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1

Strategic Organizational Response of an Indo-JapaneseJoint Venture to India's Economic Liberalization

Abstract

The Indian economy began its liberalization process in 1991 under the structuraladjustment program of the IMF and the World Bank. The structural adjustment programrequired India to deregulate in a phased manner, eliminate the license regime and to open itseconomy to foreign capital. With the opening of the economy, the Indian market has becomeintensely competitive and turbulent with the entry of greater foreign participation. This papertries to build a conceptual model of strategic response through effective human resourcemanagement policies and practices within such a market environment. The article tries tounderstand this phenomenon from a contingency perspective through a single detailed case-study of an Indo-Japanese Joint Venture. Several issues relating to organizational redesign,effective corporate responses like organizational redesign, professional and employee orientedmodes of management and a hybrid model of Indo-Japanese HRM interventions arediscussed.

Key words: liberalization, corporate response, organizational design, Japanese managementsystems, Human resource management

L'économie indienne a commencé son procédé de libéralisation dans 1991 dans le cadre duprogramme d'adaptation structural du FMI et de la World Bank. Le programme d'adaptationstructural a exigé de l'Inde de dérégler de la façon échelonnée, d'éliminer le régime de licenceet d'ouvrir son économie au capital étranger. Depuis l'ouverture de l'économie le marchéindien est devenu intensément concurrentiel. Cet article essaye d'établir un modèle conceptuelde réponse stratégique par des politiques et des pratiques en matière de gestion efficace deressources humaines dans un tel environnement du marché. L'article essaye de comprendre cephénomène d'une perspective d'éventualité par une seule étude de cas détaillé d'un joint-venture Indo-Japonais. Plusieurs points concernant la nouvelle conception d'organisation, lesréponses de corporation efficaces comme la nouvelle conception d'organisation, les modes dela gestion orientés vers le professionnel et l'employé et d'un modèle hybride des interventionsHRM Indo-Japonais sont discutées.

Mots clés: Libéralisation , Réponses corporatives, Conception d'organisation, Systèmes degestion japonais, HRM

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Strategic Organizational Response of an Indo-JapaneseJoint Venture to India's Economic Liberalization

INTRODUCTION

Studies of organizational adaptations to liberalization and globalization are relatively

rare, specially those concerning emerging economies. Even rarer are studies that throw light

on organizational responses of joint ventures in emerging economies like India. In the context

of market liberalization, international joint ventures (IJVs) have emerged as one of the most

important forms of organization (Dussauge and Garrette, 1999). The study of strategic

organizational response in IJVs, in the context of emerging economies like India, offers an

opportunity to extend the understanding about existing alternate adaptations, their utility and

their effectiveness.

IJVs contrast with most unitary firms in being organizations with a small number of

participating owners (principals) who have non-identical interests and competencies.

Consequently, IJVs are liable to experience problems of agency, and conflicts of interests

between national owners, between these owners and their managers, and between staff of

different nationalities.

IJVs are also distinctive in that they often provide the linkages within wider

international business networks. Networks encompass long-term customer-supplier

partnerships that take on many of the attributes of a joint venture. Membership of a business

network is likely to influence how owning companies perceive an IJV’s role in relation to

their overall business objectives.

IJVs are also one of the main vehicles for foreign direct investment (FDI). FDI is a

vehicle for introducing so-called ‘global practices’ that are embedded in different national

traditions. Moreover, emerging countries, like India, are likely to exhibit significant

differences both from developed countries, like Japan, and among themselves, because they

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are still in the process of building institutions for a modern economy. The study of IJVs in

emerging economies thus offers an opportunity to understand the differences between

corporate traditions in distinct institutional and economic contexts, and whether these are

experiencing a process of convergence.

Japan was a smaller player in the Indian market. However, its share of FDI in India

increased remarkably from being almost insignificant in 1980 to coming quite close to that of

USA and the UK by the middle of 1996. The increasing Japanese presence in the Indian

market deserved attention.

This paper attempts to examine how the liberalization of the Indian economy have

influenced in general the corporate organizations in the country and in particular what sort of

organizational adaptation did an Indo-Japanese JV undertake for relatively superior

performance. After presenting a conceptual model of strategic responses to India’s economic

liberalization, this paper offers the following: (a) a description of the agency problems

between the Indian and Japanese owners (b) an understanding of the differences between

Japanese and Indian corporate traditions in distinct institutional and economic context and (c)

an interface of Indian and Japanese management systems and its influence on the effective

corporate response vis-a-vis organizational design and human resource interventions.

The Indian Economy

India is the second most populated country in the world after China. Over 1.02 billion

people (The Census of India, 2001) live in 3,288,000 square kilometers resulting in a high

density of over 324 persons per square kilometer. About 54% of the land is used for

agriculture and 20% has forest coverage. Only 28% of the population lives in urban areas.

Around 65% of the total population is literate. About 44.2% of the population is the income

poverty line. The per capita income stood at $453 in the year 2000.

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At the time of independence in 1947, India had very limited industrial activities which

were confined mostly to jute, textile and open coal mining. Within 55 years of achieving

independence, India today is within the tenth largest industrial economies, third in the number

of skilled manpower and among the five largest agricultural economies in the world. It has

one of the largest pools of entrepreneurial, managerial, scientific and technical manpower. It

is one of the world’s leaders in IT, nuclear, space satellite and rocket technologies. Apart from

the progress in agriculture, science and technology, other important accomplishments include

railways, telecommunications and power generation.

India’s external trade includes exports covering over 7, 500 commodities to about 190

countries and import of 6,000 commodities from 140 countries. India’s overall manufacturing

productivity is perhaps a tenth of the world’s average. Its cement and steel plants again on an

average, consume twice the fuel per ton as to the Japanese plants (Sharma, Nair and Sunny,

2000). India has been growing for the past 20 years at about 6% per annum (World Bank,

2001).

India opted for planned economic growth through Five-Year Plans starting from 1950.

In order to build up an industrial base, the government policy encouraged imports of Western

technology and capital in the first phase of development (1950-1960). As industrial activities

increased and new enterprises sprung up, the government felt the need to protect them and

hence a restrictive, regulated second phase began (1968-1979). However, as the Indian

economy grew and matured, a phase of gradual liberalization was initiated in the 1980s in

which the government decided to modernize plants and equipment through liberalized imports

of capital goods and technology, to gradually reduce import restrictions and tariffs, and to

invite multinationals to create a competitive market economy. In 1991, through its landmark

New Economic Policy the government abolished industrial licensing in all industries (except

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in 18 strategic industries), allowed more than 50% equity participation, and actively solicited

foreign investment.

The New Economic Policy (1991) truly started the liberalization of the Indian

economy. Khandwalla (2002) explains the components of liberalization as a process of

macro-economic stabilization (devaluation of the currency, reducing fiscal deficit, reducing

government expenditure, reduction of some subsidies, controlling inflation), phased

deregulation and elimination of license regime to bring in competition, opening of the

economy to private investment, rationalization of tax structure, liberalization of capital

markets, increase functioning autonomy of state owned enterprises, implementation of safety

nets for those hurt by structural adjustments and phased reduction in import duties (from an

average of 100 percent in 1991 to about a third of this by 2000-2001). In addition, overseas

investments by Indian firms have been liberalized. There has also been rationalization of

taxes, selective and phased lowering of excise duties and enforcement of international

standard accounting norms. The government also stepped up investment in infrastructure and

human resource development. A recently conducted study of Indian corporates (Som, 2002)

reveals that out of eight items of rated change in the business environment over the past five

years, the four largest perceived changes were: greater turbulence in the product market

environment characterized by many unexpected changes, more intense competition, greater

buoyancy and growth potential, and greater requirements for technological innovation.

