Sustaining superior performance in an emerging economy: an empirical test in the Indian context

By Murali D. R. Chari, Parthiban David. 2012

167 citations recorded by the source corpus.

We demonstrate a negative relationship between pro‐market reforms and the sustainability of superior profits in an emerging economy. The decline in sustainability of superior profits shows that pro‐market reforms bring significant threats in addition to the various opportunities such as greater availability of production factors and greater freedom to enter and operate businesses highlighted in the extant literature. Our study thus contributes to a more complete conceptual understanding of the performance consequences of pro‐market reforms in emerging economies. We also show that investment in research and development and greater investments in marketing and advertising are firm‐level resources that provide a measure of protection against the erosion in sustainability of superior profits associated with pro‐market reforms. Copyright © 2011 John Wiley & Sons, Ltd.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/51936b4940719bd8cb567923d1cbcf1f810b5e70

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Citations in the corpus

The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance (2013, background): “Several empirical studies identified specific examples of DC such as customer relationship (Chari and David, 2012), supply chain management (SCM) (Barney, 2012), client-specific capabilities (Weigelt, 2013), managerial ability (Helfat and Peteraf, 2015) and geographical and network ties (Ozer and Zh”
Institutional Voids or Organizational Resilience? Business Groups, Innovation, and Market Development in Latin America (2015, background): “Hence, according to this second view, group affiliation is more beneficial and enhances firmlevel innovation relatively more in economies in which national institutions are stronger and more efficient (Chari & David, 2012).”
Beyond institutional voids: Business groups, incomplete markets, and organizational form (2015, methodology): “We identify group affiliation through PROWESS’s classification of firms into groups (cf. Chari and David, 2012; Khanna and Palepu, 2000a; Khanna and Rivkin, 2001; Vissa et al., 2010).”
Innovation and Family Ownership: Empirical Evidence from India (2014, background): “Further, following Chari and David (2011), we eliminated observations that showed an unusually high (above 50 percent) or low (below 50 percent) return on assets, as this information might consist of large asset selloffs or purchases.”