Working Papers

Working Papers, Gursharan Singh Bhue., Subramanian, Krishnamurthy. "Non-contractual inuence by creditors: Evidence using lenders in the boardroom and innovation"
Working PapersSubramanian, Krishnamurthy., Tantri, Prasanna.,Bhowal, Subhendu. "Soft Information and The Cost Of Job Rotation: Evidence From Loan Officer Rotation"Centre for Analytical FinanceRead Abstract >Close >We highlight the costs from a principal rotating agents among tasks when decision-making inside a firm is driven by soft information. These costs arise because (i) an incoming agent cannot verify the information set that the outgoing agent utilized, and (ii) neither agent receives the entire marginal benefit/penalty for her effort. We provide evidence of this cost using unique loan and officer level data from a large public sector bank in India. Using the bank's fixed-tenure-based policy of loan officer rotation for identification, we find that default probabilities are 8% higher for loans affected by job rotation when compared to other loans. This difference is not explained by differences in hard information or the loss of a lending relationship

Working PapersGhoshal, Tanuka., Gill, Tripat. "A Theory of Cultural Stereotypes: Prevalence and Implications of the Fair-Skin Bias in India "
Working PapersGhoshal, Tanuka., Batra, Rishtee Kumar., Belk, Russell W. "An Ethnographic Investigation of Flamboyance and Subtlety in Sensory Choices in India"Centre for Emerging Markets Solutions
Working PapersGhoshal, Tanuka., Batra, Rishtee Kumar., Belk, Russell W. "Cultural Capital and Taste Distinctions in Urban India"Centre for Emerging Markets Solutions
Working PapersGhoshal, Tanuka., Batra, Rishtee Kumar., Chattopadhyay, Amitava. "Product Curvature: A Theory of Self Concept"
Working PapersGhoshal, Tanuka., Boatwright, Peter.,Cagan, Jonathan.,Mathur, Pragya. "Under What Conditions does External Packaging Aesthetics Affect Product Evaluations?"
Working PapersLampel, Joseph., Ramachandran, Kavil., Bhalla, Ajay. " Inter-Institutional Venture Governance in Indian Family Firms "Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >

Working PapersMondal, Arindam.,Bhadra, Shantanu., Ramachandran, Kavil. "Does Family Involvement Matter for Internationalization of Firms? An Investigation into Emerging Multinationals from India"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Emerging Multinationals (EMNEs) have attracted significant research attention in the recent years so are the internationalizing family firms (FFs) for being embedded in unique contexts - country for the former and family for the later. As FFs constitute a significant proportion of the EMNEs in some big emerging economies like India, drawing from both research streams, we investigate how family owned EMNEs differ from non-family EMNEs and how the heterogeneity of family owned EMNEs explains the full spectrum of internationalization of family owned EMNEs - spanning from lower commitment mode of exports to higher commitment mode of overseas foreign direct investments and subsidiary formations. Anchoring our research in the socioemtional wealth perspective in family business literature and behavioral risk taking theory we theorize how family owned EMNEs would differ in their internationalization trajectories from the non family owned EMNEs and how non-family professional managers shape the internationalization trajectories of family owned EMNEs differently as compared to those led by owner-managers. We test our predictions using a proprietary, longitudinal panel data set of 213 EMNEs from India featuring in the S&P BSE 500 index covering a six year period from 2007-08 to 2012-13. We report general empirical support for most of our predictions.

Working Papers, Agrawal S., , Prasanna Tantri.,, Chopra Y. "Government Employment Guarantee, Labor Supply and Firms’ Reaction: Evidence from the largest Public Workfare Program in the World"Read Abstract >Close >
Working PapersAlok, Shashwat. \"Banking the Unbanked: What Do 255 Million New Bank Accounts Reveal about Financial Access?\". Read Abstract >Close >
Working Papers, Ritam Chaurey. \"Credit Rights and Labor: Evidence from a Natural Experiment\". Read Abstract >Close >
Working PapersBasak, Deepal., Zhen Zhou. "Diffusing Coordination Risk"Read Abstract >Close >Agents face strategic uncertainty in a coordination problem that is akin to debt rollover or currency attacks. We model this as a global game of regime change. A principal wants her preferred regime (PPR) to succeed. She faces the coordination risk that a viable PPR may fail due to the strategic uncertainty. The principal diffuses this coordination risk by making a finite partition of the mass of agents. She abandons her preferred regime if it is no longer viable. We show that with a sufficiently diffused policy, the risk that agents may attack the PPR unravels from the end.

Working PapersBang, Nupur Pavan., Ramachandran, Kavil. "DODLA’S DILEMMA"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >D. Sunil Reddy established Dodla Dairy in the year 1995 at Nellore district of Andhra Pradesh, as a greenfield company. An industrial engineer from Mangalore University, Sunil started Dodla Dairy at the age of 27, with the seed money given by his father. He would often wonder if the brand ‘Dodla’ and the Company sustain beyond ‘Sunil Dodla’. While Sunil continues to put in efforts to increase capacity, expand and capture more market share, he keeps asking himself, “What next”, “How do I build a legacy?” If the company had to move to the next orbit, both in term of size (revenues, assets, market share) as well as professionalization, certain organizational changes were necessary. “What were these changes and who would do it?” How could Sunil better prepare himself and the company for the future? How would the company move from being a family owned enterprise to a professionally run, sustainable organization? Would one of his daughters bring about that freshness by joining the company and yet provide continuity in terms of the family values? Would it be an outsider? “Who after me?” thought Sunil. After two decades, a certain degree of fatigue was beginning to set in and he had been contemplating his own role in the company. The days when he was under pressure or had a bad day, he would think of selling off the company, take the money and live peacefully ever after. On the other days, he would think of building a sustainable organization and leaving a legacy!

