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Strategic Adaptation to Deregulation in the Indian Auto Components Industry

Kumaraswamy, Arun and Mudambi, Ram and Saranga, Haritha and Tripathy, Arindam (2008) Strategic Adaptation to Deregulation in the Indian Auto Components Industry. [Industry Studies Working Paper:2008-31]



We explore the strategic adaptation by domestic firms subsequent to economic liberalization and industry deregulation in an emerging economy. We study the Indian auto components industry during a ten-year period (1992-2002), using the Prowess database complemented by in-depth interviews with senior industry executives. Firms in our sample accounted for over 70 percent of industry sales during the period. Results of our analysis of indicate that technology licensing by domestic firms was significantly and positively related to their performance during the six-year period (1992-1997) immediately after industry deregulation. During the subsequent five-year period (1998-2002) domestic firms’ ability to create strong relational ties with downstream automakers was more significantly and positively related to performance. A potential implication of our study is that domestic firms need to adapt their strategic behavior by forging successive “fits” with the evolving policy and market environments.

Industry Studies Series #:2008-31
Item Type:Industry Studies Working Paper
Uncontrolled Keywords:industry studies, industry studies working paper, industry studies association, industry studies research
ID Code:115
Deposited By:Mr Robin Peterson
Deposited On:23 Feb 2010 14:45
Last Modified:07 Jun 2010 10:45

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