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Article
Publication date: 7 June 2021

Nitin Pangarkar and Natasha Pangarkar

This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders.

Abstract

Purpose

This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders.

Design/methodology/approach

The study uses an inductive methodology based on analysing strategies for two exemplar companies, namely, Starbucks and Wagestream. Key insights about how value creation by these companies for multiple stakeholders led to their superior performance, as well as generalizable lessons from the exemplar companies, were identified.

Findings

The study finds that the performance of the two exemplar companies can be explained effectively through the framework.

Research limitations/implications

The framework proposed in the study requires a large amount of data about the value created for different stakeholders. Because the framework is comprehensive, managers need to aggregate different dimensions and varied data which can lead to manipulation or misuse by self-serving managers who wish to make their own strategies or performance look good.

Practical implications

The study identified specific actionable ideas that organizations can undertake to enhance the value they create for their various stakeholders.

Originality/value

The study is the first to develop an actionable framework that can be used by companies to craft strategies based on creating or enhancing stakeholder value. The framework is flexible with regard to application in different country, industry or organizational contexts.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

Case study
Publication date: 15 December 2021

Nitin Pangarkar and Neetu Yadav

The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in…

Abstract

Learning outcomes

The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges.

Case overview/synopsis

McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term.

Complexity academic level

MBA, Executive MBA and executive development programs.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 11 no. 4
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 31 August 2020

Nitin Pangarkar

This paper aims to develop a generalizable framework for acquisition performance.

Abstract

Purpose

This paper aims to develop a generalizable framework for acquisition performance.

Design/methodology/approach

This paper attempts to simulate a controlled experiment by examining the strategies and performance of the same acquired company under different acquirers. The inductive methodology is used to derive a generalizable framework about the key factors impacting the performance of the acquired firm.

Findings

This study finds that the acquired firm’s performance is better when the environment is munificent and the acquirer uses an appropriate level of integration. Several antecedents of each of these dimensions were identified.

Research limitations/implications

Because the inferences are based on a small sample, the study’s framework needs to be tested in other settings and possibly empirically tested in larger samples to improve its generalizability.

Practical implications

Every year, corporations around the world spend large sums of capital on acquisitions and significant managerial resources on integrating the acquired firms, with decidedly mixed results. The framework proposed in the paper can help managers to improve the performance of their acquisitions.

Originality/value

Unlike prior studies that have quantitatively analysed mixed samples of acquisitions and often arrived at inconclusive results, this study uses the inductive approach based on a few case studies to derive a framework that can be applied across industries. The framework accounts for the key industry and transaction-related contingent factors that can influence the performance of acquisitions under varied circumstances.

Details

Journal of Business Strategy, vol. 42 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 4 March 2022

Rohit Prabhudesai, Nitin Pangarkar, Ch V.V.S.N.V. Prasad and Abhishek Kumar Sinha

This paper aims to fill a gap in the authors’ understanding of alliance-level and the partner-level alliance performance by analysing the influence of behavioural factors…

Abstract

Purpose

This paper aims to fill a gap in the authors’ understanding of alliance-level and the partner-level alliance performance by analysing the influence of behavioural factors for alliances formed by SMEs. Prior studies on the topic have arrived at inconclusive results. This study plugs gaps in prior studies' approach such as deployment of inconsistent performance measures, and omission of contingent factors.

Design/methodology/approach

The survey method was used to collect responses about 86 alliances of Indian SMEs. The data were analysed using PLS-SEM technique.

Findings

Two relationship capital variables – Trust and Commitment – were found to have differential influence on the two levels of SME alliance performance, and their influence was mediated by the presence of two exchange climate variables – Communication and Conflict.

Research limitations/implications

Since the study employs perceptual measures of performance, it is subject to the limitations of these measures. Similarly, given the relatively small sample size on which analyses were based, the results may need to be replicated in order to generalize the findings.

Practical implications

The study tested a comprehensive model for alliance and partner performance in the context of SMEs. The study's results may be particularly useful to managers of SMEs for focusing on the key factors that influence alliance performance as well as their performance.

Originality/value

The model tested in the study is comprehensive and also accounts for the subtleties about the impact of the two key types of behavioural factors – Relationship capital and Exchange climate – on alliance and partner performance.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 7 February 2022

Rohit Prabhudesai, Nitin Pangarkar and Ch.V.V.S.N.V. Prasad

The aim of the study was to determine how the different types of resources possessed by a small- and medium-sized enterprise (SME), in conjunction with the environmental…

Abstract

Purpose

The aim of the study was to determine how the different types of resources possessed by a small- and medium-sized enterprise (SME), in conjunction with the environmental uncertainty perceived by the SME's managers, affect SME's alliance formation.

Design/methodology/approach

Personal interview method was used to collect responses to a survey instrument from Indian SMEs. Logistic regression technique was used to analyze the responses obtained from 127 manufacturing enterprises.

Findings

The study finds that while both tangible and intangible resources possessed by an enterprise positively influence the enterprise's alliance formation, the influence of intangible resources is significantly stronger. The authors also observed the interactive effect between each resource type and environmental uncertainty to be a significant predictor of alliance formation.

Research limitations/implications

The study does not account for temporal effects such as changes in resources and perceived environmental uncertainty, which may affect alliance formation. Similarly, because the data were obtained from a geographically restricted sample, replication of the study in other geographies may be necessary for generalizing the results.

Originality/value

The paper responds to the call for research to link firm resources and perceived environmental uncertainty toward explaining alliance formation by SMEs. The study went beyond making a distinction between the two types of resources by explicating how the interaction of resource type and environmental uncertainty will affect alliance formation.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 9 August 2021

Nitin Pangarkar and Lin Yuan

The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures.