Indian economy’s response to liberalization

The Indian economy’s response to liberalization and structural adjustment appears, by and

large, to be effective (Khandwalla, 2002). Exports in 2000 increased by 150% in dollar terms

compared to 1991. Private foreign direct investment, about US$ 160 m in 1991, has risen to

about US$ 2 bn in 2001. Foreign collaboration approvals increased by 2.3 times from 700

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during 1980-1990 to 1600 in 1991-1995. Industrial production doubled during 1991-2000

(Reserve Bank of India, 2002: 56-57). The public sector too increased its profitability. The

manufacturing sector has seen increasing FDI in the automobile, electronic consumer goods,

food, cosmetics and IT hardware industries. The services sector has emerged as a dynamic

growth sector with MNCs opening up subsidiaries in industries like IT software, banking,

consultancy and merchandising.

Corporates have also elicited greater attention to productivity, quality of products and

processes, operating efficiency and customer needs. Many corporates have utilized business

process reengineering, quality circles and ISO certification. There were barely 10 ISO 9000

certifications in 1990, which rose to 800 in 1995 and could reach 2500 in 2003. There were

virtually no private companies in 1991 that could claim to be the largest in the world in a

specific product line. But by 1995, there were atleast fifteen Indian companies that were

already one of the five largest in the world or were expected to be so shortly in specific

product lines. By 1993, there were 619 foreign companies operating in India and 592 Indian

companies with investment abroad.

Earlier technological sophistication amounted mostly to getting foreign technical

collaborations with a firm from a developed economy like Japan, with a modest export effort.

Now not only the numbers of foreign technical collaborations gone up, but corporate exports

have risen sharply, from 4.5% in 1990 to 6.4% sales in 1993 (Khandwalla, 2002). The

corporate response of India’s liberalization has been in the form of Indian companies buying

foreign firms, large joint ventures with MNCs, global marketing, raising of finance overseas

etc. Mergers and acquisitions have sharply increased, from 2 in 1992 to 97 in 1997. A

recently concluded study of 54 Indian corporates indicates that over the past five years, 74%

reported change in their business focus, 69% reported a new product/market strategy, 61%

reported significant outsourcing and 54% reported engaging in joint ventures (Som, 2002).

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LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

Economic liberalization, on the one hand intensifies competition and on the other

opens up many opportunities for growth (Khandwalla, 2002; Som, 2002). With an increasing

number and size of FDI ventures, Indian organizations increasingly adapted the management

models of the foreign collaborators together with their capital and technology. These created

tensions and conflicts in relationships sometimes disrupting the alliance. Some examples of

failed IJVs are Procter & Gamble with Godrej, of Lufthansa with Modi, LG Electronics with

C.K. Birla, Toyota with DCM, Chrysler with Mahindra & Mahindra (Business Today,

December 22, 1996 – January 13, 1997).

In order to survive a hyper-competitive environment and to create an aligned,

orchestrated, system-wide change in strategy, structure, systems, management style, corporate

culture, vision, shared values, people and skill-set, organizations started to redesign

themselves (Som, 2002; Khandwalla, 2002). The major reason for the redesign of the

organizations stems from unsatisfactory corporate structure, management systems, cultural

moorings and professional and employee oriented modes of management. With the

redesigning, human resource management systems of the corporates are increasingly

characterized by more emphasis on professionalism, skills development, incentives,

accountability, flexibility, openness and rightsizing (Som, 2002). Most of the organizations

involved the services of international consultants (Som, 2002).

IJVs are trying to formulate a closed hybrid model of HR systems, trying to shift from

the original exportive model (Bird, Taylor and Beecheler, 1998). The exportive model is

characterized by parent company HRM philosophy, policies and practices, any attribution of

management problems such as HRM, causes the search to be externally directed and sharing

of innovations is unidirectional from the parent company to the overseas affiliate (Bird et al.,

1998). Whereas, the closed hybrid model on the other hand is characterized by parent

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company HRM philosophy, policies and practices, attribution of problem is both externally

and internally directed and there is low diffusion and uni-directional sharing of HRM

innovations (Bird et al., 1998)

Figure 1 summarizes the model of an effective corporate management response of

MNCs in general and IJVs in particular to liberalization.

Figure 1. Economic liberalization and effective corporate response

Interface of Indian, Western and Japanese modes of management

There are a number of contemporary sources of Indian management systems (Sinha,

1997) some of which are (a) hierarchically arranging of ideas, persons, relationships and other

tangible and intangible things (b) maintaining personalized relationships through different

levels of networks (c) adopting a moralistic orientation to discharge professional duties and

obligations to family, friends and relatives, and (d) maintaining harmony and tolerance among

in-group members (Sinha, 1990). Together with this, two hundred years of colonialism has

ingrained, a model of bureaucracy, ethos of mistrust and thereby strengthened the value of

hierarchy by emphasizing highly centralized decision making, maintaining large power

distance, and refusing to delegate authority to subordinates.

Liberalization opened the doors for foreign capital and technology and with this

organizations started adopting to western management principles of professionalization, value

Liberalization of theIndian Economy

Strategic Responsethrough:

• Organizationalredesign

• Professional andemployeeoriented modesof management

• Closed Hybridmodel of HRsystems

Relatively superiororganizationalperformance

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achievement, advancement by performance rather than seniority, ability utilization and

personal development. The reflections of the Western management principles were in

planning, monitoring, controlling, delegating and to achieve this end in setting up systems of

recruitment, performance appraisal, training, transfer, promotion, grievance handling,

communication, financial and IT management and so on. This interface between western and

Indian management system led to the evolution of an hybrid management system which was

transmitted through socialization process and sustained by social institutions whereas the

western values were cultivated through management education, industrialized experience and

job demands in work organizations (Virmani and Guptan, 1991).

Japanese organizations traditionally put a primary focus on HRM strategies

(“humanware”) that translate to an internal labor market, a company philosophy that

expresses concern for employee needs and emphasis on co-operation and teamwork (Shimada

and Macduffie, 1987) in a unique company environment that fosters “welfare corporatism”

(Lincoln and Kalleberg, 1985; Morishima, 1992) . These HRM strategies are reflected

through management techniques of open, vertical channels of communications, job rotation,

on-the-job training, a competitive appraisal system, emphasis on work groups, consultative

decision making (such as the ringi system) and concern for employee. Morishima (1995) has

described Japanese HRM as a system of four factors: long-term employment, internal

training, employee involvement and evaluation based on ‘ability’ growth. Japanese

organizations in their recruitment policy carefully screen candidates, mostly college graduates

for life-type employment, so that new recruits’ qualifications fit with the value system and

corporate culture of the organization. Moreover, seniority (nenko)-based pay (Morishima,

1992), implicit performance evaluation, consensus style decision making (nemawashi), and a

relatively small gap between white-collar and blue-collar workers in terms of benefits, salary

and on-the-job perquisites (such as entertainment allowance, cafeteria, parking space, housing

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etc.) are practiced widely in Japanese organizations. These are the Japanese HRM practices

that are transferred overseas (Beecheler and Yang, 1994).

In the automobile industry, Japanese auto firms have historically focussed on the

features of production system with an independent relationship between production

technologies and HRM. Japanese MNCs strategic goals of high market growth and

profitability depend on producing high quality cars at lower prices. This was made possible

by lowering inventory cost, low labor cost, and low defect rates which was highly dependent

on intensive human control through active participation of employees. Thus to effectively

exploit their technology, Japanese firms developed a HR system that focused on the tight

screening of job candidates, a high degree of job security, and improving worker skill through

on-the-job training programs, broad job structure, work teams, job rotation etc. (Shimada and

Macduffie, 1987).

