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MBAManagement Enquiry and Research

Methods

MY DISSERTATION PROPOSAL

Student Name : Tirupathi rao.M


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INDEX

1. Introduction.

2. My Aim and Objectives.

3. Hypotheses.

4. Literature Review.

5. Methodology.

6. Phases of Research and

Schedule.

7. Conclusion.

8. Bibliography.

INTRODUCTION

Starting from the planning period in the 1950s till today, Indias


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LITERATURE REVIEW

1, In a July 20 Times of India report titled 'IT expert warns against digitaldivide in country' the author wrote: A leading information technology (IT)expert has cautioned against a "digital divide" in the country and creation ofdisparities between the IT haves and have-nots. The report quoted M.Anandakrishnan (vice-chairman of the information technology task force of theTamil Nadu government and the vice-chairman of the Tamil Nadu statecouncil for higher education) as saying: "You cannot have a high-tech facilityand have 50,000 people within a few kilometers who don't have any access tocomputers. Availability of computers in every village did not mean accessibilityand accessibility does not mean assimilation. Unless there is 'localisation ofcontent' this technology could not be used by 97 per cent of the population."

The article goes on to question the euphoria surrounding the growth of the ITsector.

The times has mentioned that all the people are not benefited with theIT sector.

2, MNCs and 'transparency' and 'ethical practices'

Arguments favoring globalization have often centered on how multinationalspractice 'transparency' in their business dealings and are more 'ethical' thantheir Indian counterparts. Although rarely substantiated with any thing otherthan anecdotal testimonies, such praise for the MNCs is common in the Indianmedia. Yet, there are numerous instances where multinationals have not onlydisplayed a lack of ethics and 'transparency' but have actually broken the law.Consider an October 2, 1998 report in the Hindu titled: Large-scale taxevasion by MNCs unearthed. The author of that report, Sujay Mehdudiawrote: "Income-Tax officials have alleged that these companies evade taxeswith impunity as the tax laws of the country are 'inadequate and ineffective' todeal with such cases." He wrote of multinational giants flouting tax lawsknowing very well that they could not be arrested or criminally prosecutedagainst under the Indian legal system and could get away by paying the tax

dues when caught.

Due to law system in India the foreign companies have taken an advantage toEscape the taxes.

3,'Efficiency' in whose interest - the MNC or the Indian consumer?

Another oft-repeated argument in favor of globalization is that multinational


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companies are more "efficient". Of course efficiency is never clearly defined.For instance, let us assume that efficiency equals profitability. Suppose amultinational invests 1000 crores and makes 200 crores in profit. On the otherhand, assume that a domestic company invests 1000 crores and makes 100crores in profit. It would thus seem that the MNC was more "efficient" - twice

as much as the Indian company. But if half or more of the MNC's profits wererepatriated to their foreign parent or to foreign shareholders, the relativebenefit to India would be nil! And if the 100 crore in extra profit accrued onlydue to special tax breaks and other special favors granted to the multinational,the increase in 'efficiency' would be entirely fictitious.Take another example. Let us suppose that the MNC is actually very"efficient" and is able to drive it's more "inefficient" Indian competitors out ofbusiness. With it's Indian competitors out of business, it could then raiseprices over and beyond what the "inefficient" Indian companies charged theirconsumers. Here is another example of where "efficiency" from the point ofview of the business does not translate into benefits for the Indian consumer.

This has occurred not only in the soft-drinks sector, it has also occurred in thepharmaceutical sector.The foreign which is established in India have much tax rebates and theProfits for the foreign is higher then the domestic company,

4.Skewed development: by-product of indiscriminate liberalization andglobalization?Critics of indiscriminate liberalization had warned that one of the biggestdangers of a totally liberalized economy would be the anarchic developmentof select geographical areas and the neglect of industrially unpopular areas.This has been reinforced in a report by Tushar Mohanti for the EconomicTimes Research Bureau. The report pointed out that of all the industrialentrepreneurs memorandum (IEM) filed since the new economic policy cameinto being in June 1991, only 10% have been implemented so far. In the caseof implemented projects, only 10 per cent of the employment commitmentswere actually realized. He goes on to say that apart from poor implementationrate, what must be disturbing for both the planners and the government is thestrong regional bias of the investment proposals. Proving the critics right,(who at the beginning of the reforms had doubted the chances of industriallybackward states to derive benefits from the reforms), more and more IEMshave gone to industrially developed states. Other studies have also shown

that prosperous states like Maharashtra, Gujarat, and Tamil Nadu and theNational Capital region around Delhi have attracted most of the newinvestment proposals - especially those from the multinationals. In contrast,Mohanti reported that West Bengal, Orissa, Bihar and Assam all from theeast had failed to take the benefits of deregulation. Bihar, Orissa andAssam each had less than one per cent share of the total IEMs filed duringthe period. Their shares in actual investment were even lower.Another aspect of non-selective globalization is that a few select sectors -namely consumer goods, automobiles, and software have attracted almost90% of all foreign investment. There has been very little investment in theproduction of advanced electronics, computer or telecom hardware, aircrafts,

advanced industrial materials, capital goods and modern tools and equipment,or robotics. These are the areas where India is completely dependent on


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imports and is likely to fall further behind. Rather than steer production inareas of cutting-edge technology, state governments have been falling overeach other in giving MNCs more concessions to produce more of what India isalready producing!Some areas of the country is developed and some sectors have been

benefited

5. The IT companies have the project contracts with the internationalCompanies with agreed deals made in dollars.But when the Indian economy is booming the value of the dollar isGetting down compare to rupee and the IT companies have to sufferA lot with fewer profits, when the dollar weakens compare to Indian rupee.

