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Working Papers | 2016

Measuring the Perceived Impact of Internet on
Individuals in Rural India

Rekha Jain

Internet has greatly influenced the way individuals socialize, create and exploit economic opportunities and knowledge resources. However, previous studies on assessment of impact have largely been empirical and limited to examining the factors influencing adoption and usage of Internet only from a social and economic perspective. These have not considered the role of knowledge enhancement and exchange. In addition, few studies measure impact in an integrated manner and are based on theory. Consequently, the constituent dimensions of impact, their inter-relationships and their intensity have not been articulated.

To develop a construct for measuring impact of Internet use, we have used two theoretical and complementary domains: Social Capital and Social Cognitive Theory. Since Internet is considered a network for social exchanges, a study of Perceived Impact of Internet would need to take into account the aspect of social capital consequent to adoption and usage of Internet. On another dimension, usage of Internet could lead to increase in economic capital due to enhanced opportunities for business or profession. Internet is also a source of knowledge that could enhance economic or social benefits by creating opportunities for businesses or professional growth. Thus what constitutes impact is a complex construct broadly manifested along social, economic and knowledge dimensions. Further, most studies of Internet impact have not examined the role of outcome expectations and self-efficacy, two important constructs from theory of Social Cognition, in driving Internet use.

Our study is driven by the need to develop a theoretical model for measuring impact by identifying the underlying dimensions that constitute impact and creating a construct for measuring the same. Lack of studies of impact of Internet in developing countries, especially in rural areas was another driver.

We have used a survey based instrument administered to Internet users covering two of the poorer districts in Jharkhand, and Madhya Pradesh, India. Principal Component Analysis was used to identify the latent perceptual dimensions that constitute impact. Subsequently, we used linear regression to posit the strengths of each identified dimension in contributing to Perceived Impact.

The model highlights the importance of using Internet for overcoming vulnerabilities in a rural context, negative disconfirmation with respect to having Enhanced Scope of Work through Internet use and social context of knowledge creation and cognition. The negative disconfirmation could be attributed to possibly low self-efficacy or not completely fulfilled outcome expectations from available services. Lack of content in local language, poor presence of local websites, low presence of associates and partners on the Internet, and inadequate quality of Internet connectivity contribute to this.

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Working Papers | 2016

Factors Influencing Outcome Expectations and
Self-Efficacy in Driving Internet Use in Rural India

Rekha Jain

Past studies of individual Internet adoption and usage have been mostly empirical and in developed countries or in urban settings of developing countries. These have largely examined socio-economic factors such as age, earnings, education, in driving adoption and use. Several of the past studies were done at a time when the Internet was a novelty and was primarily considered as a source of information for enhancing knowledge. Over time, with developments in social media and ecommerce, Internet is considered an effective medium for social networking, enabling knowledge creation and exchange and enhancing economic benefits. Using theory of social capital and social cognition helps us to understand the drivers of Internet use from the perspective of outcome expectations and self-efficacy along the social, economic and knowledge dimensions. The primary research question is: What factors drive outcome expectations and self-efficacy in Internet use?

Our study is based on a survey in two rural areas (Ranchi, Jharkhand, India) and (Guna, Madhaya Pradesh, India). We used theory to develop a survey instrument on Internet users for understanding the drivers of Internet use based on outcome expectations and self-efficacy. We used data from the Principal Component Analysis (PCA) done previously, to identify the latent constructs as measures of outcome expectations and self-efficacy (Jain, 2016). Using ANOVA, the current study identified the differential across Age, Occupation, Digital Literacy, Earning, and Education on dimensions uncovered by PCA and related the findings to the rural context in a developing country.

The PCA revealed three dimensions that were labelled as 'Empowerment', 'Enhanced Scope of Work' and 'Transaction Efficacy'. There are statistically significant differences across those who are at different levels of Digital Literacy and Earnings and for 'Transactional Efficacy', in the two groups identified by type of Occupation as 'Business' and 'Others'. Along the other two dimensions of 'Empowerment' and 'Enhanced Scope of Work', there is no statistically significant difference across these two categories of Occupation. Further, there are no statistically significant differences across different categories of Age and Education.

Our results indicate that while a basic level of education may determine whether a user adopts Internet, once the user starts using the Internet with a goal orientation in terms of outcome expectations and self-efficacy, 'Education' level does not matter. A similar logic applies to 'Age'.

Since digitally literate users tend to have positive outcome expectations from Internet use, they may benefit far more than those who are not Digitally Literate. Therefore, public policy must not only focus on increasing Internet availability specifically in rural areas, there must be programs for increasing digital literacy as well. Without such support programs, Internet use outcomes would exclude those who are not as digitally literate. Since Internet is increasingly becoming the vehicle for economic growth, such exclusions could slow inclusive growth.

Those with higher incomes had possibly higher levels of negative disconfirmations with Internet use than those with lower incomes. A similar logic applies for the 'Transactional Efficacy' component in the 'Occupation' category. The study identifies the possible drivers for the disconfirmations.

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Working Papers | 2016

Consumers' Expectations of Sales Events: How satisfied are consumer with shopping during sales events?

Shaheen Borna and Dheeraj Sharma

Past researchers have examined the influence of sales events on multitude of variables. However, there is no study which specifically examines the influence of sales events on consumer participation in sales events and their expectations from the sales events. In this study, we examine the relationship between consumers' participation in a given sales event and their expectations of savings from that event in North American context. Research findings indicate that only 11 sales events have a high realization rate of expected savings. Based on research findings, we proffer several recommendations for the retail managers.

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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

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

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

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

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

Factors Determining the Roles Board Members Play in Firms

Chitra Singla

Directors play an important role in influencing board's action and its effectiveness (Adams, Hermalin, & Weisbach, 2010). Therefore, corporate governance researchers have looked extensively at the determinants of director selection in a firm. Most of the work in this literature has looked at board composition and its size. However, there is limited amount of work that looks at the determinants of the role directors play in firms. Directors are expected to have both social and human capital and that is why they are invited on the boards of the firms. However, which of these capitals are they supposed to exploit more is not studied much. This is where this paper makes an attempt to contribute to the existing literature. In this paper, we present propositions on factors that determine the roles directors play in firms. We focus on three major roles that are played by directors: advisor, resource provider, and monitor. We argue that factors like firm's characteristics (size, age, ownership structure), environmental dynamism, and life cycle stage of the firm determine which of these three roles will be played by the directors of the firms.

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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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