Performance In Indian Context Research Articles

Do Environmental, Social, and Governance Performance Impact Firm Performance? Evidence from Indian Firms

This paper investigates the impact of individual environmental (E), social (S), and governance (G) and the overall ESG performance on the firms’ performance in Indian context. Three dimensions of a firm’s performance, i.e., operational, financial, and market performance, are measured through return on assets, return on equity, and firm value (Tobin’s Q), respectively. The study spans the period from 2012 to 2019, with NSE 500 firms as the first sample set and NSE 100 ESG enhanced index firms as the second sample set. Panel data analysis was performed with efficiency tests for the random and fixed-effects models. The study deduced that the ESG index listed firms have better operational and financial performance than the non-listed ESG firms. With the second sample set, the impact of ESG and its subcomponents’ performance on firms’ performance was examined. Overall, ESG had a positive and significant association with operational and market performance. All the subcomponents positively impact operational performance and negatively impact market performance. The impact of ESG and its subcomponents on financial performance could not be established except for the governance score. The study findings will be beneficial for investors, regulators, and corporate sustainability decision-makers in their different capacities and roles across global markets.

Identification of total productive maintenance barriers in Indian manufacturing industries

Every manufacturing industry are much concerned with their maintenance strategies adopted on the shop-floor to avoid breakdowns. As breakdowns directly leads to lowering the capacity utilization thus results in poor productivity. Recently, Total Productive Maintenance has emerged as one of the robust maintenance strategies and many big industries has adopted it in their work culture. Still, Indian manufacturing sector is not much familiar with the sustainable benefits of TPM and also hesitant to deploy TPM across their unit. In past, many manufacturing units has tried TPM but they are failing due to lack of knowledge base available on the barriers related to its successful implementation. The main goal of this study is to find key barriers related to TPM implementation across Indian manufacturing. A vast literature has been explored and potential barriers have been extracted that hinders the TPM performance in Indian context. Further, importance index has been compute based on expert opinion to find out most significant barriers of TPM implementation. Present results will provide the manufacturing managers the prominent barriers that can be tackled at early stage and will lead to successful execution of TPM across the unit.

Board Structure, Ownership and Performance of Indian IPOs: An Empirical Investigation

This paper is an attempt to explore the signaling effect of corporate governance mechanisms on IPOs of emerging market economy. Using a sample of 124 Indian IPOs for the period April 2009 to March 2015, the study tries to find out the impact of board characteristics and share ownership of different stakeholders on short and long term IPO performance. In Indian context, this paper makes the first attempt to highlight the impact of corporate governance mechanisms on long run IPO performance, measured by market adjusted buy and hold returns (BHR). The results of the analysis show that in Indian context, subscription rate, equity retention by executive and non-executive directors and promoter CEO have significant impact on IPO underpricing. Board size, promoter CEO and retained strategic investors ownership have significant impact on IPO long run performance. Overall the results show that corporate governance attributes play a limited role in explaining underpricing and long run IPO performance in Indian context. However, investors can use the corporate governance attributes as certificate mechanisms to select potentially high value IPOs for both short and long-term investments. The issuing firms can restructure their boards and ownership patterns to enhance the value of the firm, to get fair value of their IPOs and benefit their long-term shareholders.

Perceptions of Indian managers on the impact of convergent technologies on work and resultant organisational performance in service industry

PurposeThis research examines Indian service managers' perceptions on impact of convergent technologies on their work and resultant organisational performance. The research uses four dimensions – task productivity, task innovation, customer satisfaction and management control – taken together, to investigate the perceived impact of convergent technologies adoption in service organisations context and further examines the resultant organisational performance, based on these dimensions.Design/methodology/approachThe study used partial least squares (PLS) approach to evaluate the measurement model and the structural model. The study was conducted in service industry firms that have made a significant progression towards adopting convergent technologies.FindingsThe results of the study demonstrated higher levels of perceived impact of adoption of convergent technologies on all the four dimensions (i.e. task productivity, task innovation, customer satisfaction and management control). The results of the study also indicate that all the impact dimensions positively influence organisational performance.Research limitations/implicationsThe results of the study suggest that all the impact dimensions positively influence organisation, therefore the service sector managers should be aware about the role of adopting latest convergent technologies so as to enhance the task productivity, innovation, customer satisfaction and management control in their job roles.Practical implicationsThe practical implications of this research are derived on the basis of Future of Work, Labour Market Information Systems, Productivity, Enterprise Development, Enhancing skills of service employees and Employability themes.Originality/valueTo researchers best knowledge is to first study of its kind to evaluate the perceived impact of convergent technologies on organisational performance in Indian context.

