Indian Management Research

Mitali Sarkar

features summary of articles published in Indian and international journals with special emphasis on India and other emerging markets.

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Finance, Accounting, and Banking
1. 2. 3. 4. Reforming Venture Capital in India Why Good Accountants do Bad Audits Market Microstructure: A Practitioner ’s Guide Corporate Reputation and Sustained Superior Financial Performance Is Performance Driven by Industry-or Firm-specific Factors? Cardholders’ Attitude and Bank Credit Card Usage in Malaysia

Human Resource Management
19. What Happens After Working Part Time? 20. Using Profit Sharing to Enhance Employee Attitudes 21. A Model of Organizational Justice and Workplace Aggression 22. Compliance, Collaboration, and Codes of Labor Practice 23. Causes and Consequences of Declining Early Departures from Foreign Assignments 24. More is Not Necessarily Better: The Relationship between the Quantity and Quality of Training Efforts

35. Cross-Cultural Software Production and Use 36. Inter-Organizational Trust in Business-to-Business E-commerce

General Management
37. Strategic Planning, Hypercompetition, and Knowledge Management 38. Global Management Concepts and Local Adaptations 39. The Choice Between Joint Venture and Wholly Owned Subsidiary 40. Perceived Fairness, Decision Control, and Commitment in International Joint Venture Management Teams 41. Configurations of International Joint Ventures 42. The Empire Strikes Back

5. 6.

Marketing and Advertising
7. Rethinking Marketing Programs for Emerging Markets 8. The Dot.com Retail Failures of 2000: Were There Any Winners? 9. Modeling Consumer Demand for Variety 10. Can Distribution Channels Explain Differences in Marketing and Sales Performance Measurement Systems? 11. Customer-relationship Levels — From Spurious to True Relationships 12. Delineating Consumer Aversion to Foreign Goods

Operations Management
25. The Supply Chain Impact of Smart Customers in a Promotional Environment 26. A Study of the Value and Impact of Electronic Commerce 27. Supplier Selection and Assessment 28. Implementing a DistributionNetwork Decision-Support System at Pfizer/Warner-Lambert 29. Global Competition, Institutions, and the Diffusion of Organizational Practices 30. Calculated Risk: A Framework for Evaluating Product Development

Economics
43. Business Cycles in Developing Countries: Are they Different? 44. A Model-based Assessment of India’s Progress in Reducing Poverty in the 1990s 45. Effective Aid 46. Globalization, Export-oriented Employment for Women and Social Policy

Organizational Behaviour
13. Does e-Business Require Different Leadership Characteristics? 14. Excessive Change: Coping Mechanisms and Consequences 15. Building the Complementary Board 16. Work Context and the Definition of Self 17. Conflict Management and Team Effectiveness in China 18. Corruption and Organization in Asian Management Systems

Information Systems Management
31. The Dynamic Synchronization of Strategy and Information Technology 32. Management’s Role in Information Security in a Cyber Economy 33. Online Support for Commerce Processes by Web Retailers 34. IT Tools to Improve the Performance of Metalworking SMEs

Agriculture, Natural Resources, and Rural Development
47. Broad-based Agricultural Development versus Food Self-Sufficiency 48. Rice Trade Liberalization and Poverty 49. Why Local Resources Management Institutions Decline 50. Socio-economic Impact of Watershed Development

Abstracts is sponsored by the Indian Council of Social Science Research, New Delhi
and intended to facilitate Indian management research.
VIKALPA • VOLUME 28 • NO 1 • JANUARY - MARCH 2003

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Finance, Accounting, and Banking
1. Dossani, Rafiq (2002), Reforming Venture Capital in Venture India: Creating the Enabling Environment for Information echnology,” Technology,” International Journal of Technology Management, 25(1/2), 151-164. Although India’s share in the world software market has increased impressively, it is now felt that to achieve a sustained growth in future, it would be necessary to continuously outcompete other countries in the supply of contract programming services and keep moving up the value chain. The objective of this paper is to see the possibilities by which venture capital (VC) can help India maintain its competitive advantage in supplying software services or put more rightly, jumpstart leading edge businesses. In this context, this paper reviews current VC regulations, proposals for change made by the VC industry regulator, and the recent regulations put into law by the Ministry of Finance and SEBI. India has an act that allows trusts to be created for profit-making purposes. Since 1996, when SEBI announced the first set of guidelines for VC funds, the trust structures has been a permissible form for VC firms. However, the problem with the Indian tax structure is that it is available only for specified purposes. The criteria for an ideal environment for the growth of VC include political acceptability, intended use, intended rewards, prudent use, investor protection. Each criteria needs to be adequately covered either by regulatory, tax, or currency environment. The regulatory environment is found to be relevant to all the criteria. It is, however, believed that the tax environment can be structured to support the regulatory environment to achieve intended use and to directly influence intended rewards. As for currency environment, it is suggested that it ensures same set of rules for investment and disinvestments (intended use) and intended rewards for overseas venture capitalists, domestic venture capitalists and employees of investee firms. An ideal environment is proposed, benchmarked against the US environment and used to develop a set of proposals for reform. For instance, it is proposed that (1) SEBI would be the sole regulator of VC firms operating in or from India; (2) once registered with SEBI, VC firms would automatically obtain the tax pass-through; (3) all institutional investors should be allowed to invest in VC funds; (4) funds formed within a registered VC fund, would not be restricted in legal structure; (5) companies receiving VC from registered VC funds should be allowed to issue preferred stock; (6) the floor on individual investment in a VC fund should be raised from Rs.100, 000 to Rs.500,000. The Indian venture capital regulator, the SEBI, recently accepted a report based on these proposals. An analysis of the accepted proposals shows the least progress in currency reform and in prudent expert rules. 2. Bazerman, Max H; Loewenstein, George and Moore, Don A (2002), “Why Good Accountants do Bad Audits,” Harvard Business Review, November, 97-102.

In response to the vast scale of recent financial scandals, President George Bush put the accounting industry under tightened federal oversight. Attributing the problems to corruption and criminality of the unethical accountants, the President created a regulatory board to monitor the accounting firms and establish criminal penalties for accounting fraud. The authors consider deliberate corruption as just one of the many serious problems of accounting. The real problem with corporate auditing is its vulnerability to unconscious bias. Because of the often subjective nature of accounting and the tight relationships between accounting firms and their clients, even the most honest and meticulous of auditors can unintentionally distort the numbers in ways that mask a company’s true financial status, thereby misleading the investors, regulators, and sometimes management. Three structural aspects of accounting are specifically believed to create substantial opportunities for bias to influence judgment: ambiguity, attachment, and approval. Besides this, three aspects of human nature, namely, familiarity, discounting, and escalation, are also stated to amplify unconditional bias. The authors argue that the proposed reforms in the US do not address the fundamental problem of bias, and hence they will not succeed in solving the crisis in accounting. Another proposal to impose stricter accounting standards is also unlikely to improve the situation. Stricter accounting rules cannot eliminate ambiguity and are thus unlikely to reduce self-serving bias. The key to improving audits lies in eliminating incentives that create self-serving bias. This means that the new policies would be required to reduce an auditor ’s interest in whether a client is pleased by the results of an audit. True auditor independence will entail fundamental changes to the way the accounting industry operates, including full divestiture of consulting and tax services, rotation of auditing firms, and fixed-term contracts that prohibit client companies from firing their auditors. Although it is true that eliminating all bias may not be possible, but it can be ameliorated if we have a system in which clients regard auditors as more like tax collectors than partners or advisers, the authors conclude. 3. Madhavan, Ananth (2002), “Market Microstructure: A Practitioner ’s Guide,” Financial Analysts Journal, 58(5), 2842. Market microstructure concerns the process by which investors’ latent or hidden demands are translated into executed trades. Interest in market microstructure has increased enormously in the recent years because of the rapid structural, technological, and regulatory changes affecting the securities industry. This article provides a practitioneroriented review of the academic literature with a focus on information and offers a conceptual framework that would be useful in tackling the current and future problems. The article is organized around four topics roughly corresponding to the historical evolution of microstructure: (1) price formation and price discovery — including both
ABSTRACTS

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especially market transparency and (4) the interface of microstructure with corporate finance. This paper fills this gap by examining the relationship between reputation and the persistence of superior profit outcomes over time. and international finance. Grahame R (2002). however. regulators. Reputation literature suggests that a reputation-performance effect may operate in both directions: a firm’s financial performance affects its reputation and its reputation affects its performance. One of the major achievements of the microstructure literature is the illumination of the back box by which prices and quantities are determined in financial markets. 24(1). e. whether performance is measured by operating values such as EP or ROA or market values such as MV. Gabreil. It also uses a new data set and a different statistical approach for testing the significance of the independent effects. operators of trading systems.MARCH 2003 reputation and financial performance by explicitly articulating the dynamic implications of good reputations. employees. Industry factors may have a large impact on the performance of the ‘also-ran’ firms. it is firm factors that dominate. Hawawini. (2) market structure and design issues.” Asian Academy of Management Journal. (3) information. This study explores to extent the presence of these few exceptional firms within an industry may be responsible for the high level of firm effects found in the past studies. and traders. the authors decompose each firm’s overall reputation into a component that is predicted by its previous financial performance (financial reputation). More specifically. These categories roughly correspond to the historical development of research into the informational aspects of microstructure. they are consistent with the growing body of strategy research that links high-quality intangible assets with sustained superior performance.static and dynamic issues. Most of the intra-industry variance is believed to be due to the performance of a few firms. 23(12). Although some studies have shown the expected benefits of good reputations. customers. Peter W and Dowling. 75-101. The recognition that order flows can have long-lasting effects on prices has many practical implications. Noor. It is believed that differences in liquidity over time would explain variations in the risk premium and thus influence stockprice levels. however. while the latter reflects the market’s expectations of the firm’s future operating performances. the greater is expected to be the intra-industry dispersions and lower will be the importance of industry effects. 149 . markets may fail and large deviations between fundamental value and price may occur. This study therefore uses valuebased measures of performance such as economic profit or residual income and market-to-book value. Thus only for a few dominant value creators (leaders) and destroyers (losers) do firmspecific assets seem to matter significantly more than the industry factors. are not consistent with value maximization. on average. The results confirm previous findings that industry factors. As the number of firms that outperform the industry increases. this analysis accounts for the fact that a firm’s financial performance history affects its current reputation. The literature survey reveals that markets are a great deal more complex than commonly believed. For most other firms that are not notable leaders or losers in their industry. Results from both autoregressive profit models and proportional hazards regression models consistently suggest that superior-performing firms have a greater chance of sustaining superior performance over time if they also possess relatively good reputation. T. asset pricing. “Cardholders’ Attitude and Bank Credit Card Usage in Study..” Strategic Management Journal.” Malaysia: An Exploratory Study. 5. On the basis of the survey results. including the relationship between price formation and trading protocols. Roberts. A good corporate reputation is believed to have strategic value for firms.g. and suppliers on the firm’s financial performance. These issues are particularly relevant for exchange officials. and sees whether the structural effects of the industry have a different level of impact for the rest of the industry’s firms. At the same time. It is clear from the survey that microstructure matters. “Is Performance Driven by Industry-or Firmspecific Factors? A New Look at the Evidence. 10771093. Nasser and Choo. Research on the relative importance of firm and industry effects has traditionally relied on raw accounting values of returns on assets (ROA) as the performance measure. “Corporate Reputation and Sustained Superior Financial Performance. Venkat and Verdin. while for the industry leaders and losers. The future version of the research is suggested to examine the impact of the reputation of the other group of stakeholders. the authors confirm.” Strategic Management Journal. These findings complement the existing studies of the relationship between VIKALPA • VOLUME 28 • NO 1 • JANUARY . and that which is left over (residual reputation). matter little to firm performance. not only because of its potential for value creation but also because its intangible character makes replication by competing firms considerably more difficult. Most accounting-based measures. Further. the industry effect turns out to be more important for performance than firm-specific factors. For instance. The former reflects the operating performance in a given year. greater transparency does not always enhance liquidity. Under certain protocols. To accommodate this issue. it is felt that “one-size-fits-all” approaches to regulation and policy making should be avoided. the interface of microstructure with other areas of finance emerges as an exciting new area. 4. Lim Hee (2002). they have not addressed the issue fully. Paul (2003). 1-16. Ramayah. Finally. Subramanian. The study examines the influence of ‘outliers’ on firm and industry effects. industry-specific factors may have different meaning for different types of firms within an industry. 7(1). 6.

