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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

An Examination of One Dimension Marginal Distributions: Selling and Non-selling Activities of a Salesperson

Dheeraj Sharma and Mir Ghulam Haider Talpur

Past researchers have endeavored to examine and ascertain the time that salespeople spend engaged in core and non-core activities. In this study, the time spent by a salesperson on non-core activities is called vacation time. This study examines the number of times a salesperson engages in vacation and the time taken by the number of vacations by controlling the number of customers. The one dimensional marginal probability generating (transform), density and cumulative distribution functions of the random variables , and are obtained by controlling the variability of two random variables simultaneously.

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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

An Exploratory Investigation of Impact of Perceived Cannibalization on Salesperson's Trust, Commitment, Job Satisfaction, Job Performance and Relational Capital

Dheeraj Sharma

With the increasing ubiquity of the Internet, organizations are using the Internet channel to increase overall performance, consolidate existing markets, and expand into new markets. The literature, however, contends that the overarching benefits realized through the Internet oftentimes come at the expense of perceived job insecurity among individuals in the organization. This study explores perceptions of sales agents that develop because of the potential for the Internet to cannibalize their business and jeopardize relationships and their jobs. Results suggest that sales agents' perception of cannibalization negatively influences their trust and commitment. Furthermore, environmental munificence moderates the influence of PC on trust and commitment. Additionally, Trust and Commitment mediate the impact of PC on Relational Capital, Job Satisfaction and Job Performance of a salesperson.

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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

Human Resource Issues in Maternal and Neonatal Health in India

Sunil Kumar Maheshwari and Dileep Mavalankar

One in seven women die from complications related to pregnancy or delivery in some of the African countries, compared to one in many thousands in Europe and North America. More than 95 per cent of maternal deaths occur in developing countries. In the developing countries complications of pregnancy mainly due to inadequate Emergency Obstetric Care (EmOC) is the leading cause of death among women of reproductive age. They account for 18 per cent of the burden of health disease in reproductive age group-more than any other single health problem (World Bank ,1993). At least 40 per cent of pregnant women experience some type of complication during their pregnancies. Most maternal complications and death occur either during or shortly after delivery and are difficult to predict. Nearly 15 per cent of complications are life-threatening that require immediate EmOC. However, many of them do not receive adequate EmOC. Hence, "Safe Motherhood" will remain a dream in the absence of adequate EmOC.
As in any services, health services are highly dependent of the human resources - its availability, quality, commitment and performance. EmOC services are even more dependent on highly skilled human resources as they need complex procedures as Caesarean Section (CS) and other emergency procedures. Thus ensuring access to quality maternal services including EmOC is a major challenge in Human Resources Management (HRM). In this paper we present an outline of key issues in HRM which specifically relate to MH and EmOC, based on our experience in India and review of literature.

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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

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

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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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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