires were received.Firstly, the results of the study confirm that using multiple perspectives to understand demographic influences on individual behavior is beneficial. Each demographic characteristic seemed to have different effects based on the perspective used. Examining the multiple perspective simultaneously provided a more holistic understanding of the phenomena. Secondly, the use of several demographic characteristics, rather that one or two characteristics, was also supported because each characteristics seemed to have different effects independently and in the presence of other characteristics. Thirdly, there was strong support for the argument that natural characteristics have a greater impact on individual attitudes than organizationally derived. Acquired characteristics have the least effect. Lastly, the results also suggested that the demographic profile of personnel in the software industry is different from other industries, and as a consequence their influences on individual behavior may also be different.

Information Technology and Development: Moving Away From A Magical Vision

Abstract: The paper critically examines the role that information technology can play in catalysing economic activity, in administrative reforms and in developing human resources. Learning from the experience of India and several other developing countries which have made special efforts to step up IT investments, the paper attempts to define a perspective with which developing countries can plan investments in IT and its successful integration with the development process. It counters the view of technology enthusiasts who believe that information technology can assist in every aspect of development and that it is the panacea for developing countries.

Defending Turf: Marketing Strategies for Emerging Market Companies

Abstract: In the marketplace of the global village, multinational-owned megabrands have rapidly become ubiquitous. The crumbling of the iron curtain, the institution of economic reforms in China and the liberalization of economies from India to Brazil have opened up large markets to multinational corporations (MNCs). As trade barriers have disintegrated, MNCs have rushed in, seeking sales growth and respite from their intensely competitive and saturated home markets. As a result, erstwhile protected markets have experienced an abrupt deluge of international brands. For the choice-starved consumers in these emerging markets, this a welcome change from the meager choice and low quality products to which they had grown accustomed. However, for local brands in these newly liberalized markets, the influx of foreign players spells a different reality. For many emerging market companies (EMCs), the experience is a first taste of international competition. To them, the large-scale entry of international firms is a major threat. At best, it results in erosion of local firms’ market shares, and at worst it could spell their demise. Even if local firms do survive, the transition may allow powerful and well-endowed multinationals to wrest control of the rules of the market.

Implications of emissions limitation protocols and concentration stabilization trajectories for developing (Non-Annex I) countries

Abstract: The ultimate objective of the Framework Convention on Climate Change (FCCC; UNEP/WMO, 1992) is stabilization of greenhouse gases concentration in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The concentration level and the time frame for stabilization are two vital aspects affecting this objective. These are not explicitly specified in the FCCC, although the references to cost effectiveness, sustainable development, integration of climate change policies with national development programs etc. in the statement of principles (Article 3, FCCC) provide some guidance for deciding these issues. Evidently, to achieve any reasonable stabilization target, the global emissions will have to decline to levels far below the present emissions (IPCC, 1995; Wigley et al., 1996). A specified stabilization concentration level can be achieved by an infinite emissions trajectories. An aim of the climate change limitation agreement is to choose a concentration target and a corresponding emissions trajectory which is cost effective.

Networking as an Enabler of Business Process Reengineering

Abstract: Information Technology is widely accepted as a key enabler of Business Process Reengineering (BPR). While all elements of IT contribute to the success of BPR, networking contributes probably more than any other component. In this paper we highlight the contribution of networking to help reengineer organizational processes. Through a series of real world examples, we present our argument. The cases illustrate the role of telecommunication networks, data networks and integrated networks towards reengineering. The emerging technologies of Internet, Intranet and Extranet and their role are outlined in the paper.

An Operational Study of CJ Patel Vegetable and Fruit Market of Ahmedabad

Abstract: We present in this paper, an operational study of CJ Patel Wholesale Fruit and Vegetable Market (CJP Market) atof Ahmedabad city. The market is viewed as a dynamic queuing system. A simulation model is constructed. Simulations are used to generate statistics on congestion as the volume of trade is increased from the present level to what would be expected by the year 2010 A.D. This market was built in the year 1996 in order to reduce congestion in another older market. While the buildings are designed to last a long time, simulations show that its handling capacity will get saturated much sooner, most likely by the year 2010 A.D. Based on this work, it is argued that program to modernize loading, unloading and other handling systems must be initiated now. Further, design procedures for such markets need to recognize these as dynamic queuing systems and not just an assembly of buildings and road.

