Working Papers

Working PapersPedada, Kiran., Shankar, Venkatesh.,Dass, Mayukh. "The Effects of International Marketing Joint Venture Dissolutions on the Shareholder Value of Emerging Market Firms"Read Abstract >Close >
Working PapersUppal, Abhinav., Bradlow, Eric T..,Yildirim, Pinar. "A Bayesian Learning Model for Product Hierarchies"
Working PapersUppal, Abhinav., Jerath, Kinshuk.,Raju, Jagmohan S. "A Theory of Selling Formats in Retailing: Direct versus Mediated Access"Read Abstract >Close >Retailers worldwide employ various selling formats characterized by different degrees to which customers can access and inspect products in the store. In the direct access format, all available products are stocked on shelves directly accessible to customers for inspection, while store associates offer minimal assistance. In the \"mediated access\" format, retail stores are manned by shopkeepers who offer one product at a time to customers and the customers decide whether to purchase an offered product or to ask for an alternative. We build a theoretical model in which a retailer makes selling format, product assortment and pricing decisions, and consumers have shopping costs. There are two products: a general purpose brand that provides the same utility uniformly to all consumers, and a specialized brand that gives ex ante uncertain utility to a consumer that can be higher or lower than the utility of the general purpose brand, and a consumer can resolve this by inspecting this brand. We find that the retailer chooses the mediated access selling format with the specialized brand offered first when customers' uncertainty about fit with the specialized brand is large (as long as the retailer's margin on the general purpose brand is not too high). If consumers' uncertainty about fit with the specialized brand is medium, the retailer chooses to internalize consumer shopping costs by employing the direct access format and carries both brands. If consumers' uncertainty about fit with the specialized brand is small, the retailer chooses the mediated access format carrying only the general purpose brand. Our model offers an explanation for the observation that the mediated access selling format is more popular in emerging markets (as compared to developed markets) where consumers' shopping costs (e.g., cost of time) are typically small, but in these markets this format is less popular for large, organized retailers (as compared to small, unorganized retailers) that may be able to obtain better trading terms, e.g., larger retail margins, from upstream sellers.

Working PapersBang, Nupur Pavan., Ramachandran, Kavil., Vishwanthan, Anierudh. "Evidence on Family Firm Performance and Relevance of Context in an Emerging Economy"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Ownership of firms and their impact on firm performance has been a topic of interest for long. Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. Multiple studies have arrived at differing conclusions with regards to performance of family firms. Using a unique proprietary database of scientifically classified listed family and non-family firms this paper studies the impact of family ownership, control and management on firm performance through the lens of external and internal context. It thus advances the debate that has so far been skewed towards studies from the developed markets, larger firms and micro analysis. Using accounting and market measures of firm performance, we conduct a time-series cross-sectional comparison of family and non-family firms. Our analyses consistently reveal that family firms performed poorly in comparison to non-family firms in India. We also find that the impact of family does not weaken over time and that family management results in poorer performance. We, therefore, conclude that family ownership, control and managementm per se are a significant impediment to firm performance in emerging markets contexts like India.

Working PapersVishwanthan, Anierudh.,Bang, Nupur Pavan., Ramachandran, Kavil. "Parenting among Business Groups: An Emerging Market’s Perspective"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Emerging markets witness a significant overlap between social communities, families and business activities. This paper attempts to decipher a source of heterogeneity, which is business group affiliation among family firms. This paper details the reasons why business group affiliation is beneficial in an emerging market by employing the concept of parenting to reconcile the potential deficiencies of business group affiliation pointed out by various strategy scholars. We use two proxies to measure the extent of parenting namely, firm leadership by a family member and promoting family’s shareholding in the group affiliate company. The study has been conducted in the Indian economic context using a dataset consisting of 3,728 listed companies. Results show that superior parenting realized by professional firm leadership and higher promoter shareholding leads to superior financial performance among family business group firms.