Abstract

Purpose

The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures.

Design/methodology/approach

This study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set.

Findings

Based on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle.

Originality/value

The study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures.

Details

Multinational Business Review, vol. 30 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 4 August 2021

Nitin Pangarkar and B. Elango

The purpose of this study is to examine whether the usage of informal finance helps exports of emerging market firms.

Abstract

Purpose

The purpose of this study is to examine whether the usage of informal finance helps exports of emerging market firms.

Design/methodology/approach

The study analyzes a large dataset of observations on emerging market firms. To address the issue of a non-random sample and correct for self-selection in the regression analyzes, this paper uses the two-stage Heckman procedure. In the first stage, this study uses a sample of 74,148 firms from 135 countries over an 11-year time period (2006 to 2016). In the second stage, which includes only firms involved in exports, the analyses are based on 13,608 observations on firms from 135 countries over the same time period.

Findings

The study finds that the usage of informal finance helps exports of emerging market firms. Furthermore, the interactive effect between informal finance and home country affluence also influences exports.

Research limitations/implications

The analyses do not account for destination market characteristics such as size and growth.

Practical implications

The study suggests that emerging market firms should not shy away from using informal finance which can often be more convenient, and sometimes cheaper, than formal finance. Informal finance’s timeliness might be particularly useful for pursuing strategies such as exporting.

Originality/value

Studies in international business implicitly assume that finance is available for pursuing strategies such as exports or foreign direct investment. However, formal finance is scarce in emerging markets. By drawing a linkage between informal finance and exports in emerging markets, the study adds to the international business literature. The study also examines joint and interactive effects of home country characteristics and deployment of informal finance on exporting.

Details

Review of International Business and Strategy, vol. 32 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 4 November 2020

B. Elango and Nitin Pangarkar

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies…

Abstract

Purpose

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies by emerging market firms.

Design/methodology/approach

This study is based on a dataset of 23,256 observations on firms from 32 countries spread over 11 years (2006–2016). Since only some firms undertake exports, the Heckman procedure is used to control for sample self-selection. In the first stage, we predict which firms will choose to export, and, in the second stage, we examine the factors driving the choice made by firms involved in exports between direct and indirect exports strategies.

Findings

The analyses reveal that firms are more likely to choose direct exports when institutional harshness is high and when they are from countries with low uncertainty avoidance. We also find that the strength of the relationship between institutional harshness and the choice of direct exports is moderated at high levels of uncertainty avoidance.

Research limitations/implications

While this study's empirical models account for many firm-level factors as well as home country differences discussed in the literature, we acknowledge there could be other temporal, firm or country idiosyncratic factors not included in our analysis driving the key choices examined in the paper.

Originality/value

This study makes three contributions to exporting literature. First, it highlights the drivers of the choice between direct and indirect exports. This choice is an important facet of exporting strategy and has received scant attention in prior IB research. Second, it demonstrates how the choice between direct and indirect exports is impacted by the degree of the home country's institutional harshness and uncertainty avoidance. Third, it offers insights on how the interaction of formal and informal home market institutional factors influences export strategy.

Details

International Marketing Review, vol. 38 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 19 February 2018

Nitin Pangarkar

The purpose of this paper is to investigate whether new store locations by two incumbent supermarket chains in Singapore were consistent with a preemptive strategy.

Abstract

Purpose

The purpose of this paper is to investigate whether new store locations by two incumbent supermarket chains in Singapore were consistent with a preemptive strategy.

Design/methodology/approach

The methodology involved collecting store location data and using a geographical technique (Thiessen polygons) for inferring the existence of a preemptive strategy.

Findings

The analyses revealed that while NTUC Fairprice’s (the dominant incumbent) new store location strategy was consistent with a preemptive strategy, the second ranked player’s (Cold Storage) was not. Being the dominant incumbent, NTUC Fairprice had the incentive (protect its dominant position) as well as ability (scale, low costs and a merchandise mix that appealed to the mass market) to adopt a preemptive strategy. Cold Storage, on the other hand, lacked both the incentive (appeal to the narrow expatriate segment) and the ability (scale or low costs) to follow a preemptive location strategy.

Research limitations/implications

The analyses did not distinguish between the opening of large vs small stores because the data on store sizes were not available. The analyses focused on an earlier time period because the implementation of the analytical technique (construction of polygons) was more feasible during the timeframe.

Practical implications

The paper identifies conditions under which it may be appropriate for firms to follow a preemptive strategy.

Originality/value

The paper adopts a highly appropriate methodology (Thiessen polygons) that takes into account the locations of own as well as competitor’s stores for analyzing the new store locations by supermarket chains. The paper’s conclusions about the conditions under which preemptive strategies are likely to be adopted can be useful to future researchers as well as managers.

Details

Journal of Strategy and Management, vol. 11 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 17 June 2009

Nitin Pangarkar and Lin Yuan

In this study, we examine the location strategies (e.g., developing versus developed countries) of Chinese multinational firms (Pantzalis 2001). We argue that domestic…

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Abstract

In this study, we examine the location strategies (e.g., developing versus developed countries) of Chinese multinational firms (Pantzalis 2001). We argue that domestic firm‐specific ownership advantages of a firm, in the form of larger size and higher degree of diversification, will induce internationalization into developed countries rather than into developing countries. We also predict that internationalization into developed countries will help performance, but internationalization into developing countries will hurt performance. Based on an analysis of data on 154 Chinese‐listed MNCs from 1992 to 2002, we find support for our predictions.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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