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Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India

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Global Journal of Flexible Systems Management Aims and scope Submit manuscript

“Firms need more flexibility if they are to thrive and survive” (EESC 2011).

Abstract

Firms play a key role in growth of India, and there is a need to enhance their competitiveness significantly. For that, they may need higher flexibility in their governance systems. This paper explores the relationship between flexibility in corporate governance (CG) mechanisms and international competitiveness (IC) in two knowledge-based industries in India during the period from 2006 to 2014. Using multiple regression model, the results suggest that flexibility in CG significantly affects IC. In addition, IC increases with the increase in firm size in the presence of other factors such as research and development intensity, marketing intensity, business group affiliation, and industry dummy. Thus, the study is a novel attempt to establish the relationship between flexibility in CG and IC.

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Acknowledgments

The authors thank the Action Editor Zafar Husain and four anonymous reviewers for their comments. Prompt help from researcher(s) at CMIE helped address issues with data extraction. We thank Industrial Research and Consultancy Center (IRCC), IIT Bombay, for financial support for competitiveness research.

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Authors and Affiliations

  1. S.P. Jain Institute of Management and Research, Munshi Nagar, Dadabhai Road, Andheri (W), Mumbai, 400 058, India

    Arunima Haldar

  2. School of Management, Indian Institute of Technology Bombay, Powai, Mumbai, 400076, India

    S. V. D. Nageswara Rao & Kirankumar S. Momaya

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  1. Arunima Haldar
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  2. S. V. D. Nageswara Rao
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  3. Kirankumar S. Momaya
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Correspondence to Arunima Haldar.

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Haldar, A., Rao, S.V.D.N. & Momaya, K.S. Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India. Glob J Flex Syst Manag 17, 389–402 (2016). https://doi.org/10.1007/s40171-016-0135-3

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