METHODOLOGY

Japanese management practices have received considerable attention during the 1980s

and early 1990s due to Japan’s meteoric success. That attention shifted in the last decade from

what the Japanese were doing at home to what they are doing overseas (Bird and Beechler,

1995). The rapid and visible increase in Japanese FDI ventures in India lead us to have a

closer look at the perceived successes of a number of visible Japanese firms or Japanese joint

ventures. For example, Maruti Udyog Limited, the Suzuki joint venture, has been a focus of

attention for both journalists and academicians (Som, 2002).

The choice of the automobile industry, especially the utility car segment, was due to

the fact that the sector has been going through intense competition with all the global players

flocking to India. This industry has been witnessing intense price war and product – market

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differentiation (launch of new models – Tata - Indica, Hyundai - Santro, Daewoo - Matiz,

Ford - Icon, Suzuki - WagonR, Toyota – Qualis).

The methodology of this study is to focus in-depth on one organization. Yin’s (1984)

model has followed a holistic analysis of a wide range of variables and used multiple-case

design (Eisenhardt’s, 1989) as it provides more scope for attempting generalization to a

single-case setting. A deliberate choice was made to focus on depth rather than breadth

(Mintzberg, 1979) keeping in mind that it is unrealistic to try to attempt both detailed, in-

depth analyses of organizations and also look at a large sample of firms at the same time

(Ulrich, 1987). Information was sought over a period of time, right from the beginning of

necessity to change, the change process and the post change results. There were two data

sources i.e. archival data and interviews with some key informants. Primary data was

collected during the period of October 1999 - July 2000. The interviews with executives

lasted between thirty minutes to three hours depending on the availability and the willingness

to share information. Multiple respondents enabled cross-checking of the data. Use of

multiple informants also helped in identifying multiple perspectives and any differences of

opinions within the organization.

RESULTS

Backgroud

Maruti Udyog was established as a Government Company in February 1981 with the

objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles

to conserve scarce resources and producing indigenous utility cars for the growing needs of

the Indian population. A license and a Joint Venture agreement was signed with the Suzuki

Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and

agreed to provide the latest technology as well as Japanese management practices. Suzuki was

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preferred for the joint venture because of its track record in manufacturing and selling small

cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%,

which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to

50% turning Maruti into a non-government organization managed on the lines of Japanese

management practices.

Maruti’s history of evolution can be examined in four phases: two phases during pre-

liberalization period (1983-86, 1986-1992) and two phases during post-liberalization period

(1992-97, 1997-2002), followed by the full privatization of Maruti in June 2003 with the

launch of an initial public offering (IPO)1.

The IJV started with the full support of the Government of India with a range of

facilities such provision of land at Gurgaon, near New Delhi; tax relief in the initial years and

bureaucratic shortcuts. The first phase started when Maruti rolled out its first car in December

1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit of

Rs. 17 mn without any tax obligation. From such a modest start the company in just about a

decade (beginning of second phase in 1992) had turned itself into an automobile giant

capturing about 80% of the market share in India. Employees grew to 2000 (end of first phase

1986), 3900 (end of second phase 1992) and 5700 in 1999. The profit after tax increased from

Rs 18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during 1997-2001.

During the pre-liberalization period (1983-1992) a major source of Maruti’s strength

was the wholehearted willingness of the Government of India to subscribe to Suzuki’s

technology and the principles and practices of Japanese management. Large number of Indian

managers, supervisors and workers were regularly sent to the Suzuki plants in Japan for

1 Following the completion of the issue, the government's stake in the joint venture company with Suzuki MotorCompany will drop from 45.8 per cent to 20.8 per cent, while Japan's largest mini-car manufacturer Suzuki willhold management control with a 54.2 per cent stake. The IPO is through a book-building route, wherein 60 percent of the offer will be made to qualified institutional buyers on a discretionary basis, 15 per cent will beallocated to non-institutional bidders, and the balance 25 per cent will be allocated to retail investors.

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training. Batches of Japanese personnel came over to Maruti to train, supervise and manage.

Maruti’s style of management was essentially to follow Japanese management practices. The

Path to Success (Maruti at a Glance, 1996) for Maruti was as follows: (a) teamwork and

recognition that each employee’s future growth and prosperity is totally dependent on the

company’s growth and prosperity (b) strict work discipline for individuals and the

organization (c) constant efforts to increase the productivity of labor and capital (d) steady

improvements in quality and reduction in costs (e) customer orientation (f) long-term

objectives and policies with the confidence to realize the goals (g) respect of law, ethics and

human beings. The “path to success” translated into practices that Maruti’s culture

approximated from the Japanese management practices.

Maruti adopted the norm of wearing a uniform of the same color and quality of the

fabric for all its employees thus giving an identity. All the employees ate in the same canteen.

They commuted in the same buses without any discrimination in seating arrangements. The

employees followed the daily morning exercises as any Japanese company where punctuality

became an ingrained habit. Employees reported early in shifts so that there was no time loss

in-between shifts. Attendance approximated around 94-95%. The plant had an open office

system and practiced on-the-job training, quality circles, kaizen activities, teamwork and job-

rotation. Near-total transparency was introduced in the decision making process. There were

laid-down norms, principles and procedures for group decision making. These practices were

unheard of in other Indian organizations but they worked well in Maruti. During the pre-

liberalization period the focus was solely on production. Employees were handsomely

rewarded with increasing bonus as Maruti produced more and sold more in a seller’s market

commanding an almost monopoly situation.

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Strategic response and the Redesign process

Maruti was the undisputed leader in the automobile utility-car segment sector,

controlling about 84% of the market till 1998. With increasing competition from local players

like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like Daweoo, PAL,

Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has changed in the

last five years and resulted in the declining profits and market share for Maruti. At the same

time the Indian government permitted foreign car producers to invest in the automobile sector

and hold majority stakes.

In the wake of its diminishing profits and loss of market share, Maruti initiated

strategic responses to cope with India’s liberalization process and began to redesign itself to

face competition in the Indian market. Consultancy firms such as AT Kearney & McKinsey,

together with an internationally reputed OD consultant, Dr. Athreya, have been consulted on

modes of strategy and organization development during the redesign process.

The redesign process saw Maruti complete a Rs. 4000 mn expansion project which

increased the total production capacity to over 3,70,000 vehicles per annum. Maruti executed

a plan to launch new models for different segments of the market. In its redesign plan, Maruti,

launches a new model every year, reduce production costs by achieving 85-90%

indigenization for new models, revamp marketing by increasing the dealer network from 150

to 300 and focus on bulk institutional sales, bring down number of vendors and introduce

competitive bidding.

Together with the redesign plan, there has been a shift in business focus of Maruti.

When Maruti commanded the largest market share, business focus was to “sell what we

produce”. The earlier focus of the whole organization was "production, production and

production" but now the focus has shifted to "marketing and customer focus". This can be

observed from the changes in mission statement of the organization:

15

1984: "Fuel efficient vehicle with latest technology".

1987: "Leader in domestic market and be among global players in the overseas market".

1997: "Creating customer delight and shareholders wealth".

Focus on customer care has become a key element for Maruti. Increasing Maruti

service stations with the scope of one Maruti service station every 25 km on a highway. To

increase its market share, Maruti launched new car models, concentrated on marketing and

institutional sales. Institutional sales, which currently contributes to 7-8% of Maruti’s total

sales. Cost reduction and increasing operating efficiency were another redesign variable. Cost

reduction is being achieved by reaching an indigenization level of 85-90 percent for all the

models. This would save foreign currency and also stabilize prices that fluctuate with

exchange rates.

