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Article

Deepak Chandrashekar and Bala Subrahmanya Mungila Hillemane

The purpose of this paper is to outline the key determinants of innovation performance of a firm in a cluster. This paper probes the role of absorptive capacity in…

Abstract

Purpose

The purpose of this paper is to outline the key determinants of innovation performance of a firm in a cluster. This paper probes the role of absorptive capacity in furthering the cluster linkages and thereby enhancing the innovation performance of a firm.

Design/methodology/approach

This study adopts stratified random sampling technique to choose sample firms from the identified population of firms in a cluster. Further, it employs primary data collection method to collect data from sample firms through a semi-structured questionnaire based in-depth interviews with the top level management of sample firms. It uses multiple linear regression (MLR) techniques to ascertain the influence of absorptive capacity on degree of cluster linkages (both intra-cluster and extra-cluster linkages), and degree of cluster linkages (both intra-cluster and extra-cluster linkages) on innovation performance of a firm.

Findings

On the one hand, internal factors of absorptive capacity of a firm have a significant positive influence on the degrees of both intra-cluster linkages and extra-cluster linkages. On the other hand, external factors of absorptive capacity of a firm significantly impact the degree of intra-cluster linkages (DICL). But, they have no significant influence on the degree of extra-cluster linkages (DECL). Further, both the DICL and the DECL drive innovation performance of a firm in a cluster. Notably, subsidiaries of externally based firms exhibit superior innovation performance compared to those firms based in a cluster.

Originality/value

This paper contributes to the extant literature in two ways. First, it empirically validates the effect of absorptive capacity of a firm on its degree of cluster linkages (both intra-cluster and extra-cluster linkages) taking into account both internal and external factors of absorptive capacity. Second, it ascertains the influence of degree of cluster linkages (both intra-cluster and extra-cluster linkages) on the innovation performance of a firm in a cluster.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 1
Type: Research Article
ISSN: 1741-038X

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Article

Deepak Chandrashekar and Bala Subrahmanya M.H.

The purpose of this paper is to ascertain the factors that influence the decision of a firm in a cluster to patent its inventions.

Abstract

Purpose

The purpose of this paper is to ascertain the factors that influence the decision of a firm in a cluster to patent its inventions.

Design/methodology/approach

This study adopts a stratified random sampling technique to choose 101 sample firms from the identified population of firms in a cluster. Further, it uses the primary data collection method to collect data from sample firms through semi-structured questionnaires and in-depth interviews with the top level management of the sample firms. Furthermore, it carries out binary logistic regression analysis to primarily examine the influence of capability and willingness factors of a firm on the propensity of a firm to patent its inventions.

Findings

The paper corroborates from the results of the binary logit model that invention capacity has a significant positive impact on a firm’s propensity to obtain patents. In addition, the absorptive capacity of a firm above a certain threshold is likely to have a significant positive influence on the decision of a firm to patent its inventions. On the one hand, between the two motivator factors conventional motivators and strategy related motivators, conventional motivator factor has a significant positive influence on a firm’s propensity to obtain patents. On the other hand, both the de-motivator factors (time, market and cost constraints and procedural issues) have a significant negative influence on a firm’s propensity to patent its inventions.

Originality/value

This paper makes a key contribution to the existing literature by empirically validating the influence of capability of a firm in terms of its invention and absorptive capacities, and willingness of a firm constituting motivator and de-motivator factors, on the decision of a firm to obtain patents, in the context of a firm in a high-tech manufacturing cluster in a developing economy.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

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Book part

M. H. Bala Subrahmanya

This paper probes the factors which influence (i) the degree of internationalization and (ii) the subsequent economic performance, achieved by SMEs in India. These two…

Abstract

Purpose

This paper probes the factors which influence (i) the degree of internationalization and (ii) the subsequent economic performance, achieved by SMEs in India. These two objectives have been examined in the context of firm level push/pull factors, barriers/challenges, firm resources, and strategy.

Design/methodology/approach

This study is based on empirical data gathered through a semi-structured questionnaire from 84 exporting SMEs in the (most internationalized) engineering industry of Bangalore in India during January 2012 to February 2013. The two key research questions have been analyzed using stepwise multiple regression models. The degree of internationalization is defined as the percentage of foreign sales in total sales turn over, as of 2010/2011, and economic performance is represented by (i) the value of sales turnover as of 2010/2011, and (ii) growth of sales turnover from inception till 2010/2011, alternatively. Firm level variables (age of firms, firm size, nature of firm organization), entrepreneurial characteristics (age of the founder and education), time taken to enter the export market for the first time, mode of entry, degree of initial internationalization, years of experience in the international market, whether operated in the international market continuously or not, number of markets currently exported, and number of learnings made are used as the possible explanatory factors for the first objective. In addition, current degree of internationalization is used as the possible explanatory factor for the current level of economic performance whereas initial degree of internationalization for the growth of sales turnover.

