Rabi Narayan Kar

Cross Border M&As in Emerging Economies: Evidence from Indian Trends and Future Directions

Abstract The global reforms in the last two and half decades have resulted in the adoption of different growth and expansion strategies by enterprises in the emerging economies. In this backdrop, Indian enterprises have been undertaking restructuring exercises primarily through M&As to make their presence felt even across the borders. This new trend of cross-border mergers and acquisitions (CBMAs) activity occurred in India with the advancement of liberalization and globalization process. This paper has been successful in exploring and documenting the evolution and trends of CBMAs for the period of 1990–2011 and analyzes the emerging patterns of cross-border engagement of Indian enterprises with a comparative domain to unearth the reasons and future directions. Direction from this paper indicates that firms from emerging countries like India go for international diversification to obtain intangible assets and resources which they do not possess.

Understanding the Indo-Japan Economic Relations in the Asia-Pacific Century

A period when the world’s economic gravity is shifting to the Asia-Pacific region with the promise of an Asia-Pacific twenty-first century, Japan is increasingly facing pressure to maintain its economic and political position vis-à-vis China. To minimize any adverse impact, Japan needs to expand its economic horizon crossing the hitherto established boundary, importantly focusing on one or more countries to increase its strategic depth in the international economic relationship. India seems to be uniquely placed to get Japanese attention for such engagement for a number of advantageous factors it holds. With a vast population, diverse demography, increasing economic promise, democratic governance, soft power and physical location at the core of South Asia, India makes a bona fide contender to play an important role in the emerging global order. This article argues that a deeper economic cooperation between Japan and India can benefit Japan Inc. through the expansion of economic space, on one hand, and may accelerate India’s rise in the global order, on the other. But for a cooperation of mutual betterment, both countries need to position themselves for becoming complementary to each other. They will face a number of barriers at both ends though.

The Framework of Mergers and Acquisitions in India: Background, Implications and Emerging Issues

The economic reforms since 1991 has resulted in a change of financial regulatory environment for the corporate sector in India, boosting in the process, a market for corporate control characterized by mergers and acquisitions( M&As) and other forms of restructuring. It is also widely believed that the policy initiatives and the regulatory framework governing takeovers have facilitated this transformation in the Indian corporate sector-giving rise to the increasing takeover activity. In this context, an attempt has been made to assess the impact of the regulatory framework on M&As activity. There has been continuous news and reporting about M&As in the Indian Corporate sector. However, there is dearth of research studies for Indian M&As in the post liberalization period. Therefore, there are certain research issues in this critical area of financial regulation which is having bearing on mergers and acquisitions which need to be investigated. In this regard an attempt has been made to throw some light on some of these aspects. Further, the paper aims at focusing the implications of the regulatory framework on mergers and acquisitions and successfully found out the emerging issues on this area.

Understanding the Strategy of M&As in the Globalized Perspective: Experiences from Indian IT Industry

Liberalization with globalization process in India and specific policies adopted by Indian and state governments for information technology (IT) sector have led to substantial growth in this sector. On the one hand, foreign companies invested hugely in India for setting up their subsidiaries, joint ventures and acquisitions; on the other, Indian firms also aggressively went for organic and inorganic growth within and outside India. IT sector having some unique characteristics experienced one of the topmost volume of mergers and acquisitions (M&As) deals among all sectors. This study attempts to explore the trend in M&As undertaken by the companies of IT sector headquartered in India for 2000–2015 in rapidly globalized world. The study found there were more international deals than the domestic deals with the USA alone accounting for 56% of international deals. The results show that trend across the time is not unidirectional. Recession (2008–2009) significantly affected the number of deals and companies involved in M&As. The impact on international deals found to be more severe than on domestic deals reflecting the resilience of the Indian economy vis-a-vis international market. We also analysed trend and pattern of motives of M&As in 2000–2015 by Indian IT firms using content analysis. We found that the most dominating motive for both domestic and cross-border M&As was ‘efficiency seeking’ followed by ‘market seeking’. However, trend was not consistent over the period of time and varied drastically for global market vis-a-vis domestic market.

Drivers of emerging market cross border mergers and acquisitions: evidence from the Indian IT industry

Abstract The present study examines the drivers of cross border mergers and acquisitions (CBMA) from the Indian information technology sector for the period 2000–2011. It uses a multi-theoretic analysis rooted in the resource-based view and network theory to examine 354 deals from 74 firms. Empirical estimation using a Poisson panel regression model found that a firm’s financial resources, capability, prior international experience and parental network have a significant positive influence on CBMA activity. A unique finding of the paper is the strong presence of the Born Global engaging in CBMA as their mode of foreign market entry. This paper thus adds to the literature on internationalisation of emerging market multinational enterprises and specifically about technology-based Indian firms.

