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After studying and analysing this case, students would be able to evaluate and understand the importance and need of an infrastructure sector in a country, its inherent risks and scope of infrastructure investment and financing in India – National Infrastructure Pipeline and the important role of Non-Banking Finance Company’s (NBFC) vis-à-vis banks in infrastructure financing in India; critically analyse and recommend alternative decisions in a business problem situation using multi-criteria decision analysis, which is a tool used for business portfolio analysis; understand and evaluate the corporate portfolio management (CPM) tools used for an optimum portfolio mix to turn around companies; identify and suggest an optimum portfolio mix to turn around a finance company using CPM assessment applied to Pidun matrix; and recommend operational and strategic levers for successful turnaround implementation by using the integrated canvas on turnaround.

On 10 May 2020, in New Delhi, India, J. Ray took charge as a full-time director of an Indian Non-Banking Finance Company – Infrastructure Finance Company (NBFC-IFC). The NBFC-IFC of the Indian Government extended long-term financial assistance to infrastructure projects in India. During the financial year (FY) 2017–2018 till FY 2019–2020, the company suffered substantial losses to the tune of US$13.7bn, with profitability experiencing a notable decline – return on assets at a negligible 0.11% and return on equity of only 0.68%.

The NBFC-IFC had a declining yield on advances at 7.05%, net interest margins (NIMs) of 2.08% against a high cost of borrowing at 7.66%, a declining loan book (by 4.35%) of US$336.27bn and a fast-deteriorating asset quality with highest ever non-performing assets (NPAs) at 19.70% of its loan book. Such financial parameters, compared with that of the industry average of banks and finance companies, meant that the NBFC-IFC Ray had taken over was fast bleeding and was on the brink of being declared a sick company. In comparison, private and other government players had profitable and much healthier financials, and Ray felt that there was a need for improvement. To make things worse, Ray got to know that the Indian Government was in the final stages of setting up a new development finance institution focused on long-term infrastructure financing in India. Ray realized the question was not only of the NBFC-IFC remaining relevant but also of its existence in the fast-evolving sector. Ray wondered what could his his integrated canvas be for a turnaround strategy that could include effective management of an optimal portfolio mix.

With a healthy capital-to-risk (weighted) assets ratio of 30.85% and a satisfactorily improved net worth of US$103.1bn, in the given Reserve Bank of India regulatory provisions for the NBFC-IFC including restrictive exposure norms and NBFC-IFC’s operational mandate prescribed by the Indian Government, Ray had to shift the product and sectorial investment of the NBFC-IFC to reduce the NPAs, increase loan book size and improve the yield of advances and its NIM to effectively turn around the company’s profitability. Ray realized that he needed his team to evaluate and select a product and sector strategy for this change.

The present case of financing investment in infrastructure is interesting for implementation in developing economies because a lack of infrastructure is a common problem and there is a necessity of achieving a more developed infrastructure system to support accelerated economic growth in these countries. This case can be used in elective courses on corporate finance strategy and corporate portfolio management for infrastructure finance companies. This case can be taught in elective courses in post-graduate and MBA programs. This case can also be included in management development programs (MDP), executive MBA programs and executive-level courses that have subjects such as corporate finance strategy, corporate portfolio management and strategy management that focus on turnaround strategies including portfolio management for banks and finance companies.

Teaching notes are available for educators only.

CSS 11: Strategy.

The purpose of this paper is to investigate how CEO humility influences inter-firm collaboration (IFC) and the moderating roles of firm status (a firm's relative position in a social order) and environmental uncertainty on such an effect.

As the firms were nested in township clusters, the theoretical model was tested using hierarchical linear modeling to analyze a multisource and multilevel onsite survey from 254 firms in Chinese township clusters. CEO humility was measured using an 18-item scale reported by both the human resource managers and the financial managers. Besides using CEO self-reported ratings as the measurement of IFC, this study employed additional measurements to further validate the findings, including the IFC reported by the administrative managers and two alternative measures for IFC reported by both CEO and the administrative managers of each firm.

This study found that CEO humility is positively related to IFC (H1), and that this association is marginally more salient when firms have high status (H2) but less salient when firms face a high level of environmental uncertainty (H3).

Findings suggest that firms with humble CEOs may benefit from better inter-firm collaborative relationships, especially when firms have high status (i.e. possess many well-known trademarks), but not when they are in an uncertain environment.

