Indian Journal of Industrial Relations: Economics & Social Dev.

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The Globally Competitive Indian Firm


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1 Harvard Business School, Boston, MA 02163
     

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Despite many similarities in size, proximity and antiquity, India and China chose so differently at their near-contemporaneous births. There are historical similarities between the two too. Yet starkly different paths make the past six decades as close to a 'petri dish' of sorts for a social scientist, where something profound can be learned for anyone interested in how societies develop. Many leading Indian firms today are the result of ground-up, private-sector entrepreneurship unlike the leading firms in China. The private sector orientation of the globally competitive Indian firm has manifested itself in both product (output) and factor (input) markets, argues the paper.
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  • Choudhury, Prithwiraj & Tarun Khanna (2009), “State Owned Entity Reform in Absence of Privatization: Reforming Indian National Laboratories and Role of Leadership.” Harvard Business School Working Paper, No. 10-006, July

  • Hill, Linda A., Tarun Khanna, & Emily Stecker (2008), “HCL Technologies (A).” Harvard Business School Case 408-004.

  • Khanna, Tarun (2008), Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours, Harvard Business School Press (Penguin in South Asia) Khanna, Tarun & Raymond Fisman (2004), “Facilitating Development: The Role of Business Groups,” World Development, 32 (4)(April): 609-28.

  • Khanna, Tarun & Krishna G. Palepu (2006), “Emerging Giants: Building World-Class Companies in Developing Countries”, Harvard Business Review, 84(10) (October)

  • Khanna, Tarun & Krishna G. Palepu (2004), “Globalization and Convergence in Corporate Governance: Evidence from Infosys and the Indian Software Industry,” Journal of International Business Studies, 35 (6) (November): 484-507.

  • Khanna, T.& Krishna G. Palepu (1997), “Why Focused Strategies May Be Wrong for Emerging Markets.” Harvard Business Review, 75 (4) (July-August): 41-51

  • Khanna, Tarun, V. Kasturi Rangan & Merlina Manocaran (2005), “Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor”, Harvard Business School Case 505-078

  • Khanna, Tarun & Jan W. Rivkin (2001), “Estimating the Performance Effects of Business Groups in Emerging Markets”, Strategic Management Journal, 22(1) (January): 45-74.

  • Khanna, Tarun & Yishay Yafeh (2007), “Business Groups in Emerging Markets: Paragons or Parasites?” Journal of Economic Literature, 45(2) (June): 331-72.


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  • The Globally Competitive Indian Firm

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Authors

Tarun Khanna
Harvard Business School, Boston, MA 02163

Abstract


Despite many similarities in size, proximity and antiquity, India and China chose so differently at their near-contemporaneous births. There are historical similarities between the two too. Yet starkly different paths make the past six decades as close to a 'petri dish' of sorts for a social scientist, where something profound can be learned for anyone interested in how societies develop. Many leading Indian firms today are the result of ground-up, private-sector entrepreneurship unlike the leading firms in China. The private sector orientation of the globally competitive Indian firm has manifested itself in both product (output) and factor (input) markets, argues the paper.

References