Showing papers in "Iimb Management Review in 2011"

Sustainable supply chain management: Review and research opportunities

Abstract: Anthropogenic emissions likely pose serious threat to the stability of our environment; immediate actions are required to change the way the earth’s resources are consumed. Among the many approaches to mitigation of environmental deterioration being considered, the processes for designing, sourcing, producing and distributing products in global markets play a central role. Considerable research effort is being devoted to understanding how organisational initiatives and government policies can be structured to facilitate incorporation of sustainability into design and management of entire supply chain. In this paper, we review the current state of academic research in sustainable supply chain management, and provide a discussion of future direction and research opportunities in this field. We develop an integrative framework summarising the existing literature under four broad categories: (i) strategic considerations; (ii) decisions at functional interfaces; (iii) regulation and government policies; and (iv) integrative models and decision support tools. We aim to provide managers and industry practitioners with a nuanced understanding of issues and trade-offs involved in making decisions related to sustainable supply chain management. We conclude the paper by discussing environmental initiatives in India and the relevance of sustainability discussions in the context of the Indian economy.

Work–family balance of Indian women software professionals: A qualitative study

Abstract: One of the significant changes witnessed in the labour markets in India has been the entry of women IT professionals in the rapidly growing software services sector. As the women take on the role of working professional in addition to their traditional role of the homemaker, they are under great pressure to balance their work and personal lives. This study attempts to understand how work and family related factors influence the work–family balance of Indian women IT professionals. The study is based on an exploratory qualitative study of 13 women IT professionals in the software sector in Bangalore, India. The narratives reveal six major themes: familial influences on life choices; multi-role responsibilities and attempts to negotiate them; self and professional identity; work–life challenges and coping strategies; organisational policies and practices; and social support.

The digital divide in rural South Asia: Survey evidence from Bangladesh, Nepal and Sri Lanka *

Abstract: This paper examines bridging the digital divide through organisational innovations that provide low cost Internet access in developing countries, within the existing conditions of income levels. We use survey data from three South Asian countries, Bangladesh, Nepal and Sri Lanka, to examine factors influencing patterns of computer and Internet use. We find that education plays a key role, in terms of its acquisition as a reason for computer and Internet use, and as an enabling variable (especially in the case of English language knowledge).

A taxonomy of supervisor–subordinate exchanges across cultures

Abstract: Major concerns, both theoretical and methodological, have been raised about the adequacy of the leader-member exchange (LMX) theory, the existing model on supervisor–subordinate exchanges. This paper seeks to overcome three main theoretical shortcomings of the LMX theory as documented in past research. First, that the LMX theory does not describe the exchange process sufficiently, and second, that it does not capture the cross-cultural influences on supervisor–subordinate exchanges. This paper deals with these weaknesses by providing a comprehensive description of supervisor–subordinate exchanges across cultures using two theoretical frameworks, Fiske’s relational theory and Triandis’s cultural syndromes. A third problem with the LMX theory is that it assumes all close relationships between supervisors and subordinates to be beneficial for the organisation. However, a stream of research has emerged that documents the downside of close relationships between supervisors and their subordinates. Utilising a recent cross-cultural framework on cronyism, this paper sheds light on the dysfunctional organisational consequences of close relationships between supervisors and their subordinates across cultures.

The choice between public and private debt: A survey

Abstract: We survey the major theoretical and empirical findings of the research on the firm’s choice between public and private debt, and on the subsequent decision between bank and non-bank private debt. First, we review information-based theories, where banks are information producers, keep the firm’s private information confidential, or monitor the firm’s actions after the loan. We then review models where banks’ advantage over public lenders is in their superior ability to liquidate the firm or renegotiate loan contract terms in the event of financial distress. Finally, we review the evidence on firms’ use of different types of private debt.

Exploring the role of business in society

Abstract: Of late the idea that business is a ‘force for the good of society’ has come under scrutiny. The conventional view that as long as businesses act legally and ethically, they need not concern themselves with larger social goals is now being challenged the world over. Businesses are more conscious of the environment and sustainability, or of possible adverse impacts on society and consumers. In India, liberalisation in the 1990s led to Indian business becoming globally competitive. However, impressive growth rates have been accompanied by a growing gap between the rich and the poor. This has brought into sharp focus the role of business in society and the crucial question; to whom does the wealth created belong? Scholarly and practitioner perspectives on the subject are followed by a round table discussion with a panel of entrepreneurs from the corporate sector and leaders of civil society debating on several contentious issues.

Factors Affecting the Adoption of Supply Chain Management Practices: Evidence from the Brazilian Electro-electronic Sector

Abstract: This study on the factors affecting the adoption of supply chain management (SCM) practices develops four hypotheses based on a literature review, and tests them using survey data of Brazilian electro-electronic firms. The results reveal the big picture of the SCM practices in the sector and suggest that contextual factors such as size, position and bargaining power affect the adoption of SCM practices, which are also more customer oriented. Sector characteristics are very important in analysing SCM practices. Contrary to the findings of literature, the relationship between competitive priorities and SCM practices was not supported statistically.