However, change in the mindset was not as fast as required by the market. Maruti

planned to reduce costs, increase productivity, quality and upgrade its technology (Euro I&II,

MPFI). In addition, it followed a high volume production of about 400,000 vehicles / year,

which entailed a smooth relationship between the workers and the managers. The work

culture of the Japanese partner had been excellent and the management had tried to inculcate

their best practices within the organization. Though management was keen to apply the best

practices, there were cross-cultural, political and social issues that did not match with the

Japanese culture. Employees were working hard and stuck to a high level of productivity

during their eight-hour shift. But at the end of the shift, employees immediately dispersed. For

the Indian context, this is a departure from the norm, as employees usually discuss about their

workplace. When compared with the true Japanese system, work methods were replicated, but

the respect and involvement in the organization, and the "family concept" of Japanese

organization had not percolated in the Indian counterpart. Employees worked hard, were

productive and were compensated accordingly. The salary was in fact the best in the industry,

16

with very high bonus, that Maruti could afford to pay in a seller’s market. Another important

cultural constraint was that the Indian employees played safe and avoided risk. Managers

followed whatever the top boss wanted them to do. They never used their discretion in areas

where they had been delegated authority. Work was followed on the basis of laid-down

procedures. In contrast, Maruti had imbibed a typical public sector culture. Maruti, did not

follow the Japanese management system of group rewards but fostered an “audit” approach

which did not take an overall view of one’s performance but to located fault and mistakes

which could be used against an individual. For example, if a manager had made 10 right

decisions and 1 wrong decision, he was accountable for the wrong decision and did not get

any credit for the right decisions. This lack of trust, according to some managers, prevented

Maruti from improving its effectiveness.

One of the most important change within the organization during the post-

liberalization period was a change in the leadership. Mr. Bhargava who had joined Maruti in

July 1981 became the Managing Director (MD) in 1985 and stayed in the position till 1997.

He believed in strict discipline. There was no scope for discussion, debate or questions. His

long association with Maruti and his single authority steered Maruti to achieve the

phenomenal growth by integrating Japanese management practices. During this time,

employees were made to work for higher productivity without questioning the decision

making process. It was a seller's market and employees, though not motivated by way of

participation, were motivated by the pay package that was linked to production-based

performance system. With increasing sales every year, Maruti had little to worry till 1999.

Post 1999, the market structure changed drastically. Just before this change, Maruti had

wasted two crucial years (1996-1998) due to governmental interventions and negotiation with

Suzuki of Japan about the break-up of the share holding pattern of the company. There was a

change in leadership, Mr. Sato of Suzuki became the Chairman in June 1998, and the new Mr.

17

J. Khatter was appointed as the new Joint MD. Khatter was a believer in consensus decision

making and participative style of management.

As a result of the internal turmoil and the changes in the external environment, Maruti

now faced a depleting market share, reducing profits, increase in inventory levels, which it

had not faced in the last 18 years. Communication within the organization would have helped

to clear doubts within the minds of the employees about the future direction of Maruti, but

without a strong HRM and communication department, there was no such possibility. Maruti,

historically, had a non-functional administrative HRM department and its role was restricted

to administration and time keeping. There were no qualified and professional HRM managers

or a division head in the department. Managers viewed the position in the HRM department as

a punishment and an effective way of being sidelined. The departmental head of Finance was

additionally responsible for the HRM division till 1999.

Post 1999 HRM for the first time started acting independently. This happened with the

recruitment of professional HRM personnel and a new General Manager of the HRM

Department. Managerial staff expected major changes to be undertaken by the new HRM

department. They were expecting major decisions to be taken by HRM in terms of clearly

defined responsibilities, job profile, simplicity in procedures and processes, clarity and

transparency within the organization. Maruti now needed a proactive HRM. HRM initiatives

such as career planning, extensive training programs, new performance management system,

rightsizing mechanism such as voluntary retirement scheme (VRS) were put in place by

redesigning the HRM department. The days of reactive role of HRM was over, when its

function was to keep the employees happy with increasing bonuses every year.

Maruti is one of the best organizations in the automobile industry in India. It had given

maximum benefit to its employees in terms of remuneration but employee satisfaction was

low. The reason for low employee satisfaction was perhaps because the organization lacked

18

human touch unlike the Japanese firms where investment in human relations is an inherent

and long-term aspect. It followed a mechanical process focusing on production, increase in

productivity, reducing cost, increasing quality and reducing inventory. Social security and

employee welfare were of low priority in the organization. This suited Maruti well when it

was the market leader and employees were happy with higher bonuses year after year. But

with advent of competition, when bottomline was affected, people issues became critical.

The redesign process that Maruti initiated in 1998 has been successful. Maruti

reported a profit after tax of Rs 1464 mn, up by 40 per cent over Rs 1045 billion (year-on-

year) and it declared a 30 per cent dividend for the fiscal year ended 2002-03. The IPO

offering from Maruti Udyog opened for subscription in June 2003. The IPO was

oversubscribed.

DISCUSSION

This study provides insights regarding organizational activity in environments of

uncertainty like that of liberalization. The contingency assumptions are two-fold. First, it is

assumed that the selection of professionalized and employee oriented modes of management

are determined by specific strategy a firm adopts, which is influenced by environmental

constraints. Second, it is assumed that firms achieving a tighter fit between environmental

constraints, strategic response and HRM actions will have relatively superior organizational

performance than those who do not. Achieving a fit between environmental constraints,

strategic requirements and HRM is not an easy task under normal circumstances. Under

conditions of increased uncertainty, IJV faces even greater challenges. Cultural differences,

regulatory differences, geographical distance, management practices all imbue the activities

of environmental scanning, strategy formulation and policy implementation with substantial

19

ambiguity. Achieving a fit under such conditions is likely to be simultaneously more

important and more difficult to accomplish (Bird and Beechler, 1995).

Firms from countries with high uncertainty avoidance, like Japan (Hofstede, 1980) are

more likely to transfer their philosophies, policies and practices, including that of HRM

because the direct transfer of practices reduces uncertainty and risks. Similarly, one might

expect that firms from countries with a high power distance may centralize control (i.e.,

global co-ordination) and therefore would be less likely to relinquish control (i.e., local

responsiveness). Interestingly, previous studies have found that firms from Japan, which are

high on uncertainty avoidance and medium on power distance (Hofstede, 1980) are more

likely to transfer Japanese management systems to host countries and pay little attention to

local conditions (Hiramoto, 1995; Rosenwig and Nohria, 1994, Ngo et al., 1998). This finding

supports the IJV of Suzuki and Maruti Udyog Limited.

Maruti in the initial years, had exported and established Suzuki’s philosophies,

policies and practices including that of HRM. This was the exportive model (Bird et al.,

1998). The approach had an implicit assumption that Suzuki’s Japanese management

practices were inherently more appropriate, if not superior to that of Indian approaches. When

the exportive approach encountered HRM problems in 1997 due to deregulation, Maruti

searched for external causes and concluded that it was not geared for hyper-competition. The

sharing of innovative HRM practices was also unidirectional from Suzuki to Maruti. The

diffusion was moderate and did not solve Maruti’s dilemma. Organizational learning was low,

cost was moderately high, co-ordination and integration was high but flexibility was

constrained.

With the organizational redesign process, Maruti began to move from the exportive

model to the closed hybrid model, characterized by an Maruti’s reliance on the Suzuki

template in the initial development but made subsequent efforts to adapt to local

20

requirements. Maruti during the pre-liberalization process adapted the Japanese orientation of

team building for effective performance. There was little clash between the indigenous and

the Japanese management systems. Common canteen, office buses, uniforms along with

morning exercises were initially resented, but were accepted and became the norms of the

company, partly because of the nature of the IJV, and the consequent unequivocal policy

decision to enforce them. The clash occurred because the Indian system was characterized by

hierarchy, personalized relationships which resulted in a climate of distrust between

management and the unions.

