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ISSN: 2348-0661
Volume 2 • Issue 1 • March 2014
Annual Research Journal of
5783653
5783653
AJSP
KAM
5852810
5851765
5851765
5852810
KAM
Annual Research Journal of
Symbiosis Centre for Management Studies.
Survey # 231, Near Lunkad Gold Coast,
Viman Nagar, Pune - 411014
ISSN: 2348-0661
5783653
5783653
KAM
5852810
5851765
5851765
5852810
KAM
CHIEF Patron
Padma Bhushan Prof. (Dr) S.B. Mujumdar
Founder and President, SYMBIOSIS
Hon’ble Chancellor, Symbiosis International University (SIU)
PATRON(S)
Dr Vidya Yeravdekar
Principal Director
Symbiosis
Dr Rajni Gupte
Vice Chancellor
Symbiosis International university
EDITOR IN CHIEF
MANAGING EDITORASSOCIATE EDITOR
Dr Anupama SureshRicha Arora
Sabiha Fazalbhoy
Director, SCMS Pune
Deputy Director, SCMS Pune
Faculty, SCMS Pune
EDITORIAL BOARD
Dr Zafar Iqbal
Associate Professor, Department of Marketing
De Paul University Chicago, USA
Dr Ashish Deshpande
Professor, Department of Management
National Institute of Technical Teachers Training
and Research
Dr Sudhakar Kota
Associate Professor, Economics and Marketing,
Skyline University College, Sharjah, U.A.E.
ADVISORY BOARD
Dr H.S. Yadav
Professor – Department of Regional Planning &
Economic Growth, Barkatullah Vishwavidyalaya,
Bhopal
Mr Alok Gupta
Managing Director at Himland Trade Monitors
(Pvt.) Limited, Mumbai Area, India
Mr Stephen Murdoch
Associate Dean – International
Professor of Law and Ethics
IESEG School of Management, France
Mr George Koshy
Founder and President
Greencontributor Inc., Canada
Ms Ravneet Pawha
Country Director – India
Deakin University, Australia
© 2014 Symbiosis Centre for Management Studies, PUNE
Published by
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Pune
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From the Editors Desk
Dear Readers,
Amidst great joy and anticipation we present the Second Volume of
Our Annual Research Journal (AJSP). The Annual Journal of SCMS,
Pune provides a refereed and authoritative source of information and
International forum in the field of Management, Entrepreneurship,
Innovation, Retail, FDI and other related topics.
It offers an interface between these topics as well as business corporate
strategy and government’s economic policy. The Journal particularly
welcomes articles that advance our understanding of entrepreneurship
phenomenon across different national and cultural contexts. The journal
comprises of articles that are well articulated, substantive and the Journal
is peer-reviewed.
We extend our gratitude to all our authors, editors and anonymous
reviewers who have provided assistance at different stages of work and to
the academicians who have contributed to the preparation and enrichment
of articles leading to the inception of AJSP. Their collaboration and
continuous effort is unmatched.
We wish to receive scholarly original articles, research review papers
in the field of Management from across the globe with an emphasis
on Management theories, practices and related fields. Comments and
suggestions which will improve the quality of our journal are always
welcome and would be highly appreciated.
Dr Anupama Suresh Rawat
PhD Economics
Director, SCMS–Pune
Message from the Chancellor
The Symbiosis International University always practices and preaches the
concept, ‘World is One Family’ – ‘Vasudhaiva Kutumbakam’.
It always promotes friendship, co-operation and understanding between
foreign and Indian students. Symbiosis today is the premiere educational
institute of Pune and a brand equity in providing quality management
education.
The different institutes that come under the umbrella of Symbiosis
International University are the agents of change which contributes to
the symbiotic growth of the University.
I would like to congratulate the entire team of SCMS on the launch
of their second Journal – “Annual Research Journal of SCMS–Pune”
and for having their second international conference. Research gives
birth to new knowledge and answers a lot of existing questions. These
kind of conferences are a plethora of knowledge and contribute to
the prevalent research culture in the university.
This initiative taken by SCMS Pune will take them forward by leaps and
bounds on the path of recognition and reputation. I wish them good luck
and success in all their endeavors.
Padma Bhushan Dr. S.B. Mujumdar
Founder & President, Symbiosis,
Chancellor, Symbiosis International University
Profile of Vice Chancellor
Dr. Rajani Gupte, the Vice Chancellor of Symbiosis International
University [SIU], Pune, completed her doctorate in Economics from the
Gokhale Institute of Economics and Politics, Pune. She has more than
30 years of experience in teaching and research at prestigious institutes
including Loyala College, Madras and her alma mater the Gokhale
Institute itself. After six years of corporate work experience as a Finance
Director, she joined Symbiosis. She was a founding member of the
Symbiosis Institute of Foreign Trade in 1992 (now Symbiosis Institute
of International Business, SIIB) and was Director of SIIB from 2004–12.
She was instrumental in establishing SIIB as one of the leading B-Schools
in India, and in starting innovative niche MBA programs in agribusiness
as well as energy and environment. Under her leadership, SIIB has built
several active international collaborations for student and faculty exchange
and was the first SIU institute to offer a dual degree program with a
German university.
Dr. Gupte also served as Dean, Faculty of Management, Dean, Academics
and Pro-Vice Chancellor at the Symbiosis International University.
A visiting faculty at the Oakland University, School of Business
Administration, Michigan, USA, she has also addressed business leaders
at Bremen University for Applied Sciences, Germany. Appointed on the
WTO Cell set up by the Department of Horticulture, Government of
Maharashtra, she was also a member of the International Trade Panel, CII,
Western Region. She was a member of the Advisory Board, Chemtech
World Expo from 2009 to 2011. She has been a UGC nominee on
various committees.
She has published several research papers in her areas of specialisation
which include the world trade organisation, international business and
trade policy and non-tariff barriers. She has participated in several seminars
organised by the CII, FIEO, Indo American Chamber of Commerce,
Maratha Chamber of Commerce, and other industry associations.