This study aimed at validating attributes that influence the differences in attitudes among active and inactive cardholders. Based on the study of 48 dot. 474-486. Thus the overwhelming conclusion from the study is that the investment community was not ready for the Internet ABSTRACTS Marketing and Advertising 7. (2) immense variability in consumers and infrastructure. realized that in most cases. 1-800 contacts. The much hyped dot. 8. however. winners are also likely to have offline expertise and a relatively large number of alliances. Amitava (2002). extending interest free repayment period from 20 days to 30 days. with credit card usage. The identified winner in the study was found to offer a search good. “Rethinking Marketing Programs for Emerging Markets. Raji and Wind. wealth.com retailers are likely to be firms that offer (1) digital goods as opposed to physical products. Income.com Retail Failures of 2000: Were There Any Winners?” Journal of the Academy of Marketing Science. It is. implementing strategic alliances with firms involved in travelling. and (3) relative cheapness of labour. (3) existing products as opposed to new-to-the-world products. Besides this.com teams.com retailers in the year 2000. Comparing the winner with Amazon. and heavy advertising of the card. Dawar. The findings were synthesized by grouping the common features of emerging market environments into three fundamental categories: (1) low per capita income and its impact on consumer behaviour.While credit cards have been popular in developed countries since ages. These attributes include acceptance level. providing adequate credit limit to cardholders. high credit limit. distribution and communication. and advertising by the issuing bank. annual fee. their marketing programmes are not adapted for these markets thus leading to low market penetration. It is argued that well-performing dot. and Unilever to understand the nature of emerging markets and examine company responses to the challenges faced in these markets. price. what seemed important was to know if there were any firms who could manage to emerge winners and. The major variables that contributed to the credit card usage level consisted of long interest free period. 30(4). This 150 . and (4) customization of products. been found that many credit card holders in Malaysia are non-active cardholders although a significant proportion of them might be having more than one bank’s credit card.com. These include working closer with various retailers to promote the credit card payment mode. In this scenario. effective handling of complaints. several suggestions are offered to credit card issuing banks as a step to stimulate credit cardholders’ usage level. 457-474. The effects of each of these emerging market characteristics are discussed around the central pillars of marketing: segmentation and the key programme ingredients of product. Jerry (2002). study conducted in-depth interviews with managers of companies such as Cadbury’s. It has. Srinivasan. application approval period. Were “The Dot. high customer acquisition costs and a lack of expertise in managing the dot. this study uses the multiattribute attitude model comprising of attribute. This study focused on defining these winners and proposing a conceptual framework to hypothesize their possible product and firm profile. It also identifies the relationship between demographic and individual socioeconomic factors. search goods. card design. insurance. handling of cardholders’ complaints. it has a very diverse product offering and therefore a large number of marketing alliances but no offline experience. Based on the results. questionable profit potential. have an existing product and offline experience but it did not support the other three characteristics. credit limit. unlike the winner. many multinationals have rushed in to the emerging markets visualizing the potential of innumerous customers liberated from planned economies and protectionist barriers. belief measure and importance weight. it was found that Amazon also provides physical products. however. and telecommunications and advertising more so as to create a brand name for the issuing bank. and poor profitability. Niraj and Chattopadhyay. 35(5). However. disappointing market shares. bank image. if so. existing products. The objective was to demonstrate how the emerging market environment calls into question the prevailing marketing wisdom and demands a shift in emphasis from the globally standardized to locally adapted marketing programmes. The failure of these dot. issuing bank image. ancillary functions. and no product customization. The active cardholder emphasized more on the long interest free period as compared to the inactive cardholder. then who were they and what lessons could be learned from them.coms were attributed to the lack of a viable business model. Thirteen important attributes were considered as interpretive measures for the discriminant analysis. (2) search goods as opposed to experiential goods.com was identified as the sole winner using two performance indicators: percentage change in stock price since the initial public offering and stock options underwater.com retailers. and age are some of the demographic variables which are believed to have a positive and significant correlations with credit card usage level.” Long Range Planning. Vijay. entertainment. Mahajan. which is often substituted for capital by both companies and consumers. Nestle.com revolution turned a deathbed for most of the dot. leaflet to describe the card. wide acceptance. ancillary functions. Over the past decade. interest-free repayment period. Coca-Cola. gift/bonus to new applicants. The credit card business enabled the bank to attract new customers as well as retaining existing customers in order to build a stronger customer base. finally seeing if this hypothesized profile matched the reality. For assessing cardholders’ attitudes. their introduction in developing countries like Malaysia is relatively recent. education. This implies that monetary inducement played an important role in distinguishing active and inactive cardholder.

while nesting the standard linear utility structure. Kim.revolution. However. The company offered customers two different types of interaction with service employees: a personal relationship with an appointed service representative and a pseudo-relationship where different employees perform the service from one occasion to the next. This paper compares and contrasts the use of control and performance measurement and management (PMM) systems in marketing and sales to see what makes marketing and sales PMM systems vary. “Customer“CustomerTrue relationship Levels—From Spurious to True Relationships. 229-250. If consumers value variety. Liljander. the model is enlarged to include the composite of all other purchases. Standard choice models are based on a linear utility structure in which only one variety is selected at each purchase occasion. they could not be stated to have a high relative attitude. To better understand the value households placed on particular varieties. it was the product-specific aspects that increased customer tolerance of failure. This trade-off between price and variety is seen across different retailing formats. VIKALPA • VOLUME 28 • NO 1 • JANUARY . It showed that households highly value popular flavours and would incur substantial utility losses from removal of these flavours from the yogurt assortment. Manufacturers may even seek to avoid the most powerful retailers and build partnerships with a limited number of retailers. a compensating value was computed by household for the removal of each flavour. manufacturers might want to enhance a relational business relationship with them. On the basis of semi-inductive interviews with Sales and Marketing managers in 21 French companies. then a retailer with lower variety must compensate the consumers in some way. When the relationship is transactional but the manufacturer powerful. the authors identify four marketing and sales controlling systems categories. A Bayesian hierarchical model of household heterogeneity is used to allow for the computation of household-level parameter estimates that facilitate utility calculations. This model is applied to data on purchases of varieties of yogurt. 20(6). the latter seems to be largely governed by bureaucratic modes of control. ranging from spurious to true relationships. and (4) direct marketing and sales companies (a mix of bureaucratic. Moreover. Case studies in each category illustrate the marketing and sales PMM systems associated with different distribution channels. the authors feel that consumers and firms with an understanding of the retail business would guide the Internet revolution in future. 9. Companies belonging to the same marketing and sales control categories are believed to share some common distribution features. the authors add. based on relationship benefits. This paper suggests that customer relationships can be described along a continuum.” Marketing Science. While it appreciated the alternative channel opportunity offered by the Internet to traditional retailers. less attention has been paid to relationships from the customer ’s point of view. Loning. Estimates from the hierarchical model reveal differences between varieties in base preference as well as different rates of diminishing marginal utility.” Journal of Services Marketing. They were found to be highly behaviourally committed to after-sales services but their affective commitment was in most cases interpreted as low or moderate. Although they had a high positive attitude towards the dealer. it was found that more than trust. Jaehwan. offer an explanation for the mechanisms that shape the marketing and sales control systems. However. 593-614. when the retailers are very powerful. Two dimensions. the opportunities in digital products and product customization were not rewarded by the stock market. Veronica and Roos. Relationship marketing (RM) has been widely accepted as an important determinant of long-term business success and is believed to be particularly well suited for services. 10. The manufacturer might be more powerful than the retailer. Madeleine (2002). the channel power and the manufacturer-retailer transactional or relational business relationship. Four situations are drawn from these two dimensions. “Can Differences Distribution Channels Explain Differences in Marketing and Sales Performance Measurement Systems?” European Management Journal. When a manufacturer engages in a relational relationship with selective retailers. trust and commitment. 597-609. 11. Helene and Besson. Since the ultimate goal is to make policy recommendations about assortment and pricing. When the relatrionship is transactional and the retailer powerful. Consumers are often observed to purchase more than one variety of a product on a given shopping trip. 21(3). Peter E (2002). A qualitative study was conducted among after-sales service customers of an authorized car dealer with the objective of identifying customer service relationship levels. social mechanisms of control prevail. Inger (2002). 16(7). Allenby. Given limited shelf space thus only a subset of the possible varieties can be displayed for purchase at any one time. This paper develops a new utility-based demand model and estimation procedure that can accommodate both interior and corner solutions as well as diminishing marginal utility. Customers are effectively tied to authorized repair shops even without experiencing relationship benefits.” “Modeling Consumer Demand for Variety.MARCH 2003 (3) selective retailing companies (social or ‘clan’). but in general 151 . Greg M and Rossi. In the case of this company. Variety ariety. in order to prevent pure market mechanisms. households differ greatly in their preferences for varieties with some households showing extreme preference for particular flavours. market and social control mechanisms). While past research has focused mainly on the advantages of RM. such as lower price level. looking for better ways to satisfy final customers. These include (1) companies in the food channel (market-oriented (2) companies operating with agents and dealers (largely bureaucratic). They were satisfied. market mechanisms primarily ensure control.