Exploring the Bi-directional relationship between corporate social responsibility and financial performance in Indian context

PurposeThis study aims to investigate the relationship between corporate social responsibility (CSR) and financial performance from the bi-directional perspective.Design/methodology/approachThe final sample for this study are 79 companies listed in the national stock exchange for a period of eight-years (2008–2015). Random effect panel regression was performed to examine the possible link.FindingsThe result shows that CSR has a positive impact on the contemporaneous and future financial performance of the selected companies. Further, the study shows that only social dimension has a positive and significant impact on concurrent and future financial performance. The results further validate slack resource theory as lagged financial performance has a positive and significant impact on CSR.Practical implicationsThe strategic value of CSR indicates that it should be seen as a value-enhancing strategy, and therefore, incorporated with the broader corporate strategy of the company. Companies should not trade-off between CSR and financial performance, rather a strategic synchronization of CSR with corporate functioning is essential. This will pave a way to build a stakeholder-sense in the corporate entities.Originality/valueThe study comprehensively examines the relationship between CSR and financial performance from both “prospective” and “retrospective” framework. This bi-directional approach has received minimal attention in the Indian context.

Progressive human resource management and firm performance

PurposeThis study aims to examine the adoption and efficacy level of progressive human resource management (HRM) practices in various organizations operating in India.Design/methodology/approachPrimary data based on 615 respondents from 103 domestic firms and 116 foreign multinational corporations (MNCs) operating in India were gathered and analyzed using statistical techniques liket-test, confirmatory factor analysis and structural equation modeling.FindingsThe results reveal that the adoption of progressive HRM practices in form of self-managed teams, flexibility to work flexible hours, use of online mediums to invite applicants, selection of candidates using assessment center and integrity test, performance based incentives, flexible benefits, facility of e-learning and innovative management development programs is positively related to firm performance in Indian context. Using institutional and cultural perspective, the findings have also demonstrated that their exist differences in adoption of progressive HRM practices between foreign MNCs and domestic firms.Practical implicationsDomestic firms in India are needed to learn some important managerial lessons from the foreign MNCs, especially when their adoption of progressive practices results in more increase in firm performance. These are suggested to implement a broad range of innovative HR practices like MNCs to improve growth potential, instead of focusing on two or three practices.Originality/valueBy exploring the differences between domestic and foreign MNCs, this study has offered some key insights on the extent of adoption and operationalization of progressive HRM in current Indian business environment.

Impact of information technology and relational aspect on supply chain collaboration leading to financial performance

PurposeThe purpose of this paper is to investigate the impact of use of information technology (IT) and relational aspect on supply chain collaboration (SCC) in the context of developing country, in this case India. The study has considered two important components of use of IT namely, information sharing and information quality and further investigated their impact on SCC. Two important components of relational aspect, namely, trust and commitment have been considered, as identified from literature review, trust has been considered as an antecedent to commitment and the impact of commitment on SCC has been investigated. The research also investigates the impact of SCC on financial performance of the firm.Design/methodology/approachBased on extensive review of SCC literature a research model has been proposed hypothesizing the relationships between information sharing, information quality, trust, commitment, SCC and financial performance. The proposed research model is tested using data from 166 manufacturing firms across India. Structural equation modeling was used to test the hypothesized relationships between constructs.FindingsThe results showed that there is significant positive impact of information sharing and information quality on SCC. Consistent with earlier literature, trust was found to have a significant positive impact on commitment and commitment was found to have significant positive impact on SCC. Further, the findings confirmed the positive relationship between SCC and financial performance of the firm.Originality/valueThis is the first study to the best of our knowledge which has investigated the impact of SSC on financial performance in Indian context. This study has taken into account both use of IT and relational aspect simultaneously and investigated their impact on SCC.

Small Scale Industries and Factors Affecting their Performance in Indian Context: A Literature Review

Small Scale Industries and Factors Affecting their Performance in Indian Context: A Literature Review

Workplace Spirituality and Organizational Performance in Indian Context: Mediating Effect of Organizational Commitment, Work Motivation and Employee Engagement

Prior research on workplace spirituality has mostly looked at the antecedents and consequences of the construct. The purpose of the present research is to investigate the mediating effect of employee commitment, employee engagement and work motivation in the relationship between workplace spirituality and organizational performance in Indian context. Using standardized self-report measures and structural equation modelling (SEM), present research finds that two facets of organizational commitment (namely, affective and normative), employee engagement and work motivation partially mediate the relationship. Implications of these findings for academic theory as well as HR managers are discussed.

Impact of green manufacturing practices on organisational performance in Indian context: An empirical study

This study presents an empirical assessment and guides about measuring impact of GM (green manufacturing) practices on organisational performance in Indian context. The research approach is to extract critical GM factors from field data, to evaluate those factors which have positive impact on the organisational performance and to develop a model linking both critical factors and performance measures. The research follows survey method for data collection. A diagnostic research survey instrument is designed and used for data collection from the Indian manufacturing companies that have implemented/experienced GM. Authors not only developed model but also attempted its optimisation, checked its robustness through sensitivity analysis and worked out its ability to predict patterns and possible trends through artificial neural network (ANN) simulation. Further, this model is validated through a case company data to work out its intensity and efficacy as a demonstrative application in reducing environmental footprints. The major contribution of this study is in the identification, prioritisation of guiding factors, its modelling, and validation, which influence various manufacturing practices, and drastically affect organisational performance. The study offers useful insights and guides about how industries should link both aspects critical GM factors and performance measures to channelize their GM initiatives, in order to improve environmental, operational and financial performance.