Previous humility studies focused on the influence of leader humility on individual and team outcomes, but little attention has been paid to organizational outcomes. This research extends the implications of leader humility to inter-firm relationships. Moreover, this paper explores the boundary conditions of the influence of CEO humility, thus advancing the contextual understanding of leader humility.

This paper intends to focus on interoperability issues in IT‐based the lifecycle costing (LCC) applications and on improving LCC decision making based on cost performances of various options of constructing techniques and materials, excluding energy calculations.

This project mainly is an IT development project based on industry foundation classes (IFC) models. The LCC tool is fully compliant with the system architecture of the nD modelling tool, and is based on the integrated nD modelling interfaces, which are IFC compliant and integrated with an interactive virtual reality environment. The functions of the LCC tool also provide integrated costs, database management and automatic calculations of some complicated LCC algorithms.

The advantages identified are as follows: First, this IFC‐based LCC tool demonstrates the interoperable delivery of building design information across different CAD systems. Second, the development techniques adopted in this case are more practical and cost‐ effective due to the easily accessible auxiliary tools. This also promotes the flexibility of the IFC‐based development.

The lack of real historical data of LCC collected from previous projects is still a major barrier to applying this tool in practice. The future research and development of this LLC tool will look at the lifecycle costing of building service and energy consumption.

The paper introduces the development of IFC based applications in lifecycle costing.

There is often a lack of accurate performance evaluation in Public–Private Partnership (PPP) projects. It is a challenging issue to effectively use Building Information Modeling (BIM) for PPP project performance evaluation. The objective of this study is to develop a PPP project performance evaluation model based on Industry Foundation Classes (IFC) and an enhanced matter-element method to more precisely evaluate PPP project performance.

The performance evaluation of PPP projects in the construction and operation period was explored. The PPP project performance evaluation indicator system was first established based on a literature review and PPP project practice. Then, the evaluation indicator information was expressed through IFC mapping and extension. After that, an IFC-based PPP project performance evaluation model was developed, and a case study was provided to validate the use of the proposed performance evaluation model.

The results of the case study show that the proposed approach can accurately and efficiently evaluate PPP projects, and it could favorably contribute to performance evaluation in PPP projects.

This study only concerns the performance evaluation of one type of PPP project. Further research is required to study different types of PPP projects; the model needs to be more efficient and intelligent.

The performance evaluation of PPP projects utilizing IFC extension and the enhanced matter-element method provides guidance for the government and private parties to accurately and efficiently evaluate PPP project performance.

This study aims to explore the institutional complexities associated with the design and implementation of a natural resource fund for innovation.

This study examines the case of Chile's Innovation Fund for Competitiveness by means of a historical approach building on interviews with key informants.

The proper functioning of a natural resource fund for innovation requires efficient institutional and operational structures, as well as strong coordination with innovation system actors. In particular, the case of Chile highlights the challenges inherent in adopting a regional approach when implementing this type of strategy, due to the institutional voids that hamper the role of regional governments in emerging countries.

Natural resource funds for innovation constitute a strategic mechanism for developing the innovative capabilities necessary to enhance the competitiveness of resource-rich emerging countries. This is one of the first studies addressing the institutional challenges involved in setting up this kind of fund in practice, focusing on one of the most relevant and longstanding examples from Latin America.

This paper aims to develop a framework to represent semantic web query results as Industry Foundation Class (IFC) building models. The subject of interoperability has received considerable attention in the construction literature in recent years. Given the distributed, semantically heterogeneous data sources, the problem is to retrieve information accurately and with minimal human intervention by considering their semantic descriptions.

This paper provides a framework to translate semantic web query results into the XML representations of IFC schema and data. Using the concepts and relationships in an IFC schema, the authors first develop an ontology to specify an equivalent IFC entity in the query results. Then, a mapping structure is defined and used to translate and fill all query results into an ifcXML document. For query processing, the proposed framework implements a set of predefined query mappings between the source schema and a corresponding IFC output schema. The resulting ifcXML document is validated with an XML schema validating parser and then loaded into a building information modeling (BIM) authoring tool.

The research findings indicate that semantic web technology can be used, accurately and with minimal human intervention, to maintain semantic-level information when transforming information between web-based and BIM formats. The developed framework for representing IFC-compatible outputs allows BIM users to query and access building data at any time over the web from data providers.