Working PapersChaudhuri, Bikramjit Ray.,Ray, Sougata., Ramachandran, Kavil. "Effect of Business Group Affiliation on Corporate Environmental and Social Sustainability Strategy"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >In spite of an overwhelming importance of business groups (BGs) in economic value creation, how they approach and contribute to sustainable development and social value creation, and whether they differ from other firms in executing corporate sustainability strategy, has hardly been systematically researched. Using a proprietary dataset built from a questionnaire survey and secondary data of 163 Indian publicly listed firms, we theorize that BG affiliation makes firms more inclined to execute corporate sustainability strategy. We also hypothesize the effect of the stock of fungible resources with these strategies, and the negative moderating effects of BG affiliation in these relationships, drawing from BG and resource-based view literature. Our research indicates that BGs make as significant a contribution to sustainable development as in the economic development

Working PapersMondal, Arindam., Ramachandran, Kavil., Gadepalli, Sarada. "How Managerial Discretion Influences Internationalization of Indian Family Managed Firms "Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >We investigate the impact of family ownership and CEO attributes on internationalization strategy of family managed firms. Empirical results based on a unique panel dataset of large Indian firms for the period 2007 to 2013 indicate that while concentrated family owners create impediments in internationalization efforts, firms with either a first generation founder CEO or a family CEO with international exposure at the helm, are able to internationalize more effectively. We also theorize the moderating influence of different family CEOs on the relationship between family ownership and internationalization. Our results suggest that differential objectives of the CEOs derived from their idiosyncratic ownership and behavioural traits are responsible for heterogeneous risk behaviour of family managed firms. Our study has several implications for the theory of family firm internationalization.

Working PapersRamachandran, Kavil. "Krishna's Dilemma"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >The case presents a typical decision situation faced by managers. The context is the students'convocation of an academic institute. The organisers have to decide the most appropriate venue that can accommodate the institute's growing class of students and their parents. The case discusses several available alternatives and explains their merits and demerits to help the readers arrive at an appropriate solution.

Working PapersBhatnagar, Navneet., Ramachandran, Kavil., Ray, Sougata. "Preparing the Next Generation Battle Ready: Learnings from Indian Family Firms"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close > Weak next generation leadership is a key reason for the failure of family firms (Miller, 2015). Hence, it is critical to develop effective next generation leadership to ensure long-term sustenance of family business. Continuity of family legacy and control over the family business depends on successful leadership transition across generations. Next generation leadership development involves a systematic process spread over time and acts. However, inspite of its significance the leadership development process has not been adequately studied, particularly in an emerging economy like India. Following case method this paper examines case studies of next generation leadership development process of 15 Indian family firms and identifies the pathways adopted by the senior and next generation leaders. The study finds that there are two distinct phases of leadership development that involve acquisition of multiple capabilities in several stages. The first phase involves stages that contribute to building next generation leader’s intrapersonal capabilities. The second phase involves stages in which the leader builds interpersonal capabilities in the family business context. Some of the stages in both the phases were found to be essential for successful leadership development. Family businesses in which these key stages in leadership development were absent failed to achieve an effective leadership transition. We present a conceptual framework for next generation leadership development process, mapping all the capability development stages observed. We conclude the paper with implications and suggestions for future research.

Working PapersRamachandran, Kavil., Bhatnagar, Navneet. "Touchdown Footwear on Slippery Slope"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >This case is based on the professionalization and governance challenges faced by Touchdown Footwear Limited (TFL) – an Indian mid-sized footwear manufacturing family business. It was setup in1965 by three brothers, Ramnath, Krishna and Ganesh Pai who had inherited their father’s rubber trading business. Initially, TFL made flip flop slippers and catered to the local market. Over the years, TFL had a larger product portfolio, and by 2013, they had a pan-India presence with some exports to African markets. In the early years, the three brothers managed all functions. As the next generation grew up, they started joining the firm and took up different roles often based on business exigencies. By 2013, TFL had a turnover of 6.23 INR, but lacked a clear strategy and professional management. In the absence of appropriate structure, systems and processes, decision-making was ad-hoc. Inefficiencies and wastages were evident all across, and working capital was under severe strain. The firm suffered from governance deficit at both family and business levels. Lack of clear policies and processes delayed many crucial decisions. Earlier attempts to professionalize the business failed to achieve the desired results as family members neither had clear policies nor could change their mindset. Besides, there were questions about the level of commitment and discipline of the next generation. Vivek, the case protagonist, who managed TFL’s finances, realized the need for a transitional change on multiple fronts to sustain the business but was unclear about roadmap.

Working PapersRamachandran, Kavil., Ray, Sougata.,Chakrabarti, Amit Baran. "Effect of Business Group Heterogeneity on New Venture Creation: Evidence from India"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >This paper examines how heterogeneity among business group (BG) affiliated firms influences key strategic choices like new venture creation. The study considers heterogeneity among groups based on size, and heterogeneity within groups based on resources, relative importance and structural considerations. Using a database of 8344 new projects initiated by 526 BG firms within a 28 year period from 1988 to 2015 we find that, bigger groups are more likely to be associated with higher intensity of new venture creation. Moreover we found support that inter-organizational power from structural considerations and resources enhance the positive impact of BG size on new venture creation.

  • <
  • Page 2 of 12
  • >