Showing papers by "Indian Institute of Management Bangalore published in 2010"
TL;DR: In this article, the authors investigate how the social and human capital of entrepreneurs influence their ability to recognize opportunities and mobilize resources and explore the possibilities of social capital mediating between human capital, on the one hand, and opportunity recognition and resource mobilization on the other.
371 citations
TL;DR: In this article, a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak relative to developed countries, is provided.
Abstract: Relatively little is known about the corporate governance practice of firms in emerging markets. We provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, relative to developed countries. We also examine whether there is a cross-sectional relationship between measures of governance and measures of firm performance and find evidence of a positive relationship for an overall governance index and for an index covering shareholder rights. The association is stronger for more profitable firms and firms with stronger growth opportunities.
206 citations
TL;DR: In this article, the authors provide a detailed overview of the practices of publicly traded firms in India, and identify areas where governance practices are relatively strong or weak, and find cross-sectional evidence of a positive relationship between firm market value and an overall governance index, as well as a subindex covering shareholder rights.
177 citations
TL;DR: In this article, the authors identify factors that facilitate and inhibit supplier integration in the context of the Chinese automotive industry, based on a grounded theory approach, where data was collected through 30 detailed case interviews with subsidiaries of foreign automotive companies operating in China.
173 citations
TL;DR: In this article, the authors argue that the concept of liability of foreignness is inadequate to describe the set of disadvantages faced by emerging economy multinational enterprises (MNEs) in international markets.
Abstract: We contend that the concept of liability of foreignness is inadequate to describe the set of disadvantages faced by emerging economy multinational enterprises (MNEs) in international markets. In order to address this theoretical gap, we develop the concept of “liabilities of origin” (LOR). We propose that the concept of LOR explains how the national origins of the MNE shape its disadvantages in international markets through three distinctive contexts of the MNE's ongoing activity: the home country context, the host country context, and the organizational context. We argue that in order to understand how emerging economy MNEs overcome their LOR, we need to engage simultaneously with the theoretical perspectives provided by the institutional entrepreneurship and organizational identity literatures. We suggest, further, that the concept of LOR may be useful to understand the character of MNE disadvantage in any international foray where the national origins of the MNE engender legitimacy-based and capability-based disadvantages for the MNE in a host country.
152 citations
TL;DR: In this article, the authors proposed a positive effect of received word-of-mouth (WOM) referral on service quality perceptions among existing customers and predicted that cultural values moderate this effect.
Abstract: Because of suggested beneficial effects of word-of-mouth (WOM) referral, service companies have invested large amounts of money in customer referral programs as well as programs aimed at fostering positive communication among their existing customers. The question of cross-cultural differences in the effectiveness of WOM has recently gained increased prominence. The authors contribute to research on this topic by proposing a positive effect of received WOM on service quality perceptions among existing customers. Moreover, they predict that cultural values moderate this effect. They test the model on 1910 bank customers in 11 countries. The results show that received WOM has a positive effect on customer service quality perceptions. Furthermore, received WOM has a stronger effect on the evaluation of customers in high-uncertainty-avoidance than in low-uncertainty-avoidance cultures. No other cultural value is a significant moderator. The results imply that received WOM is also important to existing customers and that managers should adjust their strategy of referral marketing to match their target group’s uncertainty-avoidance level.
104 citations
Posted Content•
TL;DR: In this paper, the authors examine how the engagement between Fabindia and communities of handloom artisans in India has persisted over a period of five decades and present a process model that highlights the role of innovative management practices in sustaining engagements between firms and BoP producers over time.