Working PapersPedada, Kiran., Shankar, Venkatesh.,Dass, Mayukh. "Determinants of International Marketing Joint Venture Dissolutions in Emerging Markets"Read Abstract >Close >
Working PapersRamachandran, Kavil., Bhatnagar, Navneet. "Do Family Business Leaders really Cooperate with Non-Family Executives - Process Challenges of Professionalization"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Stewart & Hitt (2012) concluded in their literature review that we need more insights into the process of professionalization of family firms. Some pertinent questions not much researched are - what processes do family firms follow to professionalize? why do only some of those approaches work?, and what are these approaches? To find the answers we studied professionalization processes at two Indian family controlled businesses. We found that professionalization process at the top management level entails cooperation and role clarity between family business leader and professional manager. We conclude that there is need to have perfect chemistry and understanding between them to manage the undefined areas of responsibility between them, a zone of managerial ambiguity or “No Man’s Land”. The paper discusses and generates propositions for the processes of professionalization.

Working PapersBang, Nupur Pavan.,Vishwanthan, Anierudh., Ramachandran, Kavil. "Evidence on Family Firm Performance and Relevance of Context in an Emerging Economy"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Ownership of firms and their impact on firm performance has been a topic of interest for long. Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. Multiple studies have arrived at differing conclusions with regards to performance of family firms. Using a unique proprietary database of scientifically classified listed family and non-family firms this paper studies the impact of family ownership, control and management on firm performance through the lens of external and internal context. It thus advances the debate that has so far been skewed towards studies from the developed markets, larger firms and micro analysis. Using accounting and market measures of firm performance, we conduct a time-series cross-sectional comparison of family and non-family firms. Our analyses consistently reveal that family firms performed poorly in comparison to non-family firms in India. We also find that the impact of family does not weaken over time and that family management results in poorer performance. We, therefore, conclude that family ownership, control and management per se are a significant impediment to firm performance in emerging markets contexts like India.

Working PapersRamachandran, Kavil., Bhatnagar, Navneet. "Familial Socio-political Influences on New Venture Creation in Family Business"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >New venture (NV) creation has been extensively studied in Entrepreneurship literature (Perrow, 2002). However, recent discussion on NV has moved to ecosystems such as family businesses (Sharma et al., 2014). As a business family grows, creating new business ventures becomes crucial for family business sustainability (Zahra, Hayton & Salvato, 2004). Family plays an important role in NV creation (Rodriguez et al., 2009). Though it is critical for family business sustainability, researchers have regularly emphasized that our understanding of the actual venture creation process in family business requires further exploration (Steier, 2009). particularly, the role played by the socio-political forces within the family in NV creation process is an area that is not understood well. This paper is an attempt to address this crucial gap in literature. The key questions we researched are: (i) Besides commercial viability, what other considerations influence NV creation in family businesses? (ii) Why some economically viable NV proposals receive family’s support, while others do not?, and (iii) What influence do family members have on resource allocation to NVs? We report answers to them based on empirical research done on Indian family businesses.

Working PapersRamachandran, Kavil., Bhalla, Ajay.,Bhatnagar, Navneet. "New Venture Creation in Indian Family Firms: Dynamics of Family versus Non-Family Champions"Thomas Schmidheiny Centre for Family EnterpriseRead Abstract >Close >Research on entrepreneurship in family controlled enterprises is fairly young, though the contribution of such businesses to economies across the world has been very significant. It is now proven that creation of new ventures in family business is different from that in non-family business context in different ways. This paper builds on an earlier work done by Bhalla et al. (2010) wherein it was argued that family firms evaluate new venture proposals based on a combination of the family’s economic, expertise, reputation and affiliation criteria (i.e. the EERA logic). This paper reports preliminary findings from an ongoing study that validates the EERA logic and goes on to empirically find out through primary data the processes involved in the evaluation of new venture proposals and their approvals in family controlled firms. We find that the EERA factors are given different levels of importance by families. We also find that new venture creation process in family business context is distinct due to the influence of familial factors. We conclude that family membership, social standing and family embeddedness of the proposer significantly influence the mechanisms adopted for proposal evaluation and resource allocation to new ventures.

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