Pradeep Kanta Ray

The Synergistic Effect of State Regulation and Self-Regulation on Disclosure Level of Director and Executive Remuneration in Australia

This article examines how the introduction of a mix of state and market-based regulatory mechanisms representing formal and informal institutional elements, respectively, impacts disclosure level of director and executive remuneration in Australia. In doing so, our study steps beyond the simple state versus market dichotomy that the extant literature is primarily concerned with and proposes a symbiotic relationship between the two. The results of our study reveal that both state regulation and self-regulation as bundles of corporate governance can potentially join forces to ease agency conflicts. What is more, certain well-institutionalized organizational practices that guide agents toward self-regulation remain highly relevant and significant, even in the presence of pervasive state regulation. The synthesis of constructs borrowed from agency and institutional theories and its testing in an empirical setting of Australia verifies the significance of formal (state regulation) and informal (self-regulation) institutional aspects in addressing moral hazard agency conflicts. Our research provides insights for public policy makers as to how policies can be developed for good corporate governance. Particularly, in the context of current global economic crises, policy makers would be better off choosing those institutional mechanisms of corporate governance that complement the state regulation with self-regulation for the management and regulation of the modern global economy.

Public Policy and the Role of Multinationals and Local Enterprises in the Indian Drugs and Pharmaceuticals Industry

This paper examines the behavioural differences between multinational and local enterprises in their role as agents of development and transformation in the Indian pharmaceuticals industry. A case study of two large enterprises in the pharmaceuticals industry shows how a model of development spurred by national enterprises based on reverse engineering promotes industrial deepening in India. The comparison also illuminates the multinational enterprise (MNE) affiliates position within the dynamics of its parental affiliation and its local institutional context, and how such a position may contrast and complement the position that local enterprises (LEs) occupy. The case study is followed by a matched pairs test of 169 enterprises in the Indian chemicals industry to distinguish how nationality might influence a firms strategic role. Important differences between the ownership groups arise along four major strategic dimensions of technological activities, degree of vertical integration, trade orientation and product-environment compatibility. Local enterprises satisfy a majority of developmental goals while MNE affiliates comply with some transformational goals, and complement the efforts of LEs.

Influence of policies in capability evolution and industry structure: lessons from the Indian automotive industry and implications for other developing countries

This paper empirically examines capability progression along with industry structure through three policy eras in the Indian automotive industry. Based on two rounds of field works and using Sanjaya Lalls technology capability pyramid model as the principal theoretical framework, this extensive, multidimensional inquiry found that at the licensing phase, protectionist policies played an important role in the attainment of operational capabilities. However, at a later stage, liberalisation policies catalysed the growth of innovation capabilities. Lastly, the stimulus to form linkage partnerships, in-house R&D efforts and close networked relationships among suppliers and manufacturers also supported the advancement in capabilities. Our proposed conceptual framework contributes to the literature by mapping the relationship between key policies of the Indian Government and the progression of capabilities along with the consequential impact on the industry structure. The study has significant implications for public policy in terms of upgrading capabilities in other developing countries of the world.

The role of frugal innovation and collaborative ecosystems: The case of Hyundai in India

This article examines the product innovation management strategy of a developed economy multinational corporation case in India. Drawing on institutional theory, the analysis indicates that product innovation for emerging markets is essentially built on the frugal innovation capabilities of a firm. The findings show that through frugal engineering, bricolage, and modularity, it is possible to implement frugal innovation that creates value with less resource and at low costs. Further, the analysis shows how developing a collaborative ecosystem along with a deep embeddedness in the local economy facilitates frugal innovation. The article has important implications for theory and management practice.

Collibration as an alternative regulatory mechanism to govern the disclosure of director and executive remuneration in Australia

This paper explores an alternative approach to regulation for addressing corporate governance problems related to director and executive remuneration disclosure. We draw on the concept of collibration, conceived by Dunsire as an approach to managing tensions between opposing forces in social arena. We explore the application of collibration in the development of a regulatory framework, composed of a mix of state regulation and self-regulation, for corporate governance in Australia. Thereafter, we examine the impact of the mixed regulation developed through collibration on remuneration disclosure behaviour in Australian companies. We find that improvement in corporate disclosure is primarily driven by the establishment of remuneration committees and appointment of reputable auditors. Our research demonstrates the effectiveness of collibration in developing a regulatory framework that aligns state regulation designed to protect shareholder interests with self-regulation, about which little was known in the literature.