Organizational Fit and Acquisition Outcome:
A Test of a Mediated Structural Model in
Related Acquisitions Among Indian Firms
--Siddhartha S Brahma and Haimanti Chakraborty
The linkage between the organizational fit and the post-acquisition outcome has long been debated in the literature. In normative sense, they should have a positive relationship. However, research in this area is scant and substantive conclusion is yet to be drawn. To examine whether the above relationship could be mediated by the sociocultural outcome of the integration process, a mediated structural model was hypothesized and was tested in a sample of 115 related acquisitions in India. The results supported the indirect effect of organizational fit on the post-acquisition outcome via sociocultural integration outcome. Implications of the findings are drawn and possible further research directions are outlined.
© 2016 IUP. All Rights Reserved.
Why Do Firms Relocate Headquarters?:
An Examination of Stable and Dynamic Industries
--Elzotbek Rustambekov and Ramesh Mohan
This conceptual paper looks at dynamic capabilities as a specific type of knowledge that is geographically localized. Dynamic capabilities are knowledge-based processes that are developed over time by means of interactions among a firm’s resource bundles and capabilities. Dynamic capabilities enhance a firm’s capacity to leverage resources and organizational processes to increase profitability. Corporate headquarters were selected as a unit of analysis because of their knowledge-intensive nature. Empirical evidence suggests that just over 5% of headquarters relocate every year and that the reasons for the relocations go beyond tax incentives. It is argued that the geographical proximity of headquarters causes spillover of operational knowledge during interactions between managers. This operational knowledge includes various routines and contains dynamic capabilities. This paper links studies on dynamic capabilities and studies on geography of knowledge and headquarter relocations. The information gathered can help to explain why corporate headquarter relocations take place, and how firms may increase profitability by moving their headquarters to a location favorable to building particular dynamic capabilities.
© 2016 IUP. All Rights Reserved.
Progress Card of the Indian Automobile Industry
--Vibha Tripathi and K B Rao
The automobile industry currently contributes 22% of the manufacturing GDP and 7% of the country’s GDP. The Indian auto industry has left behind many other auto manufacturers with an annual production of 23.96 million vehicles in the financial year 2015 and is going to be the third largest in the world by 2020. With strong backward and forward linkages, the automobile sector has been identified as one of the sunrise industries in the manufacturing sector. Post 2000, important policies and programs like auto policy 2002 which allowed 100% FDI, Automotive Mission Plan 2006-2016, NATRIP, NEMMP and the very recent launch of “Make in India” program have changed the growth dynamics of the automobile sector. Therefore, the paper attempts to study the growth trends of automobile industry post 2000 in terms of CAGR, and percentage change over the years for three parameters, namely, production, sales and exports. The findings of the study clearly suggest an upward trend in growth during 2001 to 2014 in the two-wheeler and passenger vehicle segment in the Indian automobile industry.
© 2016 IUP. All Rights Reserved.
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