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Working Papers | 2016

Executive Stock Options: Will It Work as a Good Governance Mechanism in all Scenarios?

Preet Deep Singh and Chitra Singla

Agency theory proposes different mechanisms to mitigate agency costs in the firms. An executive stock options (ESoPs) is one of such mechanism, which is given to the CEO of the firm to align CEO's goals with that of the owners. In this paper, we contend that ESoPs will not work as a good governance or mitigation mechanism in all types of firms. ESoPs can be an effective mitigation mechanism for a firm with dispersed ownership but it might not be the case for a firm with majority or block shareholding. We extend this argument for ESoPs given to board members as well. We present a framework to understand when it makes sense for a firm to incentivise top management with ESoPs.

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Working Papers | 2016

Open Access Temptations: Buyer Beware

Vineet Virmani

Backlash against "megapublishers" which began in mathematics a decade ago has led to an exponential growth in open access journals. Their increasing numbers and popularity notwithstanding, there is evidence that not all open access journals are legitimate. The nature of the "gold open access" business model and increasing prevalence of "publish or perish" culture in academia has given rise to a dark under-belly in the world of scientific publishing which feeds off academics' professional needs. Many such "predatory" publishers and journals not only seem to originate out of India but also seem to have been patronized by academics in the country. This article is a cautionary note to early-career academics and administrators in India to be wary of this "wild west" of the internet and exercise discretion when considering/evaluating open-access journals for scholarly contributions.

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Working Papers | 2016

Ecommerce Selling in an Emerging Economy Context

Arpita Pandey and Dheeraj Sharma

Different studies have specified different definitions of Ecommerce. However most of these definitions concur and summarize that Ecommerce is constituted by buying and selling online. This study focusses on the Selling strategies in Ecommerce. Online Selling is now touted as a global raging phenomenon. Most studies have concentrated predominantly on developed Western countries. Initially slow to uptake Electronic markets and businesses, the emerging economies of Africa, Asia, and Latin America are now investing heavily in building Ecommerce infrastructure. In this chapter, we try to understand some of the strategies for selling online in emerging countries and the impediments involved. Thus emerging markets can be fertile ground for enormous online sales growth, but emerging markets have their own unique obstacles and difficulties that are distinct from the market scenarios in developed markets. Our study summarizes the following points as the four key success factors for entering and sustaining in emerging markets with an online sales strategy: (1) Develop a customized and differentiated value proposition (2) Manage the customer experience (3) Do not underestimate local players (4) Think long term

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Working Papers | 2016

Open Innovation at different levels for Higher Climate Risk Resilience

Anamika Dey, Anil K. Gupta, and Gurdeep Singh

As climate variability is increasing, creating knowledge networks is becoming more and more important for bringing in, or leveraging the embedded resilience in the communities through cross-pollination of ideas, resources and insitutional linkages. Communities have developed knowledge systems around climate mediated environmental changes since time immemorial. Some social groups have capacity to cope with stress better. They have homeostatic advantage due to either accumulated surplus (Burton, 2001) or access to institutions, technology and social networks (Adger, 2003) . However, these knowledge systems often remain limited as isolated islands or small local networks resulting into asymmetries of knowledge at inter or intra-community level. Intermediary organizations become important to bridge the gap that exist among communities within the informal sector and also between the formal and informal sector. There organizations and platforms like The Honey Bee Network have been able to facilitate both horizontal exchanges, people to people learning and sharing; and vertical exchanges, connecting the informal actors with the formal system. The framework in this paper helps in studying the difference in different components of Open Innovation System through their degree of openness of sharing, self-governance and self-regulation. We explore the different activities and institutions of The HB Network to study the degree of openness and how they contribute to make the system which has now existed for 26 years, more sustainable. We draw lessons for other institutions, organizations, communities who strive towards an autopoietic system i.e. self-designed, self-organized and self-governed system with a feedback system from within and outside, making the whole innovation and knowledge ecosystem sustainable towards the changing and fluctuating environment.

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Working Papers | 2016

Is Conspicuous Consumption of Business Leaders Justified and Morally Defensible?

Shaheen Borna and Dheeraj Sharma

In this paper, we first discuss the concept of conspicuous consumption of the business leaders. Next, we argue that the conspicuous consumption of corporate leaders can be justified from economics, marketing, and philosophical perspectives. Further, we present a religious perspective in order to provide a contrasting view of morality of conspicuous consumption. Lastly, we discuss the societal implications of the conspicuous consumption of business leaders. The study uses conceptual approach to justify the Conspicuous Consumption of Business Leaders. The study draws some useful managerial implications about the ethicality of how people perceive about the actions performed by business leaders from ancient examples and theories.