Assessing the cultural intelligence and task performance equation

Purpose– Organizations in India are multicultural in nature. In this context, cultural intelligence is a tool, which can increase an individual’s ability to interact with people outside his/her culture. The purpose of this paper is to analyze the impact of cultural intelligence on task performance as well as to investigate the mediating role of cultural adjustment between the two.Design/methodology/approach– Extensive review of literature was done to acknowledge the cultural intelligence and task performance concept. Data for the study has been collected from the 225 managers working in nationalized banks in Jammu province (J&K, India). Data collected has been validated using confirmatory factor analysis and hypotheses have been tested through structural equation modeling.Findings– The study reveals that cultural intelligence significantly contributes toward task performance. The findings further reveal full mediation of cultural adjustment between cultural intelligence and task performance.Research limitations/implications– The study has been conducted in Indian cultural context, which can be extended to other Asian countries. Further, more outcomes of cultural intelligence can be taken into consideration in future for better understanding of the concept.Practical implications– The study contributes toward cultural intelligence theory. Organization should provide cultural training to the managers before sending them to out of home state assignment, which helps to understand the culture of that state and effectively interact with people belonging to that place.Originality/value– The paper empirically identifies the relationship between cultural intelligence and task performance in Indian context. Further, this relationship has been explored by using cultural adjustment as a mediator between the two. The model developed can be used for future research keeping it as a base.

Supply Chain Management And Its Relationship With Organizational Performance: A Literature Review

Over the period of last twenty years or so, field of supply chain management has evolved to such an extent that it has become backbone of today's businesses. Yet mere acceptance of the fact that supply chains can act as business levers/drivers, which can help propel organizational performance is not sufficient. There needs to be a performance measurement mechanism which can link supply chain management with overall organizational performance. This paper tries to provide brief literature review on supply chain management with a specific reference to its relationship with organizational performance. The paper studies the various approaches/methodologies used by researchers for exploring relationships between supply chain management and organizational performance. The focus of this review is to study empirical studies in particular. The review study covers articles from the field of operations, logistics and supply chain domain. Findings reveal a need for empirical research to establish link between supply chain performance & organizational performance in Indian context. Also revealed is a need to focus on softer aspects of management under supply chain management which can have significant impact on organizational performance.

Supply Chain Management Components, Competitiveness and Organisational Performance: Causal Study of Manufacturing Firms

Supply Chain Management (SCM) is a complex subject, which is an important determinant of success or failure of any manufacturing enterprise. It is absolutely essential for executives of manufacturing enterprises to be thoroughly aware about all the essential components of supply chain management and understand the impact that it might exert on the overall efficiency of the organisation. This knowledge will enable them to focus on those variables which add value to organisations and considering the significance of SCM, especially in Indian context, the researcher has made a sincere attempt to find a solution to the research question of ‘What is the impact of important components of SCM on the performance of the supply chain per se and also on the organisational performance in Indian context?’ Based on the review of literature relating to supply chain management components, competitiveness and organisational performance of manufacturing enterprises, a conceptual model was framed and the resulting hypotheses were empirically tested. Data was collected from the executives of these manufacturing enterprises by administering a well structured questionnaire, using personal interview method and tested the proposed research hypotheses. The findings from the structural equation model results support all the 10 formulated hypotheses that there is a significant positive relationship with the supply chain management and organisational performance.

Corporate Social Performance and Corporate Financial Performance: A Link for the Indian Firms

The present study addresses the issue of the relationship between Corporate Social performance and corporate Financial Performance in Indian context under good management theory. The study used S&P ESG India Index as a proxy of CSP/ CSR (Corporate social performance or Corporate Social Responsibility) of Indian firms for the first time over the 2005–2011 periods. We designed econometric models and controlled industry specific attributes and performed Weighted Least Square method for the analysis. Overall results show neutral though modest negative relationship between the CSP and CFP which eventually informs that if there would be any relationship, it would be negative.

The Conditional Performance of Indian Mutual Funds: An Empirical Study

One of the most important developments in the field of finance during last forty years is the mutual fund performance evaluation technique. The traditional techniques use the unconditional moments of the returns. Such techniques cannot capture the time-varying element of expected return. As a consequence Ferson and Schadt (96) advocate a technique called conditional performance evaluation, designed to address this problem. This paper utilizes that technique on a sample of 89 Indian mutual fund schemes, over the period of 1999:1 to 2003:7. The broad based S&P CNX 500 is used in the study as benchmark. The study uses the lagged information variables - T-bill yield, dividend yields, term structure yield spread and a dummy for April-effect. The paper measures the performance with both unconditional and conditional form of - CAPM, Treynor-Mazuy model and Henriksson-Merton model. We examine the effect of incorporating lagged information variables into the evaluation of mutual fund managers' performance in Indian context. The result suggests that the use of conditioning lagged information variables improves the performance of the mutual fund schemes, causing the alphas to shift towards the right and reducing the number of negative timing coefficients. Tech rally of 1999 to 2001 is a major event in the history of Indian capital market. We have also incorporated the impact of the tech rally in the conditional models by introducing a dummy variable indicating the period of rally in tech stocks. We found that fund managers' performance as well as timing skill worsens with the inclusion of this dummy.