Showing papers by "Indian Institute of Management Ahmedabad published in 2013"

Determinants of customers' online purchase intention: an empirical study in India

Abstract: Purpose – According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the size of the Indian online retail industry is INR 2000 crore and the industry is projected a steady annual growth rate of 35 per cent to reach INR 7000 crore by 2015. Given the growing importance of the online retail industry in India, it remains imperative for web retailers and internet marketers to understand the determinants of online customers' purchase intention to decipher what is important to the Indian online customer. This paper attempts to identify the determinants of online purchase intention among youth in the Indian context.Design/methodology/approach – Based on a detailed literature review, customer online purchase intention shopping orientation factors such as impulse purchase orientation, brand orientation and quality orientation were considered along with online trust and prior online purchase experience. The results are based on 95 valid responses received from the online survey.Findings – The res...

Financial Literacy Among Working Young in Urban India

Abstract: The paper reports investigation of a study on the influence of various socio-demographic factors on different dimensions of financial literacy among the working young in urban India. While the influence of several factors such as gender, education and income is similar to what has been reported in other contexts, a few factors specific to India, such as joint-family and consultative decision making process are found to significantly influence financial literacy. The study also investigates the relationship between the dimensions of financial literacy. Adding to the growing empirical understanding of financial literacy across countries, the study provides an analytical basis for enunciating policy for enhancing financial literacy of youth in India.

Posterior Consistency of Bayesian Quantile Regression Based on the Misspecified Asymmetric Laplace Density

Abstract: We explore an asymptotic justification for the widely used and empirically verified approach of assuming an asymmetric Laplace distribution (ALD) for the response in Bayesian Quantile Regression. Based on empirical findings, Yu and Moyeed (2001) argued that the use of ALD is satisfactory even if it is not the true underlying distribution. We provide a justification to this claim by establishing posterior consistency and deriving the rate of convergence under the ALD misspecification. Related literature on misspecified models focuses mostly on i.i.d. models which in the regression context amounts to considering i.i.d. random covariates with i.i.d. errors. We study the behavior of the posterior for the misspecified ALD model with independent but non identically distributed response in the presence of non-random covariates. Exploiting the specific form of ALD helps us derive conditions that are more intuitive and easily seen to be satisfied by a wide range of potential true underlying probability distributions for the response. Through simulations, we demonstrate our result and also find that the robustness of the posterior that holds for ALD fails for a Gaussian formulation, thus providing further support for the use of ALD models in quantile regression.

Bullying in the Indian workplace: A study of the ITES-BPO sector:

Abstract: This article reports on an empirical enquiry undertaken in India’s ITES-BPO (offshoring-outsourcing) sector to ascertain the presence of workplace bullying, the influence of sociocultural factors, ...

Moving from the Household to the Individual: Multidimensional Poverty Analysis

Abstract: Current multidimensional measures of poverty continue to follow the traditional income poverty approach of using household rather than the individual as the unit of analysis. Household level measures are gender blind since they ignore intra-household differences in resource allocation which have been shown to differ along gender lines. In this study we use new data from the Karnataka Household Asset Survey (KHAS) to construct an individual level multidimensional poverty measure for Karnataka, India. Our results show that an individual level measure can identify substantial gender differences in poverty that are masked at the household level. We also find a large potential for misclassification of poor individuals as non-poor when poverty is not assessed at the individual level.

Four factor model in Indian equities market

Abstract: We compute the Fama-French and momentum factor returns for the Indian equity market for the October 1993-December 2013 period. We differ from the previous studies on this topic in the Indian market in several significant ways. First, we cover a greater number of firms relative to the existing studies. Second, we exclude illiquid firms to ensure that the portfolios are investible. Third, we have classified firms into small and big using a more appropriate cut-off, considering the distribution of firm size. Fourth, as there are many instances of vanishing of public companies in India, we have computed the returns with a correction for the survival bias. During the period, the average annual return of the momentum factor was 21.9%; the average annual return on the value portfolio (HML) was 15.3%; that of the size factor (SMB) nearly 0%; and the average annual excess return on the market factor (MRP) was 11.5%. This is a revised version of our earlier paper on this topic. The revision is carried out to primarily accommodate the data of firms which are retrospectively added to the prowess database by CMIE. The time series of daily, monthly and yearly returns on the factors and the underlying portfolios are made available at an online data library. The authors would update the library on a monthly basis.

