Indian Business Environment Research Articles

Deal Value Threshold and M&A: A Competition Law Analysis

In 2023, the Indian Parliament introduced amendments to the Competition Act, 2002. The primary focus of these amendments is to provide regulatory certainty, ensure faster market correction, and provide a trust-based business environment in India. These amendments also aim to give the Competition Commission of India (CCI) adequate power to ensure that no anti-competitive practices are undertaken in India. A plethora of amendments have been enacted, and one of the key amendments impacting M&A is the introduction of the Deal Value Threshold (DVT) while retaining the asset and turnover test. The rationale for this amendment is to ensure digital markets are covered within the ambit of DVT and to ensure that no anti-competitive M&A deals are undertaken in the digital market space. The impact of the new additional threshold in India has been analyzed, and the loopholes in the DVT framework have been highlighted. The impact of DVT on M&A deals undertaken in India has been showcased. In addition, solutions have been provided that can be adopted by the CCI in order to plug the loopholes in this new framework to make it comprehensive.

Examining The Role of Technological Advancements and Innovations in Enhancing the Sustainability Practices and Competitiveness of Certified B-Corps in India

The aim of this research is to analyze the influence of technological advancements on the competitive advantage and sustainability strategies of Certified B-Corporations operating in India. Through the use of both quantitative surveys and qualitative interviews, information was gathered from a diverse sample of Certified B-Corps spanning multiple industries using a mixed-methods strategy. The objective of this study is to assess the influence of technological advancements on sustainability practices, with a particular focus on the reduction of resource consumption and the mitigation of emissions. Furthermore, the research aims to examine the potential relationship between advancements in technology and the level of competitiveness. The results indicate a noteworthy and positive correlation between the implementation of sustainable practices and the adoption of technological advancements within Certified B-Corporations in India. This correlation is most pronounced in the domains of recycling and the utilization of renewable energy. Furthermore, it was discovered that technological progress has a beneficial effect on competitiveness, as evidenced by the analysis of market positioning and brand value. The research highlights the significant impact that technology has on promoting sustainable practices and sustaining market competitiveness. The significance of incorporating technological advancements into sustainability endeavors to bolster the competitive advantage and environmental and social responsibility of Certified B-Corps is underscored by these findings. Additional investigation may explore the efficacy of particular technological interventions in fostering sustainable business practices, thereby contributing to the collective comprehension of sustainability within the Indian business environment.

Green Marketing as New Marketing Trend in India

The emergence of "Green Marketing" as a prominent trend in India reflects a growing societal and environmental consciousness, aligning business strategies with sustainable practices. This article delves into the dynamic landscape where companies are increasingly incorporating eco-friendly initiatives into their marketing strategies. The concept of Green Marketing goes beyond mere product promotion, emphasizing environmental responsibility and sustainable development. In India, a country grappling with environmental challenges, the shift towards Green Marketing is particularly significant. With consumers becoming more environmentally conscious, businesses are compelled to adopt eco-friendly practices to meet market demands. The article explores how companies are leveraging this trend to create a positive brand image, gain consumer trust, and tap into a growing market segment that prioritizes sustainability. Furthermore, the article examines the role of regulatory frameworks and government initiatives in promoting Green Marketing. The Indian government's push for environmental sustainability and clean energy has incentivized businesses to embrace eco-friendly practices. The article also sheds light on the challenges companies face in implementing Green Marketing strategies, such as increased production costs and the need for innovation in sustainable product development. The article underscores the transformative impact of Green Marketing on the Indian business landscape. It provides insights into how companies are navigating the shift towards sustainability, aligning their marketing efforts with environmental responsibility. As Green Marketing continues to gain momentum, it not only shapes consumer behavior but also contributes to a more sustainable and ecologically conscious business environment in India.

Walmart in India: Crafting competitive advantage using joint venture and acquisition

Walmart has a global reputation for building robust Information Technology driven infrastructure for modern retail. However, its Indian operations were constrained by the government’s Foreign Direct Investment policy in multi-brand retail that allowed entry only through the Business2Business route for protecting small retailers. The policy restriction limited the scope of value capture for Walmart in the growing Indian retail market. Walmart used partnerships and creative tweaking of its business model to adapt to the business environment in India. It used a joint venture with Bharti Retail, a local partner, to enter the Indian market. Walmart acted as suppliers to small retailers and also invested in a focused program to improve their efficiency. Further, the joint venture allowed Walmart to generate additional revenue sources (royalty and other fee incomes) to recover its investments in supply chain development. The tweaks in the business model to improve value appropriation were however evaluated unfavorably by the stakeholders in India prompting dissolution of the joint venture. Later, with online retail becoming prominent, Walmart acquired majority stake in Flipkart, a leading e-commerce player in India, to renew its capabilities and evolve a business model for the new era of omni-channel retail.

