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1 – 10 of over 11000Naveen Kumar Jain, Nitin Pangarkar and Yuan Lin
Research on international experience notes its positive influence on subsequent international expansion by firms. We test this relationship in the context of the Indian software…
Abstract
Purpose
Research on international experience notes its positive influence on subsequent international expansion by firms. We test this relationship in the context of the Indian software industry whose offerings, unlike many other services, are storable implying that delivery can be separated from production.
Design/methodology/approach
We analyzed the domestic expansion of a sample of publicly listed Indian software firms over the period 2000–2009 with help of Poisson regression.
Findings
We find that even internationally experienced Indian software firms might prefer to expand domestically because of limited financial and managerial resources and concerns about diluting their cost advantage. The storable and separable nature of software services will support this strategy of serving clients remotely. The domestic expansion of assets will, however, be slower for firms with the highest level of industry accreditation. It will also be slower if there are institutional pressures in the form of rivals locating development centers near clients in developed countries.
Originality/value
Our results demonstrate that international experience alone is not sufficient for firms to expand overseas.
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Naveen Kumar Jain, Nitin Pangarkar, Lin Yuan and Vikas Kumar
The purpose of this paper is to examine the inter-firm variation in the opening of international global development centers (GDCs), in a high commitment entry mode, by Indian…
Abstract
Purpose
The purpose of this paper is to examine the inter-firm variation in the opening of international global development centers (GDCs), in a high commitment entry mode, by Indian software firms as a function of their past performance, degree of internationalization, possession of a valuable resource in the form of CMMI Level 5 certification and rivals’ establishment of GDCs.
Design/methodology/approach
The authors draw on the organizational learning theory, the resource-based view and the strategic behavior theory to analyze the variation in the number of GDCs opened by 32 leading Indian software firms between 2000 and 2009.
Findings
The authors find that strong past performance of Indian software firms leads to the establishment of a greater number of GDCs. The authors further demonstrate that non-financial resources, such as the possession of CMMI Level 5 certification, positively moderate the above relationship.
Research limitations/implications
The research is conducted in the context of a single industry and a single home country. The authors also focus on a subset of firms (large, listed firms) in the industry. The authors recommend future research to examine other knowledge-intensive industries.
Practical implications
An increasing number of Indian software firms and other emerging market firms wish to locate close to their overseas customers by choosing a high commitment entry mode. The research suggests that, prior to internationalizing, managers should build up critical and relevant resources through deployment of high commitment entry modes.
Originality/value
The research has many unique aspects including a rigorous model development, a robust empirical approach as well as an interesting empirical context. The authors believe that the results will be useful to academics and practitioners alike.
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Sumit K. Kundu and Maija Renko
In explaining international expansion and performance, the traditional explanation in international business literature has mainly offered country, and firm-level structural…
Abstract
In explaining international expansion and performance, the traditional explanation in international business literature has mainly offered country, and firm-level structural explanations for performance. Moreover, this literature has been biased toward larger, established multinational manufacturing companies (Dunning, 1958; Hymer, 1960; Aharoni, 1966; Vernon, 1966). This was understandable as, for much of the 20th century, manufacturing occupied the dominant share of the economy. However, by the early 1960s, the service sector already accounted for more than half of the domestic economic activity in developed nations. Today, even in international operations, the share of services is rapidly increasing. For example, the share of services in U.S. exports in 1997 had grown to 27%, and to 16% in U.S. imports (Contractor, 1999). Moreover, in sectors such as information technology, telecommunications or biotechnology, recent years have seen a proliferation of entrepreneurial start-up companies, where the characteristics of their founders and leaders appear to have as much, or greater, impact on performance, as traditional firm-level explanations. Since the late 1980s, the growth of venture capital markets and rise in entrepreneurship have been observed in technology-driven industries (The Economist, 1993; Gupta, 1989; Mamis, 1989). Could entrepreneurial and leadership factors assume greater importance in explaining performance, especially international performance, of younger companies in such sectors? This is the broad hypothesis pursued in this study.
Manzoor Hassan Malik and Showkat Hassan Malik
The aims of this paper are twofold. First, the trends and patterns in key variables of performance of sample software companies during the study period are overviewed. Second, the…
Abstract
Purpose
The aims of this paper are twofold. First, the trends and patterns in key variables of performance of sample software companies during the study period are overviewed. Second, the determinants of information technology (IT) export across the sample companies during the period of economic slowdown have been analyzed.