Dr Rajani Gupte
Vice Chancellor
Symbiosis International University
Profile of Principal Director
Dr. Vidya Yeravdekar is the Principal Director of Symbiosis Society, which
encompasses the Symbiosis schools and institutions under the Symbiosis
International University. A dream dreamt by her father Padma Bhushan
Dr. S.B. Mujumdar 43 years ago of creating a home away from home
for international students. Symbiosis today has transformed itself into a
multi-disciplinary, multinational, multi-cultural international university
having students from all states of India and international students from 85
different countries. The university has institutes under 7 faculties namely
management, law, humanities and social sciences, health and biomedical
sciences, IT, engineering, media communication and design.
Dr. Vidya holds a post graduate degree in medicine, a degree in law and
earned her PhD in internationalization of higher education in India. To
promote international understanding through quality education, she has
brought in innovative approaches at the Symbiosis International University
through international collaborations with some of the top universities in
the world. She inherits very strong values of passion and foresight from her
father, and has intense social and ethical concerns which indulges her in
many philanthropic enterprises to provide education for the less fortunate.
She has always been a person who “thinks ahead of the times” and has
been instrumental in starting some innovative schools at the university
like the School of Liberal Arts, School of Photography, the School of
Planning and Architecture, Institute of Research and Innovation, Teaching
and Learning Resource Centre for Faculty and Student Learning Support
Centre for Students. Dr. Vidya tries to influence policy regulations for promoting and bringing
in innovative approaches in higher education in India through her
appointment on various governmental committees such as the University
Grants Commission, Indian Council for Cultural Relations, Central
Advisory Board of Education (CABE) which is the highest advisory body
in the field of education to advise the central and state governments, Indian
Institute of Mass Communication, Swarnim Gujarat Sports University,
National Institute of Agriculture Extension Management and many other
non-governmental committees and organizations such as the Mahratta
Profile of Principle Director  v
Chamber of Commerce & Industries, Federation of Indian Chambers
of Commerce & Industry (FICCI), Confederation of India Industry
(CII), Managing Committee Member of HK Firodiya Foundation, India
International Centre (IIC) and Pune International Centre (PIC).
She has presented papers in various national and international conferences
and has published papers in the area of internationalization of higher
education as well as in the area of health sciences in some of the most
reputed journals. Dr. Vidya’s hard work has won her numerous awards
and accolades and she is now focussed on making Symbiosis International
University benchmarked amongst one of the best universities in Asia.
Dr. Vidya served with the Ministry of Health, Sultanate of Oman before
she returned to India in 1997 to join Symbiosis.
Dr. Vidya is married to Dr. Rajiv Yeravdekar and blessed with two children
Amay and Amruta.
Dr. Vidya Yeravdekar
Principal Director,
Symbiosis
annual research journal of symbiosis centre
for management studies, pune
Vol. 2, Issue 1, March 2014
Contents
From the Editor Desk
Message from the Chancellor
Profile of Vice Chancellor
Profile of Principal Director
1. Youth Ecopreneurship: A Key for Success of First
Generation Entrepreneurs
i
ii
iii
iv
1
Archana Singh and Nehajoan Panackal
2. Developing Family Business Members as Family
Business Managers – With Reference to the Role of
Education and Training on Development of Family
Managed Businesses in India
14
Hasina Sayed, Rakhi Sharma and Ratnesh Desai
3. Using Morphological Analysis for Innovation and
Resource and Development: An InvaluableTool for
Entrepreneurship
28
K. Gopalakrishnan and V. Vijayalakshmi
4. Commodity and Derivatives Market for Agricultural
Development
37
Mohammed Jamshed and Shamim Ahmad
5. Creating Social Entrepreneurship by Design
Bamboo Product Success with Involvement of
Community Groups
49
Nachiket Thakur and BV Sangvikar
6. Worker Participation in Management Decision Making
Within Selected Establishments in Uttar Pradesh, India
65
Nachiket Thakur
7. Geospatial Technology: Opportunity in Fostering
Social Enterpreneureship
82
Navendu Chaudhary
8. Intrapreneurship Prerequisites and Outcomes in
High-Tech Industries
Nishith Dubey, R.G. Chouksey, Canchal Mehra and Atul Mishra
93
viii  Contents
9. Resource, Development and Innovationin the
Indian Industry
103
S.R. Sheeja
10. Women Entrepreneurship as the Way for
Economic Development
117
Sabiha Fazalbhoy
11. A Study on Entrepreneurial Seriousness among Small
Education-based Business Owners in Bhilai
128
Sanjay Mishra and Ranjeeta Mishra
12. Skill Development and Vocational Training in the
Handicraft Sector in Jammu and Kashmir: Special
Reference to District Anantanag
138
Showkat Ahmad Sheikh and Sharad Tiwari
13. Entrepreneurial Leadership Style(s): A Taxonomic
Review
Yamini Karmarkar, Meghna Chabra and Aashish Deshpande
156
Youth Ecopreneurship:
A Key for Success of First
Generation Entrepreneurs
Archana Singh* and Nehajoan Panackal*
ABSTRACT
Environment Sustainability is vital for every economy in the
world. Companies are considered to be the main players creating
environmental and social problems, and thus to be the source of
a lack of sustainability in society. This article focuses on how the
first generation entrepreneurs can contribute towards environment
sustainability. The article aims to analyse the potential of
environmentally conscious entrepreneurs, called Ecopreneurs, to
encourage more startups that would create environmental technologies
needed to address our environmental problem. The article also aims
to examine how ecopreneurs can create an economically viable
business. It also discusses how first generation entrepreneurs can
promote ecopreneurial behaviour. The article is based on Primary and
Secondary data. It aims at developing a model for the first generation
ecopreneurs through ISM Structural Modeling.
Keywords: Ecopreneurs, First Generation Entrepreneurs,
Sustainability, Interpretive Structural Modeling
*
Symbiosis Centre for Management Studies, Symbiosis International
University, Pune
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 1–13
2  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Introduction
There is a growing concern toward more sustainability in our society.
s a consequence, more and more entrepreneurs are entering into that
field (Choi and Gray, 2008). Environmental business management has
focused its attention on why and how the existing firms can become
greener. However, the field of green management has begun to broaden
its arena, and recently there has been a growing recognition of the
importance of linking sustainability and innovation, the role of small
and medium enterprises, the importance of sustainability in strategic
business development, and green practices in industries. The adoption of
environmentally responsible business practices will open up an additional
range of opportunities for entrepreneurs. The move to a sustainable business
framework provides numerous niches which enterprising individuals can
identify. This includes the development of new products and services,
improving the efficiency of existing firms, new methods of marketing,
re-configuring existing business models and practices. Ecopreneurship is
not only important because it provides new opportunities for the first
movers who identify and exploit such opportunities, but also because it
has the potential to be a major force in the overall transition to a more
sustainable business paradigm.