Abstract: Recent research on the Base of the Pyramid (‘BoP’) has called on firms to initiate market-driven interventions directed at the BoP population with the objective of identifying and pursuing mutually profitable means of attaining meaningful poverty alleviation outcomes. In response, firms as well as scholars have engaged at length with the creation of new products and services for the BoP consumer but paid far less attention to the BoP producer – a member of the BoP population who creates value by producing goods and services for sale in non-local markets. Additionally, extant studies have largely focused on snapshot views of BoP interventions by firms, thereby limiting our understanding of the emergence of meaningful poverty-alleviating outcomes over time from these interventions. This paper seeks to redirect attention towards the dynamic of the long-term engagement between the firm and the BoP producer. Using rich case data from Fabindia – an Indian handloom retailer – this paper examines how the engagement between Fabindia and communities of handloom artisans in India has persisted over a period of five decades. We found that, even as it encountered changes in the external environment and pursued newer organizational goals, Fabindia repeatedly renewed its engagement with handloom artisans and facilitated progression in poverty alleviation outcomes. Building on the insights from the case study, this paper presents a process model that highlights the role of innovative management practices in sustaining engagements between firms and BoP producers over time. Additionally, this paper proposes the concept of the ‘bridging enterprise’– a business enterprise that originates at the intersection of specific BoP communities and the corresponding non-local markets – as an interpreter and innovator reconciling the interests of stakeholders across the pyramid.
96 citations
TL;DR: A comprehensive performance measurement framework is developed using the classical and two-stage Value Chain Data Envelopment Analysis models that provide a single efficiency measure that estimates the all-round performance of a PSM function and its contribution to the long term corporate performance in each of these seven industry sectors.
95 citations
TL;DR: In this paper, the authors extend the local view of clusters and emphasize the complementary role of non-local linkages, in particular diasporas, illustrating their model employing the case of the evolution of the Bangalore IT cluster.
94 citations
TL;DR: In this article, customer trust is of vital importance for relationship marketing in services, yet few researchers have addressed differences in customization of service providers' services, and customer trust has not yet been addressed.
Abstract: Customer trust is of vital importance for relationship marketing in services. Service providers increasingly market their services globally, yet few researchers have addressed differences in custom...
94 citations
TL;DR: In this article, the authors examined the economic value of selected ecosystem services of Corbett Tiger Reserve, India, and derived direct and indirect and opportunity costs through socioeconomic surveys, and showed that, though the benefits outweigh costs, they need to be accrued to local communities so as to balance the distribution of benefits and costs.
TL;DR: Ranjana Kumar as mentioned in this paper examines the major issues in the financing of SMEs in the Indian context, such as the information asymmetry facing banks and the efficacy of measures such as credit scoring for SMEs; whether transaction lending would be adequate to address the information issues or would lending have to be based on a relationship with the SME, using both "hard" and "soft" information; and whether the size and origin of the bank affect the availability of credit to SMEs.
Abstract: A major bottleneck to the growth of the vital Indian small and medium enterprises (SME) sector is its lack of adequate access to finance. This paper examines the major issues in the financing of SMEs in the Indian context, such as the information asymmetry facing banks and the efficacy of measures such as credit scoring for SMEs; whether transaction lending would be adequate to address the information issues or would lending have to be based on a relationship with the SME, using both ‘hard’ and ‘soft’ information; and whether the size and origin of the bank affect the availability of credit to SMEs. Ranjana Kumar, a prominent Indian banker who also served, till recently, as the Vigilance Commissioner in the Central Vigilance Commission, speaks on some aspects that are raised in the paper, such as the importance of the credit appraisal and risk assessment processes in today’s banking landscape and the role that banks can play in developing the SME sector in India.
Posted Content•
TL;DR: In this article, the authors re-examine the use of the investment-cash flow sensitivity as a measure of financing constraints of firms by analyzing firms affiliated to Indian business groups, and find a strong investment- cash flow sensitivity for both group- affiliated and independent firms, but no significant difference in the sensitivity between them.
Abstract: A controversy exists on the use of the investment – cash flow sensitivity as a measure of financing constraints of firms. We re-examine this controversy by analyzing firms affiliated to Indian business groups. We find a strong investment – cash flow sensitivity for both group-affiliated and independent firms, but no significant difference in the sensitivity between them. Additional tests consistently demonstrate that investment – cash flow sensitivity of Indian group affiliated firms is not significantly lower relative to unaffiliated firms.
TL;DR: In this paper, the authors examined the impact of gendered access to credit on labor allocation patterns within the household and found that the impact depends upon both the gender of the recipient and whether it is formal or informal credit.