Design/methodology/approach
Secondary data have been used in the study. Regression analysis is concerned with the study of the dependence of one variable, the dependent variable, on one or more other variables, the explanatory variables, with a view to estimating and/or predicting the mean or average value of the former in terms of the known or fixed values of the latter. The data collected through survey were scrutinized, and statistical software were used for analysis. The variables documented in the study include the exports, capacity utilization, profits, exchange rate and dummy for recession, dummy for countries of export.
Findings
The Indian IT sector was set for smaller growth due to global economic slowdown. Large IT service players were able to some extent cope with tighter client spends, but it was smaller IT companies which were facing the severe heat. Production of sample companies decreased at an average of 34 per cent in 2008. The profits of the sample companies have decreased by 34.34 and 78.67 per cent, respectively, during 2008. In case of determinants of software exports, it is observed that capacity utilization is positively related to exports. The estimated mean of exports increases by about 1.370.
Originality/value
This paper focuses on originality in the sphere of scientific work. Secondary data have been used in the study. The data were collected from the Annual Reports of four randomly selected software companies. Both face-to-face interview and on-line survey based on a structured questionnaire to the sample companies were used to collect the data. All the work has been done in original by the authors and the work used has been acknowledged properly.
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Despite extensive investigation of the Indian software industry, knowledge about small software firms is inadequate. This knowledge is important as many developing countries are…
Abstract
Despite extensive investigation of the Indian software industry, knowledge about small software firms is inadequate. This knowledge is important as many developing countries are contemplating the software industry as a means of national growth along the lines that India has taken. This paper provides a descriptive analysis of small software firms in India. It shows that small software firms that are located in software clusters; quality certified; low product oriented; and slightly larger tend to be more productive than others. Small software firms are defined as firms that have fewer software employees than the national median size. The paper used firm level data available in the Indian IT Software and Services Directory 2003, whose members contribute 95% of the industry revenue.
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The purpose of this paper is to test the existing theoretical argument that the Indian software industry is a case of uneven and combined development by examining the workforce.
Abstract
Purpose
The purpose of this paper is to test the existing theoretical argument that the Indian software industry is a case of uneven and combined development by examining the workforce.
Design/methodology/approach
The paper is based on a survey conducted in two software organizations located in Bangalore. Data were collected through a combination of quantitative (114 questionnaires) and qualitative methods (62 semi‐structured interviews). Respondents were selected randomly from the work floor.
Findings
The paper observes that the workforce is uneven in nature and directly integrated with the global market. The workforce appears homogeneous. A typical software worker in India is a young male; hails from an urban and a semi‐urban locality; follows Hinduism, and belongs to the upper socio‐economic stratum of Indian society. He holds an undergraduate engineering degree, not necessarily in computer science, from a second‐grade educational institution. He is trained by the employers as per the needs of the Western market, and works for longer hours than required. He earns more than his counterparts in the other industries, and is promoted periodically based on work experience.
Research limitations/implications
The paper suggests that Indian future policy initiatives should recognize the need for inclusion of the disadvantaged in this growing sector. Also, conclusions drawn from the study are useful for the developing countries that imitate Indian software industry to develop inclusive development policies.
Originality/value
From the existing literature, it is not known whether the employment‐related benefits are reaching all the social groups, or uneven and combined development is reflected at the workforce as well. The paper fills the gap using triangulation of methods.
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Deepika Bansal and Shveta Singh
The purpose of this study is to examine the impact of board structure on financial performance of Indian software companies. It is an empirical study carried out on 92 software…
Abstract
Purpose
The purpose of this study is to examine the impact of board structure on financial performance of Indian software companies. It is an empirical study carried out on 92 software companies from 2011 to 2018.
Design/methodology/approach
The board size, board independence, board meetings, CEO duality, audit, remuneration and nomination committee are used as board structure variables. Two accounting-based measures, return on assets (ROA), return on equity and one market-based measure Tobin's Q are used as a representative of financial performance of software companies. Panel regression is used to test the hypothesis.
Findings
Results demonstrates that board size, board meetings, remuneration and nomination committee have positive impact on more than one performance measures, while audit committee do not have any relation with any of the performance measures. It is also found that CEO duality has negative but significant relation with firm's performance and board independence has negative influence on ROA.