Ecopreneurship is a combination of two words, ‘ecological’ and
‘entrepreneurship’. Thus, it can be defined as entrepreneurship through
an environmental lens. For a company to have a positive environmental
influence, a real improvement can be created only if the production
processes, products, and services are environmentally superior. Ideally,
Ecopreneurship pulls the whole market towards environmental progress.
Ecopreneurs strive for business success through environmental solutions
for the mass market.
Environmental issues are of low priority for companies that are located in
the lower right hand, and consider environmental protection as a trustee
duty. Companies that are located in the middle consider environmental
goals as supplementary to the business attempt to pilot and control
environmental impacts in an efficient manner, and companies located in
the upper right hand treat environmental issues as central to their core
business.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 3
Figure 1: Business Continuum: Relation Between Priority Given to
Environmental Issues as Business Goals and Market Effect of Business
Source: Schaltegger and Petersen, 2001:10
The green entrepreneur’s activities have an overall positive impact on
the natural environment and they move towards a more sustainable
future. All their business is structured and operated in such a way that
every component has a neutral or positive impact on the environment.
Environmental and social entrepreneurs, or ecopreneurs, lead socially
committed, break-through ventures that are driven by environmental,
social and economic goals.
Objectives of the Study
•
To find out the key factors for first generation entrepreneurs through
Ecopreneurship.
•
To develop a model to identify the relation among the success factors
for first generation entrepreneurs through Ecopreneurship through
Interpretive Structural Modeling (ISM).
•
To examine how ecopreneurs can create an economically viable
business.
Literature Review
A strong link is identified between entrepreneurialism and environmentalism.
The success of the Green-Works business model stems from the business’
symbiotic relationships: first with large corporate bodies, which are keen
to quantify their Corporate Social responsibility (CSR) efforts; second,
with the community and social partners, who provide employment and
4  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
training for disadvantaged people and a route to relatively risk free growth;
and third, with the government and social institutions, which provide
special concessions and support. The strong economic foundations of the
model provide sustainability for the environmental and social objectives
of the organisation (Dixon and Clifford, 2007).
Environmentalism can be understood only in terms of attitudes; it cannot
be subsumed into, or understood in purely economic terms because of
the power of the moral dimension. Entrepreneurship is primarily an
individualistic economic action, but it too can be driven by moral attitudes
(Anderson, 1998).
It’s important to give Ecopreneurship serious consideration because we
are rapidly losing our natural resources—the true capital of any nation.
In the past decades, economic growth has been the only measure of the
nation’s progress (Joshi, TOI).
Ecopreneurship is also important because eco-innovations will be the
future competitive advantage of companies and countries. They argued
that if companies and countries want to be successful in the international
market, they cannot rely on having low cost as their competitive advantage,
but rather on new and innovative environmental technologies, services
and processes which will be the more important sources of competitive
advantage. The long-term sustainability of our economic system does not
depend only on quantitative growth, but also on the ecological aspects of
the growth and sustainable development (Klimova and Zitek, 2011, p. 2).
The world population is expected to increase by 50 per cent by 2050, and
with it will come an increase in consumption (World Business Council
for Sustainable Development, 2002). Although part of this consumption
is important for relieving poverty in many emerging countries, most
it will be done by affluent consumers and can have a negative impact
on the ecosystems (Volery, 2002, p. 542). Ecopreneurship is therefore
important to find the new technologies to protect the environment, and
to ensure that there are enough resources to fill the needs of both the
current population and future generations (Volery, 2002). Biodiversity
loss also justifies entrepreneurial action to solve environmental problems.
The entrepreneur’s perception on Information Technology Innovation
Adoption plays an important role of precipitating events on usage
behaviour (S. Moghavvemi).
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 5
In a market system, sustainable development requires sustainability
innovation, and entrepreneurs who can achieve environmental or social
goals with superior products or processes that are successful in the
marketplace of mainstream customers, contribute to solving environmental
problem and creating economic value. They generate new products,
services, techniques and organisational modes which substantially reduce
environmental impacts and increase the quality of life (Schaltegger and
Wagner).
Table 1: ISM Reference Table based on Literature Review
S.
Factors
Variables
Reference
No.
1. Green Work Business
V1
Sarah E.A. Dixon, Kingston Business
Model
School, Kingston upon Thames, UK.
Anne Clifford, Kingston Business School,
Kingston upon Thames, UK.
2.
3.
4.
5.
Moral
Dimensions and
Environmentalism*
(*Environmentalism
is an ideology based
on reaction to the
excessive of industrial
modernity)
Economic Growth
Eco Innovations
and Long Term
Sustainability
Technology
Development and
Environmental
Management
V2
Venus Talwar and Kavita Puri.
Cultivating the Garden of Eden:
Environmental Entrepreneuring, Article
citation: Alistair R. Anderson, (1998),
‘Cultivating the Garden of Eden:
environmental entrepreneuring’, Journal
of Organisational Change Management,
vol. 11 Iss: 2, pp. 135–44.
V3
V4
Anil P. Joshi, Times of India.
Klimova and Zlek, 2011.
V5
Stephen, University of Luneburg, Germany.
Factors influencing Japanese entrepreneurs
in high-technology ventures – Dennis M.
Ray, Domnique v. Turpin.
The Entrepreneur’s Perception on
Information Technology Innovation
Adoption: An Empirical Analysis of the
Role of Precipitating Events on Usage
Behaviour
– S. Moghavvemi.
6  Annual Research Journal of SCMS, Pune
S.
Factors
No.
6. Social Responsibility
Vol. 2, Issue 1, March 2014
Variables
Reference
V6
Sarah E.A. Dixon, Kingston Business
School, Kingston upon Thames, UK.
Anne Clifford, Kingston Business School,
Kingston upon Thames, UK.
7.
8
Government and
Social Institutions
Economic Value
V7
V8
Sarah E.A. Dixon, Kingston Business
School, Kingston upon Thames, UK.
Anne Clifford, Kingston Business School,
Kingston upon Thames, UK.
Stefan Schaltegger and Marcus Wagner.