Findings

It is firm age, size and experience, and education of the CEO which influenced the degree of internationalization of SMEs. In addition, continuous operation in the international market after an early entry, leading to more learnings positively influenced the degree of internationalization. Further, those who adopted the MNC route as the mode of entry achieved a higher degree. However, what is more significant is the degree of initial internationalization achieved by the SMEs which had strongly influenced its current degree of internationalization. All these bring out that (i) firm level resources & competence and (ii) firm level strategy, together significantly contributed to the degree of internationalization achieved by the SMEs in an emerging economy like India. However, the degree of internationalization had a negative influence on the current sales turnover achieved. Whereas those SMEs, older in age, organized as private limited companies and led by more qualified CEOs, which catered to more number of countries could achieve a higher sales turnover. But degree of internationalization did not have any influence on firm growth. Only younger and smaller firms grew faster than older and larger firms, irrespective of the degree of internationalization.

Research implications

The above results bring out that to achieve a larger firm size, entering the international market need not be the only route, in the current era of globalization. It is possible to achieve a higher economic performance even with a domestic market focus, especially when the domestic market is registering a higher growth compared to the international market.

Originality

The degree of internationalization and its impact on the economic performance of SMEs have been hardly probed adequately based on empirical data in the context of emerging economies. This study fills this void. It reveals that in the era of globalization where domestic firms might have to face competition though not as much as those which operate in the international market, a larger firm size can be achieved with larger focus on the domestic market and with limited focus on the international market.

Details

Emerging Market Firms in the Global Economy
Type: Book
ISBN: 978-1-78441-066-7

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Article

M.H. Bala Subrahmanya

The purpose of this paper is to trace the scope and dimensions of global opportunities that emerge in the era of globalization through the rapid growth of transnational…

Abstract

Purpose

The purpose of this paper is to trace the scope and dimensions of global opportunities that emerge in the era of globalization through the rapid growth of transnational corporations (TNCs), which Indian small to medium‐sized enterprises (SMEs) could exploit. The backdrop to the discussion is the growth of small‐scale industries (SSIs) in the era of globalization relative to the pre‐globalization era, with a particular focus on their export performance.

Design/methodology/approach

Based on secondary data, the growth of SSIs is analyzed and the scope of global opportunities for Indian SMEs is explored.

Findings

Although the growth of the SSIs segment of the SME sector in India has slowed in terms of the number of enterprises, level of people employed and production, SSI export performance has been impressive in the globalization period. The SSI sector has grown more towards the international market than the domestic market in the globalization era. Globalization has offered new markets to SMEs primarily through two major developments: the adoption of a complex integration strategy by TNCs for their production network, and the global procurement strategies and global expansion of TNC supermarket chains.

Practical implications

The paper prescribes a dual strategy of vertical integration of local SMEs with global TNCs for the production of intermediate goods and horizontal cooperation through networking among local SMEs to link up with global TNCs for the production and marketing of consumer goods. The role of Indian policymakers as a facilitator in the process is emphasized.

Originality/value

This paper throws light on recent growth performance of small‐scale enterprises in India and provides insight on the emerging global opportunities to Indian SMEs, which need to be given due consideration by Indian policymakers for exploitation.

Details

Management Research News, vol. 30 no. 10
Type: Research Article
ISSN: 0140-9174

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Article

M.H. Bala Subrahmanya

How do energy consumption, efficiency and economic performance vary between small enterprises belonging to two different product clusters whose production process and…

Abstract

Purpose

How do energy consumption, efficiency and economic performance vary between small enterprises belonging to two different product clusters whose production process and technologies differ?

Design/methodology/approach

The objectives are analyzed based on empirical data gathered from a field survey of small enterprises with reference to auto ancillaries in Shimoga and brick‐making enterprises in Malur of Karnataka State in India. Simple averages, correlation and multiple‐regression techniques are used for the analysis.

Findings

The study brought out that higher energy intensity results in higher share of energy cost in total variable cost. Energy intensity had a negative relationship with value of output. Energy makes a statistically significant contribution to returns to scale. The classification of small enterprises into two groups based on above average energy intensity and below average energy intensity, and the subsequent regression analysis brought out that energy intensity had a positive influence on returns to scale in auto ancillaries whereas a negative influence on returns to scale in bricks enterprises.

Research limitations/implications

The sample‐size formulation could not be done on a scientific basis due to the absence of comprehensive data on all small enterprises operating in the respective clusters and therefore, the findings may not be generalized.

