Essays on antecedents of nonmarket choices of Indian firms

Guide(s)

Mani, Dalhia

Department

Entrepreneurship

Area

Entrepreneurship

University

Indian Institute of Management Bangalore

Place

Bangalore

Publication Date

3-31-2024

Year Awarded

March 2024

Year Completed

March 2024

Year Registered

June 2018

Abstract

According to renowned strategy scholar Michael Porter, the essence of strategy is about making choices. Firms choose which markets to enter and how to compete against other firms in those markets. However, businesses also frequently make choices that go beyond markets. This is because business outcomes are also impacted by the actions of other key nonmarket stakeholders such as activists, interest groups, local communities, and governments. In today's world, managing these stakeholders and their expectations is equally important and comes under the ambit of nonmarket strategy. In my dissertation, I study factors that shape three such nonmarket choices of Indian firms and particularly focus on two dominant forms of nonmarket strategy- corporate social responsibility (CSR) and corporate political activity (CPA). My dissertation comprises three stand-alone essays. Two of these essays (first and second) are related to a recent regulation in India that made it mandatory for large and profitable Indian companies to spend a share of their profits on CSR activities. However, several eligible firms failed to comply with this law. In my first dissertation essay, I, therefore, investigate factors that explain this variation in compliance. In my second dissertation essay, I focus on the implementation of CSR projects post the mandatory CSR regulation, specifically exploring the reasons why some firms choose to implement CSR projects themselves, while others delegate them to non-governmental organizations (NGOs). Finally, in the third essay, I shift my focus to CPA literature and examine the choice of including ex-bureaucrats as directors on corporate boards. This is crucial since appointing government officials on the board is a well-established form of nonmarket strategy that firms across the globe undertake to influence the government. This question is particularly pertinent in the Indian context where in recent years we observe a significant rise in the number of firms that have adopted this approach. Overall, this dissertation contributes significantly to our current understanding of how Indian firms make nonmarket choices and adapt to changes in their social and political environment.

Pagination

xi, 143p.

Copyright

Indian Institute of Management Bangalore

Document Type

Dissertation

DAC Chairperson

Mani, Dalhia

DAC Members

Pallathitta, Rejie George; Raj, Prateek

Type of Degree

Ph.D.

Relation

DIS-IIMB-FPM-P24-05

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