TL;DR: In this paper, a semi-structured interview method was used to examine repatriated employees' views about HR activities that facilitate and hinder the repatriation process in the emerging economy of India, where respondents described lack of formal repatriation assistance, no contact person in HR to help with repatriation, and lack of re-entry culture-related training as characteristic of the process.
Abstract: As employees' international mobility has increased, implementing repatriation processes has become a significant human resource (HR) issue. Through an exploratory study using a semi-structured interview method, we examine repatriated employees' views about HR activities that facilitate and hinder the repatriation process in the emerging economy of India. Respondents described lack of formal repatriation assistance, no contact person in HR to help with repatriation, and lack of re-entry culture-related training as characteristic of the repatriation process. Managing employees' expectations, along with creating a more sensitive, structured, and strategic HR function, are recommended to improve the repatriation process. From a theoretical perspective, results point to the multi-dimensionality of the repatriation construct and provide evidence of the context-specificity of HR practices. © 2010 Wiley Periodicals, Inc.
TL;DR: It is suggested that the research and practice in HR and IT fields may have to focus onHR and IT capabilities rather than HR practices or IT investments as the sources of sustainable competitive advantage since capabilities better fit the definition of a ‘resource’ thanHR practices orIT investments.
Abstract: The main premise of this article is that human resources (HR) and information technologies (IT) are central rather than support functions in knowledge-intensive services. By building management capabilities in both HR and IT, knowledge-intensive services can transform their business processes that, in turn, enable them to provide exemplary services to the customers. Our arguments are grounded in the three related theoretical frameworks of the resource-based view, organizational capabilities, and the theory of complementarities. We suggest that the research and practice in HR and IT fields may have to focus on HR and IT capabilities rather than HR practices or IT investments as the sources of sustainable competitive advantage since capabilities better fit the definition of a ‘resource’ than HR practices or IT investments. Further, organizational capabilities in both HR and IT may enable knowledge-intensive services to transcend the inherent tradeoff between cost and responsiveness. We also discuss the role...
TL;DR: This work uses the skew-normal/independent (SNI) distribution as a tool for modeling clustered data with bivariate non-normal responses in an LMM framework and assumes that the random effects follow multivariate SNI distributions and the random errors follow SNI distribution which provides substantial robustness over the symmetric normal process in anLMM framework.
Abstract: Bivariate clustered (correlated) data often encountered in epidemiological and clinical research are routinely analyzed under a linear mixed model framework with underlying normality assumptions of the random effects and within-subject errors. However, such normality assumptions might be questionable if the data-set particularly exhibit skewness and heavy tails. Using a Bayesian paradigm, we use the skew-normal/independent (SNI) distribution as a tool for modeling clustered data with bivariate non-normal responses in a linear mixed model framework. The SNI distribution is an attractive class of asymmetric thick-tailed parametric structure which includes the skew-normal distribution as a special case. We assume that the random effects follows multivariate skew-normal/independent distributions and the random errors follow symmetric normal/independent distributions which provides substantial robustness over the symmetric normal process in a linear mixed model framework. Specific distributions obtained as special cases, viz. the skew-t, the skew-slash and the skew-contaminated normal distributions are compared, along with the default skew-normal density. The methodology is illustrated through an application to a real data which records the periodontal health status of an interesting population using periodontal pocket depth (PPD) and clinical attachment level (CAL).
TL;DR: In this paper, the authors explore how employees with physical disabilities and their human resource managers perceive practices aimed at entry, integration, and development of disabled employees and find that both sets of respondents want to treat people with disabilities as "regular" employees and take attention away from disability.
Abstract: In the present paper we explore how employees with physical disabilities and their human resource managers perceive practices aimed at entry, integration, and development of disabled employees. The results indicate that both sets of respondents want to treat people with disabilities as ‘regular’ employees and take attention away from disability. The results also indicate that employees would like to get additional help, but are afraid to ask. Employers do not offer additional support unless asked, not wanting to highlight the disability given fears of stigmatisation. Given this reluctance from both employees and employers, it is possible that people with disabilities remain an underutilised resource.
TL;DR: In this article, the authors have developed mathematical models that can be used to calculate the impact of various obsolescence mitigation strategies on the Total Cost of Ownership (TCO) of a system.
