Session Details: Session 1020

Linkages between the Business Environment and Firm Strategy in Indian Firms

Track G

Date: Saturday, December 13, 2008


Time: 11:15 – 12:30

Common Ground

Room: MLT3

Michael A. Hitt, Texas A&M University and TCU
Sankaran Manikutty, Indian Institute of Management - Ahmedabad

Title: Diversification and Performance: a Study of Indian Firms


  • Saptarshi Purkayastha, Indian Institute of Management-Calcutta

Diversification has been a way of life for most firms in industrial countries. Studies of diversification can be traced back to the seminal work of Chandler (1962), who suggested that successful firms first expand their operations geographically, then integrate vertically and finally diversify their different product offerings. This study looks at the influence of business group diversification and firm performance for each industry separately. It uses multiple measures of diversification (continuous and categorical) and performance (accounting, growth and risk measures) to find out a relationship between them. The study will also examine the stability of the relationship across different industries and time periods. Further, the study will also look at the performance of firms affiliated with a business group and compare them with standalone firms.

Title: Does General Business Environment Matter in Firms’ Diversification Strategies? The Case of India


  • Shaleen Gopal, Indian Institute of Management - Udaipur
  • Rejie Pallathitta, Indian Institute of Management-Bangalore

Previous diversification works have by and large emphasized the importance of firms’ initial resource endowments in diversification decisions. However the value accrued from a resource is not independent of the external environment. The role of general business environment in firms’ diversification decisions is significant in this regard. General business environment has however received only scant attention of researchers. This research work is therefore an attempt to address this oversight and investigate environmental factors, which influence diversification behavior of firms and improve our understanding of the phenomenon of diversified businesses. We use India as the motivation in setting-up our arguments.

Title: Evolution of Indian Organized Retail Industry (1991-2007) With Reference To Environment-Strategic Orientation-Performance Inter-Linkages


  • Neha Purushottam, University of South Africa

The exploratory research covered in the proposed paper examines the emergence and growth of organized retail in India during 1991-2007 through inter-linkages between business environment and retail organizations. This research borrows concepts of ‘Strategic Orientation’ and ‘Strategic Fit’ to explore these inter-linkages. The data triangulation was applied to overcome the problems of fragmented data. This research examines ‘Fit’ between Business environment and strategic orientations in selected listed public retail companies (Pantaloon Retail India Ltd., Shopper’s Stop Ltd., Trent Ltd. and Piramyd Retail Ltd.). This research indicates that degrees of ‘fit’ influence performances of organizations. It also emerged that the performances of retail organizations influence the growth of organized retail sector by keeping the sector growing, profitable and hence, attractive.

Title: Strategic Consensus in India


  • Ravi Kathuria, Chapman University
  • Stephen Porth, Saint Joseph's University
  • Narinder Kathuria, Actuate Business Consulting Private Limited
  • Tej Kohli, ABC Business Solutions

As foreign direct investment continues to flow into India, and the middle class of this vast country continues to grow, India will play an increasingly prominent role in global business and trade. This study is aimed at aiding both academics and practitioners to better understand manufacturing strategy and its alignment with the business strategy in the Indian context. With rapid industrialization around the globe, manufacturers in developed economies are facing competition from not only their counterparts in other developed nations, but also from emerging economies that are capable of producing high quality items at a low cost. This study contributes to the literature by examining strategic consensus in an important but until now relatively overlooked economy, India.

Title: Value Proposition For Restructuring the Indian Pharma Industry


  • Rahul Nayak, ZS Associates India Pvt Ltd
  • Parkal Kamath, ZS Associates India Pvt Ltd
  • Srivatsa Srivatsa, ZS Associates India Pvt Ltd

The market is characterized by high levels of branded generics because, with virtually no market exclusivity of any kind, companies are forced to compete on the strength of their brand names (although this can only go so far given the degree of price competition present). Also, the high prevalence of substandard and counterfeit drugs (India is estimated to produce up to 35% of all counterfeits worldwide) means that unbranded generics are viewed skeptically and brand names are often the only sign of quality available to the buyer. Another prevalent problem is that reliable prescription sales data is not available at any level. Prescription drugs are also being sold ‘over the counter’ leading to misuse and safety issues.

All Sessions in Track G...

Sat: 11:15 – 12:30
Session 1020: Linkages between the Business Environment and Firm Strategy in Indian Firms
Sat: 13:30 – 14:45
Session 1017: Corporate Governance in Emerging Economies
Sun: 13:30 – 14:45
Session 1022: Outsourcing, Offshoring and Global Supply Chains
Sun: 15:00 – 16:15
Session 1018: Effective Human Resource Management in Indian Organizations

Strategic Management Society

India Initiative

2008 Special Conference

2010 Bangalore Workshop

2011 Calcutta Workshop