The effect of Self-Help Groups on access to maternal health services: evidence from rural India

Abstract: The main challenge for achieving universal health coverage in India is ensuring effective coverage of poor and vulnerable communities in the face of high levels of income and gender inequity in access to health care. Drawing on the social capital generated through women’s participation in community organizations like SHGs can influence health outcomes. To date, evidence about the impact of SHGs on health outcomes has been derived from pilot-level interventions, some using randomised controlled trials and other rigorous methods. While the evidence from these studies is convincing, our study is the first to analyse the impact of SHGs at national level. We analyzed the entire dataset from the third national District Level Household Survey from 601 districts in India to assess the impact of the presence of SHGs on maternal health service uptake. The primary predictor variable was presence of a SHG in the village. The outcome variables were: institutional delivery; feeding new-borns colostrum; knowledge about family planning methods; and ever used family planning. We controlled for respondent education, wealth, heard or seen health messages, availability of health facilities and the existence of a village health and sanitation committee. Stepwise logistic regression shows respondents from villages with a SHG were 19 per cent (OR: 1.19, CI: 1.13-1.24) more likely to have delivered in an institution, 8 per cent (OR: 1.08, CI: 1.05-1.14) more likely to have fed newborns colostrum, have knowledge (OR: 1.48, CI 1.39 – 1.57) and utilized (OR: 1.19, CI 1.11 – 1.27) family planning products and services. These results are significant after controlling for individual and village-level heterogeneities and are consistent with existing literature that the social capital generated through women’s participation in SHGs influences health outcome. The study concludes that the presence of SHGs in a village is associated with higher knowledge of family planning and maternal health service uptake in rural India. To achieve the goal of improving public health nationally, there is a need to understand more fully the benefits of systematic collaboration between the public health community and these grassroots organizations.

Economic policy uncertainty and economic growth in India

Abstract: Economic and political commentators in India have repeatedly noted their concern about the recent slow-down in the Indian economy. Several recent papers have provided evidence that increase in the economic policy uncertainty (EPU) has played a significant role in the slow-down and the increase in unemployment in the U.S. In this paper we construct a measure of economic policy uncertainty for India and study its impact on the Indian economy. We find Indian GDP and Indian fixed investment are negatively related to EPU in India. More relevant, the economic magnitudes of these relations are quite significant. For example, if the economic uncertainty in India were to decrease today to the level observed in 2005, India’s GDP growth would increase by 0.56%, and fixed investment growth would increase by 1.36%. Additionally, we document a negative correlation between the Bombay Stock Exchange (BSE) index and EPU in India.

Do Soft Skills Matter? - Implications for Educators Based on Recruiters’ Perspective

Abstract: Soft skills are very critical in the workplace today. These skills mirror the ability to communicate and interact with others. They are unique because they emphasize on action. They have become indispensable for every person in the present context. This paper deals with the significance of soft skills for getting a job and for further promotions and progress in the workplace. People who are flexible and have the zeal to understand and learn new technologies are sought after by organizations as part of their growth process. The need to provide training in soft skills is seriously being considered today. This study is an attempt to find out the importance that middle to top level executives, who are involved in recruiting employees, attach to soft skills.

The Effect of Continuous Auditing on the Relationship between Internal Audit Sourcing and the External Auditor's Reliance on the Internal Audit Function.

Abstract: Prior research indicates that external auditors are willing to rely to a greater extent on the work of the internal audit (IA) function when the function has been outsourced, or co-sourced, as opposed to maintained in-house. This article addresses the extent to which this relationship between IA sourcing and external auditor reliance is moderated by the use of continuous auditing. One hundred forty-two auditors, all CPAs, participated in an experiment in which we manipulated both IA sourcing type (in-house versus outsourced) and audit type (periodic versus continuous) and measured ratings of external auditor reliance on the IA function. Results indicate that when the IA function uses periodic auditing, external auditors rely more on an outsourced function than an in-house function. However, when the IA function uses continuous auditing, external auditors do not differ in reliance on an outsourced or in-house function. The prior literature suggests that outsourcing an IA function can lead to high...

Sustainable energy transformations in India under climate policy

Abstract: The paper uses an integrated assessment model, GCAM, to analyze two emission stabilization approaches for India – a conventional approach relying on carbon price to typically influence fuel switch and carbon capture and storage responses, and a sustainability approach that aims to conserve resources and deliver multiple dividends. An important feature of the sustainability approach is the focus on national policies to push solar and wind technologies. The paper concludes that sustainability push at a global level for renewable energy technologies is essential together with coordinated national policies and actions, if the 2 °C target is to be achieved with lower global welfare losses. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

The influence of leader-member exchange relations on employee engagement and work role performance

Abstract: The paper aims to establish the relationship between leader member exchange (LMX) relationship and work role performance through the dynamic process of employee engagement. The study outlines why and how leadership is important for employee engagement and effective work role performance. Adopting a survey based research design, a sample of 198 Indian working managers at different levels including various sectors has supported our hypotheses that employee engagement mediates the relations between LMX and work role performance. It provides empirical insights about how employee engagement process influences the LMX and work role performance relationships. The results also suggest that high quality relationship of employees with their leaders is positively related to employee engagement and their work role performance.