Currently, the results of semantic web queries are not supported by BIM authoring tools. Thus, the proposed framework utilizes the capabilities of semantic web and query technologies to transform the query results to an XML representation of IFC data.

In view of the significant deficiencies that have been observed in corporate social responsibility (CSR) reporting practices, some companies have undertaken a new communication strategy based on a combination of the GRI guidelines and the IFC Performance Standards (termed the GRI-IFC strategy). This paper aims to analyse the role of the CSR committee and of assurance services in promoting this novel practice.

The authors use an unbalanced sample of 750 international companies that operate in emerging markets for the years 2011-2016, in which logistic and ordinal regressions are applied to the panel data to test the research hypotheses.

The results show that the existence of a CSR committee facilitates adoption of the GRI-IFC strategy, thus promoting sustainable management policies and systems and enhancing communication with stakeholders. In addition, these specialised committees often commission assurance for sustainability reports, to reinforce strategies aimed at improving corporate transparency.

The analysis of mediation shows that diverse characteristics of corporate governance mechanisms interact in improving sustainability and business transparency.

There is an evident need for greater commitment by institutions to sustainability, for example by requiring greater specialisation of the members of the CSR committee in social and environmental issues. In addition, consideration should be given to including the creation of a CSR committee as a good practice, within the code of corporate governance and to establishing a specific framework for the committee’s actions.

The previously cited impacts of this paper all contribute indirectly to a greater social welfare by generating higher levels of transparency, ethics and corporate performance. Specifically, higher quality verification services will have an impact on the improved functioning of the financial and capital markets, as well as in decision-making by internal and external stakeholders with more reliable information that will favour the implementation of more sustainable processes that in the short and long term will mean more companies who are responsible towards the environment and society.

This novel study explains why companies adopt voluntary strategies in compliance with GRI guidelines, seeking to provide better CSR disclosure.

An accessible or inclusive building design does not disable any user; it should enable the independent and equal use of a facility by all. With the introduction of the Disability Discrimination Act 1995 (DDA), the consideration of issues such as access and inclusive design become even more important. Space analysis is an important aspect of the current accessibility assessment. Existing space analysis techniques, such as space syntax, have tackled the local and global accessibility of a building layout using graph theory. However, there are difficulties in the automatic transfer of design information from architectural drawings into a space analysis tool. With the recent development of the building information model and Industry Foundation Classes (IFCs), it is now possible to automate the transfer process. This paper demonstrates the automation process and how it can be used in accessibility analysis.

The study aims to investigate the extent to which interfunctional coordination (IFC) moderates the relationship between entrepreneurial orientation (EO), market orientation (MO) and organisational opportunity exploitation (OE) and business performance (BP); second, to examine the impact of EO, MO and organisational OE on the BP.

The study used a cross-sectional design approach, with the research framework tested on a sample of 203 cases of employees mostly at skilled, professional and management levels in Gauteng Province. Data was analysed through correlation, regression and moderation analysis.

The results indicated that EO, MO and OE account for BP. Furthermore, IFC significantly moderates only the relationship between MO and BP (financial) and OE and BP (non-financial). While the relationship between EO and BP is not significantly moderated.

The study highlights that IFC is not yet embedded in organisational practice and culture. Scaling interventions to promote IFC as a performance enabler, particularly in conjunction with the entrepreneurial, market-oriented and OE activities, is essential in the South African corporate entrepreneurial environment.

Although EO, MO and OE are widely recognised as performance enablers, very little is known about the potential moderating role of IFC towards these identified complementary strategic capabilities within the South African corporate context. The empirical research strengthens awareness about the need and criticality of IFC in improving organisational performance in emerging economies.

The World Bank's new Education Sector Strategy 2020 (2011) points to an important role for private actors in the development of high-quality, high-equity education systems that effectively address poverty alleviation in low and middle-income countries. This chapter asks whether this emphasis on private participation is new, focusing in particular on Bank policies, research, and operations in K-12 education. It also explores some surprising disjunctures between the World Bank Group's official policies promoting privatization and its operational practices. To do so, the chapter draws on a separate research project for which we completed a review of the Bank's current portfolio of projects in K-12 education and a series of interviews with World Bank staff. We also look at the expansion of Bank activities beyond its traditional arms – the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) lending facilities – by including a brief a review of the educational activities of the International Finance Corporation (IFC), which directly supports the private sector in education.