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Working Papers | 2016

Dedicated High Speed Rail Network in India: Issues in Development

G. Raghuram and Prashanth D. Udayakumar

India and Japan have signed a memorandum of understanding to set up a high speed rail (HSR) network costing INR 976.36 billion, between Mumbai and Ahmedabad. As of now, the top speed in India is 150 kmph, and that too for a few special trains in limited segments of their run. The Ministry of Railways first proposed HSR in 2007-08 and have conducted pre-feasibility studies on various routes in the country.
While documenting the progress of proposed HSR routes for India, the paper also draws lessons from international HSR experience in Europe and Asia. For the development of HSR network in India, there are a variety of issues. This paper examines issues with regards to route fixation, choice of technology partner and need for standards, location of stations, choice of grade level, choice of gauge and interoperability of trains beyond core networks, and pricing, revenues and funding.

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Working Papers | 2016

Pricing For Ecommerce in Emerging Economies

Sudipta Mandal and Dheeraj Sharma

With the increasing use of the internet and the subsequent greater avenues for information search, consumers have shifted from being mere "price takers" to "price determiners", either explicitly or implicitly. Consumers are constantly assessing the prices charged for products based on information available from different communication channels (e.g., advertising), social networks (e.g., friends, relatives and acquaintances), prior purchasing experience, point of purchase, online resources (e.g., Facebook, Twitter) and other sources. Emerging markets are economies that are experiencing rapid growth in their GDP, total household income and industrialization. According to IMF estimates, emerging economies are expected to grow two to three times faster than developed economies and this becomes all the more important because what this means is that corporate revenues have the potential to grow faster when economic growth is higher. Also, emerging markets have less efficient markets where due to information asymmetry, information is not as readily available and the potential for earning higher returns is greater than that of developed nations. The objective of this chapter is to dig deeper into and get a comprehensive understanding of the strategies involved in pricing of products and services in the context of an e-commerce environment in emerging economies. We shed light on the complexities of the changing environment followed by how consumer psychology and pricing strategies are closely interlinked. The chapter concludes by looking at some instruments through which pricing strategies may be implemented, pricing of services and a real life case study revolving around the principles of strategic pricing.

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Working Papers | 2016

Marketing Channels for E-commerce in Emerging Markets

Ankur Kapoor and Dheeraj Sharma

This work intends to sensitize the readers about the importance and relevance of making right channel strategy for e-commerce businesses, especially in emerging markets. We have tried to provide the guidelines by motivating established theoretical strategic models, which have been time tested for their applicability, and relating them to how prudent decisions about channel members can be made for ensuring better business results. Evaluating the strategy through lenses of transaction costs, power dynamics and conflict or relationship marketing perspective provides an holistic thinking process to approach the common dilemmas, like to contract or internally organize or drafting the mutual expectations etc., and make thoughtful and informed decisions, rather than going with market norms of what is the trend about such practices. However, it is important to integrate such channel decisions with overall strategy of the e-commerce business, so that it flows from key strategic direction and is aligned with strategies of product, pricing, communication etc. If the alignment between the strategies is missing, even a good individual functional strategy may not work in optimum manner.

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Working Papers | 2016

Impact of Ownership Structure on Agency Cost of Debt in India

Sakina Tohid Kachwala and Chitra Singla

Using data from Indian listed companies from 2000 to 2014, the relationship between the ownership structure of the firm and the agency cost of debt in the context of an emerging economy is being explored in this paper. We mainly look at family ownership. Family owners and debt holders share similar risk profile and long term orientation towards firms and therefore, expected to have goal alignment between them. However, we hypothesize that debt-holders, in the Indian context, are more concerned with the risk of wealth expropriation by the concentrated family owners rather than the benefits entailed by such an ownership structure. Accordingly, the paper attempts to answer the question: which agency problem namely the management-principal or the principal-principal is given more significance by the debt holders in the Indian context

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Working Papers | 2016

Empathetic climate resilient frugal innovations for sustainable communities

Anamika Dey and Anil K. Gupta

Dealing with risk and uncertainty has contributed to the evolution of local knowledge, institutions and culture among farming, pastoral and artisanal communities at grassroots level. The traditional institutions, practices and ways of finding contemporary innovative solutions to emerging problems still remain relevant even if some of the indicators or specific practices may have lost their relevance (Leonard, Sonia, et al , 2013, Corinne Valdivia, D. Green and G. Raygorodetsky, 2010 , Coleen Vogel et. Al., 2007 ). Institutional adaptation plays no less important a role through collective action (Daivi Rodima-Taylor, Mette F. Olwig, Netra Chhetri, 2012, also see www.sristi.org/cpri). The resilience requires not just actor based study but also the role of entire socio-ecological system (Gupta, 1984, Donald R. Nelson, W. Neil Adger,and Katrina Brown, 2007) This paper focuses more on technological adaptation and innovation (Gupta, 1992,1995, 1989, 2006, 2012). The grassroots innovations emerging in a materially constrained environment invariably leverage knowledge, ingenuity and local resources in a very frugal and empathetic manner.
In part one, creative and innovative coping strategies of knowledge rich-economically poor people are summarized. Part Two deals with the contours of emergent inclusive innovative ecosystem in India over the last 25 years of Honey Bee Network. Part three lists emerging inclusive models of innovations having bearing on creativity at the grassroots level. Trends in innovation literature, particularly from an open innovation perspective are reviewed in part four followed by a summary of key points at the end.

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