12. Contingency theories contest this view arguing that the most appropriate leadership characteristics will be dependent upon the unique requirements of each organization’s personnel. managers normally consider consumer familiarity. Falkenberg. behaviour and skills possessed by leaders of both e-business and traditional bricks and mortar busineses. information technology and project management skills were viewed as defining features for e-leaders. then animosity will predict the choice. It begins by developing a definition of excessive change on the basis of the perceptions of the change recipients in three cases. Different “Does e-Business Require Dif ferent Leadership Characteristics? An Empirical Investigation. life stage and environmental setting. it had no effect on after-sales or car-brand loyalty. however. 296-312.” Journal of International Business Studies. consumer culture. In framing strategies for global brands. Klein.” European Management Journal. not because of their beliefs concerning product quality. Jill Gabreille (2002). one of which comes from a country that is the target of hostility. the constructs were found to have different consequences both for product judgments and choices between products. while animosity should be most significant when choosing among goods from foreign countries. Implications of these findings are discussed for decisions concerning global versus local branding strategies. While strategic change is an accepted norm in today’s organizations. military. certain characteristics that distinguish e-world leaders from their bricks ad mortar counterparts. In addition. as well as the capacity to anticipate new opportunities.perceived no differences between the dealer ’s repair shops and the competitors’ services. It analyses the data collected on the traits. The ability to network extensively and prioritize activities were highlighted as particularly important competencies for e-business leaders. This paper empirically explores these opposing arguments to see if e-business really requires a different leadership profile compared to traditional bricks and mortar organizations. The study thus suggests that the competencies that will be increasingly demanded of all future leaders are actually the skills and behaviours that differentiate the e-business leaders of today. This viewpoint assumes relevance in the different situational context of e-commerce with its new business models and organizational forms. This article focuses on consequences that arise when change becomes excessive. All respondents acknowledged the importance of motivational behaviours and the ability to inspire a shared vision. 33(2). The study also investigated whether the animosity model can be supported in a context where anger toward a foreign country is not very strong. While animosity refers to the anger related to the political. whenever the consumer holds animosity toward one of these countries. “Us Versus Them. If the choice is between two foreign goods. Further. Meyer. This study proposes that the role of each construct will depend upon the choice set available to consumers. it has been observed that few companies are able to deliver the delight-provoking service that is needed to instil high trust and commitment. the results suggest that the majority of leadership characteristics are equally valued regardless of the context in which they operate. Excessive change is stated to occur when the organization pursues several. Penny and Schoenberg. Anne Cathrin (2002). Similarly. decisive and inspiring. Horner-Long. consumer ethnocentrism is the belief that buying foreign goods means damaging the domestic economy and is hence inappropriate and immoral. Overall. Two additional constructs that have come up recently as affecting purchase behaviour include consumer animosity toward a producing nation and consumer ethnocentrism. linguistic implications of the brand name. 345363. wile consumer ethnocentrism is related to choices between domestic and foreign goods. Customers were also found to have a generalized but latent trust in authorized car repair as long as they experienced no major problems. Thus if the choice is between a domestic and foreign good. There were. who were rated as more collaborative and as having greater integrity. seemingly unrelated and sometimes conflicting changes simultaneously or when the ABSTRACTS 152 . 14. On the other hand. Since customers’ trust in general extended to all authorized repair services. Inger. Results show that animosity toward a foreign nation is related to choices between foreign goods. Leaders of e-businesses were noted as being significantly more entrepreneurial. risktaking and less conservative than traditional leaders. 31(3). “Excessive Change: Coping Mechanisms and Consequences.and identification-based trust may find a stronger relationship developing between after-sales services and car-brand loyalty. It is argued that the companies that are able to delight customers and develop knowledge.” Organizational Dynamics. 20(6). 611-619. then highly ethnocentric consumers are likely to choose the domestic product. but because of their attitudes toward Japan. Universal theories of leadership contend that all effective leaders share an identifiable set of common attributes. energetic. Joyce and Haueng. Richard (2002). or economic events. Consumer ethnocentrism would be most relevant when a domestic product is available in the choice set. and the country-of-origin for positioning the brand. These include personal traits such as being adaptable. Christine Benedichte. or Us Versus Versus Versus Aversion Everyone? Delineating Consumer Aversion to Foreign Goods. the need for strong communication and strategy analysis skills was universally agreed upon. Organizational Behaviour 13. Stensaker. it is increasingly felt that excessive change may not be desirable. It tests the animosity model of foreign product purchase in the context of US consumers and Japanese products to determine if some Americans avoid buying Japanese products.

It is proposed that the employees of organizations whose values and organizing principles center on fulfilling employees’ needs and acting in their best interests will report higher levels of OBSE. chief executives and nonexecutive directors in the UK. 16. This includes introducing fewer changes in the organization. the consequences at the organizational level were related to structural and performance issues. realized that not everyone in the same organization experienced the same set of changes as excessive. Moreover. The structural consequences at the organizational level were found in situations such as in musical chairs. “Work “Work Context and the Definition of Self: How Organizational Care Influences Organization-based Self-Esteem. Organization-based self-esteem (OBSE) reflects an employee’s evaluation of his or her personal adequacy and worthiness as an organizational member and the selfperceived value that individuals have of themselves as organizational members acting within an organizational context.organization introduces new changes before the previous change is completed and evaluated. is modeled as an OBSE antecedent. self-control. It was. Daniel J and Bigley. here it comes again). however. other chairmen have come to understand the importance of the role despite its non-executive designation. Drawing upon qualitative research interviews with chairmen. admit that there are several limitations of this study and that longitudinal and experimental research is required to fully establish the findings. the article examines the bases that underpin the positive potential of ‘complementary’ board relationships through which a chairman can contribute directly to the performance of the chief executive as well as create the conditions for other non-executives to contribute to the performance of the executive team. An analysis of data from a sample of managers and professionals from 69 different organizational settings support this model.MARCH 2003 role as second best and therefore make little attempt to develop the role. and shaky foundations. Close relationships between executives and non-executives are feared for their collusive potential. The coping mechanisms for dealing with excessive change in the three case studies included BOHICA (bend over. The authors suggest that the findings be viewed as an initial empirical test of the proposed theoretical framework intended for continued research on the foundations of organization-based self-esteem. as a highly stable trait. From an agency theory perspective. the authors suggest three ways by which managers can avoid perceptions of excessive change at the middle and lower organizational levels. Chen. Guoquan and Tjosvold. were a result of implementation failure and loss of effectiveness. 17. Roberts. The authors. Dean (2002). 894-904. This article describes how non-executives can reconcile these apparently contradictory injunctions about their role through a discussion of the conditions for and dynamic of complementary board relationships. 35(5). orchestrating without a conductor. These coping mechanisms encompass responses that are both passive and active. The data revealed that individuals in middle management and lower organizational positions often experienced strategic changes as excessive while top level managers considered the different components of change as clearly connected and leading to the same overall goals. The consequences of excessive change were examined at both individual and organizational levels. exit sabotage. It presents organizational care as defining the central aspects of work context and describes how it influences employees’ OBSE through the pivotal perceptions of organizational fairness and job authority. This article addresses the critical issue of board effectiveness. Finally.” Academy of Management Journal. This research looks into the aspects of work context that are particularly relevant to OBSE development and also the psychological mechanisms through which context brings about self-definition. Performance consequences. McAllister. the author explores how actual board processes and practices have changed under the influence of various codes and how different individuals have developed the now separate role of company chairman. organizational theorists argue that only through such closeness can non-executives contribute to the development of executive strategy. “Conflict 153 . By contrast. 493-520. The qualitative research reported here suggests that too many chairmen see their VIKALPA • VOLUME 28 • NO 1 • JANUARY . Organiza. and in particular the conditions under which the chairmen as well as other non-executives can make an effective and positive contribution to the strategic direction and control of the companies. on the other hand. “Building the Complementary Work Board: The Work of the Plc Chairman. It also explores the negative dynamics of complementary relationships between executives and non-executive directors and discusses how these may inadvertently weaken board accountability and create the conditions for an external crisis of confidence. this model may be underspecified insofaras global self-esteem.” Long Range Planning. paralysis.tional fairness and job authority seem to represent for employees highly salient reflected appraisals from organizations that employees internalize through assessment or reassessment of their own worth as organization members. 45(5). and increasing the employees’ capacity for change. John (2002). Drawing upon the directors’ experiences. the separation of roles is desirable as a way to resist managerial entrenchment and to ensure non-executive independence. 15. communicating how each stage of change fits with the other change projects. and loyalty. and they either promote change or promote the status quo. However. Gregory A (2002). While a diverse array of reactions and coping mechanisms were uncovered at the individual level. It is further argued that perceptions of organizational fairness and job authority mediate this relationship through the social-psychological process of reflected appraisal. however. These individuals ensure minimal compliance with the various codes of practice.

strategic impediment. High levels of justice were expected to result in team effectiveness. a competitive approach was not as consistently related to injustice as avoiding conflict. Also consistent with the theory. or between those inside and outside the labour market. Discussing conflict in a win-lose competitive way was much less successful and was negatively correlated with justice in the distributive and interactive forms though not its procedural form. competitive disadvantage. Looking at an overall organizational effect of corruption. It is proposed that constructive conflict management is a viable. “Corruption and Organization in Asian Management Systems. and interactive justice had been developed. intertwined gift-giving culture and bribery. distributive. avoiding conflict was found to predict injustice in its distributive. The idea points to the need for adapting benefit systems to discontinuous working careers. Human Resource Management 19. these effects would definitely lead to inferior overall or long run organizational performance.Team Effectiveness Management and Team Ef fectiveness in China: The Mediating Role of Justice. with the aim of facilitating or maintaining labour market integration. 19(2. Corruption is seen as an organizational behaviour seeking social network advantages. 19(4). distributive. Corruption is stated to own both benefits and costs. Yadong (2002). deviating from social norm. It then presents the organizational perspective of corruption illustrating that this is a frontier issue of mainstream management and that Asian management has some unique opportunities as well as responsibilities to take a leading role in addressing this frontier issue. It specifically investigates the extent that cooperative but not competitive or avoiding ways of managing conflict develop justice in its distributive. however. The authors outline the main characteristics of part-time employees and part-time jobs in both the countries and use the household panel data to compare change in status between 1991 and 1995. weak counter-corruption institutions. 557-572. It derives from numerous factors such as nontransparent governmental behaviour and decisions. shortage of independent and well-functioned market mechanisms and institutions. Together. and poor quality of public service. O’Reilly. Luo. Cooperative conflict was hypothesized to induce high levels of procedural. “What Working Time? Happens After Working Part Time? Integration. and organizational deficiency in the long run. It is argued that contrary to guanxi. Schmid’s approach focused directly on policies that seek to weaken the barriers and differences between core and secondary employment. conflict management is highlighted as a means for achieving teams effectiveness. thereby making teams effective. This paper examines the extent to which part-time employment facilitates labour market integration. Jacqueline and Bothfeld. the findings suggest that orienting members to manage conflict cooperatively can strengthen justice and effectiveness in teams in China. and interactive justice while competitive and avoiding conflict management was expected to induce low levels of justice. Unexpectedly. Corruption makes the organization suffer enormously from many visible or invisible damages that are so enduring and far-reaching that no single transaction gains can compensate. procedural and interactive forms and team effectiveness. The underlying assumption behind this approach is that transition between standard. Transaction cost economists argue that corruption can help a specific transaction to reduce transaction costs from increased institutional privileges or regulatory barriers. However.” Western Germany. focusing on the proposal of Gunther Schmid for developing transitional labour markets. the combined organizational losses may significantly outweigh the gains from a specific transaction. Corruption—the misuse of public power for private benefits—is rampant in Asian countries. Silke (2002). Overall. full-time employment and other employment statuses or non-activity should be encouraged.” Asia-Pacific Journal of Management. The ABSTRACTS 154 . While in the West. and interactive forms which promotes team effectiveness. a central concern in the region. corruption mostly involves money. This paper shows corruption as representing a firm’s evolutionary hazard. it has not been applicable so far in China and other collectivist cultures. When team members reported that they discussed their incompatible activities in a cooperative manner and tried to resolve their differences for mutual benefit. 18. clarifying the differences between corruption and Chinese guanxi—the concept of drawing on interpersonal connections for securing favours. This study argues that conflict management contributes to team effectiveness in China as it promotes justice. 26(4).3). procedural. One key issue of debate is the extent to which labour market adjustments through working-time flexibility represents a deterioration in employment conditions or a chance for those previously inactive or unemployed to re-enter paid employment. 405-422. there has been no research on the diagnosis of how corruption is associated with overall organizational consequences. 409-439. Both the correlational and structural equation analyses of data provided by 126 MBA students involved in group projects in China indicated that how conflict was approached affected its usefulness. practical way to develop fairness within teams in China. and is illegal. This paper first presents the concept and nature of corruption. Teams are increasingly recognized as important for effective organizational work. ambiguous business-government relations. Transitions Maintenance or Exclusionary Transitions in Britain and Germany.” Asia-Pacific Journal of Management. the author concludes. The main objective of the present paper is to identify the factors that help or hinder integrative or exclusionary transitions. procedural.” Cambridge Journal of Economics.

