Mastering the make-in-India challenge

Document Type

Article

Publication Title

MIT Sloan Management Review

Abstract

This research began when we were studying the catch-up strategies of emerging market multinational enterprises versus the strategies of multinationals from developed economies competing in emerging markets. We found that foreign multinationals, particularly in high-tech sectors such as aerospace, automotive, and electronics, were dominating their respective industries in India. Initially, we began by talking to industry practitioners and gathering information on domestic and foreign corporations across various sectors in India. We then designed and administered two surveys for primary-data collection; the surveys involved 80 multinational enterprises and 200 local companies, including original equipment manufacturers and tier one and tier two suppliers from a variety of manufacturing sectors in India. We also conducted in-depth interviews with more than 25 senior managers. In order to understand the business models adopted by foreign multinationals in India and the capabilities of local suppliers, we collected independent secondary data and information on a variety of critical aspects, such as technology and financial joint ventures between multinationals and local players, R&D investments, royalty and “know-how” expenses, level of global versus local sourcing by foreign multinational enterprises, market share, financial performance, and local content in products sold by foreign multinational automakers. To verify and gain a better understanding of our research findings, we went back to the industry experts and carried out further interviews with managers from multinational and domestic customers and suppliers. The strategies and conceptual framework presented in the current article are outcomes of multiple research projects spanning more than five years of our work.

Publication Date

8-6-2017

Publisher

Massachusetts Institute Of Technology

Volume

Vol.58

Issue

Iss.4

Link to Full Text
Request Access

Share

COinS