Interpretive Structural Modeling
Interpretive Structural Modeling (ISM) enables the individual or a group
to manage the interrelations between two or more elements at a time
without compromising and deviating from the actual properties of the
original elements/issues (Morgado et al., 1999). ISM provides a framework
for delineation of a hierarchy amongst variables, influencers or elements
of any project under consideration (Warfield, 1974; Sage, 1977). This
kind of modeling is seen as a useful tool that helps logical thinking and
carefully approaching complex issues, and then communicating the results
of that thinking to others. The term ‘interpretive structural modeling’
(ISM) connotes systematic application of elementary notions of graph
theory in such a way that theoretical, conceptual, and computation
leverage is exploited to efficiently construct a directed graph, or network
representation, of the complex pattern of a contextual relationship among
a set of elements (Malone, 1975). ISM is much more flexible than many
conventional quantitative modeling approaches that require variables to
be measured on ratio scales. It offers a qualitative modeling language for
structuring complexitym and thinking on an issue by building an agreed
structural model (Morgado et al., 1999). ISM as a tool is interpretive
because it is based on interpretation and judgement of group members
on whether and how elements are related, and it is structural as it extracts
the overall hierarchy from a complex set of variables. It has a mathematical
foundation, philosophical basis, and a conceptual and analytical.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 7
Methodology
Details of various steps involved in ISM are as follows:
1. Identify and list elements/variables relevant to the factors for successful
Ecopreneurship under consideration, through a literature review.
2. Use ISM literature review and pilot survey to find the key factors for
success of first generation entrepreneurs.
3. Develop a Structural Self Interaction Matrix (SSIM) for variables,
indicating pair-wise relationships among variables being studied.
4. Convert the SSIM developed into a reachability matrix.
5. Test the reachability matrix for transitivity (if A depends on B and
B depends on C, then by principle of transitivity, A depends on C),
make modifications to satisfy the transitivity requirements, and derive
the final reachability matrix.
6. Delineate levels by iterative partitioning of the final reachability matrix.
7. Translate the relationships of reachability matrix into a diagraph and
convert it into an ISM.
8. Review the model for conceptual inconsistencies and make
modifications in SSIM, if necessary.
Structural Self Interaction Matrix (SSIM)
For development of Structural Self interaction Matrix (SSIM), ISM
methodology suggests that experts’ views are used for defining contextual
relationship among variables, in line with objectives of the study. In
this research, an entire list of success factors for the first generation
entrepreneurs through Ecopreneurship, identified from the literature
review, was presented to a group of participants. The group was explained
the background of study and was asked to deliberate whether the list of
eleven barriers/hurdles and eleven enablers/drivers adequately covered
all factors influencing m-banking, or there was a need to include any
other factor(s). Four symbols were used to denote the type and direction
of relationship between a pair of barriers, ‘i’ and ‘j’ (referring to serial
number of a barrier in row and column respectively).
8  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 2: Structural Self Interaction Matrix (SSIM)
i
V1
V2
V3
V4
V5
V6
V7
V8
j
V8
V7
V6
V5
V4
V3
V2
V
V
X
X
X
A
O
A
A
X
X
A
X
V
X
A
A
O
X
A
X
X
X
X
X
V
V
X
V1
The following four symbols are used to denote the direction of relationship
between the two factors (i andJ). The following four possibilities are
considered for making SSIM as shown in Table 2.
Table 2
Reachability Matrix
SSIM developed from contextual relationships were converted into binary
matrices called Initial Reachability Matrices, by replacing V, A, X and
O by a combination of 1s and 0s in accordance with the VAXO rules.
If entry (i, j) in SSIM = ‘V’, enter element (i, j) as ‘1’ and (j, i) as ‘0’ in
initial reachability matrix (Table 3).
Vol. 2, Issue 1, March 2014
 9
Annual Research Journal of SCMS, Pune
If entry (i, j) in SSIM = ‘A’, enter element (i, j) as ‘0’ and (j. i) as ‘1’ in
initial reachability matrix If entry (i, j) in SSIM = ‘X’, enter element (i, j)
as ‘1’ and (j. i) as ‘1’ in initial reachability matrix If entry (i, j) in SSIM =
‘O’, enter element (i, j) as ‘0’ and (j. i) as ‘0’ in initial reachability matrix
Table 3: Reachability Matrix
i
V1
V2
V3
V4
V5
V6
V7
V8
Dependent
Variable
j
V1
1
1
0
1
1
0
1
0
5
V2
1
1
0
1
1
1
1
0
6
V3
1
1
1
1
1
1
1
1
8
V4
1
1
1
1
1
1
1
1
8
V5
1
0
1
1
1
0
1
1
6
V6
1
1
0
0
0
1
1
1
5
V7
0
0
1
1
0
1
1
0
4
V8
1
1
1
1
1
0
0
1
6
Driving
Variables
7
6
5
7
6
5
7
5
Level Partitioning
Table 4: Level Partitioning, Level 1 – V4, V5
i
V1
V2
V3
V4
V5
V6
V7
V8
Reachability Set
1,2,3,4,5,6,8
1,2,3,4,6,8
3,4,5,7,8
1,2,3,4,5,7,8
1,2,3,4,5,8
2,3,4,6,7
1,2,3,4,5,6,7
3,4,5,6,8
j
Antecedent Set
1,2,4,5,7
1,2,4,5,6,7
1,2,3,4,5,6,7,8
1,2,3,4,5,6,7,8
1,3,4,5,7,8
1,2,6,7,8
3,4,6,7
1,2,3,4,5,8
Level
RS ∩ AS
1,2,4,5
1,2,4,6
3,4,5,7,8
1,2,3,4,5,7,8
1,3,4,5,8
2,6
3,4,6,7
3,4,5,8
Level 1
Level 1
Final reachability matrix obtained after incorporating transitivity
requirements is used for level partitioning (Table 4). It involves comparing
the ‘reachability’ and ‘antecedent’ sets of variables, and delineating levels
on the basis of intersection sets. It leads to a reachability set for a variable
by considering the variable itself and other set of variables that cause an
10  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
impact, whereas the antecedent set comprises the variable and a set of all
those variables that have an impact on the primary variable. The hierarchy
in ISM is decided by the level of similarity in reachability and intersection
sets (Tables 5 to 8). These variables would not impact any other variables.
