Knowledge, Organizational Evolution, and Market Creation

Knowledge, Organizational Evolution, and Market Creation

The Globalization of Indian Firms from Steel to Software

Gita Sud de Surie

Knowledge, Organizational Evolution, and Market Creation documents the emergence of the Indian multinational by looking at data from firms in the ‘old’ economy, such as those in manufacturing, steel-making, automotive components and heavy machinery and the ‘new economy’ such as software and biotechnology. The author provides insights on knowledge transfer, innovation and capability building processes through in-depth case studies in these industries and suggests that both entrepreneurship and distributed innovation are critical for the growth of firms globally.

Chapter 1: Introduction

Gita Sud de Surie

Subjects: business and management, international business, knowledge management, organisational innovation, economics and finance, industrial organisation, innovation and technology, knowledge management, organisational innovation

Extract

This book documents the journey embarked on by firms in five different industries over the period of a decade (1993–2003) beginning shortly after the liberalization of the Indian economy in 1991. It includes ‘old economy’ industries such as steel, automotive components, heavy equipment and other manufacturing industries, and ‘new economy’ industries such as software and biotechnology.1 Internationalization has largely been examined from the perspective of industrialized countries with some exceptions (Dahlman and Westphal, 1982; Westphal, Kim, and Dahlman, 1985; Lall, 1987; Enos and Park, 1988; Chang, 2003; Guillen, 2005) of studies on how developing countries and emerging economies build capabilities. Although problems and issues related to development have been widely studied, the emphasis has been on technology transfer by foreign firms and its attendant difficulties rather than on the innovative capacities of recipient firms. This book aims to redress this balance by adopting an evolutionary approach to capabilitybuilding and focusing on innovation in India, a developing country, and to situate this process in the context of a transition to a market-oriented economy. Although the perspectives applied in this book are not new, they have been synthesized and applied in a novel context – an emerging market. CONTEXT I draw on a variety of disciplinary perspectives to develop a theoretical framework for the creation of organizational and technological capabilities. It combines perspectives on social learning, internationalization, knowledge and capabilities, real options, and complexity theories to yield a deeper understanding of how internationalization occurs. The analysis focuses primarily on firms...