Basel III implementation: Issues and challenges for Indian banks

Abstract: The Basel III framework, whose main thrust has been enhancing the banking sector's safety and stability, emphasises the need to improve the quality and quantity of capital components, leverage ratio, liquidity standards, and enhanced disclosures. This article first lays the context of Basel III and then incorporates the views of senior executives of Indian banks and risk management experts on addressing the challenges of implementing the Basel III framework, especially in areas such as augmentation of capital resources, growth versus financial stability, challenges for enhanced profitability, deposit pricing, cost of credit, maintenance of liquidity standards, and strengthening of risk architecture.

An empirical study of the dimensionality of organizational justice and its relationship with organizational citizenship behaviour in the Indian context

Abstract: Cross-cultural research shows that while the concerns about organizational justice may be universal, operationalization of justice standards is highly particularistic (Greenberg 2001). The present study explores the dimensionality of organizational justice in the Indian context. Apart from procedural justice, interpersonal justice and informational justice, another justice dimension, labelled as empowerment justice, emerged during the study. Next, the study tests the relationships between justice dimensions and Organ's (1988) 5-factor conceptualization of organizational citizenship behaviour (OCB), namely helping, compliance, sportsmanship, courtesy and civic virtue behaviours. The perception of empowerment justice influences helping, compliance, sportsmanship, and civic virtue dimensions of OCB. Interpersonal justice significantly predicts courtesy behaviour. Implications for theory and practice are discussed.

Structuring Work Distribution for Global Product Development Organizations

Abstract: This study describes (through an application) a novel approach toward organizing work distribution across globally distributed design and development centers of a product development (PD) organization. While there exist several studies (and modeling applications) for work distribution and allocation for manufacturing and supply chain networks, those related to product development organizations are limited to qualitative suggestions such as offshoring of modular tasks. However, most PD efforts are characterized by significant complexity in information sharing and information dependency among PD tasks (represented by coupling in the system architecture of the firm), thus preventing the identification of modular tasks. Also, redesigning the architecture to introduce modularity has associated risks of costs and product integrity. We demonstrate a methodology to organize work distribution globally in an industrial setting, utilizing the design structure matrix to quantify the system architecture of the firm. Our optimization results show significant cost savings through a restructured PD organization. On analysis of the results, we make two significant observations: (a) while offshoring based on modularity is generally appropriate, it is not the whole answer, as there exists a trade-off between the efficiency of performing specific PD tasks at the offshore location and the modularity of the task; and (b) firms should successively increase work allocation to the offshore location, benefiting from capability improvements through learning effects.

Informativeness of performance measures and Chinese executive compensation

Abstract: We provide evidence on the use of accounting versus stock market performance measures as determinants of Chinese top managers’ compensation over 2001–2007. We theorize and find that (1) accounting returns are weighted more heavily in general than stock returns in determining top executive compensation, (2) state-owned enterprises (SOEs) rely significantly less on stock market returns than do non-SOEs, (3) firms located in high marketization regions rely more heavily on stock market returns to reward managers, and (4) firms with better internal governance quality rely more on stock returns to reward executives. We discuss our findings with particular reference to the Chinese context of our research.

Effect of Emotional Labor on Emotional Exhaustion and Work Attitudes among Hospitality Employees in India

Abstract: The present research explores the relationship of emotional labor strategies (i.e., surface and deep acting) with emotional exhaustion, organizational commitment, and turnover intentions among employees in the hospitality industry in India. Data were collected from 204 frontline hotel employees representing different departments. The results of the study demonstrate that surface acting is positively related with emotional exhaustion and turnover intentions and negatively related to affective organizational commitment. Moreover, deep acting was observed to have a negative influence on emotional exhaustion. The findings of the study indicate that frequent use of surface acting may have detrimental consequences for employees as well as for the organization. Managerial implications of the study are discussed.

On Posterior Concentration in Misspecified Models

Abstract: We investigate the asymptotic behavior of Bayesian posterior distributions under independent and identically distributed ($i.i.d.$) misspecified models. More specifically, we study the concentration of the posterior distribution on neighborhoods of $f^{\star}$, the density that is closest in the Kullback--Leibler sense to the true model $f_0$. We note, through examples, the need for assumptions beyond the usual Kullback--Leibler support assumption. We then investigate consistency with respect to a general metric under three assumptions, each based on a notion of divergence measure, and then apply these to a weighted $L_1$-metric in convex models and non-convex models. Although a few results on this topic are available, we believe that these are somewhat inaccessible due, in part, to the technicalities and the subtle differences compared to the more familiar well-specified model case. One of our goals is to make some of the available results, especially that of , more accessible. Unlike their paper, our approach does not require construction of test sequences. We also discuss a preliminary extension of the $i.i.d.$ results to the independent but not identically distributed ($i.n.i.d.$) case.