Table 5: Iteration Table Level 2 – V3, V8
i
V1
V2
V3
V4
V5
V6
V7
V8
Reachability Set
1,2,3, 6,8
1,2,3,6,8
3, 7,8
1,2,3,7,8
1,2,3, 8
2,3,6,7
1,2,3, 6,7
3, 6,8
j
Antecedent Set
1,2, 7
1,2, 6,7
1,2,3, 6,7,8
1,2,3, 6,7,8
1,3, 7,8
1,2,6,7,8
3,6,7
1,2,3, 8
Level
RS ∩ AS
1,2
1,2,6
3,7,8
1,2,3, 7,8
1,3, 8
2,6
3,6,7
3, 8
Level 2
Level 2
Table 6: Iteration Table Level 3 – V1
i
V1
V2
V3
V4
V5
V6
V7
V8
Reachability Set
1,2,6
1,2,6
7
1,2,7
1,2
2,6,7
1,2,6,7
6
j
Antecedent Set
1,2, 7
1,2, 6,7
1,2,6,7
1,2, 6,7
1,7
1,2,6,7
6,7
1,2
RS ∩ AS
1,2
1,2,6
7
1,2,7
1
2,6
6,7
Level
Level 3
Table 7: Iteration Table Level 4 – V2
i
V1
V2
V3
V4
V5
V6
V7
V8
Reachability Set
2,6
2,6
7
2,7
2
2,6,7
2,6,7
6
j
Antecedent Set
2, 7
2, 6,7
2,6,7
2, 6,7
7
2,6,7
6,7
2
RS ∩ AS
2
2,6
7
2,7
2,6
6,7
Level
Level 4
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 11
Table 8: Iteration Table Level 5 – V6, V7
i
V1
V2
V3
V4
V5
V6
V7
V8
Reachability Set
6
6
7
7
6,7
6,7
6
j
Antecedent Set
7
6,7
6,7
6,7
7
6,7
6,7
Level
RS ∩ AS
6
7
7
6
6,7
Level 5
Level 5
Building up the ISM
After partitioning the levels, relationships between various factors are
depicted by drawing a node for each variable, and connecting those nodes
by arrows as per the direction of relationship. The diagraph is examined
and validated for transitivity, which is clearly described in methodology,
and it is then converted into an ISM model (Figure 2).
Figure 2: ISM Model for Success Factors for First Generation
Entrepreneurs through Ecopreneurship
12  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
The model shows the success key factors for the first generation of
entrepreneurs. Different levels were found as per their importance for
ecopreneurship. The most important variable for ecopreneurship is eco
innovation and long term sustainabilty, and technology development
and environment. There is a positive and two-way correlation between
economic innovation and economic growth; similar correlation exists
between technology development and environment with economic value.
All these four variables affect each other to a great extent. A green work
business model would come up with the four variables stated above. The
least important variables for ecopreneurship are social responsibility, and
government and institutional support. But these two variables are strongly
linked to modern drivers and environmentalism which again are correlated
both the ways with Green Work Business Model.
Conclusion
A strong link is identified between entrepreneurialism and
environmentalism. The field of Ecopreneurship is still in its infancy, but
the number of ecopreneurs is growing. There is also a solid theoretical
rationale for Ecopreneurship. Both the Schumpeterian and the Ecological
Modernisation theories clearly explain why Ecopreneurship is one of the
best solutions for environmental problems. Green businesses are models
that can help show the way to increase productivity while reducing
resource use in a manner that is harmonious with human health, and
the sustainability of non-human species as well. Green start-ups make it
easier to ‘fix’environmental components and processes from the outset.
References
Schaltegger, Stefan, A Framework for Ecopreneurship Leading Bioneers and
Environmental Managers to Ecopreneurship, Germany: University of Luneburg.
Dixon, Sarah E.A., Anne Clifford, ‘Ecopreneurship – A New Approach to Managing
the Triple Bottom Line’, Journal of Organisational Change Management, vol.
20, no. 3, 2007.
Bennett, S., Ecopreneurship: The Complete Guide to Small Business Opportunities
from the Environmental Revolution.
Berle, G., The Green Entrepreneur: Business Opportunities that can Save the Earth and
Make You Money, Blue Ridge Summit, PA: Liberty Hall Press, 1991.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 13
Talwar, Venus and Kavita Puri, ‘Ecopreneurs: The New Trend for Entrepreneurs’,
IJRFM, vol. 3, no. 2 (ISSN 2231-5985), March 2013.
Anderson, Alistair R., ‘Cultivating the Garden of Eden: Environmental
Entrepreneuring’, Journal of Organisational Change Management, vol. 11, no.
2, 1998.
Ray, Dennis M., Domnique v. Turpin, ‘Factors Influencing Japanese Entrepreneurs
in High-Technology Ventures’.
Moghavemmi S., ‘The Entrepreneur’s Perception on Information Technology
Innovation Adoption: An Empirical Analysis of the Role of Precipitating
Events on Usage Behaviour’.
Schaltegger, Stefan and Marcus Wagner, ‘Sustainable entrepreneurship and
sustainability innovation: categories and interactions’.
Schaper, Michael, ‘Understanding the Green Entrepreneur’.
Isaak, R. ‘Green Logic: Ecopreneurship, Theory and Ethics’, Greenleaf Publishing;
WestHartford, CT: Kumarian Press), 1998.
, ‘The Making of the Ecopreneur’, Pace University.
Developing Family Business Members
as Family Business Managers – With
Reference to the Role of Education
and Training on Development of
Family Managed Businesses in India
Hasina Sayed*, Rakhi Sharma* and Ratnesh Desai**
ABSTRACT
This article examines the cause and effect relationship between
education and job related training with development of Family
Managed Business.
Family Managed Businesses have been recognised for the
contribution they have made and will continue to make towards
the growth of the Indian economy. There is greater realisation of
the need for planning the induction of new family members bearing
cognisance of their individual aspirations, ability and knowledge,
and the perceived impact on the business.
Findings indicate that the influence of education and training on
development of Family Managed Business was noticeable, and reflected
in the expansion and diversification of Family Managed Businesses
in India, and that family members take longer to come into business
after professional education and sometimes working in other firms.
