Indian Institute of Management Bangalore

About: Indian Institute of Management Bangalore is a education organization based out in Bengaluru, Karnataka, India. It is known for research contribution in the topics: Emerging markets & Corporate governance. The organization has 491 authors who have published 1254 publications receiving 23853 citations. The organization is also known as: IIMB.

Redistribution of Economic Resources due to Conflict: The Maoist Uprising in Nepal

Abstract: Nepal has seen a significant reduction in poverty over the period 1995{2010 which encompasses the decade-long Maoist-led civil war. So was the post-conflict provision of economic resources to districts related to their involvement in promoting the Maoist cause? We tackle this question combining theory and empirics. Our model predicts that poorer districts are more likely to support the Maoists and in return they get promised economic gains conditional on the Maoists prevailing post-conflict. Combining data on conflict with consumption expenditure data from the Nepal Living Standards Survey and data on foreign aid, we test these predictions. Our panel data estimates and our cross-sectional analysis consistently find strong support for our hypotheses. These are confirmed by the IV analysis that we perform at the panel level.

Self Confidence Spillovers, Status and Motivated Beliefs

Abstract: Is success in a task used strategically by individuals to motivate their beliefs prior to taking action in a subsequent, unrelated, task? Also, is the distortion of beliefs reinforced for individuals who have lower status in society? Conducting an artefactual field experiment in India, we show that success when competing in a task increases the performers' self-confidence and competitiveness in the subsequent task. We also find that such spillovers affect the self-confidence of low-status individuals more than that of high-status individuals. Receiving good news under Affirmative Action, however, boosts confidence across tasks regardless of the caste status.

Effective Democracy, Economic Growth and Attractiveness to Foreign Investment

Abstract: Democratization should make locations more favourable for MNEs internationalizing. Yet the association of democracy with economic growth and foreign investment remains inconclusive. Contrary to and in response to literature, we show that dichotomous and rules-based democracy measures have a U-shaped relation with GDP and FDI. We thus, create a novel index of effective democracy that is continuous and uses rules weighted by implementation. We then show a clear positive linear association of effective democracy with both GDP and FDI. This provides policy stakeholders a more robust way forward in understanding democratization. It also explains the MNE location choice decision better.

Determinants of Mode of Technology Acquisition: An Integrated Framework

Abstract: It is widely recognized in the technology strategy literature that firms cannot develop all the required technology by themselves. Other than performing in-house R&D, firms can acquire technology through various modes like technology licensing, R&D contracting, R&D joint venture, technology mergers and acquisition and others. In this paper, we combine transaction cost theory and knowledge based view to propose a framework on how firms choose among different modes for acquiring technology. We argue that the level of transaction costs involved in the acquisition and the degree of familiarity with the acquiring technology together determines the optimal technology acquisition mode. We also extend this basic framework to show how the optimal mode of acquisition dynamically changes with time due to uncertainty reduction and organizational learning.

Business Groups and Profit Redistribution: A Boon or Bane for Firms?

Abstract: This study examines the phenomenon of profit redistribution among group-affiliated firms and relates it with corporate performance. It finds that group-affiliated firms perform poorly relative to independent firms. More importantly, the study documents the possibility of inefficient profit redistribution causing group-affiliated firms to underperform. Profit redistribution is also documented to be more pronounced for groups of larger size and greater corporate control. The underperformance of affiliated firms persists even after controlling for other explanations such as diversification and resource transfers to unlisted firms. The results of the study lend support for the inefficient profit redistribution explanation of the 'business group discount'.