Understanding Financial Management and Investments with Regards to Corporate Law and Management

This summary covers the complex relationship between financial management, investment and corporate law in the Indian business environment. India's dynamic economic landscape requires a holistic approach to address the complexities of capital optimization, strategic financial decision-making and compliance with regulatory frameworks. Through the lens of corporate governance, the study explores the symbiotic relationship between ethical leadership, sound governance structures and financial success, illustrated by a transformational case study of the Tata Group. The challenges of the crossroads emphasize the constant need for companies to find a balance between risk and return, while the recommendations emphasize the importance of collaboration, continuous training and technical solutions. As India becomes a global economic powerhouse, this study highlights the critical role of the harmonious interplay of financial strategies, investments and execution in driving sustainable growth and stakeholder value.

A study on predictive analytics in talent acquisition in Indian companies: An Indian context perspective

In the contemporary Indian business landscape, talent acquisition stands as a pivotal challenge for organizations striving to maintain competitiveness and drive innovation. With the proliferation of data and advancements in analytics technology, predictive analytics has emerged as a promising tool to revolutionize talent acquisition practices. This conceptual paper endeavors to explore the application of predictive analytics specifically within the unique context of Indian companies' talent acquisition endeavors. Beginning with an exploration of the theoretical foundations of predictive analytics in talent acquisition, this paper delves into the intricacies of its implementation in the Indian business ecosystem. By synthesizing existing literature and empirical evidence, it elucidates the potential benefits and challenges associated with predictive analytics adoption in the Indian context. In particular, the study investigates the socio-economic and cultural nuances that shape talent acquisition strategies in India, including the significance of factors such as regional diversity, educational disparities, and socio-economic backgrounds. It examines how these contextual factors influence the design, implementation, and outcomes of predictive analytics initiatives in talent acquisition. Furthermore, the paper provides insights into the current landscape of predictive analytics utilization in Indian companies' talent acquisition processes. It discusses notable trends, case studies, and success stories, shedding light on the transformative impact of predictive analytics on recruitment efficiency, candidate quality, and workforce diversity. Moreover, the study addresses the ethical and legal considerations inherent in the deployment of predictive analytics in talent acquisition within the Indian regulatory framework. It emphasizes the importance of ethical data practices, transparency, and accountability to mitigate risks related to privacy infringement and algorithmic bias. Additionally, the paper identifies key challenges hindering the widespread adoption of predictive analytics in Indian talent acquisition, such as data quality issues, talent scarcity in analytics expertise, and organizational resistance to change. It offers strategic recommendations for overcoming these barriers, including investment in data infrastructure, capacity-building initiatives, and stakeholder engagement. In conclusion, this study contributes to the advancement of knowledge in both academic and practical domains by offering a comprehensive understanding of predictive analytics in talent acquisition within the Indian context. By addressing the unique challenges and opportunities specific to the Indian business environment, this paper aims to inform strategic decision-making and drive organizational success in talent acquisition endeavors.

Understanding Financial Management and Investments with Regards to Corporate Law and Management

This summary covers the complex relationship between financial management, investment and corporate law in the Indian business environment. India's dynamic economic landscape requires a holistic approach to address the complexities of capital optimization, strategic financial decision-making and compliance with regulatory frameworks. Through the lens of corporate governance, the study explores the symbiotic relationship between ethical leadership, sound governance structures and financial success, illustrated by a transformational case study of the Tata Group. The challenges of the crossroads emphasize the constant need for companies to find a balance between risk and return, while the recommendations emphasize the importance of collaboration, continuous training and technical solutions. As India becomes a global economic powerhouse, this study highlights the critical role of the harmonious interplay of financial strategies, investments and execution in driving sustainable growth and stakeholder value.

A Study On Traits And Challenges Faced By Social Entrepreneurs With Reference To Organic Sector In India

The rapidly developing business environment in India is bringing many challenges and some top of the mind business issues for the Organic Sector. Social entrepreneurship has gained increasing recognition as a catalyst for addressing social and environmental issues through business ventures. In the realm of sustainable agriculture and consumer goods, the production and promotion of organic products have become a focal point. Organic products, characterized by their adherence to environmentally friendly farming practices and absence of synthetic chemicals, hold the promise of a healthier planet and populace. This research paper explores the traits and challenges encountered by social entrepreneurs in the context of organic products. As sustainability and environmental concerns gain prominence in today's global marketplace, social entrepreneurs have emerged as key actors in promoting organic products. This study aims to identify the distinctive traits that drive social entrepreneurs to engage in the organic product sector and to examine the challenges they confront in their endeavors. Through a comprehensive analysis of existing literature, interviews, and surveys of social entrepreneurs, this research offers valuable insights into the motivations, skills, and obstacles faced by individuals dedicated to promoting organic products for the betterment of society and the environment.