TL;DR: This paper explored the joint effects of the severity of the unintended consequences of norm violations and the strength of external pressure to violate norms on attributions of responsibility in two cultures, and found that the two cultures had diverging reactions to mounting peer pressure as an excuse.
TL;DR: In this paper, the impact of the yoga way of life on EI using data collected from 60 managers in a business enterprise and reports enhanced EI as a result of the practice of yoga.
Abstract: The popular perception that a high intelligence quotient (IQ) is not necessarily a good predictor of professional and personal success has led to a growing interest in understanding the role of emotional intelligence (EI) in improving the performance of business managers This paper studies the impact of the yoga way of life on EI using data collected from 60 managers in a business enterprise and reports enhanced EI as a result of the practice of yoga The results indicate the importance of yoga as an integral element in improving managerial performance in organisations and the need to further explore this construct in greater detail
TL;DR: This paper proposes a semiparametric Bayesian approach to multivariate longitudinal data using a mixture of Polya trees prior distribution to address the limitations of the parametric random effects distribution.
Abstract: We extend the standard multivariate mixed model by incorporating a smooth time effect and relaxing distributional assumptions. We propose a semiparametric Bayesian approach to multivariate longitudinal data using a mixture of Polya trees prior distribution. Usually, the distribution of random effects in a longitudinal data model is assumed to be Gaussian. However, the normality assumption may be suspect, particularly if the estimated longitudinal trajectory parameters exhibit multimodality and skewness. In this paper we propose a mixture of Polya trees prior density to address the limitations of the parametric random effects distribution. We illustrate the methodology by analyzing data from a recent HIV-AIDS study.
TL;DR: In this article, the impact of quantity discounts and transportation cost structures on procurement, shipment and clearance pricing decisions through a stochastic programming with recourse formulation is studied, and a solution procedure is proposed to efficiently solve this non-linear problem.
TL;DR: This article developed and assessed a personal value system from the ancient texts of India, which described a system of existential beliefs and values or prescriptive beliefs, and a conceptual model of the belief system is developed.
Abstract: Research on values is extensive. Values and value systems are concepts that have interested researchers across domains such as psychology, sociology, and anthropology. However, antecedents of values have not received sufficient attention. In this study, we develop and assess a personal value system from the ancient texts of India. The texts describe a system of existential beliefs and values or prescriptive beliefs. Existential beliefs are concerned with the nature of reality. Prescriptive beliefs or values follow from these existential beliefs, and behavior is influenced by values. The content of existential beliefs and the implied values or prescriptive beliefs are extracted from the texts and a conceptual model of the belief system is developed. Scales are constructed and administered to a sample of subjects. Responses from the survey are analyzed using a structural equation modeling framework. Confirmatory factor analysis is used to assess the scales and establish their adequacy. The nomological net of existential beliefs and values is empirically assessed, and construct validity is examined. Results support the belief system described in the texts.
TL;DR: The long-term strategic measures by a section of innovative firms that foresaw the implications from competitive forces of globalization and a change in the regulatory environment have sphereheaded the technical change, increasing the technical and productivity gains in the Indian pharmaceutical industry.
Abstract: We study the productivity change and factors driving this change in the Indian pharmaceutical industry during 1994–2003, in the backdrop of economic liberalization and change in regulatory norms. We use a non parametric Data Envelopment based-methodology to estimate productivity change and decompose it into technical and relative efficiency changes. We find that, the long-term strategic measures by a section of innovative firms that foresaw the implications from competitive forces of globalization and a change in the regulatory environment have sphereheaded the technical change. Consequently, few innovative firms, characterized by greater R&D investments, transition into higher value-added products and businesses as a step towards more technically sophisticated new drug development have pushed the production frontier, increasing the technical and productivity gains. The higher technical and R&D capabilities and wider new product portfolios of multinational companies also have contributed to the positive technical and productivity changes in the Indian pharmaceutical industry.
TL;DR: It is found that the correlation between the ranking of hedge fund strategies based on Sharpe ratio and the DEA models is very low; at the same time, there is a significant correlation between rankings obtained by the application of DEA using different sets of input/output measures.