Markets and marketing at the bottom of the pyramid

Abstract: Concern with the role of markets in the lives of the poor has been growing consistently in management and marketing academic communities over the past two decades. Since the publication of CK Prahalad’s HBR article, and bestselling book (Prahalad, 2006; Prahalad and Hammond, 2002), an increasing number of scholars have turned their attention to understanding markets as a means to alleviate poverty and engaging the poor in economic life. The importance of markets and how they are performed is thought to be central to making better and more inclusive societies and to improving the lives of those at the bottom of pyramid (BoP). Indeed, those adopting a market studies approach would argue that ‘building markets is one of the most ordinary ways to produce society’ (Geiger et al., 2014: 1) – putting markets at the centre of the everyday practices of the poor. In concerning ourselves with BoP markets, we assert a very specific aim – to understand how market configurations that take into account the various concerns associated with unfolding economic transactions come about (Chakrabarti and Mason, 2014). Specifically, we start from the premise that (1) consumers cannot consume unless they are able to produce – an activity that generates the means for market engagement and consumption (Karnani, 2007; Viswanathan et al., 2010), (2) market practices are always situated in the particularities of time and place (Kjellberg and Helgesson, 2007) and as such cannot be divorced from histories and associations and (3) the globalisation of trade and markets entangles multiple and complex social–political–economic worlds in chains of practices that stretch across the globe (cf. London and Hart, 2011; Maurer, 2012). This approach calls into question extant conceptualisations of BoP markets as purely economic constructs. As Geiger et al. (2014: 3) explain, ‘Rather than simply replacing or overlaying social bonds with economic transactions, markets initiate a plurality of social relations of a new kind, bearing matters of concern that should be carefully monitored. They invite us neither to reject the economic dynamics of markets nor to try to purify them from any remaining social relations, but rather to search for modalities of organization that are all the more relevant for the implementation of market exchange’, one might add that this is pertinent – in any given BoP context. Indeed, it is notable that market actors often ignore deviant behaviours that result from balancing normative compliance with valuing the role of community in the practice of markets (Christensen et al., 2001; Layton, 2009). Such conceptualisations enable us to ‘…deconstruct the current axiomatic treatment of transaction-centric markets and to reconstruct the market as a socially embedded institution in which community ties are formed and sustained’ (Varman and Costa, 2008: 141). In this brief editorial, we draw on this unfolding understanding of what markets are and how they work to consider how we might re-conceptualise BoP markets, where we might find them and how our concerns about BoP markets are beginning to shape understanding, theorising and action.

Underdeveloped other in country-of-origin theory and practices

Abstract: Consumers and marketers employ extant sociocultural discourses to give meaning to the products they consume or sell. In this paper, we present data and analyses that illustrate the manner by which American consumers and marketers draw upon one such sociocultural discourse, development, in the context of “craft” objects. Beyond the focus on discourse, however, our intent is to apply a post-development perspective to the Otherness inherent in country-of-origin (COO) theory and practices. We critique the COO framework and see it as a ramification of, and further creator of, economic difference and hierarchy.

The transition of childbirth practices among tribal women in Gujarat, India - a grounded theory approach.

Abstract: Under the National Rural Health Mission, the current emphasis is on achieving universal institutional births through incentive schemes as part of reforms related to childbirth in India. There has been rapid progress in achieving this goal. To understand the choices made as well as practices and perceptions related to childbirth amongst tribal women in Gujarat and how these have been influenced by modernity in general and modernity brought in through maternal health policies. A model depicting the transition in childbirth practices amongst tribal women was constructed using the grounded theory approach with; 8 focus groups of women, 5 in depth interviews with traditional birth attendants, women, and service providers and field notes on informal discussions and observations. A transition in childbirth practices across generations was noted, i.e. a shift from home births attended by Traditional Birth Attendants (TBAs) to hospital births. The women and their families both adapted to and shaped this transition through a constant ’trade-off between desirable and essential’- the desirable being a traditional homebirth in secure surroundings and the essential being the survival of mother and baby by going to hospital. This transition was shaped by complex multiple factors: 1) Overall economic growth and access to modern medical care influencing women’s choices, 2) External context in terms of the international maternal health discourses and national policies, especially incentive schemes for promoting institutional deliveries, 3) Socialisation into medical childbirth practices, through exposure to many years of free outreach services for maternal and child health, 4) Loss of self reliance in the community as a consequence of role redefinition and deskilling of the TBAs and 5) Cultural belief that intervention is necessary during childbirth aiding easy acceptance of medical interventions. In resource poor settings where choices are limited and mortality is high, hospital births are perceived as increasing the choices for women, saving lives of mothers and babies, though there is a need for region specific strategies. Modern obstetric technology is utilised and given meanings based on socio-cultural conceptualisations of birth, which need to be considered while designing policies for maternal health.