Practical implications

Industry specific characteristics must be taken into account while introducing “energy efficiency improvement” programmes as a means of enhancing competitiveness in “energy intensive” small enterprises.

Originality/value

The paper illustrates the scope for energy conservation and efficiency improvement in Indian small enterprises.

Details

International Journal of Energy Sector Management, vol. 1 no. 2
Type: Research Article
ISSN: 1750-6220

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Article

Bala Subrahmanya Mungila Hillemane, Krishna Satyanarayana and Deepak Chandrashekar

Technology business incubators (TBIs) form an indispensable part of an entrepreneurial ecosystem for the promotion of tech start-ups across the global economy. However…

Abstract

Purpose

Technology business incubators (TBIs) form an indispensable part of an entrepreneurial ecosystem for the promotion of tech start-ups across the global economy. However, they have evolved in varied forms over a period of time, in terms of typologies, sponsors and stakeholders, goals and objectives, functions and services offered, process of incubation support provided through hard and soft infrastructure, outcomes and achievements and even in terms of theoretical bases. The purpose of this paper, therefore, is to review the extant literature on TBIs to arrive at a framework that explains how TBIs contribute to start-up generation.

Design/methodology/approach

This paper reviews extant empirical literature for a systematic evaluation to throw light on the various dimensions of TBIs: typology, goals and objectives, functions and services, process and provision of incubation support, outcomes and achievements. Further, after critically reviewing some of the theoretical propositions, it develops a conceptual framework combining pre-incubation, incubation and post-incubation processes of TBIs.

Findings

Based on literature understanding and some of the key theoretical constructs, a conceptual framework is developed comprising pre-incubation, incubation and post-incubation stages of start-up formation and graduation. The paper also identifies some prospective areas for future research.

Research limitations/implications

Any empirical research on technology business incubation must focus on pre-incubation and post-incubation processes as much as on the incubation process, to derive meaningful implications and enhance the productivity of TBIs.

Originality/value

The conceptual framework derived out of the systematic literature review will enable further research and exploration of micro-aspects of pre-incubation, incubation and post-incubation phases across multiple dimensions.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 25 no. 7
Type: Research Article
ISSN: 1355-2554

Keywords

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Article

M.H. Bala Subrahmanya

The purpose of this paper is to ascertain: first, India's public policy support for small and medium enterprises (SMEs) for external technology acquisition (ETA); second…

Abstract

Purpose

The purpose of this paper is to ascertain: first, India's public policy support for small and medium enterprises (SMEs) for external technology acquisition (ETA); second, objectives of SMEs for ETA; and third, factors which induced them to obtain their first ETA.

Design/methodology/approach

Public policy is examined through survey of literature, whereas objectives and factors influencing first ETAs by SMEs are analyzed based on primary data collected from 64 SMEs in Bangalore. Objectives of ETAs are analyzed descriptively whereas factors which facilitated/hindered early ETAs are examined through Cox regression analysis.

Findings

Public policy for ETAs by SMEs includes technology information, assistance and fiscal incentives. The technology focus of these SMEs has been shifting from conventional lathes to computer numerical control (CNC) machines. Most of the SMEs have gone for technology up-gradation with the objective of improving product quality, scale expansion, and meeting customer demand. Majority of these SMEs have obtained their first ETA within six years of their inception. Firm level factors have significantly influenced the time taken by these SMEs for their first ETAs. Overall, when technology is well developed and easily accessible, SMEs would hardly look for external support for ETAs.

Research limitations/implications

The shifting technology focus from conventional lathes to CNC machines is a welcome development, which is driven by the need for “competitiveness enhancement”. Since there is no major obstacle for ETAs, policy makers may focus more on providing SMEs with market information and market developments.

Practical implications

The shifting technology focus from conventional lathes to CNC machines in Indian SMEs is a welcome development, which is largely driven by the need for better product quality, scale expansion and customer demand, and internal factors played a crucial role in the time taken by these SMEs in accomplishing their first ETA. As such there is no major obstacle for these SMEs in going for ETAs since technology suppliers are available at the door-step and finance is available from the banks. Therefore, policy makers may focus more on providing SMEs with market information and market developments in the domestic as well as international market.

Originality/value

This is a first attempt to examine public policy, objectives and factors influencing SMEs for ETAs in India, after 1991.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

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Article

Bala Subrahmanya Mungila Hillemane

The purpose of this study is to explore how do the characteristics of technology business incubators (TBIs), their chief executive officers, selection process and…

Abstract

Purpose

The purpose of this study is to explore how do the characteristics of technology business incubators (TBIs), their chief executive officers, selection process and incubation process influence their research and development (R&D) contributions to the national economy.