The Telecom Regulatory Authority of India's Proposals for Tariffs for Basic Services: A Discussion

Abstract: As a precursor to enhanced competition in the telecom sector the Telecom Regulatory Authority of India (TRAI) has published recommended prices of various telecom services. This move, along with TRAI's practice of consultation with potential entrants and consumers is to be commended. The avowed aim of TRAI is to calculate and enforce cost based prices. The reason behind this aim is that increasing competition would force prices towards costs and the TRAI would, through regulation, foster surrogate competition. Another reason behind this effort is to encourage entry into the telecom sector from private firms. Since most of these entrants would have to rely on the DoT network for initiation and completion of calls high costs of interconnection would discourage entry and thereby inhibit healthy competition from developing. The following excerpt from the TRAI's second consultation paper says: "The present exercise to restructure telecom tariffs primarily aims to link tariff formulation with some clearly specified principles, provide a consistent and transparent fiamework for tariff policy, simplify the prevailing system of telecom tariffs, and achieve cost based prices through regulation and/or competition." Our approach will be to look at some of the principles used in computing tariffs and explain and critique those choices.

Trust in Global Software Alliances: Understanding the Role of Power And Control within and between Organizations

Abstract: Global alliances have been promoted as interorganizational relationships that will permit organizations to deal with the increasingly turbulent global markets. Whatever the specific nature of the alliance, trust is seen as an essential constituent of successful relationships. However, most studies neglect the role of power and control in the 'manufacture1 of real or apparent trust in such arrangements. The few that do address such issues treat organizations as single entities, and neglect the interplay among power and control within organizations, and also do not include the influence of values and interests in the study of power and control. In this paper, we examine the global software outsourcing arrangements between a large North American telecommunication organization and its four relatively smaller Indian software vendors to present a more complex relationship among trust, power and control, and values and interests.

A characterization of the equal income market equilibrium choice correspondence based on average envy freeness

Abstract: A solution concept in the literature on fair division is the equal income market equilibrium solution concept. We show that a solution which satisfies consistency, replication invariance, efficiency, and envy freeness must consist of equal income market equilibrium allocations. We offer a further characterization of equal income market equilibrium with the strict envy freeness property due to Zhou (1992) and without consistency.

Academy-Industry Cooperation: Towards a New Convenant for Indian Business Competitiveness

Abstract: The role that knowledge plays in competitiveness in the market place, has increased dramatically over the last two decades. This has been arguably one of the most significant economic trends of the late 20th century - a process linked closely with the rapid internationalization of business and finance, and the emerging dominance of knowledge-intensive companies in the global economy. In India, the business leadership has now recognized the need for knowledge, mainly because the economic liberalization policies of the 1990s have exposed Indian companies to the threat of competition. The competitiveness-enhancing knowledge that business firms require is mainly of two types - organizational and technological. The first category of knowledge is that embodied in managerial, organizational and strategic skills, while the other is technological knowledge. On both these dimensions, Indian companies find themselves confronted by the need to change, in order to adapt better to the altered "rules of the game." From where will Indian companies source their new requirements of knowledge? By virtue of their charter and mission, the activities of Indian management institutes or institutes of technology are dominated by an applied orientation. Hence, one may expect that such institutions are most likely to be prepared to meet this need. Does it then make sense for Indian business organizations and such academic institutions in India to forge mutually beneficial cooperative arrangements? Answers to these questions, focusing on management institutes, are explored in this paper.As far as Indian academic institutions dealing with management and technology are concerned, they too are confronting a vastly changed scenario, and are reorienting their focus of activity. Increased costs, together with constrained support from the government, have made these institutions much more attuned to market demands. Their response to the changed situation is reflected in the pattern of their teaching, research and training activities. In the leading management institutes for example, there has been a conscious effort to increase market relevance via more and varied executive training programmes. The quality of their core post- graduate (MBA level) degree/diploma programmes is increasingly Professor of Economics & Social Sciences, Indian Institute of Management Bangalore judged, internally and externally, by the salaries that their graduates command in the job market. Many management institutes have sought, in other ways as well, to move closer to business and industry. This trend is exemplified by the presence of leading industrialists on campuses, as guest speakers and more prominently, as Chairmen of the governing boards of these institutions. From these synergic trends, one may be tempted to conclude that the pattern and prospects of cooperation between Indian business and management academia are on an optimal trajectory. As we argue below, such a conclusion is unwarranted. Much more progress needs to be made, if the full potential of mutual gains is to be realized. To assess the trends in terms of their significance and long term implications, it is necessary to examine this issue from a strategic perspective. The context is given by the twin processes of liberalization and globalization, and we need to ask in what way the institutional objectives of business and academic organizations can be served by deeper levels of cooperation. This is attempted in this paper. The remainder of the paper is organized as follows: The next section takes the question of why academy and industry should cooperate. The discussion in the section is in two parts. Part I examines the industry perspective with particular reference to its current demand for knowledge. Part II considers the issue in relation to the need for strategic knowledge. It focuses on the knowledge that management institutions currently provide to industry. It goes on to examine how the present may change towards greater collaboration. The paper ends with a brief conclusion.