Ananda Mukherji

Global managers: developing a mindset for global competitiveness

There is increasing evidence that large scale globalization is rendering traditional ways of doing business largely irrelevant. There is a growing need for managers to become global managers with a global perspective. We suggest that a global perspective consists of a global mindset supported by appropriate skills and knowledge. Managers have a number of mindsets that range from the domestically-oriented defender, and continuing on to the explorer, the controller, and the globally-oriented integrator. For global managers to be effective, they need to develop the global mindset of an integrator. A global mindset allows meaningful global strategizing that requires managers to effectively integrate the three global forces of (1) global business, (2) regional/country pressures, and (3) worldwide functions. A global mindset and a holistic global strategy should create conditions to build the worldwide organization characterized by specialization, interdependency, and coordination. A global outlook is a process of moving an organizations structure, process, people, and culture from a set of highly autonomous business units to one that becomes an integrated and effective global network.

A reexamination of agency theory assumptions: extensions and extrapolations

Abstract In this paper, we discuss agency theory in the context of the individual principal and agent, and also in the context of the organization and its groups. Agency theory is examined in the context of goal orientation, obligation and reciprocity, risk, and self-interest. We offer propositions given agency theory’s assumptions. We also extend agency theory and offer alternative propositions based on a relaxing of agency theory’s assumptions. In relaxing the assumptions of agency theory, insights from outside the agency literature, specifically from behavioral theories are used. Implications of agency theory and the extension of this theory are also discussed in relation to outcomes associated with economic exchanges.

The evolution of information systems: their impact on organizations and structures

Information systems and organization structures have been highly interconnected with each other. Over the years, information systems architectures as well as organization structures have evolved from centralized to more decentralized forms. This research looks at the evolution of both information systems and organization structures. In the process, it looks into the impact of computers on organizations, and examines the ways organization structures have changed, in association with changes in information system architectures. It also suggests logical linkages between information system architectures and their “fit” with certain organization structures and strategies. It concludes with some implications for emerging and future organizational forms, and provides a quick review of the effect of the Internet on small businesses traditionally using stand‐alone computers.

Interpreting, categorizing and responding to the environment: the role of culture in strategic problem definition

The focus of this article is to closely examine the role of cross‐cultural factors on interpreting, categorizing and responding to the environment. To that effect, this article examines two different streams of research. The first is a review of the literature on the environment, and the second is an assessment of certain cross‐cultural factors that may systematically influence strategic problem definition. Based on an examination of the literature on the environment, two frameworks are developed. The first framework addresses issues associated with categorizing the environment and the second framework highlights organizational responses. Hofstede’s dimension of individualism‐collectivism is used to suggest that managers are likely to differ systematically on strategic problem definition on the basis of culture. Conclusions are derived that relate culture, environment, strategic problem definition and organizational responses.

Inside the firm: Socioeconomic versus agency perspectives on firm competitiveness

Abstract In this paper, we examine agency theory’s presumptions of self-interest, opportunistic behavior, and the notion of the “economic man” (or woman). We contend that the application of agency theory’s presumptions to the firm may imply high costs, competitive disadvantage, and high firm risk. We suggest that agency theory’s presumptions may not contribute to the interests of the principal, agent, or other stakeholders. Alternatively, we discuss socioeconomic theories’ presumptions of enlightened self-interest, trustworthy behavior, and the possibility of the noneconomic person. We argue that the extension of socioeconomic theories to the firm may imply low costs, competitive advantage, and low firm risk. We contend that the socioeconomic presumptions may contribute to the interests of various stakeholders.

Structuring organizations for the future: analyzing and managing change

This paper integrates two different areas, namely the structure of future organizations and the role of OD in that environment. The paper briefly traces the forces in the environment that are impacting business organizations and the likely structures of future organizations. The changing role of OD in being relevant to these future structures is discussed. Specific areas OD needs to address are also highlighted.

The relationship between prior performance and diversification: a study of three industries

The extensive research undertaken in studying the relationship between diversification and performance has been largely inconclusive. There have been a number of reasons for mixed results including heterogeneity of samples, pooling of data, and cross‐sectional analyses. One possible way to address these problems is to make comparisons based on homogeneity of samples, or some other well‐defined structural variable, and to study firms longitudinally. More than just the statistical analysis, this paper identifies the key role of critical antecedent conditions that affect outcomes from diversification strategies. A sample of 59 firms from three distinctly different industries (food, electronics, and petroleum) are used in this empirical study. Results indicate that statistically significant differences exist when industry homogeneity is maintained and critical antecedent variables are isolated. More importantly, the role of initial conditions and historical performance levels have an important bearing on diversification efforts and subsequent performance.

The evolution of vertically integrated organizations: the role of historical context

Vertical integration across three different types of economies and selected industries is studied to trace historical, political, and economic influences on the evolution of vertically integrated structures. Specifically, the focus in this article is on the industrial development that took place in Germany, the UK, Japan and the USA. The role of a domestic market, colony markets, and attempts to become a dominant colonizer all play a significant role in the development of various industries, and the efficiency levels that they attained. The role of government, the level of international competition, and other integration drivers salient in the eighteenth and nineteenth centuries are also discussed. A broad view of structural and contextual forces provides a better understanding of why certain industries chose to integrate the way they did.

The Complexity of Offshoring: A Comparative Study of Mexican Maquiladora Plants and Indian Outsourcing Offices from an Institutional-Prospect Theory Perspective

To improve our understanding of offshoring and how it is evolving, salient ideas from both institutional and prospect theories are utilized to build a more descriptive model of how decisions are made to (re)direct foreign investment into offshored activities. Careful examinations of the offshoring programs in India and Mexico reveal that they took different investment trajectories during the past decade that can be aptly explained by this integrative model. The primary information used to measure the population trends of offshoring firms in India and Mexico comes from proprietary data sources for each country that issue annual reports on the number of operators in their respective offshoring sectors, that is, services and manufacturing.

Getting partners to take action: influences on joint action in interfirm relationships

Purpose – The purpose of this paper is to understand the nature of joint action between firms, and to examine how interfirm linkages impact the development of information systems that impact joint action. The research also examines how economic dependence impacts joint action or joint activities between firms. While the importance of interfirm relations has been widely acknowledged, the relationships between buyers and suppliers can vary widely on the amount of joint action they undertake with each other.Design/methodology/approach – Using structural equation modeling, the authors test a model of influences on joint action that incorporates elements of social norms that develop between partners, their economic dependence on each other, and a coordination mechanism of shared information systems.Findings – The findings indicate that joint action is influenced indirectly by some elements of social exchange, and instead is directly impacted by economic dependence and information systems. Social norms, specifi...