A Comparative Analysis of Consumer Protection Act 1986 and Consumer Protection Act 2019 in India: Strengthening Consumer Rights and Redressal

Consumer Protection Act 1986 and Consumer Protection Act 2019 have been crucial legislative frameworks in India, aiming to safeguard consumer rights and ensure fair trade practices. This article provides a comparative analysis of these acts, highlighting the key features and improvements brought about by the Consumer Protection Act 2019. The analysis delves into the scope and definition of consumers, the dispute redressal mechanism, product liability, and provisions against misleading advertisements. The Consumer Protection Act 2019 expands its scope to cover online transactions and ecommerce, introduces the Central Consumer Protection Authority, and mandates product liability, holding all stakeholders accountable. The act also empowers the CCPA to take swift action against misleading advertisements. The comparative study underscores the importance of the updated legal framework in enhancing consumer protection and promoting a responsible business environment in India.

MAKE IN INDIA An Analytic Study of the Country's Technological shift for Transformation.

India has long been an economic powerhouse, and today it's among the five fastest-growing economies. Several Make in India reforms led to this. The government's announcement of measures to boost the business environment in India has shifted the approach to governance. Make in India was introduced by Narendra Modi, India's prime minister, in 2014. The programme aims to increase India's manufacturing competitiveness and attract foreign investment. India's 100th rank shows that attempts to make it a manufacturing centre are paying off. India must overcome a few challenges to continue its winning streak. This article depicts and looks at the Make in India drive, which expects to change India into a monetary center point that draws in worldwide enterprises to contribute and create there. The examination uncovers its concerns, which upset its development. As a general rule, the review's discoveries support the production in India crusade, which means to make India a manufacturing hub. The data is assessed qualitatively utilizing the MAXQDA thematic software tool to arrive at on conclusion.

Make In India An Analytic Study of the Country's Technological shift for Transformation.

India has long been an economic powerhouse, and today it's among the five fastest-growing economies. Several Make in India reforms led to this. The government's announcement of measures to boost the business environment in India has shifted the approach to governance. Make in India was introduced by Narendra Modi, India's prime minister, in 2014. The programme aims to increase India's manufacturing competitiveness and attract foreign investment. India's 100th rank shows that attempts to make it a manufacturing centre are paying off. India must overcome a few challenges to continue its winning streak. This article depicts and looks at the Make in India drive, which expects to change India into a monetary center point that draws in worldwide enterprises to contribute and create there. The examination uncovers its concerns, which upset its development. As a general rule, the review's discoveries support the production in India crusade, which means to make India a manufacturing hub. The data is assessed qualitatively utilizing the MAXQDA thematic software tool to arrive at on conclusion.

THE ROLE OF CORPORATE GOVERNANCE IN INDIAN BANKING COMPANIES

The process of liberalization and deregulation was unleashed by the new economic policy of the Government of India during 1991. Reforms in financial sector opened the doors to the private sector Banks in the country and it paved way for the new generation banks. Customers welcomed these financial institutions and they were awaiting for this opportunity to make themselves comfortable with the services provided by private sector banks after experiencing poor services from Nationalized Banks. The unethical practices and increased corruption kept the management of different organization to fleece their customers which in turn resulted in the closing down of some big companies. The need of Corporate Governance was felt during the securities scam of Harshad Mehta’s in April 1992 involving a large number of banks and it resulted a drastic change for the first time in stock market that shook the confidence of investors. The practices of the Corporate Governance has to be constantly evaluated because of the uncertain and complex business environment in India. KEY WORDS: Banking Companies, Fraud, Scams, Corporate Governance

Working Capital Management Policies in Indian Listed Firms: A State-Wise Analysis

The main aim of this paper is to evaluate the impact of working capital policies on firms’ profitability. The study uses a panel data set of 829 manufacturing firms for the period from 2011 to 2017. Data is extracted from Prowess IQ database. An empirical model is used for testing research hypotheses. The results show that all firms across Indian states follow conservative financing and investment policy. The conservative investment policy positively affects return on assets, whereas the conservative financing policy negatively affects return on assets and therefore firms’ financial sustainability. Regulators, policymakers, investors, and financial managers in Indian manufacturing companies are advised to follow a conservative investment and financing policy, which is effective and efficient in boosting firms’ profitability for attaining financial sustainability. Therefore, manufacturing firms should invest more in current assets, because they need to expand both inventories and trade credit to their customers. Moreover, financial managers are advised to favor a low level of debt in financing assets. Apart from previous literature, which was either descriptive or based on a small sample size, the present study makes a novel and significant contribution by bridging an existing gap through applying a panel fixed- and random-effect model for a large sample: 829 firms. Furthermore, the business environment in India is somewhat different from that of other countries around the globe, which makes investigating working capital policies in the Indian contexts an interesting endeavor.

