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.

Evolution of the Bangalore ICT Cluster: A Stage-Theory Based on Crystal-Growth Model (Full Version)

Abstract: Through a longitudinal analysis of Bangalore’s development over two centuries leading to its present status as Asia’s largest ICT cluster, it is observed that cluster-development is primarily a function of the entrepreneurial activities of people rather than a of an ‘ecosystem’ created by certain enterprise-supporting elements such as physical and communication infrastructure, R&D institutions, venture capital companies, education and training institutions, etc. In fact, the so-called ecosystem is more often a consequence of cluster development rather than its cause. The process of cluster-development is explained through an analogy of the chemical process of crystal-growth, whereby the stages of cluster-development are identified as: Incubation, Nucleation, Agglomeration, and Attrition. A major factor stimulating the development of a region and its people is found to be their interaction with other cultures on a continuous basis. The paper therefore proposes inter-cultural interaction as a pre-requisite for development of people and regions.

Evaluating Emerging Indian Retail Scenario: Consumer Preferences, Perceived Risks, and Uncertainties – Store Brands vs. National Brands

Abstract: Globalization seems to have achieved ultimate penetration—the plethora of choice a consumer faces in any given product or service is only a testament to the fact. Worldwide, consumers are presented the options to choose between store brands (or generic/local brands, as they are sometimes known) and national brands. The choices consumers make are reflective of their perceptions about either brand and thus provide an insight into the perceived risks that consumers associate with store or national brands. This risk creates an uncertainty of consumer base and threatens the stability of market shares for brands. The chapter aims to study the various perceived risks consumers associate with brands across two product categories: consumer goods and hedonic goods. Consequently, solutions to change consumer perceptions or brand strategies have been provided so that brands may be able to reduce perceived risk associated with themselves and create a stable consumer base.

Sustainable Development Through ICT: The Need for Entrepreneurial Action

Abstract: The emergence and wide-spread use of Information and Communication Technology (ICT) in various fields is considered (rightly so) the most powerful tool for achieving the developmental objectives of the world’s poorest regions. However, a review of the ICT projects in the less developed regions has shown that most of such projects have not survived beyond their ‘sponsor-supported’ life. Further reviews of the literature and the study of two illustrative cases of successful ICT projects – one from the private and the other from the public sector – have brought out a few essential ingredients necessary for the effective use of ICT for sustainable development, which are identified as: entrepreneurial action, feasible revenue model, felt need for the project/technology, involvement of the user-community, pilot start-up on a small scale, and technical support on a continuous basis. One of the oft-neglected implications of these findings is that the implementation of a new technology should be preceded by the development of the general capabilities of the people in the region, so that they would be able to make effective use of the new technology beyond the initial period of sponsor-support.

Sequential Grid Computing: Models and Computational Experiments

Abstract: Through recent technical advances, multiple resources can be connected to provide a computing grid for processing computationally intensive applications. We build on an approach, termed sequential grid computing, that takes advantage of idle processing power by routing jobs that require lengthy processing through a sequence of processors. We present two models that solve the static and dynamic versions of the sequential grid scheduling problem for a single job. In the static and dynamic versions, the model maximizes a reward function tied to the probability of completion within service-level agreement parameters. In the dynamic version, the static model is modified to accommodate real-time deviations from the plan. We then extend the static model to accommodate multiple jobs. Extensive computational experiments highlight situations (a) where the models provide improvements over scheduling the job on a single processor and (b) where certain factors affect the quality of solutions obtained.

Power Struggles, Tunneling Incentives, and Investment Efficiency in Diversified Business Groups

Abstract: Unlike conglomerates in the U.S., where investment flows may be distorted due to power struggles (Rajan, Servaes, and Zingales (2000)), we find that diversified business groups in India, on average, invest efficiently. Our analysis controls for the possibility of tunneling (Bertrand, Mehta, and Mullainathan (2002)) and examines firm level as well as group level investment flows. At the firm level, we find that investment flows are consistent with the Efficient Internal Capital Markets Hypothesis and incentives for investment distortion due to power struggles do not exist. We also find that investment flow (in the “right direction”) increases with diversity in resource-weighted opportunities among those group-firms that have high resources attached to them, suggesting that the allocation of resources is consistent with the Efficient Internal Capital Markets Hypothesis where it matters more.At the firm level, we also find that investments flow from group-firms where the controlling family holds low cash flow rights to firms where the controlling family holds high cash flow rights suggesting tunneling. However, we find that it is only in the group-firms with low growth opportunities that investment flows are related to diversity in cash flow rights, as predicted by the Tunneling Hypothesis. Again, where it matters more (group-firms with high growth opportunities), investment decision making in business groups is consistent with the Efficient Internal Capital Markets Hypothesis. We also find that the presence of relational contracts in business groups mitigates the adverse effects of tunneling incentives, consistent with the internal governance argument in Acharya, Myers, and Rajan (2011).Overall at the group level, our results suggest that investment distortions due to power struggles and tunneling are swamped by efficiency considerations, and investment decisions in diversified business groups are largely consistent with Efficient Internal Capital Markets Hypothesis.