History, ownership forms and corporate governance in India

Abstract

PurposeThe purpose of this paper is to trace the evolution and persistence of different forms of business ownership in conjunction with the values and institutions that shaped those forms, and discuss the implications for corporate governance in India.Design/methodology/approachResearch paper analyzing broad historical trends, integrating multiple frameworks.FindingsMany ownership forms exist: family, government, professional, and foreign (multinational firms). In each period, shifts in values resulted in shifts in institutional and legislative frameworks, which, in turn, gave rise to different forms of business ownership. The end result, however, has been an amalgamation of diverse co‐existing ownership models, with evidence of evolution towards more balanced values.Research limitations/implicationsComparative research involving other national contexts will help broaden our understanding of the origins and persistence of different forms of governance. Exploration of other governance mechanisms, such as the changing roles of the board of directors or the impact of legislation, also can be explored in the Indian context.Practical implicationsAs multinational firms expand their operations and outsourcing in India, they must understand the existing governance structures in order to better manage their activities.Originality/valuePerspective of corporate ownership and governance in India using a cultural, institutional, and historical perspective.