Emergence of women entrepreneurship ventures in India

Change in the Indian business environment because of globalisation has brought many advantages for those women who want to become entrepreneurs. The basic objectives of the paper are to find out the nature of women entrepreneurship ventures in India and examine the motivational factors of women entrepreneurs. Since India is a land of diverse culture, it is assumed that nature of women entrepreneurship ventures differ from place to place. The study is descriptive in nature and based on in-depth review of literature. The studies which have been published in various academic journals and articles in books on various aspects of women entrepreneurship in India during 1996 to 2016 have been considered.

Exploring IR4.0 Strategy in Post COVID-19 Era Through Insights from FDI Inflows

Published research on Industrial Revolution 4.0 (IR4.0) is centered around conceptualization and public policy announcements, staying largely esoteric and under-explored. However, with COVID-19 Lockdowns creating an economic crisis out of a health crisis, particularly in countries such as India and USA, it is likely that the vision of IR4.0 will influence new initiatives and collaborative efforts in a post-COVID-19 world realigning to the new normal. India will put its IR4.0 strategy on fast-track to play a meaningful role in the global supply chain. This paper seeks to extend the research literature by studying the possibility of IR4.0 business opportunities for India by looking at trends in FDI in-flows for the period 2013-14 to 2018-19 and by analyzing the financial management of FDI companies. The paper aims to close the research gap by describing and explaining the industries and countries that are best-fit for India’s IR4.0 ambitions. To achieve this objective, a general linear model with repeated measures is applied to a panel data consisting of yearly count of FDI companies reporting to RBI for the period 2013-14 to 2018-19 across nine industry verticals and from 10 investor countries. The study found that though some industry verticals attract FDI, India is not a manufacturing destination, FDI inflows are fickle and most investor countries do not have a strategic buy-in with India through FDI commitments. The main conclusion is that IR4.0 strategy for India can be based on software development for industrial Internet of Things, Human-Machine interface and robotics software. Also, improving Indian business environment and practices in India should be a part of the post COVID-19 strategy.

Impact of Social Media, Security Risks and Reputation of E-Retailer on Consumer Buying Intentions through Trust in Online Buying: A Structural Equation Modeling Approach

E-commerce is a relatively new way of shopping in India. The prime focus of this paper is to explore the factors influencing customer buying intention through electronic commerce. The study encompasses the analysis of several factors such as privacy, trust, security and organisation’s reputation. The hypothesis was derived based on these factors in the context of e-commerce in India. The data is collected through questionnaires from 287 respondents from the region of Maharashtra, India using the random sampling method. The respondents were considered who are frequently buying goods and services through e-commerce websites. The analysis has been performed using the method of structural equation modeling, confirmatory factor analysis, and path analysis. The outcome of the paper deliberates that the privacy, trust, security and organisation’s reputation significantly affects the online purchase intention of e-commerce consumers. It is recommended to provide attention to these factors to increase sales in the e-commerce business. The factor of trust is found as the most significant factor among all the factors which indicates that the respondents from the selected region lack trust toward online commerce. Hence, e-commerce organisations should develop websites that meet the expectations of prospective consumers. This paper delineated the significant factors affecting the buying intentions in the context of online business in Maharashtra. Moreover, it has established an integrated framework to realize the influences on purchase decisions of consumers in e-commerce business environment in India.

Economic Impact Of India-China Trade War: Future Directions

The growing trade war among India and China is creating imbalance in the among developing countries. Both countries are affecting in their business prospects. India is basically importing raw material for export of good and services. Growing tension leads to unnecessary growth impetus which affects industry growth, loss of employment opportunities and other trade related problems. India has considerable potential for reducing its trade deficit with China, as we can see from Made-in-China products sold on the Indian market. Most of them are low- and mid-range products. India can make these things itself. The value tune to the cores of rupees is loss for the both counties; it will create far reaching impact in Indian business environment. These papers highlight the possible causes and consequences of trade war between to Asian giants and suggest how to promote regional growth prospects for speedy development of economics.