Designing a sustainable business model for e-governance embedded rural telecentres (EGERT) in India

Abstract: An effective inclusive growth model for rural areas in India will have to be driven by information and communication technology (ICT), and telecentres (places where shared access to ICT and enabled services are available) are the potential instruments of rural information and empowerment. Realising this, the Government of India has under its National e-Governance Plan, committed to the setting up of 250,000 common service centres in rural India. However, the experience with the roll out of this plan has not been encouraging as many of the centres are closing down due to the weak business model. The first part of this article, the academic perspective, suggests an alternative model for rural telecentres, the e-governance embedded rural telecentres (EGERT), in which e-governance is an important service to be provided, and details the contentious issues clustered round the role of the government; the viability of partnership models with the private and NGO sectors; the institutional design for rural telecentres; the services to be rendered by the centres and the likely markets for them; the location of the centres and support in the form of infrastructure and manpower; and the technology to support the institutional design. Stakeholder representatives from the government, the industry, the NGO sector and the academia discuss these issues in the second part of the article, and make suggestions towards a viable model for service.

Exploring perceived organisational formalisation and performance review system complexity as predictors of executive alienation in performance review systems

Abstract: A number of discussions in organisation literature have focused on the alienating effect of formalisation on managerial as well as non-managerial employees. Most of the research studies have found support for the direct influence of formalisation on alienation, both positively as well as negatively. A few studies have found that formalisation did not have a direct influence on alienation but through the effects of other variables like role conflict, role ambiguity and organisational identification. We examined whether perceived performance review system complexity would predict variance in executive alienation beyond that predicted by perceived organisational formalisation in earlier studies. A total of 477 executives participated in a study that examined the factors associated with executive alienation. The outcome of our assessment shows that while there is no significant direct influence of perceived organisational formalisation on executive alienation, it has an indirect effect on executive alienation through perceived performance review system complexity. Based on the outcome, we discuss the implications for future research and practice.

Woman power in Corporate India In conversation with Kiran Mazumdar Shaw, Chairperson & MD, Biocon ltd

Abstract: In this article, an analysis of data on women directors on the boards of Indian companies is followed by an interview with a first generation woman entrepreneur, Kiran Mazumdar Shaw, head of the bio-pharma company, Biocon Ltd. Empirical evidence suggests that though women directors on Indian corporate boards show an increase both in numbers and in percentage terms, they are very much behind men. Women are also less well represented on Indian corporate boards as compared to other countries. Family ties, public sector employment and private sector banks are major sources of directorships for women. There are very few first generation women entrepreneurs in India. Though initial thresholds are higher for women to achieve success, the problems they face afterwards are similar to problems faced by successful men. India has a long way to go before women can catch up with men in the corporate world.

The impact of unit cost reductions on gross profit: Increasing or decreasing returns?

Abstract: We suggest that marketers actively participate in reducing unit costs during new product development, consistent with the theme of integrated marketing and manufacturing. Most marketing managers misjudge the impact on gross profit of reducing variable unit manufacturing costs, mistakenly believing that such cost reductions yield decreasing or linear returns while they actually generate increasing returns.

How do new ventures in MNC ecosystems proactively overcome interfirm asymmetries

Abstract: Several contemporary large multinational corporations (MNCs) have developed interfirm ecosystems that are likely to attract a heterogeneous set of actors, including new ventures. New ventures are asymmetric vis-a-vis the focal MNC in terms of organisational size, structure and power which could be an impediment to the development of social capital between these sets of firms. And yet MNCs are potentially a source of novel information, opportunities and ideas. An interesting question to consider therefore is how new ventures overcome interfirm asymmetries to develop and leverage social capital with large MNCs. Our synthesis of the academic literature suggests that some new ventures are more adept than others at partnering with MNCs because they are more proactive in forming and leveraging interfirm ties with large MNCs. Insightful observations of four panellists shed light on how startups’ proactive behaviours can be vitally important in forming, consolidating and extending relationships with large MNCs.

Non-linear growth: The road ahead for Indian IT outsourcing companies: The Infosys experience: In conversation with S. Gopalakrishnan, CEO and MD, Infosys Technologies

Abstract: Indian IT outsourcing companies (major among them being the SWITCH companies -- Satyam, Wipro, Infosys, TCS, Cognizant and HCL) grew rapidly for more than a decade on low cost business process and IT outsourcing. With the bigger companies already reaching a high of 100,000 employees, they are now turning their attention to non-linear revenue (i.e. revenue less dependent on numbers or greater revenue earned per employee). For this they need to pursue ‘disruptive’ strategies which are distinctly different from the ‘incremental’ initiatives they adopted in the past to maintain linear revenue. This paper first outlines the disruptive and the incremental initiatives of the SWITCH companies and the road ahead for them. This is followed by an interview with S Gopalakrishnan, CEO and MD, Infosys Technologies who discusses the non-linear initiatives of the company and the challenges it faces in the field.