A complete transfer of the Japanese system without any modifications to suit the host

country worked well in the seller’s market, when employees bought off by higher salaries and

bonuses. But the same system faced flak when the company faced multi corner competition

and could not sustain the earlier levels of higher salaries and bonuses. At this juncture, the

need for incorporating indigenous character of the host country was felt and the HRM

department an important role in the achieving this objective.

Maruti, under the new HR General Manager, started the closed hybrid process of not

slavishly attempting to replicate Suzuki’s system, but rather base its system on the overall

philosophy of Suzuki and over time adapting to the Indian policies and practices to suit the

changing environment. As with closed hybrids, Maruti when initially encountered HRM

problems, seeked external causes, however over time, Maruti accepted that some of their

problems were caused by internal factors, and addressed them accordingly. This was done

through the organizational redesign process. The organizational learning of Maruti was

moderately successful, the cost was relatively inexpensive as Maruti had its strong Japanese

practices to fall back upon. With the program of organizational redesign, rationalization of

cost and enhanced productivity, Maruti bounced back to competition with 50.8% market share

and 40% rise in profit for the FY2002-2003.

21

Morishima (1992) concludes that the style of management long associated with large

Japanese firms-HRM policies that value employees and place priority on employee

maintenance and development – also appears to be conducive to implementing changes in

employment practices without strong employee opposition. Japanese employers are likely to

be successful in reducing opposition to changes when their past HRM policies were based on

elements of corporatist Japanese management styles. Japanese corporatist HRM policies

appear to be instrumental not only in obtaining worker commitment but also in maintaining

flexibility for management-initiated organizational change. This is now being practiced by

Japanese organizations and was followed by Maruti which helped redesign itself efficiently

with minimal loses.

Some advanced Japanese MNCs, such as Sony, Matsushita, Toyota, Toray, Omron,

Yazaki have just begun to integrate career paths, including training and performance appraisal

systems of both Japanese and non-Japanese staff, and have thus begun to construct the high-

potential pool globally (Shiraki, 2002).

The findings of this study have implications for practitioners. The study suggests that

in case of Maruti Udyog Limited, little thought was given to the need of aligning business

strategy and professionalized HRM strategy as a mechanism of response to liberalization. The

HRM department was seen as a “paper-pusher”. Yet it is clear that aligning the

professionalized management practices and HRM system towards a closed hybrid system

which focused on long-term strategy of the company yielded benefit in terms of higher level

of employee morale, longer employee tenure and lower turnover rates. This finds support in

Bird and Beechler’s (1994) study of sixty-four Japanese transnational corporations in the

USA.

22

CONCLUSION

There are, inevitably, some limitations to this study. First, the analysis is based on a

single case-study, and there is the problem of generalizability, particularly in view of the fact

that Maruti is acknowledged as a successful organization. Second, through the qualitative

techniques many of the dimensions investigated cannot be easily replicated. Third, not all

relevant aspects of strategic response came through data collection; some themes, which were

later found to be highly significant, only emerged by serendipity. These clearly need further,

systematic, investigation. However, this paper has brought to light some important issues for

those pursuing qualitative research in the area of IJVs.

A number of findings have emerged from this study. First, we have seen the effects of

the macro phenomenon such as liberalization in an emerging country scenario. Second is the

linkage of the macro phenomenon with that of the micro phenomenon such as the strategic

response of the firm. Third, the evolution and the organizational redesign process of an IJV in

an emerging country. Fourth, a hybrid model of HRM system as a strategic response that

could probably blend with professional and employee oriented modes of management for

relatively superior organizational performance.

23

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Page 1

ESSECCE NTREDE RECHERCHE

LISTE DES DOCUMENTS DE RECHERCHE DU CENTRE DE RECHERCHE DE L’ESSEC(Pour se procurer ces documents, s’adresser au CENTRE DE RECHERCHE DE L’ESSEC)

LISTE OF ESSEC RESEARCH CENTER WORKING PAPERS(Contact the ESSEC RESEARCH CENTER for information on how to obtain copies of these papers)

RESEARCH.CENTER@ESSEC.FR

1997

97001 BESANCENOT D., VRANCEANU RaduReputation in a Model of Economy-wide Privatization

97002 GURVIEZ P.The Trust Concept in the Brand-consumers Relationship

97003 POTULNY S.L’utilitarisme cognitif de John Stuart Mill

97004 LONGIN FrançoisFrom Value at Risk to Stress Testing: The Extreme Value Approach

97005 BIBARD Laurent, PRORIOL G.Machiavel : entre pensée du pouvoir et philosophie de la modernité

97006 LONGIN FrançoisValue at Risk: une nouvelle méthode fondée sur la théorie des valeurs extrêmes

97007 CONTENSOU François, VRANCEANU RaduEffects of Working Time Constraints on Employment: A Two-sector Model

97008 BESANCENOT D., VRANCEANU RaduReputation in a Model of Exchange Rate Policy with Incomplete Information

97009 AKOKA Jacky, BRIOLAT Dominique, WATTIAU IsabelleLa reconfiguration des processus inter-organisationnels

97010 NGUYEN. PBank Regulation by Capital Adequacy and Cash Reserves Requirements

97011 LONGIN FrançoisBeyond the VaR

97012 LONGIN FrançoisOptimal Margin Level in Futures Markets: A Method Based on Extreme Price Movements

97013 GROUT DE BEAUFORT VivianeMaastricth II ou la copie à réviser

97014 ALBIGOT J.G., GROUT DE BEAUFORT V., BONFILLON P.O., RIEGER B .Perspectives communautaires et européennes sur la réduction du temps de travail

97015 DEMEESTERE René, LORINO Philippe, MOTTIS NicolasBusiness Process Management: Case Studies of Different Companies and Hypotheses for FurtherResearch

Page 2

97016 PERETTI Jean-Marie, HOURQUET P.G., ALIS D.Hétérogénéité de la perception des déterminants de l’équité dans un contexte international

97017 NYECK Simon, ROUX ElyetteWWW as a Communication Tool for Luxury Brands: Compared Perceptions of Consumers andManagers

97018 NAPPI-CHOULET IngridL’analyse économique du fonctionnement des marchés immobiliers

97019 BESANCENOT D., ROCHETEAU G., VRANCEANU RaduEffects of Currency Unit Substitution in a Search Equilibrium Model

97020 BOUCHIKHI HamidLiving with and Building on Complexity: A Constructivist Perspective on Organizations

97021 GROUT DE BEAUFORT V., GRENOT S., TIXIER A . TSE K.LEssai sur le Parlement Européen

97022 BOULIER J.F., DALAUD R., LONGIN FrançoisApplication de la théorie des valeurs extrêmes aux marchés financiers

97023 LORINO PhilippeThéorie stratégique : des approches fondées sur les ressources aux approches fondées sur les processus

97024 VRANCEANU RaduInvestment through Retained Earnings and Employment in Transitional Economies

97025 INGHAM M., XUEREB Jean-MarcThe Evolution of Market Knowledge in New High Technology Firms: An Organizational LearningPerspective

97026 KOENING ChristianLes alliances inter-entreprises et la coopération émergente.

97027 LEMPEREUR AlainRetour sur la négociation de positions : pourquoi intégrer l’autre dans mon équation personnelle ?

97028 GATTO RiccardoHypothesis Testing by Symbolic Computation

97029 GATTO Riccardo , JAMMALAMADAKA S. RaoA conditional Saddlepoint Approximation for Testing Problems

97030 ROSSI (de) F.X., GATTO RiccardoHigh-order Asymptotic Expansions for Robust Tests

97031 LEMPEREUR AlainNegotiation and Mediation in France: The Challenge of Skill-based Learnings and InterdisciplinaryResearch in Legal Education

