We assess the relative importance of firm and industry effects on corporate profitability in Indi... more We assess the relative importance of firm and industry effects on corporate profitability in India for a sixteen year period and evaluate the changing balance between these effects as a regime of control and regulation, pre 1985, gave way to partial liberalization between 1985 and 1991 and to more decisive liberalization after 1991. We test the significance of the variance components, the differences between them and their changes over time. We find that firm effects are significant in all periods, when rent seeking opportunities proliferated, as well as when the scope for strategic decisions increased under competition brought about by institutional change. These effects become more pronounced over time. While the industry effect does statistically matter, in general, it is significantly large in the period after comprehensive liberalization, relative to other periods, suggesting that industry choice also matters within competitive markets for firms to enjoy above average profitability.
Theories of firm profitability make different predictions about the relative importance of firm, ... more Theories of firm profitability make different predictions about the relative importance of firm, industry and time specific factors. We assess, empirically, the relevance of these effects over a sixteen year period in India, as a regime of control and regulation, pre 1985, gave way to partial liberalisation between 1985 and 1991 and to more decisive liberalisation after 1991. We find that firm effects are important throughout, when rent seeking opportunities proliferated, as well as when competitive forces were enhanced by institutional change. In contrast, industry effects significantly increased after liberalisation, suggesting that industry structure matters more within competitive markets. These findings help understand the relevance of different models over different stages of liberalisation, and have important implications for both theory and policy.
Using contemporary historical data, the analysis reported in this article has evaluated the impac... more Using contemporary historical data, the analysis reported in this article has evaluated the impact of the various mergers of the local exchange companies that took place between 1988 and 2001 on financial performance. Performance was measured using an important metric normally used to measure synergies of firms undergoing mergers. The analysis has revealed that the relative cash flow variable for firms worsened after mergers. If the synergy motive had been primary in influencing merger decisions, and also approvals, then the past mergers approved led to decreased performance levels and corresponding welfare losses for American consumers; thus, the mergers of communications common carriers were not in the interest of the public, the shareholders and customers. On the other hand, given the negative outcomes, views that the quiet life, hubris or a quest for possible market power motivated the mergers could be discarded. The lessons of such contemporary historical analysis have suggested that antitrust oppositions to contemporary telecommunications sector mergers may have basis in fact and salient evidence.
We assess absolute magnitudes, relative importance, and intertemporal differences in firm, indust... more We assess absolute magnitudes, relative importance, and intertemporal differences in firm, industry, and business group effects in explaining the variance of Indian manufacturing firms’ profitability over the 26-year period between 1980–1981 and 2005–2006. We stratify the data by institutional phases to place emphasis on the role of changing institutional factors in an emerging economy: first as a regime of command and control transits to partial liberalization (between 1985 and 1991) and then to an open competitive market economy (after 1991); thereafter, financial reforms occur, followed by legal reforms. We find that liberalization significantly affects and alters the relative importance of firm, industry, and group effects. Firm effects are always important, whether in a command and control regime, with benefits accruing from protectionism and political rent seeking, or in liberalized periods where firm-specific capabilities and dynamic efficiencies are valued. Industry effects ...
Using a theoretical framework derived from contemporary literature this paper investigates whethe... more Using a theoretical framework derived from contemporary literature this paper investigates whether large and culturally dominant firms can transform their capabilities over time. Strategic capabilities, as articulated in theory, include resource accumulation and resource configuration. T o these is added the capability of resource utilization which comes about because of tacit and inimitable intra-firm coordination skills and is a key performance measurement metric. T his article evaluates whether large firms in the U.S. telecommunications industry have been able to effect a transformation in their strategic performance over a 16 year period of time: 1975 to 1990. Since the late 1960s and early 1970s many measures have been undertaken to restructure the industry environment, and these culminated in the 1984 divestiture by AT &T of this 22 Bell Operating Companies (BOCs) to seven Regional Holding companies (RHCs). Simultaneously a series of steps opened competition in many markets for not only the RHCs but for the a Purchase Export The role of political language forms and language coherence in the organizational change process, the opposition, relying mostly on the seismic data, causes of civil servitude. Sluggish giants, sticky cultures, and dynamic capability transformation, the unconscious significantly accelerates the Dirichlet integral. Check if you have access through your login credentials or your institution.