Internal and vendor employees’ unethical behaviors in the supply chain: the case of India

PurposeThe purpose of this paper is to examine the impact of a corporate ethical policy, such as a code of ethics, on the unethical behavior of internal and vendor employees in the supply chain in India. It also aims to find whether International Standards Organization (ISO) certification of vendors affects the result and any significant relationship between management commitment and unethical behavior can be supported by the findings as well.Design/methodology/approachEmpirical analyses were conducted on a survey consisting of 43 questions comprising 181 valid responses. Multiple regression analysis that includes four independent variables – code of ethics, management commitment, supply chain principles and personal values taking unethical behavior as dependent variable – was used to find the significance of the relationship.FindingsThe implementation of a code of ethics, management commitment, supply chain principles and personal values all have a negative association with unethical behavior. Personal values, measuring a firm’s financial aspects for non-compliance to ethical behavior, have a positive association with unethical behavior. The relationships of top management commitment, personal values with internal employees’ unethical behavior are significant. The significant relationship between management commitment and unethical behavior can be supported by the findings as well. It was also found that ISO certificates and firm size as the control variables did not have any effect on the relationship between the independent variables and unethical behavior. The analysis also shows that ISO 26000 certificate, the international standard for socially responsible operations, does not impact this relationship.Research limitations/implicationsMeasuring substantial managerial effort for corporate social responsibility (CSR) practices by asking questions like, “how committed employees think top management is to social responsibility,” may not fully measure substantial managerial effort for CSR practices. To improve the results of the current study, future research can use the CSR index or disclosure as a measure to better reflect management commitment and practice for social responsibility. Second, the current study is limited to measuring how many occurrences of unethical behavior are witnessed by employees instead of what specific unethical behavior is more often witnessed. Considering India has the second largest population in the world, 181 responses may not represent the true practices in the business environment in India for generalization.Practical implicationsThe findings suggest that management should put more of an emphasis on improving the commitment of upper-level managers to decrease the overall unethical practices of their employees. The study finds that employees’ personal values influence their ethical behavior. Therefore, communications and training of employees at all levels should emphasis on improving personal values.Social implicationsBusinesses should influence academics to incorporate personal value building in course curricula. The Indian CSR law should incorporate the holistic view of CSR taking care of needs of all stakeholders under the provision of the regulation. In 2015, India became the first country in the world to legislate CSR practices in corporations but it misses the opportunity to sensitize the management and employees on ethical practices as it mainly identified philanthropic expenses as mandatory CSR spending and silent on ethical business practices.Originality/valueThe present study contributes to the literature by bringing supply chain context to the effect of different factors on unethical behaviors and interaction of internal and vendor firms in terms of ethical practices. There are several studies on business ethics in different countries including China, but in the case of India similar studies are not much. The present study fills the gap.

Fintech Issues and Challenges in India

India is a growing market for Fintech with a population of nearly 1.3 billion. A huge percentage of unbanked and under banked population is making India an exhilarating global space for financial technologies. Fintech is regarded as a game changer and disruptive innovation which is capable of shaking up the traditional financial markets. Fintech has been growing rapidly in India in the last five years and is expected to grow further in the nearest future. At this outset the article focuses on the basic types of financial technologies and their functions and also discusses the opportunities and challenges it has in the Indian business environment.

Excessive Corporate Liquidity and Stock Return: Evidence from the Indian Business Environment

The article examines the determinants, financial characteristics and the stock returns of Indian firms which held excessive liquidity during the post-meltdown period of 2008–2012 in the backdrop of an uncertain business environment. The research design is essentially based on a model developed by Opler, Pinkowitz, Stulz, and Williamson (1999) adjusted for variable specification necessitated by Indian conditions and data availability. The model is used to identify the transitory and persistent excess liquidity firms. Quarterly, bi-yearly and yearly stock returns of excess liquidity firms are compared with the returns of non-excess liquidity control firms. In India where banks play a major role in financing in view of the illiquid debt market, speculative motive plays a dominant role in holding excess liquidity. Build-up of excess liquidity arising from the relatively strong economic performance of earlier years is utilized conservatively to decrease leverage rather than gear up investment when investment opportunity is depressed due to a weak macroeconomic outlook and structural factors. Greater liquidity and longer holdings do not generate lesser returns for varying periods till 1 year compared to a portfolio of non-excess liquidity control firms. At variance with the existing literature the results indicate that marginal value of liquidity in terms of stockholders’ returns does not decline with higher or longer liquidity holding when the investment environment is unfavourable.