97032 LEMPEREUR AlainPédagogie de la négociation : allier théorie et pratique

97033 WARIN T.Crédibilité des politiques monétaires en économie ouverte

97034 FRANCOIS P.Bond Evaluation with Default Risk: A Review of the Continuous Time Approach

97035 FOURCANS André, VRANCEANU RaduFiscal Coordination in the EMU: A Theoretical and Policy Perspective

97036 AKOKA Jacky, WATTIAU IsabelleMeRCI: An Expert System for Software Reverse Engineering

Page 3

97037 MNOOKIN R. (traduit par LEMPEREUR Alain)Surmonter les obstacles dans la résolution des conflits

97038 LARDINOIT Thierry, DERBAIX D.An Experimental Study of the Effectiveness of Sport Sponsorship Stimuli

97039 LONGIN François, SOLNIK B.Dependences Structure of International Equity Markets during Extremely Volatile Periods

97040 LONGIN FrançoisStress Testing : application de la théorie des valeurs extrêmes aux marchés des changes

1998

98001 TISSOT (de) OlivierQuelques observations sur les problèmes juridiques posés par la rémunération des artistes interprètes

98002 MOTTIS Nicolas, PONSSARD J.P.Incitations et création de valeur dans l’entreprise. Faut-il réinventer Taylor ?

98003 LIOUI A., PONCET PatriceTrading on Interest Rate Derivatives and the Costs of Marking-to-market

98004 DEMEESTERE RenéLa comptabilité de gestion : une modélisation de l’entreprise ?

98005 TISSOT (de) OlivierLa mise en œuvre du droit à rémunération d’un comédien ayant « doublé » une œuvre audiovisuelle(film cinématographique ou fiction télévisée ) avant le 1er janvier 1986

98006 KUESTER Sabine, HOMBURG C., ROBERTSON T.S.Retaliatory Behavior to New Product Entry

98007 MONTAGUTI E., KUESTER Sabine, ROBERTSON T.S.Déterminants of « Take-off » Time for Emerging Technologies: A Conceptual Model and PropositionalInventory

98008 KUESTER Sabine, HOMBURG C .An Economic Model of Organizational Buying Behavior

98009 BOURGUIGNON AnnickImages of Performance: Accounting is not Enough

98010 BESANCENOT D., VRANCEANU RaduA model of Manager Corruption in Developing Countries with Macroeconomic Implications

98011 VRANCEANU Radu, WARIN T.Une étude théorique de la coordination budgétaire en union monétaire

98012 BANDYOPADHYAU D. K.A Multiple Criteria Decision Making Approach for Information System Project Section

98013 NGUYEN P., PORTAIT RolandDynamic Mean-variance Efficiency and Strategic Asset Allocation with a Solvency Constraint

98014 CONTENSOU FrançoisHeures supplémentaires et captation du surplus des travailleurs

98015 GOMEZ M.L.De l’apprentissage organisationnel à la construction de connaissances organisationnelles.

98016 BOUYSSOU DenisUsing DEA as a Tool for MCDM: some Remarks

Page 4

98017 INDJEHAGOPIAN Jean-Pierre, LANTZ F., SIMON V.Dynamique des prix sur le marché des fiouls domestiques en Europe

98019 PELISSIER-TANON ArnaudLa division du travail, une affaire de prudence

98020 PELISSIER-TANON ArnaudPrudence et qualité totale. L’apport de la philosophie morale classique à l’étude du ressort psychologiquepar lequel les produits satisfont les besoins de leurs utilisateurs

98021 BRIOLAT Dominique, AKOKA Jacky, WATTIAU IsabelleLe commerce électronique sur Internet. Mythe ou réalité ?

98022 DARMON RenéEquitable Pay for the Sales Force

98023 CONTENSOU François, VRANCEANU RaduWorking Time in a Model of Wage-hours Negociation

98024 BIBARD LaurentLa notion de démocratie

98025 BIBARD LaurentRecherche et expertise

98026 LEMPEREUR AlainLes étapes du processus de conciliation

98027 INDJEHAGOPIAN Jean-Pierre, LANTZ F., SIMON V.Exchange Rate and Medium Distillates Distribution Margins

98028 LEMPEREUR AlainDialogue national pour l’Europe. Essai sur l’identité européenne des français

98029 TIXIER MaudWhat are the Implications of Differing Perceptions in Western, Central and Eastern Europe for EmergingManagement

98030 TIXIER MaudInternal Communication and Structural Change. The Case of the European Public Service: PrivatisationAnd Deregulation

98031 NAPPI-CHOULET IngridLa crise des bureaux : retournement de cycle ou bulle ? Une revue internationale des recherches

98032 DEMEESTERE RenéLa comptabilité de gestion dans le secteur public en France

98033 LIOUI A., PONCET PatriceThe Minimum Variance Hedge Ratio Revisited with Stochastic Interest Rates

98034 LIOUI A., PONCET PatriceIs the Bernoulli Speculator always Myobic in a Complete Information Economy?

98035 LIOUI A., PONCET PatriceMore on the Optimal Portfolio Choice under Stochastic Interest Rates

98036 FAUCHER HubertThe Value of Dependency is Plant Breeding: A Game Theoretic Analysis

98037 BOUCHIKHI Hamid, ROND (de) Mark., LEROUX V.Alliances as Social Facts: A Constructivist of Inter-Organizational Collaboration

98038 BOUCHIKHI Hamid, KIMBERLY John R.In Search of Substance: Content and Dynamics of Organizational Identity

Page 5

98039 BRIOLAT Dominique, AKOKA Jacky, COMYN-WATTIAU IsabelleElectronic Commerce on the Internet in France. An Explanatory Survey

98040 CONTENSOU François, VRANCEANU RaduRéduction de la durée du travail et complémentarité des niveaux de qualification

98041 TIXIER DanielLa globalisation de la relation Producteurs-Distributeurs

98042 BOURGUIGNON AnnickL’évaluation de la performance : un instrument de gestion éclaté

98043 BOURGUIGNON AnnickBenchmarking: from Intentions to Perceptions

98044 BOURGUIGNON AnnickManagement Accounting and Value Creation: Value, Yes, but What Value?

98045 VRANCEANU RaduA Simple Matching Model of Unemployment and Working Time Determination with Policy Implications

98046 PORTAIT Roland, BAJEUX-BESNAINOU IsabellePricing Contingent Claims in Incomplete Markets Using the Numeraire Portfolio

98047 TAKAGI JunkoChanges in Institutional Logics in the US. Health Care Sector: A Discourse Analysis

98048 TAKAGI JunkoChanging Policies and Professionals: A Symbolic Framework Approach to Organizational Effects onPhysician Autonomy

98049 LORINO PhilippeL’apprentissage organisationnel bloquée (Groupe Bull 1986-1992) : du signe porteur d’apprentissage auPiège de l’habitude et de la représentation-miroir

98050 TAKAGI Junko, ALLES G.Uncertainty, Symbolic Frameworks and Worker Discomfort with Change

1999

99001 CHOFFRAY Jean-MarieInnovation et entreprenariat : De l’idée… au Spin-Off

99002 TAKAGI JunkoPhysician Mobility and Attidudes across Organizational Work Settings between 1987 and 1991

99003 GUYOT Marc, VRANCEANU RaduLa réduction des budgets de la défense en Europe : économie budgétaire ou concurrence budgétaire ?