They revealed a great deal about the interplay among profit sharing. 45(1). trust in management is not a necessary precondition for perceptions of organizational reciprocity to enhance organizational commitment. Workplace aggression involves everything from spreading VIKALPA • VOLUME 28 • NO 1 • JANUARY . generates favourable outcomes. 423-439. The need for improved cooperation in terms of combining transfers and labour market incomes to provide sustainable employment and incomes is also stressed. The authors support Schmid’s proposal of individual empowerment through infrastructural support for implementing working-time transitions. Two basic type of global firm-contractor relationships are distinguished.” Human Resource Management.” Journal of Management. 21. Stephen R (2002). Collaboration. individuals are unlikely to engage in any form of aggression. “Using Profit Sharing to Enhance Employee Attitudes: A Longitudinal Effects Trust Examination of the Effects on Trust and Commitment. Having previous employment experience is more likely to hinder exclusionary transition patterns. expectancy. This paper uses organizational justice perspective to explain and predict workplace aggression. Despite a reasonable amount of research on profit sharing. the authors assert. there is still little consensus regarding its effectiveness. It is hoped that this model would be useful for predicting and explaining a wide range of aggressive organizational behaviours. justice perceptions shaped over time are likely to elicit more intense acts of aggression relative to justice perceptions shaped by a single aversive event or action. and subsequent impact on employee attitudes. and Codes of Labor Practice: The Adidas Connection. 29-49. and is responsible for its enforcement. IM (2002). Eight combinations of justice perceptions were described and the forms of aggression each combination is most likely to elicit were proposed. It also sheds light on the underlying mechanism by which profit sharing can affect employee attitudes. withholding information or resources needed by targets or even purposely failing to return phone calls from them. 811-834. 41(4). Profit sharing is an organizational-level manifestation of the norms of reciprocity. The 155 . When both procedural and interactional justice perceptions are violated. Stephen J and Scott. implying the intent of returning to employees a portion of fruits of their collective labour. and organizational justice theories.analysis shows that the number of women who were able to use part-time work as a bridge back into a full-time job is very small. especially in Germany. A substantial proportion was found to end up dropping out of employment. differences in global firm practices lead to variations in the way contractors implement the codes. improve workers’ well being. with the status of the offender influencing whether the victim uses direct or indirect expressions of hostility to harm the offending individual. Richardson. communicates its importance to the contractors.MARCH 2003 negative rumours about target individuals. Coyle-Shapiro. Jacqueline A-M. whereas the presence of more than one child. The results of this study help explain why profit sharing. It is believed that the application of codes of labour practice by global firms would uphold core labour standards. Duncan (2002). is associated with dropping out. individuals are likely to use expressions of hostility. Ray and Dunn. 22. Morrow. Paula C. particularly in Germany where a group of women without children and in relatively highincome households voluntarily worked part time. “A Model of Organizational Justice Workplace and Workplace Aggression.” California Management Review . “Compliance. Frenknel. and enhance workplace performance. Individual differences likely to moderate the relationship between aversive events/actions and perceptions of injustice. According to the model. However. A model is developed to suggest that aversive events and actions shape perceptions of injustice. The compliance pattern is characterized by global firm domination: The global firm develops and introduces the code. obstructionism and overt aggression toward the target and the organization. Moreover. In particular. The labour standard problem arises from the conflict between the interests of the multinational corporations and of social interest groups and NGOs seeking to counter global inequalities and uphold human rights at work. 28(6). It is argued that different forms and combinations of justice perceptions are likely to elicit different forms of aggressive behaviours that also vary in terms of the target of aggression and the manner in which harm is delivered. Data for the study were obtained from a UKbased multinational company at two time periods: 10 months prior and 20 months subsequent to the introduction of profit sharing. victims are likely to target expressions of hostility toward the organization and the offending individual. this study assesses how perceptions of profit sharing alter organizational commitment and trust in management. It is argued that a profit sharing perception grounded in organizational reciprocity is a powerful antecedent because it affects organizational commitment independently and/or through its ability to enhance trust. And. Drawing on principal agent. However. the study finds that plans that engender positive perceptions lead to higher levels of trust and organizational commitment. Jawahar. status of the offender was hypothesized to moderate aggression toward the offender. a compensation-related human resource practice. The findings confirm and extend empirical research supporting the importance of employee perceptions of profit sharing in achieving desired attitudinal outcomes. and perceptions of injustice and forms of aggression were also identified. 20. how it is perceived. The model suggests that when none of the justice perceptions are violated and when only perceptions of distributive justice are violated. Violations of only interactional justice could lead to expressions of hostility. when all the three forms of justice perceptions are violated.

John D (2002). “More is Not Necessarily Better: The Training Relationship between the Quantity and Quality of Training Efforts. only a few training companies were found to have a full-fledged training cycle. It is. Gary S and Daniels. Luc (2002). 24. It examines the extent to which the companies monitor the systematic development of sufficiently effective training processes. “Causes and Consequences of Declining Early Departures from Foreign Assignments. Sels. it is clear that companies incur significant costs in terms of finding replacements and decreased productivity. “The Supply Chain Impact of Smart Customers in a Promotional Environment. withholding purchases until prices are low enough. wholesale.” Manufacturing & Service Operations Management. Huchzermeier. This would include senior management commitment to high labour standards as a means of improving workplace performance. for instance. Evidence suggests a high rate of premature departure of expatriates from their foreign assignments. While improved global telecommunications and transportation help ease family homesickness. can be controlled by the companies. The survey findings suggest a close approximation of a recent annual premature departure rate of 3. children’s education. 4(3). graphics. The quality of training processes is assessed by their ability to match the training processes model. This paper reports the results of a questionnaire survey to estimate the current premature departure rates for expatriates in US companies. A collaborative partnership between a global firm and a contractor enhances the possibility of generating superior outcomes for both parties and for workers. such as greater cost and difficulty in developing upwardly mobile managers’ knowledge of international operations. 45(6). the customers can be expected to act smart by switching their preferences for package sizes at different periods. A restricted multiple sector survey was carried out in the food. non-adjustment of the family. In a retail environment where the price difference of package sizes varies across time. determines the dynamics of factors affecting them. 13(8). Thus. Other common reasons included more rewarding job offers.” Efforts. the code constitutes a basis for continual improvement of workplace performance and worker well-being. However. Operations Management 25.” Business Horizons. Such an environment would provide a challenging inventory-and-pricing problem for individual ABSTRACTS 156 . the author suggests that intervention in the training market be pursued with the help of supporting policy tools which can assist organizations at the level of their internal operation. This paper investigates whether this input-oriented or resource-based approach to training is actually effective. factors such as spouses’ desires to careers. The Adidas staff reported more effective communication and understanding and a more equal and harmonious relationship with their counterparts at Alpha than with those at Beta. Through its code of labour practice.2 per cent which is considered very low as compared to the domestic rates. Ananth and Freiheit. discusses reasons for early departure. On the other hand. greater availability of educational opportunities for children and improved medical care help in family adjustment. Adidas formalizes employee rights and defines acceptable management behaviour. quality of infrastructure and social services are uncontrollable. 228-240. inadequate compensation package. This emphasizes the partial value of investment as an indicator of training efforts. Although there is a controversy about the extent and causes of premature departure. Dutch. besides being discredited for their inability to appoint wellperforming expatriates. The results of the regression analysis indicate that the companies which invest more in training are not necessarily the ones devoting more attention to the quality of the training cycle. invest less on training than their French. etc. stockpiling inventory. necessary that the contractor brings in complementary assets to the relationship. 23.collaboration pattern implies partnership. Julia (2002). and German counterparts. and software sectors. Arnd. Some of these factors such as predeparture training and upward mobility for returning expats. Belgian companies. It attributes the decline in premature departures to the changes in environmental factors and corporate policies and practices. and continuing to observe price. 39-48. International comparisons indicate that the level of investment in training by companies differs significantly across OECD countries. Moreover. and suggests the evolving HR issues and practices as changes occur in these rates. requiring new company practices. Alpha’s management viewed the code as integral to their vision and values and thus enforced it more strictly than at Beta and has been more effective in building a stable labour practices team. 1279-1298. two of its very similar contract manufacturers—Alpha and Beta— are found to have implemented the code differently and with substantially different results. Poor job performance was cited by most of the respondents as the prime reason for early departure. these same factors may presage new or exacerbated international human resource challenges. It has been noticed that the policy efforts to encourage training in these countries has always been in terms of the resources invested and not the learning achieved or the quality of company training programmes. Iyer. However. frequent and open communication between managers and workers to promote mutual understanding and respect and a competent labour practices team to ensure that there is no gap between practice and policy.” International Journal of Human Resource Management. The study also examines if the level of financial investment in company training is correlated to the quality of training processes. however. One important aspect of this research is its emphasis on why premature departure does not take place instead of explaining why it does. Insch.