Keywords: Family Managed Business, Education, Training,
Development, Related Business Areas, Unrelated Business Areas
* Department of Commerce, Jai Hind College, Churchgate, Mumbai
** Evolve (Entrepreneur), Evolve. Name of Start up-Evolve.
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 14–27
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 15
Introduction
The Indian and the world economy are dominated by family owned
businesses, which generate most of the economic output and wealth of
a nation.
According to Boston Consulting Group, ‘more than 30% of all companies
worldwide are Family Managed Businesses accounting for sales in excess
of $1 billion.’
India is home to the largest number of family businesses, accounting for
67 per cent of all listed companies, a 2011 Credit Suisse study has said.
‘A family business is a business in which one or more members of one
or more families have a significant ownership interest and significant
commitments towards the business overall well-being.’
Family businesses are the lifeline of India’s economy and the rest of
the business community are largely dependent on them. Non-family
corporations collaborate with family firms on various levels. While
family owned companies are often strong competitors, they have
vulnerabilities that need to be managed, and are often accused of lack of
professionalism and mismanagement. A vast majority of family managed
businesses (FMBs) experience difficulties like moving from one person
general management to an institutionalised competence that results into
competitive fitness across generations.
Significance of the Study
Family Managed Businesses in India view the need to continually innovate
as a key challenge. Innovation is critical to maintain their relevance in
the changing business environment. In order to innovate, they need to
combine their new strategies to broader business goals.
Technological advancements are redefining business models, strategies and
the changing industry dynamics. Family businesses are acutely aware of
the risks their business face if they are unable to either adapt to the new
technological advancements or bring in new technologies to enhance the
quality of products and services.
The challenge before the owner of the family business is to develop
the next generation leaders who have the wisdom to understand the
16  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
complexities of the globalised world, have sound knowledge of several
fields that is essential to successfully manage a business, and also have
acumen to manage competition for the benefit of all stakeholders.
Companies feel the need to constantly keep up with the fast paced strides
technology is taking in turning the older business models obsolete, and
therefore the need to invest time and resources in getting their successors
educated and trained in their family business.
Despite not being suitably qualified in education, experience or
understanding the business, offspring may ascend to leadership positions
because of the family connection, increasing the chances that business
will fail.
This study will help to measure the cause and effect relationship of
education and business related training on the development of the FMB
in related and unrelated business areas.
This study would also serve as informative experiences guiding the
founders of the family business to make sustained and conscious efforts to
increase physical and cognitive diversity among leaders based on education,
industry experience and training, while retaining the tradition, culture
and history of the family business which is inspiring and enabling.
The researchers are sure that if the findings and suggestions given
are examined along with adequate emphasis and effort to promote
professionalism in FMBs through education and training, this will lead
to their increased competitiveness and development.
Objectives of the Study
•
To determine whether formal/professional education is necessary for
the success of FMBs in related and unrelated business areas in India.
•
To highlight the benefits of business related training on the
development of FMBs in India.
•
To develop usefulness of this study to the founders/owners of family
businesses who wish to bring professionalism in the management
while retaining the family culture and business ethos.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 17
Scope of the Study
It is viewed that FMBs are the real engines for economic growth of a
nation, and education and job skills are instrumental in equipping FMB
owners to handle succession planning, bringing in professionalism and
better awareness of governance practices.
Educational opportunity will prove a major stepping stone in the career
path of young leaders of family businesses who want to upscale the
existing operations. With Indian business families turning their ventures
into huge global firms, exposure to high quality business processes and
management training (studies) will therefore be extremely useful for the
Indian Family Businesses going forward.
The study aims at understanding the efficiency of linkages between
educational qualification and professional job related training to the
expansion and diversification of FMBs in India.
The dogging of their personal variables (education and training) in
relation to their entrepreneurial performance would help in defining
certain important business traits, which in turn could be improved upon
in the present day family business owners or can be transmitted to new
and prospective ones through teaching and training media.
The identification of these constraints at entrepreneurial level and its
relationship with the development of their family business would help
find remedial measures and lead to overall development of FMBs in India.
Hypothesis
Professional qualification and job related training does not play a
significant role in the development of FMBs in the related business
areas only.
Research Methodology
Primary Data
The study was purposively carried out on owners/founders of 70 micro-,
small- and medium-sized FMB units in India.
18  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
A structured blend of open and close-ended questionnaire format was
used to collect data from the respondents which was analysed by the
administration of the Chi-Square Test.
The questionnaire basically covers five key characteristics which are further
classified under various categories:
1. Type of Enterprise–Micro, small or medium, based on the investment.
2. Number of family members involved in the business, with their
qualification, training, and the year of joining the business.
3. Information regarding the business development where the options
are classified into related areas and unrelated areas. Related areas refer
to the development of the existing business in the form of expansion,
i.e. open another location, target other markets, expand to internet,
etc. Unrelated areas refer to development of the business in the form
of diversification, i.e. acquire another business, export other’s products
and so on. The respondents were asked to provide information since
the inception of the family business, year of business development if
any, and the family members joining the business.
4. Information regarding the role of education, formal business training
and skill-related training also collected, tabulated and analysed.
The responses to the questions were administered to the Chi-Square
Test by the researchers and analysis derived. Wherever possible, graphical
presentation techniques were also considered to focus on the on-going
study.
Secondary Data
Relevant secondary data is also considered in the form of references from
books, articles in journals, periodicals and magazines. The use of online
resources was also made to seek current relevant information required in
the research study.
Sampling Frame
An attempt is made to develop a sampling frame in which simple corelations are established which are shown in Figure 1.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
Independent Variables
Dependent Variables
1. Educational qualification.
1. Expansion of business
2. Business related training
 19
————→ 2. Diversification of business
3. Professionalism in Business
4. Managerial ability
Figure 1
Limitation of the Study
The open ended questionnaire format required some subjective
interpretations by the researchers.
Data Analysis and Interpretation
Quantum of Turnover of the Respondents of the Study
Interpretation
The pie-chart in Figure 2 indicates that amongst 70 respondent companies,
27.6 per cent belong to manufacturing sector, 34.5 per cent to trading
sector, 24.1 per cent to service sector, 6.89 per cent to manufacturing
and trading sector, and again 6.89 per cent identified themselves to other
categories. (The figures have been rounded off to the second decimal
which give an error of −0.02 per cent.)