99004 CONTENSOU François, LEE JanghyukInteractions on the Quality of Services in Franchise Chains: Externalities and Free-riding Incentives

99005 LIOUI Abraham, PONCET PatriceInternational Bond Portfolio Diversification

99006 GUIOTTO Paolo, RONCORONI AndreaInfinite Dimensional HJM Dynamics for the Term Structure of Interest Rates

99007 GROUT de BEAUFORT Viviane, BERNET Anne-CécileLes OPA en Allemagne

99008 GROUT de BEAUFORT Viviane, GENEST ElodieLes OPA aux Pays-Bas

Page 6

99009 GROUT de BEAUFORT VivianeLes OPA en Italie

99010 GROUT de BEAUFORT Viviane, LEVY M.Les OPA au Royaume-Uni

99011 GROUT de BEAUFORT Viviane, GENEST ElodieLes OPA en Suède

99012 BOUCHIKHI Hamid, KIMBERLY John R.The Customized Workplace: A New Management Paradigm for the 21st Century

99013 BOURGUIGNON AnnickThe Perception of Performance Evaluation Criteria (1): Perception Styles

99014 BOURGUIGNON AnnickPerformance et contrôle de gestion.

99015 BAJEUX-BESNAINOU Isabelle, JORDAN J., PORTAIT RolandDynamic Asset Allocation for Stocks, Bonds and Cash over Long Horizons

99016 BAJEUX-BESNAINOU Isabelle, JORDAN J., PORTAIT RolandOn the Bonds-stock Asset Allocation Puzzle

99017 TIXIER DanielLa logistique est-elle l’avenir du Marketing ?

99018 FOURCANS André, WARIN ThierryEuroland versus USA: A Theoretical Framework for Monetary Strategies

99019 GATTO Riccardo, JAMMALAMADAKA S.R.Saddlepoint Approximations and Inference for Wrapped α-stable Circular Models

99020 MOTTIS Nicolas, PONSSARD Jean-PierreCréation de valeur et politique de rémunération. Enjeux et pratiques

99021 STOLOWY NicoleLes aspects contemporains du droit processuel : règles communes à toutes les juridictions et procéduresdevant le Tribunal de Grande Instance

99022 STOLOWY NicoleLes juridictions civiles d’exception et l’étude des processus dans le droit judiciaire privé

99023 GATTO RiccardoMultivariate Saddlepoint Test for Wrapped Normal Models

99024 LORINO Philippe, PEYROLLE Jean-ClaudeEnquête sur le facteur X. L’autonomie de l’activité pour le management des ressources humaines et pourle contrôle de gestion

99025 SALLEZ AlainLes critères de métropolisation et les éléments de comparaison entre Lyon et d’autres métropolesfrançaises

99026 STOLOWY NicoleRéflexions sur l’actualité des procédures pénales et administratives

99027 MOTTIS Nicolas, THEVENET MauriceAccréditation et Enseignement supérieur : certifier un service comme les autres…

99028 CERDIN Jean-LucInternational Adjustment of French Expatriate Managers

99029 BEAUFORT Viviane, CARREY EricL’union européenne et la politique étrangère et de sécurité commune : la difficile voie de la constructiond’une identité de défense européenne

Page 7

99030 STOLOWY NicoleHow French Law Treats Fraudulent Bankruptcy

99031 CHEVALIER Anne, LONGIN FrançoisCoût d’investissement à la bourse de Paris

99032 LORINO PhilippeLes indicateurs de performance dans le pilotage organisationnel

99033 LARDINOIT Thierry, QUESTER PascaleProminent vs Non Prominent Bands: Their Respective Effect on Sponsorship Effectiveness

99034 CONTENSOU François, VRANCEANU RaduWorking Time and Unemployment in an Efficiency Wage Model

99035 EL OUARDIGHI FouadLa théorie statistique de la décision (I)

2000

00001 CHAU Minh, LIM TerenceThe Dynamic Response of Stock Prices Under Asymetric Information and Inventory Costs: Theory andEvidence

00002 BIBARD LaurentMatérialisme et spiritualité

00003 BIBARD LaurentLa crise du monde moderne ou le divorce de l’occident

00004 MATHE HervéExploring the Role of Space and Architecture in Business Education

00005 MATHE HervéCustomer Service: Building Highly Innovative Organizations that Deliver Value

00006 BEAUFORT (de) VivianeL’Union Européenne et la question autrichienne, ses conséquences éventuelles sur le champ de révisionde la CIG

00007 MOTTIS Nicolas, PONSSARD Jean-PierreValue Creation and Compensation Policy Implications and Practices

00009 BOURGUIGNON AnnickThe Perception of Performance Evaluation Criteria (2): Determinants of Perception Styles

00010 EL OUARDIGHI FouadThe Dynamics of Cooperation

00011 CHOFFRAY Jean-MarieInnovation et entrepreneuriat : De l’Idée…au Spin-Off. (Version révisée du DR 99001)

00012 LE BON JoëlDe l’intelligence économique à la veille marketing et commerciale : vers une nécessaire mise au pointconceptuelle et théorique

00013 ROND (de) MarkReviewer 198 and Next Generation Theories in Strategy

00014 BIBARD LaurentAmérique latine : identité, culture et management

00016 BIBARD LaurentLes sciences de gestion et l’action

Page 8

00017 BEAUFORT (de) V.Les OPA au Danemark

00018 BEAUFORT (de) V.Les OPA en Belgique

00019 BEAUFORT (de) V.Les OPA en Finlande

00020 BEAUFORT (de) V.Les OPA en Irlande

00021 BEAUFORT (de) V.Les OPA au Luxembourg

00022 BEAUFORT (de) V.Les OPA au Portugal

00023 BEAUFORT (de) V.Les OPA en Autriche

00024 KORCHIA MickaelBrand Image and Brand Associations

00025 MOTTIS Nicolas, PONSSARD Jean-PierreL’impact des FIE sur les firmes françaises et allemandes : épiphénomène ou influence réelle ?

00026 BIBARD LaurentPenser la paix entre hommes et femmes

00027 BIBARD LaurentSciences et éthique (Notule pour une conférence)

00028 MARTEL Jocelyn, C.G. FISHER TimothyEmpirical Estimates of Filtering Failure in Court-supervised Reorganization

00029 MARTEL JocelynFaillite et réorganisation financière : comparaison internationale et évidence empirique

00030 MARTEL Jocelyn, C.G. FISHER TimothyThe Effect of Bankruptcy Reform on the Number of Reorganization Proposals

00031 MARTEL Jocelyn, C.G. FISHER TimothyThe Bankruptcy Decision: Empirical Evidence from Canada

00032 CONTENSOU FrançoisProfit-sharing Constraints, Efforts Output and Welfare

00033 CHARLETY-LEPERS Patricia, SOUAM SaïdAnalyse économique des fusions horizontales

00034 BOUYSSOU Denis, PIRLOT MarcA Characterization of Asymmetric Concordance Relations

00035 BOUYSSOU Denis, PIRLOT MarcNontransitive Decomposable Conjoint Measurement

00036 MARTEL Jocelyn, C.G. FISHER TimothyA Comparison of Business Bankruptcies across Industries in Canada, 1981-2000

Page 9

2001

01001 DEMEESTERE RenéPour une vue pragmatique de la comptabilité

01003 EL OUARDIGHI Fouad, GANNON FrédéricThe Dynamics of Optimal Cooperation

01004 DARMON RenéOptimal Salesforce Quota Plans Under Salesperson Job Equity Constraints

01005 BOURGUIGNON Annick, MALLERET Véronique, NORREKLIT HanneBalanced Scorecard versus French tableau de bord: Beyond Dispute, a Cultural and IdeologicalPerspective

01006 CERDIN Jean-LucVers la collecte de données via Internet : Cas d’une recherche sur l’expatriation

01012 VRANCEANU RaduGlobalization and Growth: New Evidence from Central and Eastern Europe

01013 BIBARD LaurentDe quoi s’occupe la sociologie ?

01014 BIBARD LaurentIntroduction aux questions que posent les rapports entre éthique et entreprise

01015 BIBARD LaurentQuel XXIème siècle pour l’humanité ?

01016 MOTTIS Nicolas, PONSSARD Jean-PierreValue-based Management at the Profit Center Level

01017 BESANCENOT Damien, KUYNH Kim, VRANCEANU RaduPublic Debt: From Insolvency to Illiquidity Default

01018 BIBARD LaurentEthique de la vie bonne et théorie du sujet : nature et liberté, ou la question du corps

01019 INDJEHAGOPIAN Jean-Pierre, JUAN S . LANTZ F., PHILIPPE F.La pénétration du Diesel en France : tendances et ruptures

