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Article
Publication date: 8 September 2021

Mrigakshi Das

The Indian power distribution companies are increasingly recognizing franchising for reviving their high loss-making rural pockets. The motivation for franchising has been a…

Abstract

Purpose

The Indian power distribution companies are increasingly recognizing franchising for reviving their high loss-making rural pockets. The motivation for franchising has been a reduction of the franchisor's resource scarcity by bringing in operational efficiency and improved service quality to end consumers. However, there is a dearth of evidence on the influence of the franchisee's operations in addressing the resource scarcity of franchisors in predominantly rural areas. This study contributes towards filling the research gap.

Design/methodology/approach

A qualitative embedded multiple case study was conducted. The cases comprised two rural franchisees operating towards attaining the common goal. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the initial set of coding for the study. The data were presented based on within-case and across-case analysis.

Findings

The analysis revealed that the contract design impacts the requisite operational efficiency achievement. This variation could be elaborated by factors, such as system adaptation across organizational hierarchy, autonomy and independence, review and feedback systems, monitoring, a professional's attitude, bureaucracy, adaption with the local areas, risk sharing, incentives and compensation structure.

Research limitations/implications

The study findings could be generalized to the extent of similar socio-economic conditions, prevailing governance mechanisms and law and orders. Additionally, since the law does not mandate the regulatory commissions to scrutinize the performance of the franchisees, the study was built on data shared by the franchisees and the discom. Further, this study considered the performance of only two performing franchisees. Matching these actualities with the discoveries of this study remains a continuing project as participation of private players is increasingly being recognized. Therefore, the insights drawn from this study could be used to improve the franchise model and can be scaled up across the nation, regions and sectors.

Originality/value

There is a dearth of literature on franchising in electricity distribution. This study is one of the first studies on studying the franchise system in the electricity distribution sector through the application of a well-accepted management theory.

Details

Journal of Economic and Administrative Sciences, vol. 39 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 13 January 2022

Mrigakshi Das

Management of power distribution companies (discoms) in India has been historically criticized on the ground of inefficient management. Inefficiency in operations triggered…

Abstract

Purpose

Management of power distribution companies (discoms) in India has been historically criticized on the ground of inefficient management. Inefficiency in operations triggered management by private franchisees for promotion of managerial and technical expertise. However, franchise contracts have achieved mixed outcomes despite the business model being a decade old in the Indian power distribution sector. Therefore, this study sheds light on the drivers of discoms (principal) with the franchisees (agent) for the achievement of the common performance goals, highlighting the agency issues at multiple levels across the organizational hierarchies. The study seeks to acknowledge the commonalities and differences between and across varying levels.

Design/methodology/approach

A qualitative embedded single case study was conducted in an Indian state, namely Odisha. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the set of coding and presentation for the study.

Findings

The study provides insights on factors that play a role in effective power distribution management, operational efficiency and improved financial performance through the partnership of the principal and the agent.

Research limitations/implications

The study is predominantly dependent upon interviews. This paved the way for the limitation of human biases. Additionally, deep insights were drawn from a single case study of a discom's decision to hire franchisees. However, this was at the cost of the number of organizations interviewed. The findings of the study could be built across other areas or nations.

Originality/value

There is adequate literature on franchising as a business model. However, literature is lacking in highlighting the commonalities and differences between different contracting parties and their impact on the performance of the contract. Additionally, there is a dearth of literature on franchising in the power distribution sector. Therefore, studying the model from multiple perspectives would contribute to the literature on the power sector and franchising.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Case study
Publication date: 23 April 2015

Sidharth Sinha

The Tata owned Coastal Gujarat Power Limited is seeking to reopen Power Purchase Agreements (PPAs) with state owned distribution utilities because of increase in imported coal…

Abstract

The Tata owned Coastal Gujarat Power Limited is seeking to reopen Power Purchase Agreements (PPAs) with state owned distribution utilities because of increase in imported coal prices resulting from a change in Indonesian laws. The Central Electricity Regulatory Commission (CERC) has decided to provide relief through a “compensatory tariff”. This is opposed by the power purchasers. Simultaneously, another Reliance Energy owned power project is seeking relief from unprecedented change in exchange rates using the CGPL decision as a precedent. The CERC and the power purchasers have to decide what to do next.

Details

Indian Institute of Management Ahmedabad, vol. no.
Type: Case Study
ISSN: 2633-3260
Published by: Indian Institute of Management Ahmedabad

Keywords

Article
Publication date: 9 February 2022

Hemant Harishchandra Kore and Saroj Koul

The study identifies the challenges of developing the “electric vehicle (EV)” charging infrastructure in India, having an ambitious target of 30% EV adoption by 2030.

Abstract

Purpose

The study identifies the challenges of developing the “electric vehicle (EV)” charging infrastructure in India, having an ambitious target of 30% EV adoption by 2030.

Design/methodology/approach

First, a systematic literature review determined EV adoption and challenges in the EV charging infrastructure development globally and specifically in India. Secondly, a focussed group study in which 10 domain experts were consulted to identify additional challenges in India's EV adoption involving EV charging infrastructure.

Findings

Accordingly, 11 significant challenges of EV charging infrastructure development in India have been identified–seven through the comparative analysis of the literature review and four from the focussed group study. Secondary data provides insight into the situation around developed countries and in developing countries, specifically in India. Finally, the Government of India's measures and priorities to facilitate such a development are emphasised.

Research limitations/implications

The study can help policymakers/researchers understand the gaps and align measures to address the challenges. A focussed group study may have its limitations due to the perception of the experts.

Originality/value

The systematic literature review of 43 articles using comparative analysis and subsequently a focussed group study of experts to verify and add challenges has made the study unique.

Details

Management of Environmental Quality: An International Journal, vol. 33 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

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