and greater availability to the retail outlet customers. Besides influencing directly. delivery performance. Effective supplier selection. and product performance. order cycle. with fewer stockouts. such as a supplier ’s strategic commitment to a buyer. Timothy Paul (2002). “Supplier Selection and Assessment: Their Impact on Business Performance. given a set of metrics. A greater dependence on suppliers increases the need to effectively manage suppliers. It further uses the inventory model and the demand response to optimize retail prices and fits the model to a data set from the German grocery industry and evaluates the performance of the model. market. discussions with practitioners. price. Keah Choon (2002). 27. the findings suggest that EC could decrease the costs and increase the availability rate to the customers while not having to decrease the price to the customers. inventory carrying cost. stockouts are not significantly greater for EC products at the DCs. This paper develops an SKU-level demand model and uses it to model inventory costs. the need to emphasize on relationship building would require 157 . fill rate. Vijay R and Tan. Lori NK and Cronan. and culture.” The Journal of Supply Chain Management. These reflect a variety of supplier attributes including cost. The challenge of supply chain management is to balance the requirements of prompt customer service with management costs. the distributorretail outlet link and the supplier-manufacturer link of the SC are examined in relation to inventory level. have a greater impact on performance than hard. The disaggregation model suggests that customers do choose the lower-priced products. it also has indirect benefits. From the managers’ point of view. This model can serve as a valuable tool to retailers by offering them an indicator for choosing whether or not to use price differentials for different product packages during promotions. A strategic commitment from suppliers is clearly a vital determinant of business success. the retail outlet is less likely to lose customers to competitors. respondents were asked to evaluate its importance to their firm in supplier selection. In terms of specific differences. Based on previous literature. and availability. and company-specific manuals. Electronic commerce is a modern business information system methodology that addresses the need to cut costs while improving the quality of goods and services and increasing the speed of service delivery to organizations. The demand model consists of two parts: (a) a customer-choice model that estimates the proportion of customers who choose a particular SKU in a period and (b) a stockpiling model of the total demand for the product across SKUs based on the average price across products and customer-segment inventories across SKUs. thus providing total coordination and control of all supplies.package sizes (stock keeping units or SKUs). Thirteen metrics commonly used to assess supplier performance were also identified and evaluated. and consumers. 12(4). Also. and therefore when retail outlets wish to receive products. There is thus a need for these firms to reassess their supplier management tactics. Similar products from two different companies are analysed in pairs of two. and meaningful supplier performance assessment mechanisms are the three most important dimensions of supplier management. capability. non-quantifiable selection criteria. The empirical findings indicate that an electronic SC is more effective than a nonelectronic SC and improves the SC replenishment process in terms of all the seven product pairs. demand was found to increase by as much as 36 times the mean non-promotion demand. more quantifiable criteria such as supplier capability. Similarly. This study uses a survey to examine the relationships between the perceived importance of supplier selection and assessment criteria for items being used in production and business performance. The electronic buying and selling of goods and services on the supply chain is an important application of EC. customer reactions to price differences prevent retailers from achieving the benefits of price discrimination. However. “A Value Study of the Value and Impact of Electronic Commerce: Versus Traditional Electronic Versus Traditional Replenishments in Supply Chains. On the whole. stockouts. 11-21. merchants. As evidenced by the data. For each criterion. Leonard. 38(4). The data indicate that customers are smart in that they calculate the per-unit price of the product and adjust consumption across package sizes. two customer-supplier relationships. innovative supplier development strategies. There is a recent trend of organizations focusing on core competencies and trying to achieve competitive advantage by leveraging their suppliers’ capabilities and technologies. one product using an electronic SC and one product using a nonelectronic SC. This study examines the SC metrics and the differences in the value between traditional (manual) and electronic SCs to empirically evaluate whether electronic SCs are more effective than nonelectronic SCs. using a five-point scale. Results indicate that although soft. quality. Kannan. A research model is presented that incorporates the SC and IS organizational performance. yet they are considered to be less important. 307-327. the vendor is just as likely to have the EC products as the nonEC products. assessment of a supplier ’s willingness and ability to share information is also considered to be relatively unimportant though it has a significant impact on the buying firm’s performance. 26.” Journal of Organizational Computing and Electronic Commerce. EC allows for lower inventory levels at the distribution centres (DCs) and VIKALPA • VOLUME 28 • NO 1 • JANUARY . To determine the effectiveness of the electronic SC. it is easier to address supplier delivery and quality problems if there is a relationship between buyer and supplier. Business performance was operationalized using four measures of performance reflecting financial. shorter order cycles.MARCH 2003 therefore lower inventory carrying costs. The results demonstrate the importance of supplier selection and assessment on a buying firm’s business performance. For example. During a price promotion. 30 criteria were identified as being used for selecting suppliers.

Traditionally. The main purpose of Pfizer ’s DSS was to support decisions regarding the US network for distributing finished goods. A well-constructed and well-managed decision support system (DSS) is believed to be necessary for managing a large-scale distribution network effectively. Emmanuel. 29.” Decision-Support System at Pfizer/Warner-Lambert. a common pool of relevant technical knowledge. elimination of customer deductions. the benefits that it generated. “Implementing a Distribution-Network Pfizer/Warner arner-Lambert.” Administrative Science Quarterly. 43(4). Institutions. However. Guillen. etc. organizations wishing to adopt the most innovative practices are suggested to look to the state. Davis. Governments can affect rates of diffusion of innovative practices not only as purchasers of goods and services. This paper develops a multiplant model to help the Adams division make optimal decisions about locating manufacturing technology. The results have implications for both governments and organizations. 71-77. but also through trade policy. normative. such as Microsoft Excel and Access. and helped the logistics planners understand the operational implications of potential strategic or tactical decisions about the long term. product development risk has resisted frequency-based measures that rely on analysis of repetitive trials. Quality certification has emerged as a key organizational practice helping companies worldwide establish rationalized production processes. spreadsheet tools. It assesses the strength of a business case in six key areas of technical. The social network theory is used to develop a systematic conceptual understanding of how firms located in different countries influence each other ’s rates of adoption as a result of cohesive and equivalent network relationships. for example. engineering. manufacturing. a robust product development process can make the inherent risks understandable and to some degree measurable and controllable. and the Diffusion Diffusion of Organizational Practices: The International Spread of ISO 9000 Quality Certificates. 32(4). and discusses its implementation between 1998 and 2000. 30. Key to this effort is the stage-gate product development processes in which ideas are evaluated incrementally at successive stages of substantiation. raised people’s awareness and ability to act on supply chain issues. The system is designed to support activities ranging from long-run strategic network design to shortrun day-to-day operations and customer service. has been criticized for not properly accounting for uncertainty and project flexibility.changes in both how buyers are trained and in how buyersupplier communications are conducted. the authors focus on the coercive. The most influential and pervasive quality practice in the world is associated with the 9000 family of certificates sponsored by the International Organization for Standardization (ISO). indicating that organizational practices diffuse across the world in contingent ways depending on the extent to which firms in each country are exposed to coercive. 47(2). or quality. The NPVR model relies on using experience and judgment to subjectively assess risk relative to one or more well-defined extreme situations. including warehousing. guaranteed success or failure. In the global economy. Mauro and Macpherson. 207-232.” Interfaces. 28. and their foreign trade partners and competitors for new models and opportunities. analyses. “Global Competition. coupled with large-scale databases. There is. it developed a DSS that contained a toolkit of diagnostic models. transportation. This paper uses the panel data on ISO 9000 quality certification in 85 countries between 1993 and 1998 to better understand the cross-national diffusion of an organizational practice. Tan and Blyden. and mimetic effects that result from the exposure of firms in a given country to a powerful source of critical resources. It helped distribution managers to understand the cost and service implications of proposed strategic network alternatives.” MIT Sloan Management Review. The empirical results provide strong support for the coercive effects of powerful organizations. Traditional financial models have limited success exposing the numerous product-development risks that underlie the assumptions in a typical business case. Warner-Lambert Company (now Pfizer Inc. and the experiences of the firms located in other countries. one example being that of Adams confectionery. such as optimization and simulation. “Calculated Risk: A Framework for Evaluating Product Development. technological and economic activity. Isin. The net present value risk-adjusted (NPVR) framework is believed to enhance the stage-gate decision process by explicitly addressing critical risk factors in traditional return on investment (ROI) models. scientific. it led to optimization modeling in other parts of the organization. such as the state and the multinationals. normative. no robust evidence for the independent impact of knowledge-based normative isomorphomism as measured by scientific and technical publications in the areas of operations. The goal of ISO is to promote the development of standardization and related activities in the world with a view to facilitating international exchange of goods and services. Peters. and standardized reports. and programming tools. and to developing cooperation in the spheres of intellectual.. market and user needs risks. based in Geneva. 28-45. WL’s DSS also had certain qualitative benefits. Since risk assessment ABSTRACTS 158 . Kelvin (2002). Net present value. Miller.) developed and implemented such a system using basic OR tools. the most commonly used decision-making tool in product development. and delivery. Besides the quantitative benefits such as increased annual savings. At the operational level. Gupta. Following neoinstitutional theory. Guler. The implementation of the optimization model served business needs outside the scope of DSS. John Muir (2002). This paper describes the different elements of the DSS. however. Vijay. Further. Craig (2002). multinational firms. and mimetic effects.