Exploring Chinese cultural standards through the lens of German managers: A case study approach

Abstract: The ability to understand one’s own culture and to deal with specificities of foreign cultures is one of the core requirements in today’s international business. Management skills are partially culture specific and a management approach that is appropriate in one cultural context may not be appropriate in another. Several business activities of companies nowadays take place abroad, which requires managers to interact with different cultures. This paper aims to analyse cultural characteristics, especially in a Sino-German business context. Based on literature analysis and case study research, relevant cultural standards in China were identified from the German perspective. The result differentiates three superordinate cultural areas and five specific cultural standards and analyses different influence factors on the dimensions of the identified Chinese cultural standards.

Predicting unwillingness to report ethical infractions of peers: A moderated mediation approach

Abstract: In recent times, survey reports on ethical infractions at workplaces and instances of fraud have shocked and disappointed the corporate world and stakeholders alike Several infractions however go unreported even in organisations which have ethical codes that offer a mechanism for reporting This raises the question as to why employees pass off infractions as being ‘all right’ at work and how such attitudes affect their willingness to report and thereby curtail infractions We posit organisational antecedents that may dissuade managers from reporting the ethical infractions of their peers and develop a moderated mediation model to explain which employees are more likely to refrain from reporting infractions, besides offering a possible solution to the problem

Revenue generation in the information era: Opportunities and challenges

Abstract: In an information economy, innovative revenue generating models are as critical for the sustenance of a firm as is bringing cutting edge technology to the market. In its first part, this article surveys the characteristics of the information goods market and identifies the opportunities and challenges that the information era presents. Further, it surveys the existing business models for information goods and maps them to the market characteristics to arrive at the viability of these models. The second part of the article presents the views and experiences of a panel of practitioners who face these challenges in the field of information goods.

Corporate governance survey: A holistic view for altruistic practice: Corporate governance practice: Interview with N R Narayana Murthy, founder, Infosys Technologies

Abstract: Taking a holistic approach, this survey paper first reviews the literature on the four pillars of corporate governance, namely, investors, managers, directors, and law and regulation, and then integrates the four components to achieve a unified framework. Attempting to bridge the gap between principles and practice, the paper also incorporates the views of N R Narayana Murthy, founder member of Infosys, one of the most respected corporate governance practice leaders. The emphasis in Infosys, Mr. Murthy revealed, was not on any of the four dimensions but on the value system, ethics and integrity, and the focus on the competition was through better engagement with employees and customers.

Non-linear growth: The road ahead for Indian IT outsourcing companies

Abstract: India-centric IT services companies (major among them being the SWITCH companies -- Satyam, Wipro, Infosys, TCS, Cognizant and HCL) grew rapidly for more than a decade by providing low cost, high quality business process and IT outsourcing services. With the bigger companies already crossing the 100,000-employee mark, they are now turning their attention to non-linear revenue (i.e. revenue less dependent on the number of employees or greater revenue earned per employee). For this, they need to pursue ‘disruptive’ strategies which are distinctly different from the ‘incremental’ initiatives they adopted in the past to maintain linear revenue. This paper first outlines the disruptive and the incremental initiatives of the SWITCH companies and the road ahead for them. This is followed by an interview with R Chandrasekaran, President and MD, Global Delivery, Cognizant, who discusses Cognizant’s key operating principles – which include customer-centricity, their unique Two-in-a-Box operating model and their emphasis on working together with clients to make their businesses stronger – and how they have contributed to the company’s spectacular growth story.

An Exploration into the Home Field, Global Advantage and Liability of Unfamiliarness Hypotheses in Multinational Banking

Abstract: This paper seeks to expand the efficiency paradigm of the eclectic theory in multinational banking within the context of a developing country banking sector. We employ the Data Envelopment Analysis (DEA) method to examine the efficiency of multinational banks operating in the Malaysian banking sector from 1995 to 2007. We then employ the panel regression analysis to examine the impact of origins on bank efficiency. We find foreign banks from North America to be the most efficient banking group, providing support to the ‘limited form’ of the global advantage hypothesis. On the other hand, we do not find evidence on both the liability of unfamiliarness and home field advantage hypotheses.

Market-Implied Risk-Neutral Probabilities, Actual Probabilities, Credit Risk and News

Abstract: Motivated by the credit crisis, this paper investigates links between risk-neutral probabilities of default implied by markets (e.g. from yield spreads) and their actual counterparts (e.g. from ratings). It discusses differences between the two and clarifies underlying economic intuition using simple representations of credit risk pricing. Observed large differences across bonds in the ratio of the two probabilities are shown to imply that apparently safer securities can be more sensitive to news.