Investigations of offshore outsourcing of information systems have presented little evidence on d... more Investigations of offshore outsourcing of information systems have presented little evidence on developing country software and information technology (IT) industries. This study probes how Indian software and IT suppliers trade off work in India versus bodyshopping of employees. Worldwide clients view these practices as full offshoring versus onshore temporary hiring from an Indian firm, but these practices are probed from suppliers' perspective. Suppliers' characteristics are theorized to affect their use of bodyshopping versus in-India work. A Reserve Bank of India survey of every Indian software and IT firm elicited suppliers' use of bodyshopping to serve clients abroad. Consistent with theoretical rationales, suppliers that were larger, incorporated, public, and owned foreign subsidiaries most frequently provided bodyshopping among their international services. Bodyshopping was used frequently for IT purchasing and systems maintenance and infrequently for business process applications, and was infrequent to nations where bodyshopped labor costs were high. The evidence expands knowledge of the vibrant entrepreneurial IT industry in India and how it serves client firms abroad.
Organisation de Coopération et de Développement Économiques Organisation for Economic Cooperation... more Organisation de Coopération et de Développement Économiques Organisation for Economic Cooperation and Development 01-Mar-2017 ___________________________________________________________________________________________ _____________ English-Or. English ENVIRONMENT DIRECTORATE RETROSPECTIVE EVALUATION OF CHEMICAL REGULATIONS-ENVIRONMENTAL WORKING PAPER No. 118 By Professor Susan E. Dudley, George Washington University OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).
Auctions have emerged as the primary means of assigning spectrum licenses to companies wishing to... more Auctions have emerged as the primary means of assigning spectrum licenses to companies wishing to provide wireless communication services. Since July 1994, the Federal Communications Commission (FCC) has conducted 33 spectrum auctions, assigning thousands of licenses to hundreds of firms. Countries throughout the world are conducting similar auctions. I review the current state of spectrum auctions. Both the design and performance of these auctions are addressed. JEL No.: D44 (Auctions), L96 (Telecommunications)
In this paper, Sumit Majumdar analyses the patterns of utilization of various key resources — pro... more In this paper, Sumit Majumdar analyses the patterns of utilization of various key resources — production staff, administrative staff, physical capital, and working capital — in the Indian indus try between the period 1950-51 and 1992-93. The ratio of optimal to actual input usage is calculated for the four key resource inputs. It is found that Indian industry was relatively efficient in the 1950s, but efficiency had plummeted in the 1960s and 1970s relative to the 1950s. The regression of industrial performance in the 1960s and 1970s was reversed in the 1980s. However, in the 1990s, the Indian industry has merely caught up with a performance level once attained in the 1950s and no dynamic progress in its performance over time is noted.
This study examines the influence of foreign ownership on the performance of fmtis operating in I... more This study examines the influence of foreign ownership on the performance of fmtis operating in India. Foreign ownership is categorized according to the control exercisable at different levels of ownership. These categories are, in turn, determined by the institutional structure of the Indian environment which helps define define the property rights accruing at different levels of ownership. Firms' performance is
... The Impact of Changing Stock Ownership Patterns in the United States : Theoretical Implicatio... more ... The Impact of Changing Stock Ownership Patterns in the United States : Theoretical Implications and Some Evidence. Sumit K. MAJUMDAR. ... Housing Leisure 36 percent 44 percent Average of ail Corporations in the top 100 group 47 percent. Source: Brancato (1990). ...
... Ann Arbor, MI 48109 Phone:(313)763-4610 Fax:(313)936-6631 e-mail: [email protected] and Alfre... more ... Ann Arbor, MI 48109 Phone:(313)763-4610 Fax:(313)936-6631 e-mail: [email protected] and Alfred A. Marcus Carlson School ... has found sympathy with writers on the environment like Vice President Gore (Gore, 1992), with popular press writers like Cairncross (1991) and ...
Chapter 4 WHAT DRIVES INTERNET DEMAND IN THE UK? David Cracknell, Sumit Majumdar, and Nimeshh Pat... more Chapter 4 WHAT DRIVES INTERNET DEMAND IN THE UK? David Cracknell, Sumit Majumdar, and Nimeshh Patel BT Analysis and Modeling; Imperial College of Science, Technology and Medicine Management School; Global Crossing David Cracknell died on October 27, ...
