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

• 成果类型: Editorial Material
• 署名作者: Chari, Murali D. R.; David, Parthiban
• 署名单位: Rensselaer Polytechnic Institute; American University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.949
• 发表日期: 2012
• 页码: 217-229
• 关键词: pro-market reforms; Emerging economy; sustained superior performance; profit persistence; INDIA

摘要

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 (C) 2011 John Wiley & Sons, Ltd.