It is argued that the role of the senior management in leading the information security posture of the organization is complex. the firm must plan for continuity of operations in the event of security being compromised. Basu. The scorecard gives managers a framework to understand the locus of efficiency and innovation in their information-infrastructure portfolio. It rests on three cornerstones—critical infrastructures. new platforms and new products. 379-395. total security is a myth. Second. the authors suggest a framework that can help organizations craft a more realistic and effective security solution compared to the current technology-dominated view. This paper proposes an approach for developing a shared understanding and a shared agenda between the business managers and IT managers—an application scorecard approach. Amitava and McCrohan. overseeing the establishment of a proper control environment. Therefore. nature of the data and quality problems. and the technological base as they coordinate the process of asset identification. that information security is not a technical issue. 2002. The rapid diffusion of Internet-based electronic commerce in the recent years has created an urgent need for crafting new security mechanisms in the wired economy.at the business case stage is subjective and numerical estimates underlying NPV assumptions often introduce significant error. The authors look at the business from the process perspective and draw on the recent developments in management science which explicitly recognizes information technology as a powerful enabler of business innovation and success. To address particularly the expressed need for effective marketing and business models. connectivity and convergence of industries and technologies. A study of 500 senior executives in large companies over a period of four years reveals a serious disconnection between emerging strategic direction and IT’s ability to support it. this paper examines the online support for commerce processes using a framework for EC use by firms to investigate the actual state of adoption of EC. they are more likely to identify the appropriate technology. there will be decreasing tolerance on the part of customers for cyberrelated vulnerabilities. VIKALPA • VOLUME 28 • NO 1 • JANUARY . Parameters differ for different functions. But if senior line managers and IT managers can jointly identify the specific flexibility needs in a given business setting.” Decision Support Systems. some major barriers and inhibitors to the continued and widespread adoption of Internet commerce. This approach is expected to facilitate dialogue within corporations and enable business managers and IT managers to reconcile the disconnection between them. Third. sourcing of the application. 43(4). On the basis of these three messages. new categories. pp. the NPVR model uses a risk scoring vocabulary that is common across the four portfolio categories: new ventures. it is a management issue. firms need a sophisticated and facile organizational infrastructure and information technology flexibility. Critical infrastructures is beyond the direct control of the organization and is subject to physical and cyber attack from an increasing number of players with a variety of motives. In order to respond rapidly to the ever-changing competitive pressures arising from deregulation. 34(4). However.” California Management Review. organization.MARCH 2003 159 . it can lead to a focused dialogue that in turn can lead to a shared agenda and a careful partition of effort between line managers and IT professionals. Amit and Muylle. knowledge about business-process domain. Used imaginatively. Whether a business process is stable or evolving is a determination that must be made within the particular business context. 67-87. CK and Krishnan. assess linkages and interdependencies. 32. nor is it technically possible to protect all information assets. MS (2002). globalization. 33. Prahlad. Dutta. The key considerations for developing the applicationsinfrastructure framework include the role of application in strategy. There are three important messages. decision makers can exercise better judgment in selecting among investments and undertake appropriate risk investigation that can significantly affect the overall success of the company’s product development portfolio. however. Kevin (2003). and to focus on collaboration. It requires the senior managers to understand the relationships among critical infrastructures. impediments and risk profile in the information infrastructure before making investments. and achieving a balance between the costs and benefits of control. The real challenge lies in sourcing of evolving applications. First. technical risk. Steve (2003). What is required is to audit current applications. There are. as Internet-based commerce diffuses through society.” Economy. This paper examines the role of senior management in achieving security and presents an organizational security approach that senior managers can use as a roadmap to initiate security plans and policies and audit their implementation.24-33. This approach helps managers understand the capabilities. one important one being the lack of effective marketing and business models. 45(1). The explosive growth of the World Wide Web on the Internet has given rise to a promising locus of commerce. “Online Support Web for Commerce Processes by Web Retailers. balancing them is the responsibility of management. the organization must determine what information assets must be protected and the degree of protection required for them. By differentially weighting the subjective assessment of risk for each portfolio category. Focusing on firms that are Information Systems Management 31. “The Dynamic Synchronization Technology” Synchronization of Strategy and Information Technology” MIT Sloan Management Review. risk assessment. Not all information is of equal value. and technology. A framework was developed to indicate which are the most salient risks—market risk. identify priorities. the organizational environment. “Management’s “Management’s Role in Information Security in a Cyber Economy. or user risk—in each of the product portfolio category.

and they are able to act to resist or oppose these negative impacts. An outline description of a holonic manufacturing workstation has been provided to illustrate the powerful application of a number of autonomous functions for reconfiguring NC part programmes at an open CNC controller. Newman. the paper examines the extent of support for commerce processes and sub-processes in EC to see if there are significant differences in support for each of these commerce processes across various types of industries. etc. A comprehensive laboratory-based demonstrator based on the configuration of a typical machining cell within a small metalworking enterprise has been developed. and values of others. The most important building block in implementation of such concepts is the development of a homogeneous network for the application of human-centered manufacturing. process planning and scheduling. It is argued that conflicts may occur in cross-cultural working if differences in structures in the mind are perceived to affect actors negatively. norms. 49(15). In order to abundantly exploit this new locus of commerce. In the more globalized world of the 21st century. Bagshaw.technology users rather than technology solution providers. However. This research targets at a distinct group of metalworking SMEs that occupy the demanding and dynamic position at the end of the supply chain. in order to analyse detailed patterns of crosscultural working. The discussion why such issues are important is organized in terms of cross-cultural contradiction and conflict. which provides appropriate and timely information support in a way that enhances collaborative activity within the business and strengthens the role of the individual. ST and Bell. It also examines the patterns of correlations for the support of the different commerce processes across and within industries. RW. detailed work patterns. It is proposed that IS researchers should adopt a more dynamic view of culture—one that sees culture as contested. Also. Finally. the business holon that covers the administrative activities such as order processing. brand equity and trust are predominantly established offline. and emergent. The structurational analysis is understood to provide a deeper examination of cross-cultural working and IS than is found in the current literature.” MIS Quarterly. and the dynamic nature of culture. but rather as one that should be looking for a measure of systemness or homogeneity within particular social groupings. which has been designed and implemented based on holonic concepts for the small matalworking enterprise. 34. cultural heterogeneity. It is frequently suggested that these SMEs must consider the use of the most appropriate IT tools for the improvement of the quality and consistency of the manufacturing performance. It provides a powerful training tool for the operators of typical SMEs to familiarize themselves with a modern autonomous cooperative working environment. In the context of globalization. and the manufacturing holon involving the implementation and monitoring of the production plans produced by the business holon. Many Web retailers seem to be confining EC to the automation of a narrow set of existing business functionalities. while working in a cross-cultural context. This paper draws on the structuration theory to develop a theoretical basis and uses it to analyse crosscultural software production and use. R (2002). it is argued that culture is not static. with increasing contact between different societies. Thus. The Electronic Commerce Architecture (ECA) framework is used to analyse a variety of Web sites for determining which commerce processes are being supported online in each industry and in each type of industry. the companies are suggested to rethink their organizational structures with the capabilities of Internet technology in mind. This would mean ABSTRACTS 160 . The production system of such SMEs are typified by human-centered manufacturing systems where the flexibility introduced through the utilization of multi-skill operators plays a major role in the agile performance and responsiveness of the company. Moreover. even in those in which early movers have made significant advances. it is not necessary to consider culture as homogeneous. what is required is some understanding and empathy for the attitudes. they are criticized as rather crude and simplistic. it is increasingly difficult for any group to remain isolated and uninfluenced by other cultures. finance. together with cooperative support tools for company-wide information support. Rahimifard. 26(4). 359-30. While Hofstede-type studies alert us about the importance of cultural difference. Geoff (2002). “IT Tools to Improve the Performance of Tools Metalworking SMEs” International Journal of Production Research. They also appear to mainly target preinformed customers and rely on a marketing communication strategy in which Web site awareness. This paper illustrated the development of such an IT facility. Walsham. dominated by Hofstede. As the two case studies illustrate. there is no appropriate theory to analyse the phenomenon. costing. temporal. 3589-3604. The model represents an enterprise as an enhanced organization holarchy that can be viewed to consist of three main holons: the executive holon that represents the ultimate decision making process within the company. The findings indicate that adoption of Web technology and electronic commerce practices is still quite primitive in many industries. 35. It also illustrates the application of a holonic manufacturing paradigm and facilitates the transfer of such technology to industry. most companies in digital product industries are largely foregoing the benefits of online delivery and customized product design. S. “Cross-Cultural Software Production and Use: A Structurational Analysis. working with information and communication technologies is increasingly taking place in a cross-cultural context. it is necessary to move away from the high levels of national characteristics to a more detailed focus on behaviour at the micro-level of the group or organization.

transaction-cost economics theory. The paper shows how managers can map and integrate knowledge by using two elements of strategic planning—scenario building and internal situation analysis—to gain a sustainable competitive advantage edge in today’s hypercompetitive markets. A conceptual model was developed drawing on the theories in a multi-disciplinary literature which included inter-organizational relationship theory. 23(4). and resource dependency theory. both in the technology being used to transact business messages and in the parties with whom trade is being conducted.MARCH 2003 161 . for General Management 37. there is an increasing belief that these approaches are focused on today’s problems and would fail to address tomorrow’s opportunities.” Organization Studies . Two perspectives have surfaced regarding the structural consequences of global management concepts. where business relationships begin with transactional trust that gradually moves to relational trust where the focus is on building trading partner relationships. thus paving the way for the trading partners to identify which stage of trust they and their trading partners belong to. With knowledge emerging as a critical source of comparative economic advantage. in turn. The process begins with knowledge mapping and integration. as organizations need to cooperate. “Inter-Organizational “Inter-Organizational Trust in Business-to-Business E-commerce: A Case Study in Customs Clearance. although business-to-business e-commerce systems and applications facilitate the development of initial competence trust. Strategic planning in recent years has generally focused on either market-oriented (external) or organization-oriented (internal) approaches.” French and German Car Manufacturing Industry. The underlying logic is that knowledge should lead the company into the future. 38. 11(1). competitors. The basic idea put forward is that management concepts can be understood as distinct sets of general organizational rules. four in a large public sector organization and three in small-medium enterprises involved in customs clearance. The model identified three stages in the development of interorganizational trust. the more they can learn. Hypercompetition. developments and the emerging uncertainties. resides in the employees. developed outside the company. and the environment. The author proposes an alternative approach that focuses on knowledge management as both source and outcome of strategic planning. Woywode. In this approach. Ratnasingam. It shows the impact of trading partner trust in a socio-economic e-commerce situation. Given the intensity of competitive VIKALPA • VOLUME 28 • NO 1 • JANUARY .” Business Horizons. For examining the phenomenon of trading partner trust in e-commerce participation in the real organizational context.mutual respect between cross-cultural partners and the opportunity for a move toward a more negotiated culture of cooperation. and it evolves gradually from one stage to the next stage. Results also suggest that trust needs time to develop. Pauline (2003). modifying trust. 19-24. so that business transactions are sent and received in an orderly fashion. The adoption of Internet-based commerce requires a certain level of trust. The author compares the two approaches and concludes that making knowledge management an integral component of strategic planning allows firms to tap a source of competitive advantage that cannot easily be copied. The findings strongly indicate that interorganizational trust is important for e-commerce participation. There is stated to be a cyclic relationship between participation in e-commerce and trust—trust as an antecedent of participation and participation in e-commerce. and globally spreading management concepts. influencing decisions about customers. the ability to grow in today’s hypercompetitive and high-velocity landscape is believed to depend upon how well a firm collects and shares information. “Strategic Planning. The general chronology of events starts with actions followed by results and knowledge—the ARK approach. actions take precedence over knowledge creation. 46(1). leading to actions and results—the KAR approach. Michael (2002). and communicate timely and relevant information in order to facilitate e-commerce. This entails not only technological proficiencies. Syed H (2003). 1-19. but also trust between trading parties. collaborate. This is in contrast with the traditional strategic planning which has been pursued with a decision making orientation—the “what should we do” dilemma. “Global Management Working Concepts and Local Adaptations: Working Groups in the Industry. and Knowledge Management. 36. The KAR approach to strategic planning provides both the structure and the context for knowledge development. the author suggests that they be integrated in order to get the full picture of this organizational change process. Akhter. case studies were carried out from a cross-section of industries. the other stresses on the increased similarities between organizations due to technological convergence. the company. While establishing the truth of both the concepts. 497-524. growing importance of MNEs. Organizational knowledge. It is assumed that the focus on knowledge development will encourage managers to share information and thereby create an environment in which trust and commitment can play a constructive role in developing individual and shared cognitions. While one school believes that globally diffusing management concepts should have heterogeneous consequences at the organizational level due to institutional differences at the national level. renewable and unique to the firm. This study focuses on the forward part of the cyclic relationship that is the role of trust in participation in e-commerce with a broader objective of understanding inter-organizational trust in business-tobusiness e-commerce.” Journal of Global Information Management. the more they know.