Abstract: Hedge funds have made a significant impact on the performance of world financial markets in recent times. Our objective in this paper is to develop a robust framework for the evaluation of hedge funds by incorporating a maximum number of performance measures through public data sources. We analyse the hedge fund strategies (styles) using a variety of classical risk-return measures with the help of slack-based Data Envelopment Analysis (DEA) models to determine a unique performance indicator. The main thrust is to investigate the risk return profile of 4730 hedge funds classified under 18 different strategies using multiple inputs and outputs. The originality of the work lies in applying Slack-Based DEA to decipher the risk-return profile of these strategies using advanced risk-return measures such as Value at Risk, drawdown, lower and higher partial moments and skewness. We find that the correlation between the ranking of hedge fund strategies based on Sharpe ratio and the DEA models is very low; at the same time, there is a significant correlation between rankings obtained by the application of DEA using different sets of input/output measures. We have also compared the DEA rankings with other traditional financial ratios such as modified Sharpe ratio, Sortino ratio and Calmar ratio. The paper also studies the impact of events such as the Asian financial crisis on the performance of hedge funds. The study around the event shows that only a relatively small number of strategies performed better during times of turmoil.
TL;DR: In this article, the inventory replenishment of a product whose demand can be manipulated by restricting the supply is studied and the optimal policy is characterized as a state-dependent, monotone, base-stock policy.
Abstract: We study the inventory replenishment of a product whose demand can be manipulated by restricting the supply. This research is motivated by a novel marketing tactic employed by manufacturers of fashion and luxury items. Such a tactic combines innovative marketing with deliberate understocking in an attempt to create shortages (i.e., waitlists) that add to the allure and sense of exclusivity of a product and stimulate its demand. We model the problem as a finite-horizon, periodic-review system where demand in each period is a decreasing function of the net ending inventory in the previous period. Although the optimal structure can be complex in general, under certain conditions we are able to characterize the optimal policy as a state-dependent, monotone, base-stock policy. We compare this policy with the optimal policy for the case in which demand is independent of the net inventory. We also show that understocking is optimal in various scenarios. We then propose a novel strategy, called the inventory-withholding strategy, to further explore the wait-list effect by making customers wait even when there is inventory on hand to satisfy them. Our numerical experiments study the impact of various model parameters in combination with the wait-list effect on the optimal policy and the corresponding expected profits.
TL;DR: This paper developed a formal framework to investigate the relationship between ecological economics' concept of scale, and the more traditional concerns of allocation, and distribution, and developed a simple dynamic model relating these three efficiencies.
29 Aug 2010
TL;DR: It is suggested that political neutrality may be an effective and appropriate strategy for India's upper and middle classes in the pursuit of their policy agendas.
Abstract: India has recently witnessed various initiatives that harness information and communication technologies (ICTs) to promote electoral reform and political mobilization. These efforts have been initiated mainly by non governmental organizations drawn from India's urban, English-speaking, upper and middle classes. These efforts have been focused on nonpartisan process improvements or short-lived political mobilization with limited success. We analyze these initiatives against the backdrop of modern India's political evolution which has seen the marginalization of upper and middle classes in politics. We see technology as central to the re-engagement of ICT-savvy upper and middle classes with the political sphere. We suggest that political neutrality may be an effective and appropriate strategy for India's upper and middle classes in the pursuit of their policy agendas.
TL;DR: This study identifies important factors that will enable law enforcement agencies to reach the first step in effective prosecution, namely charge-sheeting of the cybercrime cases.
Abstract: With increased access to computers across the world, cybercrime is becoming a major challenge to law enforcement agencies. Cybercrime investigation in India is in its infancy and there has been limited success in prosecuting the offenders; therefore, a need to understand and strengthen the existing investigation methods and systems for controlling cybercrimes is greatly needed. This study identifies important factors that will enable law enforcement agencies to reach the first step in effective prosecution, namely charge-sheeting of the cybercrime cases. Data on 300 cybercrime cases covering a number of demographic, technical and other variables related to cybercrime was analyzed using data mining techniques to identify and prioritize various factors leading to filing of the charge-sheet. These factors and the respective priority rankings are used to suggest various policy measures for improving the success rate of prosecution of cybercrimes.