Impact of Technology on Competitiveness: a Case Study of Indian Small Auto Component Units

  • T. A. Bhavani
Part of the Technology, Globalization and Development Series book series (TGD)


The phenomena of globalisation, liberalisation and rapid technological developments are changing business environments the world over. World economies, especially developing economies, have been shifting since the 1980s away from ‘policy regulation’ towards ‘market orientation’ through liberalisation of state controls on economic activities and also globalising in the sense of moving towards greater integration. Simultaneously, rapid technological developments are drastically changing the methods of doing business. At the base of technological progress is the revolution of information and communication technologies (ICT). The globalisation and liberalisation processes are not only exposing business enterprises to market competition to a greater extent but also intensifying that market competition.1 Technological developments, on the other hand, are providing opportunities for enterprises to improve their competitive strength in order to deal with the challenges of open markets. Technology plays a significant role in promoting competitiveness and growth both at the macro-and microeconomic levels, much more so in these days of globalisation that is necessitating as well as allowing technological change. It is the competitiveness of microeconomic units like firms that explains most of the variations in macroeconomic growth (Porter and Christensen 1998).


Supply Chain Total Factor Productivity Total Quality Management Total Factor Productivity Growth Numerically Control Machine 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. ACMA (2002–3) ACMA: Facts and Figures 2002–03. Automotive Components Manufacturers Association:
  2. Ahluwalia, I. J. (1991) Productivity and Growth in Indian Manufacturing, Delhi: Oxford University Press.Google Scholar
  3. AIAM (1999) Recommendations for Developing Indian Automotive Policy, New Delhi: Association of Indian Automobile Manufacturers.Google Scholar
  4. Ayyar, S. R. S. (1994) ‘New Emerging Challenges and Opportunities for Small and Medium Enterprises through Technological Upgradation and Better Financial Management’, Small Industry Bulletin for Asia and Pacific, 29: 38–40.Google Scholar
  5. Bhavani, T. A. (2001) ‘Towards Developing an Analytical Framework to Study Technological Change in the Small Units of the Developing Nations’, Working Paper Series E/216/2001, Delhi: Institute of Economic Growth.Google Scholar
  6. Bhavani, T. A. (2005) Technological Change in the Indian Small Scale Industries, New Delhi: Ane Books.Google Scholar
  7. Bos, A. and W. Cole (1994) ‘Management Systems as Technology: Japanese, US and National Firms in the Brazilian Electronic Sector’, World Development, 22(2): 225–36.CrossRefGoogle Scholar
  8. Carlton, D. W. and J. M. Perloff (1990) Modern Industrial Organisation, Glenview: Scott, Foresman and Co.Google Scholar
  9. Dahlman, C. and L. Westphal (1982) ‘Technological Effort in Industrial Development’, in F. Stewart and J. James (eds) The Economics of New Technology in Developing Countries, London: Pinter, pp. 105–37.Google Scholar
  10. Dahlman, C., B. Ross-Larson and L. Westphal (1987) ‘Managing Technological Development: Lessons from the Newly Industrialising Countries’, World Development, 15(6): 759–75.CrossRefGoogle Scholar
  11. D’Costa, A. P. (2004) ‘Flexible Institutions for Mass Production Goals: Economic Governance in the Indian Automotive Industry’, Industrial and Corporate Change, 13(2): 335–67.CrossRefGoogle Scholar
  12. Gokarn, S. and R. R. Vaidya (2004) ‘The Automobile Components Industry’, in S. Gokarn, A. Sen and R. R. Vaidya (eds) The Structure of Indian Industry, Delhi: Oxford University Press, pp. 281–314.Google Scholar
  13. Government of India (1997) Report of the Expert Committee on Small Scale Enterprises (Abid Hussain Committee), Delhi: Government of India.Google Scholar