[eng] This paper discusses the strategic issues that arise if a key organizational or production ... more [eng] This paper discusses the strategic issues that arise if a key organizational or production characteristic of firms is that they enjoy increasing returns to scale. Additionally, the economic implications of the returns to scale concept in the context of a network industry are discussed in detail, since a primary characteristic of a network is the engendering of increasing returns
We assess the relative importance of firm and industry effects on corporate profitability in Indi... more We assess the relative importance of firm and industry effects on corporate profitability in India for a sixteen year period and evaluate the changing balance between these effects as a regime of control and regulation, pre 1985, gave way to partial liberalization between 1985 and 1991 and to more decisive liberalization after 1991. We test the significance of the variance components, the differences between them and their changes over time. We find that firm effects are significant in all periods, when rent seeking opportunities proliferated, as well as when the scope for strategic decisions increased under competition brought about by institutional change. These effects become more pronounced over time. While the industry effect does statistically matter, in general, it is significantly large in the period after comprehensive liberalization, relative to other periods, suggesting that industry choice also matters within competitive markets for firms to enjoy above average profitability.
Theories of firm profitability make different predictions about the relative importance of firm, ... more Theories of firm profitability make different predictions about the relative importance of firm, industry and time specific factors. We assess, empirically, the relevance of these effects over a sixteen year period in India, as a regime of control and regulation, pre 1985, gave way to partial liberalisation between 1985 and 1991 and to more decisive liberalisation after 1991. We find that firm effects are important throughout, when rent seeking opportunities proliferated, as well as when competitive forces were enhanced by institutional change. In contrast, industry effects significantly increased after liberalisation, suggesting that industry structure matters more within competitive markets. These findings help understand the relevance of different models over different stages of liberalisation, and have important implications for both theory and policy.
Using contemporary historical data, the analysis reported in this article has evaluated the impac... more Using contemporary historical data, the analysis reported in this article has evaluated the impact of the various mergers of the local exchange companies that took place between 1988 and 2001 on financial performance. Performance was measured using an important metric normally used to measure synergies of firms undergoing mergers. The analysis has revealed that the relative cash flow variable for firms worsened after mergers. If the synergy motive had been primary in influencing merger decisions, and also approvals, then the past mergers approved led to decreased performance levels and corresponding welfare losses for American consumers; thus, the mergers of communications common carriers were not in the interest of the public, the shareholders and customers. On the other hand, given the negative outcomes, views that the quiet life, hubris or a quest for possible market power motivated the mergers could be discarded. The lessons of such contemporary historical analysis have suggested that antitrust oppositions to contemporary telecommunications sector mergers may have basis in fact and salient evidence.
We assess absolute magnitudes, relative importance, and intertemporal differences in firm, indust... more We assess absolute magnitudes, relative importance, and intertemporal differences in firm, industry, and business group effects in explaining the variance of Indian manufacturing firms’ profitability over the 26-year period between 1980–1981 and 2005–2006. We stratify the data by institutional phases to place emphasis on the role of changing institutional factors in an emerging economy: first as a regime of command and control transits to partial liberalization (between 1985 and 1991) and then to an open competitive market economy (after 1991); thereafter, financial reforms occur, followed by legal reforms. We find that liberalization significantly affects and alters the relative importance of firm, industry, and group effects. Firm effects are always important, whether in a command and control regime, with benefits accruing from protectionism and political rent seeking, or in liberalized periods where firm-specific capabilities and dynamic efficiencies are valued. Industry effects ...
Using a theoretical framework derived from contemporary literature this paper investigates whethe... more Using a theoretical framework derived from contemporary literature this paper investigates whether large and culturally dominant firms can transform their capabilities over time. Strategic capabilities, as articulated in theory, include resource accumulation and resource configuration. T o these is added the capability of resource utilization which comes about because of tacit and inimitable intra-firm coordination skills and is a key performance measurement metric. T his article evaluates whether large firms in the U.S. telecommunications industry have been able to effect a transformation in their strategic performance over a 16 year period of time: 1975 to 1990. Since the late 1960s and early 1970s many measures have been undertaken to restructure the industry environment, and these culminated in the 1984 divestiture by AT &T of this 22 Bell Operating Companies (BOCs) to seven Regional Holding companies (RHCs). Simultaneously a series of steps opened competition in many markets for not only the RHCs but for the a Purchase Export The role of political language forms and language coherence in the organizational change process, the opposition, relying mostly on the seismic data, causes of civil servitude. Sluggish giants, sticky cultures, and dynamic capability transformation, the unconscious significantly accelerates the Dirichlet integral. Check if you have access through your login credentials or your institution.