Design/methodology/approach

These research questions are probed based on primary data gathered from 65 TBIs located in Bangalore, Chennai and Hyderabad, 3 of the leading start-up hubs of India comprising 9 accelerators, 31 incubators and 25 co-working spaces. Stepwise (backward elimination) regression method has been applied for six regression models for the analysis of research objectives.

Findings

Incubators more than accelerators and co-working spaces have incurred R&D investments for infrastructure development and hired exclusive R&D personnel. External networks and size of incubators in terms of number of incubatees are decisive for R&D investments and new products/services. TBIs accounted for a negligible share of patents relative to the number of new products/services generated in these TBIs, thereby indicating “low level of novelty/innovativeness” of new products/services. However, both new products/services and patent applications are crucial for revenue generation, implying that the generated new products/services are able to penetrate the market and patent application submission can act as a “signal” to the market.

Research limitations/implications

The overall research findings portend that there is scope and potential for an increasing R&D contribution to emerge from the TBIs along with their incubated start-ups, to supplement the national R&D efforts in India in the future. The emphasis, of course, has to be more on strengthening the innovation ecosystem through TBIs by means of industry–institute partnerships.

Practical implications

This study’s practical implications refer to the need to promote TBIs as a means of strengthening regional innovation systems in developing economies.

Social implications

TBIs can be a means of nurturing tech start-ups for generating employment and income in regional economies.

Originality/value

This is a first of its kind study with reference to an emerging economy exploring to understand the extent of R&D contributions emerging from TBIs, which have been promoted on an increasing scale across the country as a means of nurturing technology start-ups.

Details

International Journal of Innovation Science, vol. 12 no. 4
Type: Research Article
ISSN: 1757-2223

Keywords

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Article

M.H. Bala Subrahmanya

This paper aims to trace the evolution of industrial subcontracting in Japan, over a period of time. Subsequently, the transition in the spread and depth of subcontracting…

Abstract

Purpose

This paper aims to trace the evolution of industrial subcontracting in Japan, over a period of time. Subsequently, the transition in the spread and depth of subcontracting along with relative performance of small and medium enterprises (SMEs) in Japanese industry over a period of time are to be analyzed.

Design/methodology/approach

First, a historical over view of the evolution of industrial subcontracting in Japan is discussed based on literature and discussion with experts. Secondly, based on secondary data, the industry‐wise trends of subcontracting and performance of small, medium and large enterprises are analyzed.

Findings

Japanese industrial subcontracting and structure evolved over the period, particularly after World War II, represents integration and mutual coordination among small, medium and large enterprises across industries. Along with the growth of multi‐layered subcontracting, labour productivities of SMEs have improved as that of large though value added/value of output has remained more or less at the same level. Overall, there is reason to argue that SMEs have benefited from the system of subcontracting in Japanese manufacturing towards its overall competitiveness.

Practical implications

It would be worthwhile to promote multi‐layered industrial subcontracting, particularly with locally based/newly entered TNCs at the helm of the pyramid, in industrializing countries like India, to enhance the competitiveness of local SMEs.

Originality/value

This paper provides the reader with an understanding of evolution of industrial subcontracting in Japan since World War I and its recent trends and throws light on how SMEs have improved their performance over a period of time.

Details

Journal of Management History, vol. 14 no. 1
Type: Research Article
ISSN: 1751-1348

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Article

Debabrata Ghosh, Peeyush Mehta and Balram Avittathur

The purpose of this paper is to understand the practices and policies unique to high-tech manufacturing start-ups in emerging economies, such as India. The study analyzes…

Abstract

Purpose

The purpose of this paper is to understand the practices and policies unique to high-tech manufacturing start-ups in emerging economies, such as India. The study analyzes the main features and challenges of the high-tech manufacturing sector, and the way in which enabling environment including policy making, supply chain capability and related technologies through Industry 4.0 could be leveraged to foster growth.

Design/methodology/approach

The paper undertakes an exploratory approach through in-depth semi-structured interviews conducted with high-tech manufacturing firms in various stages of their growth. The paper provides evidence of the challenges that high-tech manufacturing firms face in India, the strategies they adopt and highlights the role of institutional structures and policies.

Findings

Findings show that high-tech manufacturing start-ups in India face various challenges in the upstream, production and downstream supply chain processes. Further, issues related to availability of quality material, quality suppliers, contracts, funding and access to markets remain. Results also show that enabling operational and financial levers could be created by policy makers and other stakeholders to help the high-tech manufacturing start-ups scale faster and create value.

Originality/value

This paper contributes to the R&D intensive industry and high-tech manufacturing literature in the context of emerging economies, such as India, and provides a rigorous overview of the start-up ecosystem in high-tech manufacturing.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

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