  14. Government of India (2002–3) Third All India Census of Small Scale Industries, Delhi: DCSSI, Government of India.Google Scholar
  15. Griliches, Z. (1995) ‘R&D and Productivity: Econometric Results and Measurement Issues’, in P. Stoneman (ed.) Handbook of the Economics of Innovation and Technological Change, Oxford: Blackwell.Google Scholar
  16. Griliches, Z. (1996) ‘The Discovery of the Residual: a Historical Note’, Journal of Economic Literature, XXXIV: 1324–30.Google Scholar
  17. Gulati, M. (1997) Restructuring and Modernisation of Small Medium Enterprise Clusters in India: a Report, New Delhi: UNIDO.Google Scholar
  18. Gumaste, V. M. (1988) Technological Self Reliance in the Automobile and Ancillary Industries in India, Madras: Institute for Financial Management and Research.Google Scholar
  19. Hayek, F. A. (1945) ‘The Use of Knowledge in Society’, American Economic Review, 35(4): 519–30.Google Scholar
  20. ICRA (1999) The Indian Automotive Components Industry, ICRA Industry Watch Series, New Delhi: ICRA.Google Scholar
  21. Kanji, G. K. and M. Asher (1996) 100 Methods for Total Quality Management, New Delhi: Sage.CrossRefGoogle Scholar
  22. Krishna, K. L. (1987) ‘Industrial Growth and Productivity in India’, in P. R. Brahmananda and V. R. Panchamukhi (eds) The Development Process of the Indian Economy, Delhi: Himalaya Publishing House.Google Scholar
  23. Lall, S. (1992) ‘Technological Capabilities and Industrialization’, World Development, 20(2): 165–86.CrossRefGoogle Scholar
  24. Lall, S. (2001) Competitiveness, Technology and Skills, Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  25. Link, A. N. (1987) Technological Change and Productivity Growth, London: Harwood Academic Publishers.Google Scholar
  26. McGuckin, R. H., M. L. Streitwieser and M. E. Doms (1996) ‘The Effect of Technology Use on Productivity Growth’, Discussion Papers, Washington, DC: Centre for Economic Studies.Google Scholar
  27. Mintzberg, H. (1979) The Structuring of Organizations, Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
  28. Mody, A. and C. Dahlman (1992) ‘Performance and Potential Information Technology: an International Perspective’, World Development, 20(12): 1703–19.CrossRefGoogle Scholar
  29. Mody, A., R. Suri and J. Sanders (1992) ‘Keeping Pace with Change: Organizational and Technological Imperatives’, World Development, 20(12): 1797–816.CrossRefGoogle Scholar
  30. Narayana, D. (1989) ‘The Motor Vehicle Industry in India’, Occasional Paper Series, Trivandrum: Centre for Development Studies.Google Scholar
  31. NCAER (1999) Spurious Automotive Components: Market Size and Consequences, sponsored by the Automotive Components Manufacturers Association, New Delhi.Google Scholar
  32. Patel, P. and K. Pavitt (1995) ‘Patterns of Technological Activity: Their Measurement and Interpretation’, in P. Stoneman (ed.) Handbook of Economics of Innovation and Technological Change, Oxford: Blackwell, pp. 14–51.Google Scholar
  33. Porter, M. E. and C. R. Christensen (1998) ‘Measuring the Microeconomic Foundations of Economic Development’, The Global Competitiveness Report, Geneva: WEF.Google Scholar
  34. Stiroh, K. J. (2001) Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?, New York: Federal Reserve Bank of New York.Google Scholar
  35. Teitel, S. and L. E. Westphal (1984) ‘Introduction’ to the Symposium on Technological Change and Industrial Development, Journal of Development Economics, 16(1-2): 1–12.CrossRefGoogle Scholar
  36. Tendulkar, S. D. and T. A. Bhavani (1997) ‘Policy on Modern Small Scale Industries: a Case of Government Failure’, Indian Economic Review, 32(1): 39–64.Google Scholar
  37. Varadharajan, S. and S. Kannan (1998) ‘Brimming with Challenges’, in The Hindu Survey of Indian Industry, Chennai: The Hindu.Google Scholar

Copyright information

© T. A. Bhavani 2006

Authors and Affiliations

  • T. A. Bhavani

There are no affiliations available

Personalised recommendations