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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

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

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

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

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

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

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

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

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

Impact of Board and CEO characteristics on Firms' Performance

Chitra Singla

Corporate governance characteristics like board composition and leadership impact a firm's performance. Researchers have attempted to explain the relationship using different theoretical perspectives like agency theory, resource dependence theory, and stewardship theory. However, the literature presents ambiguous results where some empirical findings support negative impact and other support positive impact. In this paper, we argue that ambiguity in results could be due to the context specificity of the nature of this relationship. In some contexts, agency theory might be more valid than other theories and in others stewardship theory or resource dependence theory might be more valid. Building on this context specificity, we look at the relationship between board and CEO characteristics on firm's performance in a longitudinal sample of Indian firms. Our findings suggest that none of the above mentioned theories are completely valid in the India context because we get mixed support for these theories. This calls for a mid-range theory to explain the relationship between corporate governance characteristics and firm's performance.

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