01020 BARONI Michel, BARTHELEMY Fabrice, MOKRANE MahdiPhysical Real Estates: Risk Factors and Investor Behaviour.

01021 AKOKA Jacky, COMYN-WATTIAU Isabelle , PRAT NicolasFrom UML to ROLAP Multidimensional Databases Using a Pivot Model

01022 BESANCENOT Damien, VRANCEANU RaduQuality Leaps and Price Distribution in an Equilibrium Search Model

01023 BIBARD LaurentGestion et Politique

01024 BESANCENOT Damien, VRANCEANU RaduTechnological Change, Acquisition of Skills and Wages in a search Economy

01025 BESANCENOT Damien, VRANCEANU RaduQuality Uncertainty and Welfare in a search Economy

01026 MOTTIS Nicolas , PONSARD Jean-Pierre,L’impact des FIE sur le pilotage de l’entreprise

01027 TAPIERO Charles, VALOIS PierreThe inverse Range Process in a Random Volatibility Random Walk

01028 ZARLOWSKI Philippe, MOTTIS Nicolas

Page 10

Making Managers into Owners An Experimental Research on the impact of Incentive Schemes onShareolder Value Creation

01029 BESANCENOT Damien, VRANCEANU RaduIncertitude, bien-être et distribution des salaires dans un modèle de recherche d’emploi

01030 BOUCHICKHI HamidDe l’entrepreneur au gestionnaire et du gestionnaire à l’entrepreneur.

01031 TAPIERO Charles, SULEM AgnesInventory Control with suppply delays, on going orders and emergency supplies

01032 ROND (de) Mark, MILLER Alan N.The Playground of Academe: The Rhetoric and Reality of Tenure and Terror

01033 BIBARD LAURENTDécision et écoute

01035 NAPPI-CHOULET IngridThe Recent Emergence of Real Estate Education in French Business Schools: The Paradox of TheFrench Experience

2002

02001 ROND (de) MarkThe Evolution of Cooperation in Strategic Alliances: The Legitimacy of Messiness

02002 CARLO (de) LaurenceReducing Violence in Cergy or Implementing Mediation Processes in Neighborhoods Near Paris

02003 CARLO (de) LaurenceThe TGV (Very High Speed Train) Méditerranée Decision Process or the Emergence of PublicConsultation Procedures on Important Infrastructure Projects in France

02004 CARLO (de) Laurence, TAKAGI JunkoMay 1968: The Role of a Special Historical Event in the Evolution of Management Education in France

02005 ALLENBY Greg, FENNELL Geraldine, BEMMAOR Albert, BHARGAVA Vijay, CHRISTEN François,DAWLEY Jackie, DICKSON Peter, EDWARDS Yancy, GARRATT Mark, GINTER Jim, SAWYERAlan, STAELIN Rick, YANG ShaMarket Segmentation Research: Beyond Within and Across Group Differences

02006 BOURGUIGNON AnnickThe perception of Performance Evaluation Criteria: Salience or Consistency?

02007 ALFANDARI Laurent, PLATEAU Agnès, TOLLA PierreA Path-relinking Algorithm for the Generalized Assignment Problem

02008 FOURCANS André, VRANCEANU RaduECB Monetary Policy Rule: Some Theory and Empirical Evidence

02010 EL KAROUI Nicole, JEANBLANC Monique, LACOSTE VincentOptimal Portfolio Management with American Capital Guarantee

02011 DECLERCK Francis, CLOUTIER Martin L.The Champagne Wine Industry: An Economic Dynamic Model of Production and Consumption

02012 MOTTIS Nicolas, PONSSARD Jean-PierreL’influence des investisseurs institutionnels sur le pilotage des entreprises

02013 DECLERCK FrancisValuation of Mergers and Acquisitions Involving at Least One French Food Company During the 1996-2001 Wave

Page 11

02014 EL OUARDIGHI Fouad, PASIN FredericoAdvertising and Quality Decisions Over Time

02015 LORINO PhilippeVers une théorie pragmatique et sémiotique des outils appliquée aux instruments de gestion

02016 SOM AshokRole of Organizational Character During Restructuring: A Cross-cultural Study

02017 CHOFFRAY Jean-MarieLe bon management

02018 EL OUARDIGHI Fouad, PASIN FredericoQuality Improvement and Goodwill Accumulation in a Dynamic Duopoly

02019 LEMPEREUR Alain«Doing, Showing and Telling» as a Global Negotiation Teaching Method. Why we Need to Innovate

02020 LEMPEREUR Alain, MNOOKIN RobertLa gestion des tensions dans la négociation

02021 LEMPEREUR AlainParallèles de styles entre professeur et dirigeants. Au-delà d’une nouvelle querelle des anciens et desmodernes sur le leadership

02022 LEMPEREUR AlainInnovating in Negotiation Teaching: Toward a Relevant Use of Multimedia Tools

02023 DUBOULOY MaryseCollective Coaching: A Transitional Space for High-potential Managers

02024 EL OUARDIGHI FouadDynamique des ventes et stratégies publicitaires concurrentielles

02025 CHAU MinhDynamic Equilibriun with Small Fixed Transactions Costs

2003

03001 MARTEL Jocelyn, MOKRANE MadhiBank Financing Strategies, Diversification and Securization

03002 BARONI Michel, BARTHELEMY Fabrice, MOKRANE MahdiWhich Capital Growth Index for the Paris Residential Market?

03003 CARLO (de) LaurenceTeaching «Concertation»: The Acceptance of Conflicts and the Experience of Creativity Using LaFrancilienne CD-Rom

03004

03005 LEMPEREUR AlainIdentifying Some Obstacles From Intuition to A Successful Mediation Process

03006 LEMPEREUR Alain, SCODELLARO MathieuConflit d'intérêt économique entre avocats et clients : la question des honoraires

03007 LEMPEREUR AlainA Rhetorical Foundation of International Negotiations. Callières on Peace Politics

03008 LEMPEREUR AlainContractualiser le processus en médiation

3009 BOUCHIKHI Hamid, SOM AshokWhat’s Drives The Adoption of SHRM in Indian Compagnies ?

Page 12

3010 SOM AshokBracing Competition Through Innovative HRM in Indian Firms : Lessons for MNEs

03011 BESANCENOT Damien, VRANCEANU RaduFinancial Instability Under Floating Exchange Rates

03015 KATZ Barbara, OWEN JoelShould Governements Compete for Foreign Direct Investment ?

03016 VAN WILJK GillesSchedules, Calendars and Agendas

03017 BOURGUIGNON Annick, CHIAPELLO EveThe Role of Criticism in the Dynamics of Performance Evaluation Systems

03018 BOURGUIGNON Annick, Jenkins Alan, NORREKLIT HanneManagement Control and « Coherence » : Some Unresolved Questions

03019 BOWON Kim, EL OUARDIGHI FouadSupplier-Manufacturer Collaboration on New Product Development

03020 BOURGUIGNON Annick, DORSETT ChristopherCreativity : Can Artistic Perspectives Contribute to Management Questions ?

03021 CAZAVAN-JENY Anne, JEANJEAN ThomasValue Relevance of R&D Reporting : A Signaling Interpretation

03022 CAZAVAN-JENY AnneValue-Relevance of Expensed and Capitalized Intangibles – Empirical Evidence from France