METHODOLOGY

As an initial step, it is proposed to conduct 3-5 case-studies of firms eitheralready active or proposing to get active in India for relocating parts of theirinnovation (especially R&D) activities. For this purpose, following means areproposed to be applied:

Identification of suitable candidates (via: literature review,industry contacts) Preliminary information (desk research) Interviews at the headquarters to ascertain motivation factors /induce cooperation On-site interviews in India Interviews at the headquarters to validate the data, if thoughtappropriate

Results of the case-studies shall be utilized to deduce hypotheses on Indiasglobalisation and the possibilities of its integration in a global IT sectornetwork. These hypotheses shall be put to test in an (industry-specific)empirical survey. The hypotheses on Indias innovation system are to beascertained via large-scale expert interviews in India and abroad. Theinvolved experts would cover a wide range of fields so as to cover allaspects of an innovation system . This study would help to:

Comprehend inherent strengths and weaknesses of Indiasglobalisation in IT sector system Work out a resource upgrade plan, if desirable/feasible from thefirms point of view while offshoring .

These steps are crucial to fully exploit the chances presented by India byintegrating her in the firms innovation process. This project seeks to do soby applying a conceptual framework introduced by Ernst [2005]. Hereby itproposes to identify the Pull, Policy and Push factors in an India-specific context for selected industries. In a third step, it might be useful to

integrate the Technological Units model proposed by Reddy [2000], iffound appropriate. This could help in identifying and assigning suitable roles


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Through the company websites, I can able to analyse their growth, andcollaboration with the foreign companies in the IT sector.

PHASES OF RESEARCH and SCHEDULE

Phase1: After my proposal is passed and ethical approval is obtained from the

university I shall start with my research process. I will start with by reading

literature and draft an interview schedule. Then I shall meet the concerned

authority of the IT companies to give information regarding their progress

through globalization of the India.

Phase2: All information pertaining to the performance of the concerned to ITcompanies will be under consideration and important points noted. This phase

shall run almost parallelto phase1.

SUMMARY

After completion of my dissertation, I shall be using this information for my

future establishment of a IT company or, I shall handover this report to some

of my friends who are having the plans to establish the IT company inHyderabad. This can be a very good piece of work as this research data can

be used as a tool for the concerned IT sector. As I would be using Action

Research Methodthis would be helpful for them to make corrective changes

in their strategies or policies.

Also using the data collected and applying Action research and Ground theory

method, I get an excellent opportunity to gain all the current happenings in the

IT industry in India. I will be able to get the maximum honest data from eachof them to reach towards a perfect summary. This piece of work should prove

to be useful to all others later who would be researching on the related topics.


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BIBLIOGRAPHY

1. Anuradha sen (2006) Impact of Globalization upon thePerformance of Major Industries in India

2. Ravishankar Kumar Singh (2005) Globalisation and ContemporaryEconomic Scenario

3. Chandrasekaran Balakrishanan (2004)Impact of Globalisation on

Developing Countries and India

4. www.Nascom.org.

5. Sunil Mani International Journal of Technology andGlobalisation (IJTG), Vol. 2, No. 1/2, 2006

6. www.times.com/india

7. www.softwarecompanies.com/india.

8. Globalisation: rural transformation/V.R. Panchamukhi

9.Advent International Corporation. 1986. Advent InternationalCorporation. 45 Milk Street,Boston, MA 02109.

10..Allen, F. and W. Song. 2005. Venture Capital and CorporateGovernance. Wharton FinancialCenter Working Paper #03-05

11.Asian Venture Capital Journal. 2001. The 2000 Guide to VentureCapital in Asia, Volume 1(Hong Kong: Asian Venture Capital Journal).

12.Avnimelech, G., M. Kenney and M. Teubal. 2004. Building VentureCapital Industries:

13.Aylward, A., 1998. Trends in Venture Capital Finance in DevelopingCountries. International

14.Finance Corporation Discussion Paper Number 36, The World Bank,Washington, D. C
http://www.nascom.org/http://www.times.com/indiahttp://www.softwarecompanies.com/indiahttp://www.nascom.org/http://www.times.com/indiahttp://www.softwarecompanies.com/india


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15.Coopey, R.Provision to India. World Development.

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