Type of Enterprise (%)
Figure 2: Type of Enterprise
20  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Number of Employees
Interpretation: Table 1 indicates that there are 26 companies that have
0–10 employees, eight companies that have 11–20 employees, four
companies that have 21–30 employees, seven companies that have 31–40
employees, six companies that have 41–50 employees, two companies that
have 51–60 employees, three companies that have 61–70 employees, again
three companies that have 71–75 employees, and six companies have 75
and above employees.
Table 1: Number of Employees
Nu m b e r o f 0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-75 75 and Total
Employees
Above
Nu m b e r o f 26
8
4
7
6
2
3
3
6
70
Companies
Importance of Education
Interpretation: The pie chart in Figure 3 indicates that amongst the 70
respondent FMBs there are 62 FMB which consider education important
for business growth and replied ‘Yes’, five companies which replied ‘No’
and three companies were uncertain and responded ‘Unsure’.
Is Education Important for Business Growth?
(Responses of companies out of 70)
Figure 3: Importance of Education
Interpretation: The pie chart in Figure 4 indicates that amongst the 70
respondent FMBs there are 61 FMBs which consider that education does
improve management and replied ‘Yes’, 8 FMBs which replied ‘No’, and
1 FMB was uncertain and responded ‘Unsure’.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
Has Education Improved Management?
(Responses
of Companies
out of 70)
Has Education
Improved Management?
 21
(Responsesof Companies out of 70)
8
1
Yes
61
No
Not Sure
Figure 4: Improvement of Management Through Education
Interpretation: The pie chart in Figure 5 indicates that amongst the
70 respondent FMBs there are 32 FMBs which consider that education
‘Moderately’ strengthens preparation as an entrepreneur, 36 FMBs which
replied ‘Completely’, and 2 were uncertain and responded ‘Unsure’.
Does Education Add Strength to the Prepartion as an Entrepreneur?
(Responses of Companies out of 70)
Figure 5: Role of Education in Preparing an Entrepreneur
Interpretation: The bar-diagram in Figure 6 indicates that amongst the
70 respondent FMBs there are 57 which consider only formal education
is sufficient and replied ‘Yes’, 10 replied ‘No’, whereas 3 were uncertain
and responded ‘Unsure’.
22  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Responses Regarding Training and Education
(Responses outof 70 Companies)
Figure 6: Training and Education
However, again, amongst the 70 respondents there are 35 who replied
‘Yes’ to have received business courses, 31 respondent which replied ‘No’,
and 4 did not specify and hence categorised under ‘Unsure’.
Further, amongst the 70 respondent FMBs there are 63 FMBs which
consider training as helpful in business growth and replied ‘Yes’, 3 FMBs
which replied ‘No’ and 4 FMBs did not specify and hence categorised
under ‘Unsure’.
Similarly, amongst the 70 respondent FMBs there are 61 FMBs which
consider that training bridges gap between theory and empirical inquiry
and replied ‘Yes’, 5 FMBs which replied ‘No’, and 4 FMBs did not specify
and hence categorised under ‘Unsure’.
Interpretation: The pie chart in Figure 7 indicates that amongst the 70
respondent FMBs there are 60 FMBs which consider that skill related
training helps in business growth and replied ‘Yes’, 6 FMBs which replied
‘No’, and 4 FMBs were uncertain and responded ‘Unsure’.
Does Skill Related Training Help Business Growth?
(Responses out of 70 Companies)
Figure 7: Training and Business Growth
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 23
Interpretation: The pie chart in Figure 8 indicates that amongst the
70 respondent FMBs there are 37 FMBs which consider that education
‘Moderately’ develops confidence and ability to cope stress, 37 FMBs
which replied ‘Completely’ and 1 FMB was uncertain and responded
‘Unsure’.
Does Education Develop Confidence and Ability to Cope Stress?
(Responses of companies out of 70)
Figure 8: Education and Ability to Cope Stress
Framework of Analysis
In order to examine the relationship between professional qualification and
job related training in the development of FMBs in related and unrelated
areas, the Chi-Square test is applied. The Chi-Square value is calculated
by adopting the following formula:
(O-E) ²
χ² = SUM ————
E
With (r−1) (c−1) degrees of freedom
Where,
O = Observed frequency
E = Expected frequency
Row Total × Column Total
E = ———————————
Grand Total
c = Number of columns
r = Number of rows
24  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 2
Professional qualifications
and job training received
Related
Areas
18
Unrelated
Areas
7
Both (Related and
Unrelated Areas)
20
Total
15
5
5
25
33
12
25
70
Professional qualifications
and job training not received
Total
45
Table 3
O (Observed)
18
7
20
15
5
5
E (Expected)
21.21428571
7.714285714
16.07142857
11.78571429
4.285714286
8.928571429
O−E
−3.214285714
−0.714285714
3.928571429
3.214285714
0.714285714
−3.928571429
(O−E)²
10.33163
0.510204
15.43367
10.33163
0.510204
15.43367
χ² = 4.23771
χ²
0.487013
0.066138
0.960317
0.876623
0.119048
1.728571
4.23771
χ² (0.05, 2) = 5.9991 (Table Value)
In this study, the hypothesis formulated was that the professional
qualification and job related training does not play a significant role in
the development of FMBs in the related business areas only.
The calculated value of Chi-Square was compared with the table value
of Chi-Square for the given degrees of freedom at 5 per cent level of
significance.
χ² (calculated value) is less than χ² (table value) − the hypothesis is
accepted.
Findings of the Study
1. As per the Chi-Square test, professional qualification and job related
training plays a significant role in the development of FMBs not only
in related areas (expansion) but also in unrelated areas (diversification)
of business.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 25
2. The research findings prove that the percentage of family business
owners venturing into development of their business in unrelated areas
is significantly higher than those who have not received professional
education and training.
3. As per the research analysis, it is proved that professional know-how
and job training helps the family business owners to identify business
opportunities in areas different from their existing business and makes
them prepared to meet global challenges and competition.
4. On analysing the cause and effect relationship and the linkage between
education and job related training with the development of FMB in
India, it was found that despite diverse sectors including manufacturing,
trading, services and others, there was a marked similarity in their
approach towards earning education and receiving training for the
development of their family businesses.
5. The sample respondents were of the thought that while education added
strength to their preparation as an entrepreneur, developed confidence
in them and broadened their horizon, it did not help in developing
their sense of initiative, whereas training developed in them business
acumen, enhanced management skills and created additional value to
their family business.