13(6). the impact of procedural justice being stronger when decision control was low. the rules diffused are those which. M Audrey and Sapienza. Decision Control. According to this approach. Data from the management teams of 51 IJVs largely support these hypotheses. (2) to investigate the differential effect of each of these strategies on the performance partners. but it will also increase the viability of options for the termination of the IJV. 23(12). Finally. and the control variables. “Configurations of Ventures. A balanced commitment would not only provide an excellent basis for cooperation among the three organizations during the lifespan of the IJV. cultural influences represented the normative institutions and mimetic entry and historic norm were introduced as cognitive institutions.” Organization Science.” International Joint Ventures. on the surface. Korsgaard. will increase similarities among organizations over time. it was found that the multinational enterprises tend to conform to the regulative settings of the host-country environment. the study examines how the regulative. However. 40. The independent variables for the study included the transaction cost variables. the results offer empirical support for the position that the management teams of IJVs are likely to identify more strongly with the IJV than with the parent firms and for the positive impact of procedural justice when managers have little or no control over the decision-making process. a firm chooses its organizational practices and structures primarily to gain legitimacy from both internal and external claimants. Harry J (2002). In particular. The studies of foreign entry mode choice have so far used transaction cost theory focusing on the impacts of firm-and industry-specific factors on the choice of entry mode. and cognitive domains of the institutional environment influence a firm’s decisions on foreign entry-mode choice. The local adaptation of a management concept at the level of the firm is influenced significantly by the particular national institutional setting in which the organizations are embedded. it focuses on the impact of the strategic decision processes involving IJV management teams and their foreign and local parents on the organizational commitment levels of the IJV management team. 1141-1160. it was hypothesized that procedural justice has a greater impact on the levels of commitment to the parents than to the IJV. Yiu. It was hypothesized that commitment to the IJV and to the parent firms exists at varying levels in IJV top management teams. State influence was included as a regulatory variable. Consequently. the authors add. Hemant (2002). Daphne and Makino. Because of diffusion and adaptation processes. 107-140.” Strategic Management Journal. James P.” Management International Review. regulative. and cognitive institutions represented the institutional variables.and product-specific knowledge and country-specific experience constituted transaction cost variable. “The Choice Venture Between Joint Venture and Wholly Owned Subsidiary: An Institutional Perspective. normative. limited support was found for the effects of decision control and for the role of procedural justice in reconciling discrepancies in commitment to the IJV and parents. the normative pressures imposed by the local people. While parent’s firm. The findings indicate that IJV top management team members share a common sense of the team’s commitment to the IJV and its parents. and the cognitive mindsets as bounded by counterparts’ and multinational enterprises’ own entry patterns when making foreign entry-mode choices. both isomorphic and idiosyncratic tendencies in organizational structures could be observed at the same time. Johnson. the diffusion and structural consequences of management concepts are analysed empirically by investigating working group concepts realized at the final assembly stage in French and German car manufacturing plants. This paper introduces an institutional perspective that sees the choice of organizational structure as a consequence of organizational responses to isomorphic pressures arising from both a firm’s external environment and its internal organizational practices and routines. The results of the analyses support the notion that institutional theory provides incremental explanatory power of foreign entry-mode choice in addition to transaction-cost theory. realizations of a management concept at the level of the firm can be expected to differ significantly between countries. when the option is not dissolution. In this study. and (3) to investigate ABSTRACTS 162 . and Venture Commitment in International Joint Venture Management Teams. Following this logic. The sample for the study consisted of 364 foreign subsidiaries established by the five largest Japanese home-electronics companies and the five largest Japanese automobile companies. when individual firms decide to apply a new management concept. the concept itself must be ‘locally adapted. promoting cultural alignment. institutional variables. and that decision-making processes that are perceived to be fair enhance the team’s commitment to all three entities. normative. This paper examines how the creation of an international joint venture (IJV) poses strategic challenges for parents beyond those ordinarily associated with implementation of cooperative strategies. 667-683. “Perceived Fairness. Further. In general.’ This results in inter-firm variations of the practices which are linked to a particular management concept once it is implemented. commitment to all three entities was hypothesized to be positively affected by perceptions of procedural justice and decision control. 39. The study has three objectives: (1) to empirically identify observed joint venture strategies of firms participating in IJVs.the transformation of input into output. Shige (2002). When a management concept diffuses through an industry. 40(2). Within this broad framework. The results indicate that the local adaptation of working groups is brought about to a large extent by the institutional differences between countries. Merchant. 41. However.

30(12). R&D activity. absorption strategies. and de-legitimizing the revolution. Rand. business models. Cycles are generally shorter 163 . November. Fin (2002). The results reveal four distinct clusters in the sample. This thesis applies even to business. Based on a sample of 15 developing countries. Business cycles are fluctuations in the aggregate economic activity of nations that organize their work mainly in business enterprises. the incumbent’s. or cannot be contained. reveals that instead of falling victim to the extremes of passivity or panic. This can be made possible by bringing the revolution inside the corporation after having modified them or by creating polarized blocks to pave the way to acquire the revolutionaries. Revolutions seldom succeed. It identifies the turning points and derives the stylized facts for 19 macroeconomic variables that emerge when the shorter business cycle duration is taken into account. level of political risk. the author confirms. This manifests in highest levels of similarity between partners’ national cultures and lower level of political risk. or technologies of their industries. rather than supersedes. These firms usually undertake manufacturing or marketing activities whose outcomes are less risky than say. interpartner rivalry. and similarity between partners’ national cultures. The Asian pr ospectors prospectors comprise relatively smaller firms with relatively strong competitive positions that manifest in the pursuit of manufacturing activity within the joint venture context. the study uses cluster analysis methodology to generate a taxonomy of IJVs between US manufacturing firms and their non-US partners. D’Aveni. These include business relatedness. “Business Cycles in Different?” Developing Countries: Are they Dif ferent?” World Development.” Harvard Business Review.MARCH 2003 a niche and thus halt a revolution in its tracks. loosely. to the stages of a revolution: Containment strategies. However. previous joint venture experience. When a revolution is detected too late. followed by similarly general recessions. For empirically identifying the strategic groups. shaped. give away the benefits offered by them for free or continuously improve existing products or technologies. The primary goal of the shaping strategies is a peaceful coexistence. swamping distribution channels. The Global prospectors are the smallest of the prospectors four clusters and comprise considerably large firms. industry leaders must act more aggressively to neutralize it. then the companies may go in for shaping it so that the new technology or business model complements. Economics 43. John and Tarp. this study carried out an analysis to estimate the duration of the business cycles. and revivals which merge into the expansion phase of the next cycle. 66-74. The study demonstrates that developing countries differ considerably from their developed counterparts when focus is on the nature and characteristics of short-run macroeconomic fluctuations. A cycle consists of expansions occurring at about the same time in many economic activities. they seem to prefer partners operating in similar businesses possibly due to their limited resources and experience. the study considers the other variables for which theoretical justification was limited and examines their relationship with joint venture performance. influencing the revolution through venture capital. Sharp industry leaders often draw on more than one strategy to counter different aspects of a revolutionary threat. The incumbent assimilates the revolution in ways that neither destroy the company’s existing competencies and strengths nor abandon its existing products and business models. 2071-2088. they relied on a mix of strategies to restrain or modify the threat or sometimes attack it head-on. Even when they do. The firms in the Developed country analyzers cluster represent smallest firms in the sample. or absorbed. the study draws upon the seven theoretically established constructs from the literature. has spread too widely. who seem to lower the potential hazards of political and cultural dissimilarities. shaping strategies. To fulfill the objectives. These groups clearly demarcate the boundaries of joint venture activity and identify avenues for a profitable deployment of corporate resources commensurate with characteristics of participating firms. This could be possible by co-opting the revolutionaries. raising switching costs by leveraging complementary assets. and annulment strategies. Annulment strategies are the most decisive coun. Annulling can take two forms: leapfrogging the threat with another revolution better suited to the incumbent’s strengths or sidestepping the revolution altogether. equity ownership. launching blocking brands. This could be possible by locking customers in through incentive programmes. or by acting as suppliers to the revolutionaries. neutralization strategies. Absorption strategies allow an industry leader to avoid the risks of being a first mover or a mere imitator. it is almost always because of the ineptitude of the incumbents’ leadership rather than the superiority of the challengers’ ideas. firm size.terrevolutionary strategies and should be used only when a threat is almost unstoppable. contractions. The Western Eur ope prospectors Europe prospectors include partners from developed countries and joint ventures located mostly in developed countries. rather than a fight to the finish. A study of more than 100 incumbents facing a real danger to competitive dynamics. 42. They register the lowest level of political risk to the extent that multinationality of large firms results in more dispersed locational portfolios. “The Empire Strikes Back: Counterrevolutionary Strategies for Industry Leaders. Companies that perceive a revolution in its earliest stages can contain it to VIKALPA • VOLUME 28 • NO 1 • JANUARY . In the next stage. bench the revolutionaries. This paper organizes the strategic responses of the incumbent firms into five categories that correspond.the differential performance effect of alternate joint venture strategies. They can either quash a new product or business model through legal action. When a revolution can no longer be contained. Richard (2002).

