Session Details: Session 1007

Capability Development and Opportunity Recognition in the Indian IT Services Industry

Track B

Date: Saturday, December 13, 2008


Time: 13:30 – 14:45


Room: Lecture Theatre 4

Session Chair:
Rishikesha Krishnan, Indian Institute of Management-Bangalore

Title: Architecting a Lean Software Enterprise: The TODC Story


  • Jayakanth Srinivasan, MIT

The Indian software industry has become a global powerhouse over the last two decades, evolving from supporting lower value segments of the software value chain, to taking ownership of key elements within the value chain. Indian software organizations are in the midst of transitioning from competing solely on cost differentials as arms-length suppliers, to becoming strategic partners. This transition requires a focused transformation effort on the part of these organizations to ensure that they are sustainable in the long run. In this paper, we present the seven principles of lean enterprise thinking, and illustrate their applicability through a case study of one of the telecommunications offshore development centers within a large Indian software services provider.

Title: Capability Building in Emerging Economies: An Investigation in the Indian Software Services Industry


  • Mukund Dixit, Indian Institute of Management-Ahmedabad
  • Amit Karna, Indian Institute of Management Ahmedabad
  • Sunil Sharma, Indian Institute of Management - Ahmedabad

Capability building studies till date have largely focussed on firms in the developed economies. There has been no study that looks at the capability building of firms in an emerging economy context, where the environment coevolves with the firms. This paper aims at plugging this gap with help of a study in Indian software services industry with a focus on capability building for global delivery. We find that the capability building took place in three stages: Foundation stage, Scaling-up stage, and Value-adding stage, and the environment also coevolved during these three stages. We present the evolution across the stages on three dimensions of capabilities: people, process, and technology.

Title: The Effect of Business Group Affiliation and Internationalization on the Technological Capabilities of Software Firms


  • Anna Lamin, Northeastern University

Scholars are increasingly interested in ascertaining the competitiveness of firms from emerging economies. This paper examines two factors that influence the technological capabilities of emerging economy firms in a high technology industry. I generate competing arguments on whether business group affiliation supports the development of more complex technological capabilities or acts as a disincentive against development. Additionally, I contend that exporting facilitates the development of these capabilities. I test these arguments on a sample of Indian software services firms from 1992 to 2001 and find that international activity does support the development of complex technological capabilities, as does affiliation with a moderately diversified business group.

Title: The Influence of Cluster Rivalry on Opportunity Recognition: an Exploratory Study in Bangalore IT Cluster


  • Federica Angeli, Maastricht University
  • Suresh Bhagavatula, Indian Institute of Management - Bangalore
  • Kothandaraman Kumar, Indian Institute of Management-Bangalore

Inter-firm rivarly has been recognised by strategy scholars as an important source of innovation, especially within industrial clusters. While the term is conceptually clear from a macro perspective, it gets unclear at a firm-level, and needs further investigation. With this paper, we aim at contributing both to strategic literature – by considering opportunity recognition within incumbent firms – and to entrepreneurship literature – by unfolding context-specific factors able to trigger opportunity recognition. This study adopts qualitative methods to generate data from selected firms within Bangalore IT cluster. The process of differentiation from local peers and the role of cluster rivalry in this process are explored. Preliminary evidence highlights cluster rivalry to constrain available business opportunities and to strongly guide opportunity recognition mechanisms for both incumbent and newcomer firms.

All Sessions in Track B...

Sat: 11:15 – 12:30
Session 1008: Managing Technological Innovation and R&D in Emerging Economies
Sat: 13:30 – 14:45
Session 1007: Capability Development and Opportunity Recognition in the Indian IT Services Industry
Sun: 13:30 – 14:45
Session 1030: Creating Next Generation Innovation Capabilities: The Challenge for Indian Firms

Strategic Management Society

India Initiative

2008 Special Conference

2010 Bangalore Workshop

2011 Calcutta Workshop