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Effective Organisational Response by Corporates to India's Liberalisation and Globalisation

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Abstract

The Indian economy began to liberalise and globalise in earnest beginning in 1991. The principal elements of the economy's structural adjustment that have created a far more competitive and turbulent but also opportunity-rich market environment are described. Based on prior Western and Indian research, a model of effective corporate coping with such a market environment has been developed. The model argues that the greater use of policy frameworks representing entrepreneurial, organic, professional, and participatory styles of management, and mechanisms of uncertainty reduction, differentiation, and integration tend to enhance corporate performance in such an environment, while their absence or low usage depresses it. Four sources of information are utilised to assess the model: published information on how Indian corporates have generally coped with economic liberalisation and globalisation, three corporate case studies, data from a recent study of 139 Indian corporates, and another study of 54 Indian corporates. All four sources broadly converge in their support for the model. Several issues relating to the contingency and strategic choice perspectives, and the generalisability, applicability, acceptability, and the diffusion of policy frameworks and redesign mechanisms are discussed.

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  1. Indian Institute of Management, Vastrapur, Ahmedabad, 380 015, Gujarat, India

    Pradip N. Khandwalla

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Khandwalla, P.N. Effective Organisational Response by Corporates to India's Liberalisation and Globalisation. Asia Pacific Journal of Management 19, 423–448 (2002). https://doi.org/10.1023/A:1016204105440

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