otherwise it is a waste of money. It also considers the role of social policy in providing work and survival security to women. The question whether aid works or not has normally been addressed to examine the effect of aid on economic growth. Kosack. Ghosh. 17-59. This paper considers quality of life as a more appropriate measure of judging the effectiveness of aid. The state-level projections up to 1999-2000 suggest that the incidence of poverty has been falling in India. the author estimates a simple model of life quality. given the great variety of data. It is additionally found that democracies have lower quality of life than autocracies in the absence of aid. growth in GDP per capita. India’s “A Model-based Assessment of India’s Progress in Reducing Poverty in the 1990s. Governments seem to have a limited stabilizing role on the economy. the level of democratization. Even in these sectors. projected forward and the results compared to those of the 55th round. should in many cases occupy centre stage in policy formulation related to business cycle issues. Valeie and Ravallion. while also allowing poverty measures to depend on yield per hectare. In India. The overall rate of poverty reduction implied by the results is 0. the model is calibrated to the time series data by state up to 1993-94. The estimates for the 1990s suggest that the rate of poverty reduction is slightly lower than that India experienced in the 1980s and lower than the level one would have expected based on growth elasticities of poverty calibrated to the pre-reform data. “Globalization. interaction between democratization and aid/GDP. Output. Gaurav.” Economic and Political Weekly. the reason for feminization is believed to be the willingness of the women workers to accept lower wages. As more and more women get drawn into the paid workforce. development spending.and the turning points vary. if aid means rising per capita income. the choice of model should depend on country-specific insights and circumstances.8 percentage points per year for the period since 1993-94. The aid receipts relative to GDP is believed to depend upon initial quality of life. it is effective. consumption. This paper uses a model-based approach for projecting poverty in India after 1993-94. rather than short-run demand management. Moreover. Export-oriented Women Employment for Women and Social Policy: A Case Study of India. the process of open feminization of work is evident only in a very limited way in certain specific sectors and regions of export manufacturing.” Social Scientist. Consumption and investment are strongly procyclical. ABSTRACTS 164 . However. Kozel. and they are also half way between the estimates for the 7. building on the past research evidences indicating economic growth and its sectoral composition.and 30-day recalls for the two 55 th rounds. The success.. While poverty monitoring by the National Sample Survey (NSS) has been accepted since the 1960s. several economic and social questions need to be answered. aid receipts relative to GDP. The main finding of this model is that aid increases quality-of-life growth in democracies and decreases it in autocracies. The paper provides explanations for the failure of the growth process in the 1990s to reduce poverty to the desirable level in India. however. The stylized facts of business cycles across countries are more diverse than those of the rather uniform industrialized countries. other exogenous variables affecting quality of life and usage and fixed time effects. depends upon the resources which the aid provides and the government priorities. In line with the neoclassical growth models. This is a little more than half way between the rates of poverty reduction implied by the 7-day recall and 30-day recall numbers from the 55 th round. On the whole. arms imports and fixed time effects. the geographical composition of these modelbased rates of poverty reduction is also different from those implied by the 55th round. 45. “Effective Aid: How Democracy Effective Ef Allows Development Aid to Improve the Quality of Life. 355-361. distance from capitals of major exporting nations. and supply-side models are typically superior in helping to understand business cycle features. It is argued that domestic policies geared at stabilizing supply shocks. it is proposed that aid may be effective at improving quality of life when it allows a real increase in the resources allocated effectively to life quality-enhancing programmes and projects. 38(4). This paper discusses the feminization of labour with respect to the export-oriented employment in East Asian economies in general and India in particular. From this point of view. population. Stephen (2003). its reliability has recently been questioned partly due to the changes in the design of the latest survey and partly because of a difference of definitions and coverage by NSS and the national accounts. The study also suggests that supply shocks are often the main source of short-run output fluctuations in developing countries. These results have been attributed to the tendency of the democratic governments to treat their people well or at least treat them better than in autocracies. FDI flows being much more volatile and bigger than foreign aid needs to be stabilized in modifying business cycle fluctuations. Jayati (2002). the authors add. longer hours. and inflation as the key determinants of poverty at the state level.e. The projections for rural poverty reduction are about 39 per cent of the rate of decline implied by the 30-day estimates from the 55th round. i. However.” World Development. aid and FDIs are highly volatile in developing countries. The model allows for state fixed effects. 31(1). 44. Martin (2003). aid would be more effective if it were combined with efforts to encourage democratization. state-specific time trends and state-specific elasticities of poverty to non-farm output growth. From this starting point. To determine the conditions under which aid will be effective by this criterion. per capita development spending and the inflation rate in the state. variables to capture a region’s strategic or colonial interest to donors. 30(11-12). The model argues that quality-of-life growth depends upon the initial quality of life measured by HDI. 1-22. 46. Datt.

which enter as inputs into industrial processing have grown at a much slower rate.unpleasant and unhealthy conditions of workplace and greater flexibility in terms of less secure contracts.” Liberalization and Poverty. 165 .” Journal of Agricultural Economics. However. particularly in Asia.MARCH 2003 increase in food crops alone with the effects of an increase in food crops in association with an increase in other crops. Counterfactual simulations are carried out comparing the effects of an VIKALPA • VOLUME 28 • NO 1 • JANUARY .” However. rice trade liberalization can be state to help alleviate poverty in poor developing countries. however. Moreover. Agriculture. it is evident that at least on paper. is that the current trade environment for rice continues to be highly restrictive. with countries—developed and developing—using a plethora of controls both externally and domestically. Sabyasachi. The results show how increases in agricultural have two main effects on the Indian economy. The fact. there is a whole package of different social security measures. This article uses a CGE model to compare the impacts of changes in output in the entire crop sector and the food crop sector alone on the rest of the economy. such women are effectively deprived of all the benefits that may accrue from outside employment except for the meagre nominal returns that they receive from piece-rate work. 48. Considering the available macro-data and the microevidence. However. 567-588. rice is considered the lifeline of the poor Asian population.” Economic and Political Weekly. segmented and highly concentrated. The paper begins by characterizing the world rice market. where much of the observed increase in agricultural output has been in foodgrains. While the former have high producer prices to maintain farmer incomes. With more than 90 per cent of the world production and an overwhelming share of world production. Thus. It is also felt that for the social protection regimes for women workers to be useful. volatile. Second. while commercial crops. This is particularly relevant in India. In this sense. social policy for looking after the double burden of paid and unpaid work needs to be designed carefully. As far as social protection for women workers is concerned. Russel. 45-51. particularly the broad-based agricultural development as opposed to growth in food crops alone aimed at promoting food self-sufficiency. public management of such schemes has been quite inefficient and has not reached too many people. Ashok and Narayanan. public sector production and aspects of public policy. the authors suggest. Since the other sectors have excess capacity. because in that case. This paper examines the important link between rice trade and poverty to study the effect of freer trade in rice on trade flow patterns and to see how rice trade liberalization and consequent rice price equalization across countries influence the prevalence of poverty in the poorer economies. the countries that are competitive while net buyers of rice face higher prices. this work is stated to have neglected the composition of agricultural growth. Under the circumstances. their supply responds to this two-pronged rise in demand and the increase in outputs and incomes in the non-agricultural sectors in turn leads to higher demand for agricultural output. Sudha (2003). and Rural Development 47. higher agricultural output leads to higher intermediate demand for the output of other sectors as inputs into agricultural production. Export processing zones reflect the most visible sign of the link between feminization of paid work and export orientation. the latter have tended to tax producers to ensure the availability of cheap staples for the mass of poor consumers. which in turn lead to increased consumption demand for the outputs of other sectors. The world rice market is found to be thin. Much of the development debate so far has revolved around the strength of linkages between agriculture and other sectors and the priority given to industry and agriculture in developmental policies. these policies would need the backing of social movements. 53(3). To be successful. Sen. 38(1). Indian EPZs follow the world trend of the numerical dominance of women workers. A shift in trade pattern along the desired lines would require a significant change in policies of both developed and developing countries. whereby the marginal utilization of women workers is at the lowest-paid parts of the production chain. what the authors find most important among its features is that it is among the most distorted of all cereals. The effect is thus stronger if increases in agricultural output are not confined to the food crop sector alone. however. “Rice Trade Trade Poverty. It is a different matter. that EPZs themselves are still unimportant and are stagnating over the past decade in terms of value of exports. it has been clearly observed that trade liberalization substantially benefits the net sellers of rice. following it with an overview of rice policies in different countries. higher agricultural output leads to higher farm incomes. Noel and Ozanne. Natural Resources. First. The concern over the rice trade liberalization following the Uruguay Round Agreement on Agriculture is therefore natural. The model includes the non-rural farm sector. Empirical analyses based on computable general equilibrium (CGE) models tended to support the “agriculture-first” strategy or agriculturaldemand-led industrialization. “Broad-based Agricultural Development versus Food SelfSufficiency: Sufficiency: A General Equilibrium Analysis of India. Gulati. finally discussing the implications of trade liberalization for poverty. feminization of export-oriented employment in India seems to have taken a particularly regressive form in the nineties. it would be necessary to move beyond the standard model which underlies most public action— that the male head provides income for the entire household. employing around 70-80 per cent of the total workers. Adam (2002). part of the potential increase in demand is eroded by price increases and also because output change in the rest of the economy is retarded by slower increase in commercial crop production.

RL. management systems and effectiveness of these institutions are discussed along with the issues confronted with in the management and protection of forest resources. 2153-2167. by in situ conservation of rainwater through contour bunding. crafted by the villagers themselves to govern the withdrawal of benefits from their forests and create monitoring. Reduction in yield gap and in unit cost of production were found as added advantages of watershed development. check dams. The watershed development also reduced the income disparity among the beneficiaries. The crucial factor that is believed to determine the success of the JFM programme is the structural relationship between the Forest Department and the community organizations. the VPs are still capable of protecting and managing the forests better than alternative systems. Shibani (2002). 50. etc. Historical evidence suggests that VPs were first created as a response to the people’s movement against forest reservation at the beginning of the 20 th century. were collected for the year 1999-2000. “Why Local Resources Management Institutions Decline: A Comparative Analysis of Van (Forest) Panchayats and Forest Protection Communities in India. it is necessary to have a knowledge of the economics of crops grown within and outside the watershed. and measures the impact of watershed development on income of the beneficiary farmers. Ballabh. 21(3). “SocioWatershed economic Impact of Watershed Development in South Saurashtra Region of Gujarat. To make FPCs and VPs more dynamic. As a manager the important thing is not what happens when you are there. and ensuring implementation of dryland agricultural practices in such rainfed areas demarcated into watersheds keeping in view the flow of runoff. 411-431. Balooni. it is important that they are given a free hand in the management and protection of the forests without any undue influence of the Forest or Revenue Department. VD (2002). The spread and acceptance of JFM is stated to be correlated with the failure of the State to involve people in the Social Forestry programmes designed to reduce pressure on the forest resources. but what happens when you are not there.” Journal of Rural Development. 30(12). The findings suggest that the watershed development played pivotal role in increasing cropping intensity. The specific rules are. Joint forest management in India emerged as a response to the severe degradation of forest resources and the persistent conflicts and movements against the State.49. Primary data on input-output. productivity of various crops. compares the changes in productivity of different crops in the watershed areas. VPs are facing several types of conflicts and have difficulty in maintaining their proprietary rights. Shiyani. This study examines the differential impact of watershed development in South Saurashtra Region of Gujarat. It specifically focuses on the change in cropping pattern on account of watershed development. The management practices of the panchayats are guided by the broad parameters outlined in the Van Panchayat Act. This is done by comparing the functioning of Van (forest) Panchayats (VPs) in the State of Uttaranchal and Forest Protection Committee (FPCs) in the State of West Bengal in India. the authors suggest. Ken Blanchard 166 ABSTRACTS . etc. But due to increasing control of the Revenue and Forest Department and poor support system. it estimates the yield gaps in major crops grown by beneficiary and non-beneficiary households and measures the disparity in income of beneficiary and non-beneficiary groups. This paper examines how the effectiveness of local level institutions in forestry changes in the context of different structural relations and rules. BH and Tarpara. A relatively higher utilization of female labour per hectare of farm by the beneficiaries of watershed development strengthened the already proved hypothesis that the female population got more burdened. sanctioning and arbitration devices to resolve the vast majority of disputes within the local space. The evolution. In relative terms. however. profitability and employment generation. Additionally. Vishwa. For implementing the watershed project. Kulbhushan and Dave. price of the farm products. Watershed development aims at maximizing returns from the dryland areas. Kakadia. Three watersheds managed by GLDC and one by NGO were studied.” World Development.

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