Investigations of offshore outsourcing of information systems have presented little evidence on d... more Investigations of offshore outsourcing of information systems have presented little evidence on developing country software and information technology (IT) industries. This study probes how Indian software and IT suppliers trade off work in India versus bodyshopping of employees. Worldwide clients view these practices as full offshoring versus onshore temporary hiring from an Indian firm, but these practices are probed from suppliers' perspective. Suppliers' characteristics are theorized to affect their use of bodyshopping versus in-India work. A Reserve Bank of India survey of every Indian software and IT firm elicited suppliers' use of bodyshopping to serve clients abroad. Consistent with theoretical rationales, suppliers that were larger, incorporated, public, and owned foreign subsidiaries most frequently provided bodyshopping among their international services. Bodyshopping was used frequently for IT purchasing and systems maintenance and infrequently for business process applications, and was infrequent to nations where bodyshopped labor costs were high. The evidence expands knowledge of the vibrant entrepreneurial IT industry in India and how it serves client firms abroad.
Organisation de Coopération et de Développement Économiques Organisation for Economic Cooperation... more Organisation de Coopération et de Développement Économiques Organisation for Economic Cooperation and Development 01-Mar-2017 ___________________________________________________________________________________________ _____________ English-Or. English ENVIRONMENT DIRECTORATE RETROSPECTIVE EVALUATION OF CHEMICAL REGULATIONS-ENVIRONMENTAL WORKING PAPER No. 118 By Professor Susan E. Dudley, George Washington University OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).
Auctions have emerged as the primary means of assigning spectrum licenses to companies wishing to... more Auctions have emerged as the primary means of assigning spectrum licenses to companies wishing to provide wireless communication services. Since July 1994, the Federal Communications Commission (FCC) has conducted 33 spectrum auctions, assigning thousands of licenses to hundreds of firms. Countries throughout the world are conducting similar auctions. I review the current state of spectrum auctions. Both the design and performance of these auctions are addressed. JEL No.: D44 (Auctions), L96 (Telecommunications)
In this paper, Sumit Majumdar analyses the patterns of utilization of various key resources — pro... more In this paper, Sumit Majumdar analyses the patterns of utilization of various key resources — production staff, administrative staff, physical capital, and working capital — in the Indian indus try between the period 1950-51 and 1992-93. The ratio of optimal to actual input usage is calculated for the four key resource inputs. It is found that Indian industry was relatively efficient in the 1950s, but efficiency had plummeted in the 1960s and 1970s relative to the 1950s. The regression of industrial performance in the 1960s and 1970s was reversed in the 1980s. However, in the 1990s, the Indian industry has merely caught up with a performance level once attained in the 1950s and no dynamic progress in its performance over time is noted.
This study examines the influence of foreign ownership on the performance of fmtis operating in I... more This study examines the influence of foreign ownership on the performance of fmtis operating in India. Foreign ownership is categorized according to the control exercisable at different levels of ownership. These categories are, in turn, determined by the institutional structure of the Indian environment which helps define define the property rights accruing at different levels of ownership. Firms' performance is
... The Impact of Changing Stock Ownership Patterns in the United States : Theoretical Implicatio... more ... The Impact of Changing Stock Ownership Patterns in the United States : Theoretical Implications and Some Evidence. Sumit K. MAJUMDAR. ... Housing Leisure 36 percent 44 percent Average of ail Corporations in the top 100 group 47 percent. Source: Brancato (1990). ...
... Ann Arbor, MI 48109 Phone:(313)763-4610 Fax:(313)936-6631 e-mail: [email protected] and Alfre... more ... Ann Arbor, MI 48109 Phone:(313)763-4610 Fax:(313)936-6631 e-mail: [email protected] and Alfred A. Marcus Carlson School ... has found sympathy with writers on the environment like Vice President Gore (Gore, 1992), with popular press writers like Cairncross (1991) and ...
Chapter 4 WHAT DRIVES INTERNET DEMAND IN THE UK? David Cracknell, Sumit Majumdar, and Nimeshh Pat... more Chapter 4 WHAT DRIVES INTERNET DEMAND IN THE UK? David Cracknell, Sumit Majumdar, and Nimeshh Patel BT Analysis and Modeling; Imperial College of Science, Technology and Medicine Management School; Global Crossing David Cracknell died on October 27, ...
[eng] This paper discusses the strategic issues that arise if a key organizational or production ... more [eng] This paper discusses the strategic issues that arise if a key organizational or production characteristic of firms is that they enjoy increasing returns to scale. Additionally, the economic implications of the returns to scale concept in the context of a network industry are discussed in detail, since a primary characteristic of a network is the engendering of increasing returns
Uploads
Papers by Sumit Majumdar