Cross-cultural issues in M&As: experiences and future agenda from Asia-Pacific deals

Abstract In the era of global competition, enterprises have adopted a strategic route on Mergers and acquisitions (M&As) for growth. This has been more profound since the liberalisation and openness programme adopted by many countries. Research literature on M&As has attributed failure of deals primarily to cross-cultural factors. Hence, researchers remained interested in understanding the nuances of cross cultural issues for the success of integration. Further, literature on cultural issues suggests that due to the complexity, uniqueness and largely tacit nature of organisational culture, it is difficult to imitate and adopt any specific organisational culture. This becomes even more difficult in the international settings where organisations forced to merge with different nationalities, background, and languages. This study examines the cross-cultural issues associated with Indian cross border deals in the Asia-Pacific region in order to find out the key research dimensions. It attempts to seek answers to these issues based on the Indian evidence which may aid successful cultural integration.

India-Japan Cultural Distance on the Mottainai Ethics

The mottainai ethics were originally based on one’s modesty and subjective ideals, respecting the virtues of thrift, moderation and self-realization. This chapter aims to shed light on a dimension of the cultural or perception gap between the Japanese and the Indians, mainly with reference to the concept of mottainai in the Japanese language. This research uses an analytic induction framework of qualitative and narrative type analysis on a strategy of collecting data through relatively unstructured interviews with the Japanese expatriates who manage joint-ventures in India. We find those Japanese expatriates feel that Indian business people and workers are less concerned with training and enhancing themselves to achieve a better quality of life. The Japanese investors perceive wastefulness or opportunity loss in business in India, which may create a potential, mutual mind barrier to entry.

A Sustainable Business Model: Experiences of Indian Micro Enterprises

Micro enterprises have remained an important part of the Indian economy from ancient times. Uniquely innovated through ‘Craft Technology’, some products like ‘muslin’ enjoyed pride of place in medieval India and attained fame in foreign countries until the emergence of factory-made cloth. Even today, these enterprises are at the helm of harnessing innovations for commercial purposes. However, they need technological synergies through collaborations with universities, R&D institutions and incubators. This chapter aim to explore the business models and innovative practices of micro enterprises in the Indian hinterland. It also attempts to standardize those business models, their innovations and practices, with possible synergies through collaborations that may be replicated in other developing countries.

Emerging Dynamics of Sustainability in Multinational Enterprises

Contents: Introduction: Emerging Dynamics of Sustainability in Multinational Enterprises PART I MNES AND MANAGING SUSTAINABLE BUSINESS DYNAMICS 1. The Role of Multinational Enterprises in Promoting System-Level Innovationsin the Finnish Food IndustryKaisa Sorsa 2. Are Local Businesses more Environmentally Sustainable or MNEs? Some Evidence from AsiaDavid Griffith 3. Push Factors Causing Outward FDI from Select Asian Economies: Is Sustainability a Concern?Niti Bhasin, K. V. Bhanu Murthy and Vandana Jain 4. CSR and Networked OrganisationsBernard Girard and Corinne Gendron 5. Convergence and Divergence of Transnational Regulation: The Issue of Mnes and Corporate Social ResponsibilityJoseph Effiong PART II INNOVATIVE STRATEGIC CHOICES AND SUSTAINABLE DEVELOPMENT 6. Implications for Multinational Companies Seeking a Sustainable Virtual Environment Using The Building Blocks of Social Media.Thierry Houe, Klaus Nicholas Schmidt and Renato Guimaraes7. The Internationalization Path and Sustainability Dynamics in Emerging Economies: The Case of Indian SmesGabriele Suder 8. Sustainable Development Through Consumer Well-Being and Life Satisfaction: Preliminary Findings and Strategy Implications from IndiaSanjay K. Jain and Parul Goel 9. The Case Study of DKCMUL in Sustainable DevelopmentNancy H. Vaz and G. A. Raikar PART III EMERGING NATIONS AND SUSTAINABLE DEVELOPMENT 10. Environmental Kuznets Curve: CO2 Emissions, Pollution Havens and Type of Economic DevelopmentK V Bhanu Murthy and Niti Bhasin .11. Measuring Environmental ConsciousnessKavita Sharma and Monika Bansal 12. Sustainable Agricultural Marketing Strategies and Practices: An Indian ExperienceMinakshi, Anil K. Swain and Amrita Kaur 13. Resource Dynamics of Outbound Acquisitions: Evidence from the Indian IT IndustrySumati Varma and Rabi N. Kar 14. Sustainability through AfricapitalismYosef Kebede Index