Editorial
It is my pleasure to bring you Volume 27, No. 2, the June 2015 issue of IIMB Management Review.
Post liberalization, Indian firms have successfully used internationalization strategies, cross border acquisitions in particular, to expand to new markets through market seeking strategies and become globally competitive through strategic asset seeking strategies. In their paper “Market Response to Internationalization Strategies: Evi- dence from Indian Cross-Border Acquisitions”, Professors Neelam Rani, Surendra Yadav, and P K Jain examine the market response to the announcements of cross-border acquisitions and investigate if such announcements create value for the shareholders of the acquiring firm in the short- term, and whether the value effect for the shareholders of the acquiring company differs for targets in developed markets and emerging markets. They use an event study methodology on a final sample of 256 cross-border acqui- sitions listed on the Bombay Stock Exchange, during the period 2003e2008. The empirical findings suggest that cross-border transactions result in wealth creation for shareholders of the Indian acquirers. The gains are signifi- cantly positive for the acquisitions of targets in developed markets as well as emerging markets. Further, the value creation is higher in case of acquisition of relatively larger deals involving target firms of high tech sector in developed markets.
Efficient supply chain management (SCM) is essential for small and medium enterprises (SMEs) to cope with the intense pressure of global competition, and obtain higher quality and low cost products for their customers. In their paper “Study on Impact of Critical Success Factors for SCM on Performance of Indian SMEs”, Professors Ravinder Kumar, Rajesh Singh, and Ravi Shankar identify 13 critical success factors (CSF) for implementation of SCM based on a review of literature. They then focus on the effects of these CSF on the performance of Indian SMEs, with per- formance measures such as customer service and satisfac- tion, innovation and growth, financial performance, and internal business performance of Indian SMEs. They generate four research propositions and develop a frame- work based on the balanced score card to test and analyse the research propositions. They conduct a questionnaire survey among SMEs (251 complete responses) from the auto component, plastic, light engineering, and electronics sectors from December 2010 to December 2012. The study reveals that the CSFs a have positive impact on different categories of performance, and when analyzed sector wise, different CSFs show different impacts on different perfor- mance criteria in different sectors. Top management commitment, long-term vision for survival and growth, focus on core strengths, devoted resources for supply chain, and development of effective SCM strategy emerge as the main CSFs for implementation of SCM in Indian SMEs. In their paper, “Adoption of ERP system: An Empirical Study of Factors Influencing the Usage of ERP and its Impact on End User”, Ms Christy Angeline Rajan and Prof. Rupashree Baral propose a conceptual framework that uses the technology acceptance model (TAM) and identifies the external variables of individual characteristics (computer self-efficacy), organizational characteristics (organiza- tional support, training) and technological characteristics (compatibility, complexity). The study also extends research by examining the impact of the usage of ERP on the individual or the end user manifested as panoptic empowerment and individual performance. The study has been carried out in organizations that had implemented ERP systems within the last five years (154 usable re- sponses). The data has been analyzed using the multivar- iate path analysis of partial least squares with the results being consistent with previous research. Computer self- efficacy, organizational support, training and compatibility have a positive influence on ERP usage which in turn has a significant influence on panoptic empowerment and indi- vidual performance. Complexity was found to have a negative effect on perceived usefulness and perceived ease of use, which means that if the implementation of ERP is compatible with the existing technical systems and oper- ating practices, it will lead to favourable attitude towards the acceptance of ERP by the end users. The findings of this study provide critical insights for managers to manage and adopt ERP systems across organizations. Despite contributing significantly to the Indian economy, the Indian agriculture sector suffers from several bottle- necks, one of them being ineffective laws governing farm-to-market linkages leading to low price realization by Indian farmers. In India, six national level exchanges offer commodity derivatives contracts, with some having spot exchanges, but farmers’ participation in these exchanges has been poor. Prof. Prabina Rajib first provides an over- view of different aspects of the Indian agricultural market and the Indian commodity derivatives market, providing the context for the interview with Mr. S. Sivakumar, Divi- sional Chief Executive, Agri Business Division (ABD) of ITC Ltd., honoured with the World Technology Award for the ITC e-Choupal initiative. Mr. S. Sivakumar shares his views on increasing farmers’ participation in commodity de- rivatives trading and also elaborates ITC-ABD’s commodity hedging strategies. He opines that farmers must be able to manage their risk, but that should be done while maxi- mizing value for their produce.
In this issue’s Round Table feature Dr. Kalpana Gopalan and Prof. Madalasa Venkataraman draw our attention to the pressing problem of affordable housing (AH), quoting an estimated housing shortage of 18 million houses with 99 percent of the shortage occurring in the economically weaker and lower income groups. Their academic note elaborates on defining the term affordable housing, describing the need for focus on AH, analyzing the institu- tional structure of AH delivery in India, analyzing policy responses by various governments, international experi- ence, and lacunae that still exist. The note prepares the ground for the round table where a panel of practitioners with different perspectives discusses on improving afford- ability, transparency, sustainability and growth towards policy imperatives to promote innovation along the value chain for housing. The discussion centres on land, finance and urban utilities/amenities and highlights the aspects in policy and practice that need attention.
I look forward to your feedback on the issue, and your comments and suggestions.
I look forward to your feedback on this issue of the journal.
Nagasimha Balakrishna Kanagal
Editor-in-Chief
IIMB Management Review
India
Email address: eic@iimb.ernet.in