Practical implications
The findings of the study attract the attention of company's policymakers, shareholders to know the importance of board structure in increasing the firm's performance. The outcome of the study has relevance in other developing economies also. The results of the study can be utilised by policymakers and regulatory bodies in the formulation of good corporate government (CG) practices for the enhancement of profitability and market value of companies.
Originality/value
The findings suggest that special attention should be given to quality of CG, specifically board structure while measuring corporate financial performance.
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The purpose of this paper is to benchmark leadership practices for helping companies to develop systems and process to become a learning organization.
Abstract
Purpose
The purpose of this paper is to benchmark leadership practices for helping companies to develop systems and process to become a learning organization.
Design/methodology/approach
The data are collected from 331 software professionals of an Indian software firm using a questionnaire survey method. The data collected are analyzed using SPSS 15.0 version.
Findings
The results indicate that consulting as well as delegating leadership styles are positively but directive as well as supportive leadership styles are negatively related with the processes of organizational learning (OL). The findings of the study also depict consulting as well as delegating style of leadership to significantly impact the processes of OL.
Research limitations/implications
The research paper does not sample respondents from across software organizations and future studies may investigate this further. Nevertheless, the implication of the findings is that OL is largely dependent on consulting as well as delegating style of leadership in Indian software firms.
Originality/value
This paper may be useful for existing multinational companies (MNCs) and non‐MNCs in India as well as for those foreign MNCs which intend to expand their businesses in this part of the world. It will also help academicians to understand and benchmark leadership styles for OL processes in the firms in India.
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Vijaya Murthy and Indra Abeysekera
The purpose of this study is to explore the human capital (HC) value creation practices of knowledge‐based software and service exporter industry in India.
Abstract
Purpose
The purpose of this study is to explore the human capital (HC) value creation practices of knowledge‐based software and service exporter industry in India.
Design/methodology/approach
The study used HC disclosure attributes as a tool to the contents of the annual reports for the year 2003‐2004, to evaluate the type and amount of HC disclosed by the software firms. The study also conducted semi‐structured interviews with the heads of human resources (HR) of 14 software firms to obtain a greater understanding of the similarities between reporting and managed HC practices.
Findings
The study identified most reported and least reported attributes of HC using content analysis and explained their reporting of value creation using interviews and resource‐based view. The findings suggest that the HC reporting practices were consistent with interview findings. The frequency of HC attributes reported followed the extent of the management's perception of HC value creation to the firm.
Research limitations/implications
The limitations of the study are: first, it is a cross‐sectional study; second, the findings may be applicable exclusively to the software and service industry in India and cannot be generalised to other industries in India or software industry in other countries; third, the assertions by the HR heads are assumed to faithfully reflect the firm's HC practices; fourth, the study assumes that annual reports are the primary documents available to public (stakeholders) requiring information on the firms.
Originality/value
This study provides an insight into the HC reporting practices of the nascent software and service exporter industry in India that is experiencing an economic boom that is positively influenced by the information technology software industry. This study throws light on the utilization of HC for value creation by the top software firms. This may help countries having tie‐up with Indian firms to understand the value creation process of these firms to sustain growth. The study would enable other software firms to understand HC reporting practices of the industry, and could use a framework that is similar to the framework used in this study.
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H.C. Shiva Prasad and Damodar Suar
The purpose of this paper is to develop and validate an instrument/scale to assess the performance of Indian software professionals (SPs).
Abstract
Purpose
The purpose of this paper is to develop and validate an instrument/scale to assess the performance of Indian software professionals (SPs).
Design/methodology/approach
Data were collected from 441 software and senior software engineers from eight Indian software firms. The team leaders assessed the performance of software and senior software engineers on 16 items. The software engineers self‐reported their experience, need for achievement, and need for social power. The financial performance (FP) of the software firms where the software engineers were working was procured from secondary sources.
Findings
The exploratory and confirmatory factor analyses of scores on 16 items of the instrument suggest six dimensions of performance. They are work‐efficiency, personal resourcefulness, inter‐ and intra‐personal sensitivity, productivity orientation, timeliness, and business intelligence. The dimensions have reliability and high convergent validity. SPs having more years of experience, higher need for achievement, and higher need for social power are high performers. The (low) high performing SPs are from firms that have (lower) higher FP.
Practical implications
Human resource managers can evaluate the performance of SPs holistically on six dimensions for training, reward administration, job rotation, and promotion decisions.
Originality/value
This paper develops a behavioural instrument to assess the performance of Indian SPs.
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