Abstract EN: The international business literature is belatedly recognizing the significance of large family-controlled business groups in emerging markets.
Most research has focused on analyzing the impact of concentrations of private wealth on economic development in home countries using panel data.
This paper examines the growth and persistence of business groups since 1951 in one country – India. Since Independence, the government
has attempted to operate an economic policy framework that had, amongst its prime objectives, the curbing of the tendency of business groups to
concentrate economic power. As their growth was seen as synonymous with concentration of wealth, business groups became obvious candidates for
regulation. Various policy instruments were introduced, such as the Industries (Development and Regulation) (IDR) Act 1951 and the Monopolies and
Restrictive Trade Practices (MRTP) Act 1969, with the aim of erecting barriers to their growth. In 1991, economic reform ushered in the removal of the
legislative barriers to business group growth. The analysis in this paper concludes that large business groups expanded their share of wealth between
1951 and 1969, but this growth was arrested between 1970 and 1990, and since 1991, it has dwindled. The pre-eminent position of Tata and Birla, as
the two largest business groups, remained unchallenged from 1951 until the emergence of the Reliance Group in the late 1990s. However, there has
been frequent change in the relative positions of other groups in and out of the Top-20. After economic liberalisation accelerated from 1991, there was
significant change in the ranks of business groups in the Top-20. Existing smaller groups or newly emerging groups, particularly in the IT and
telecommunications sectors, have replaced many of the previously dominant older groups. This is interpreted as indicating the central role of
entrepreneurship in combination with technological innovation, and the opening up of the Indian economy to international competition, in disturbing
established business hierarchies in India. More generally, policy intervention appears to have been less effective in breaking up concentrations of
economic power in India than economic liberalization and increased competition.
Abstract EN: This study investigates how the Basel Accord and Information and Telecommunications Technologies (ICT) investments affect the
commercial banking industries across countries. We employ the stochastic frontier approach to explore a data set composed of commercial banks
from 51 countries. We find that telecommunications investment reduces, and the Basel Accord proxy enhances, the cost efficiency of commercial
banks under study. Moreover, it is found that ICT investments improve cost efficiencies of commercial banks for countries in which the regulations are
consistent with the international supervision.
Abstract EN: The “Theory of Comparative Advantage” has been used to justify international trade and offshoring. However, the theory is
predicated on the immobility of factors of production, and that no longer is the case. The world-wide fiber optic network creates a superhighway to all
the workforces of the world for all jobs or parts of jobs that can be digitized. While consumers, some investors, and some executives profit from
offshoring, many jobs, especially manufacturing, are lost, and they will not be replaced by high tech jobs created by an innovative and flexible economy.
Hence, recommendations have been advanced to create greater import/export parity, even if it means higher prices and more inflation.
David Berkowitz, Brent M. Wren and E. Stephen Grant
Abstract EN: We propose a model that allows managers to assess new product development (NPD) projects, combined with the anticipated strategy,
prior to introduction and to estimate a probability of success. This model allows for an evaluation and prioritization of resource commitments. A
test of this model that compares companies within the United States (U.S.) and the United Kingdom (U.K.) is provided.