Recommendations
Receiving professional education by the succeeding generation of FMB
will increase the job preparedness of the entrepreneurs, create experiences
in them that would enable development of insight needed to discover
and create entrepreneurial opportunities and the expertise to successfully
manage their own business and to take advantage of these opportunities,
whereas job-related training will aid in furthering business professionalism,
cultivate global thinking, and make existing successful business even more
competitive.
Scope for Further Study
‘A good research is the one that can pave way for another research.’
26  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
This study opens up fresh areas of research such as:
• Entrepreneurship Education – its need for FMB
• Classroom learning v/s on-the-job training for family business Owners
• Balancing past and future – staying true to the core values of the family
business group
• Culture v/s Professionalism – requirements for development of FMB.
• The limited role of women in FMB
Conclusion
It is desirable to come from learned, successful entrepreneurial parents,
but it is also beneficial to gain work experience and adequate education.
This scenario will substantially enhance the probability of success. So,
many factors are unrelated to genetics and support the counter paradigm
that ‘Entrepreneurs are often made, not born.’
References
Swedberg, Richard, Entrepreneurship–The Social Science View. Oxford University
Press, 2000.
Kumar, Nirmalya, India’s Global Powerhouses (How they are Taking on the World),
Boston, Massachusetts: Harvard Business Press, 2004.
Kachaner, Stalk and Bloch, ‘What You can Learn from Family Business’, Harvard
Business Review, Nov. 2012.
Malhotra, Naresh K. Marketing Research − An Applied Orientation, Pearson Education,
2004, pp. 75−7, 434−45.
Berenson, Levine Krehbeil, Business Statistics − A First Course, Pearson Education,
2004, pp. 401−5.
Garavan, Thomas N. and Barra O’Cinneide, ‘Entrepreneurship Education and
Training Programmes: A Review and Evaluation − Part 1’, Journal of European
Industrial Training.
Sexton, D.L. and N.B. Bowman, ‘Entrepreneurship Education−Suggestions for
Increasing Effectiveness’, Journal of Small Business Management, vol. 22, no. 2,
April 1984.
Chakrabarty, S., ‘The Influence of National Culture and Institutional Voids on
Family Ownership of Large Firms: A Country Level Empirical Study’. Journal
of International Management, vol. 15, no. 1, 2009.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 27
Sabharwal, Manish, The Entrepreneur, Network 18 Publishing, vol. 4, no. 11, July
2013, p. 18.
http://www.pwc.in/en_in/in/assets/pdfs/family-business-survey/family-businesssurvey-2013.pdf
http://articles.economictimes.indiatimes.com/2013-06-09/news/39834857_1_smesworkforce-small-and-medium-enterprisesSMEs employ close to 40% of India’s
workforce, but contribute only 17% to GDP
http://www.rbi.org.in/scripts/FAQView.aspx?Id=84
http://iveybusinessjournal.com/topics/strategy/three-strategies-for-achieving-andsustaining-growth
http://www.encubeindia.com/downloads/indian_family_businesses.pdf
Using Morphological Analysis
for Innovation and Resource and
Development: An Invaluable
Tool for Entrepreneurship
K. Gopalakrishnan* and V. Vijayalakshmi**
ABSTRACT
Innovation is a key value creator for organisations. It is perceived
to be a key driver of growth (through introduction of new products
and services) and efficiency (through process improvements) in
organisations. In times of intense competition, an organisation’s success
depends on its ability to continuously innovate faster and better.
Morphological analysis is an invaluable tool for organisations to
achieve breakthrough innovations and indulge in continuous research
and development. Morphological analysis helps capture the ‘form’ and
‘structure’ of entities (both physical and conceptual) and serve multiple
purposes. For an entrepreneur or a product manager, it facilitates
new product development by highlighting gaps in existing products,
thereby aiding in identifying new market opportunities. It can also
be used as a learning tool by academicians/researchers to teach new
concepts and identify research gaps. This paper introduces the basic
concepts of Morphological Analysis, and elaborates the same through
relevant examples. It is hoped that it would aid organisations and
entrepreneurs to improve their competitive advantage by leveraging
morphological tools.
* Cognizant Technology Solutions, Chennai
** Department of Management Studies, Indian Institute of Technology Madras, Chennai
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 28–36
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 29
Keywords: Morphological Analysis, Entrepreneurship, Innovation,
Research and Development
Introduction
The key to sustained competitive advantage for an organisation, in times
of intense competition, is its ability to innovate continuously. Innovation
not only helps organisations differentiate their products and services
in the market place, but also acts as a key driver of growth for them.
Innovation is commonly defined as the process through which a creative
idea is implemented (in many cases, commercialised) for organisational
benefit (Utterback and Habernathy, 1975). Today, many organisations
have dedicated teams for Innovation, Research and Development (R&D),
and New Product Development to ensure that they continuously develop
and launch innovative products and services, thereby sustaining their
competitive advantage. To this effect, organisations employ a variety
of tools to aid innovation and R&D. Morphological Analysis (MA)
is one such tool. The concept of MA was developed by Fritz Zwicky
(1967, 1969) as a method for structuring and investigating the total
set of relationships contained in multi-dimensional, non-quantifiable,
problem complexes. Zwicky applied this method to diverse fields, such
as the classification of astrophysical objects, jet and rocket propulsion
systems, and legal aspects of space travel. He also founded the Society
for Morphological Research. Since then MA has been applied to several
fields of enquiry by researchers including policy analysis, future studies,
and organisational studies (Ritchey, 2002). MA is a method for rigorously
structuring and investigating the internal properties of inherently nonquantifiable problems which contain any number of disparate parameters.
It compels practitioners to examine a number of configurations and
solutions (Ritchey, 2002).
The term ‘morphology’ comes from the Greek word morphe meaning
shape or form. Thus, the general definition of morphology is the ‘study
of form or pattern’, i.e. the shape and arrangement of parts of an object,
and how these relate to create a whole. Objects can be either physical
(organisms, products, etc.) or conceptual (ideas, concepts, linguistic forms,
etc.). MA has been used heavily in science based subjects such as botany,
geology, and zoology. It was Zwicky (1967) who first proposed a general
30  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
model of morphology and advocated the use of MA to analyse abstract
ideas, concepts and phenomena. In this paper, the strengths of MA is
presented through some examples, and it is hoped that it will motivate
entrepreneurs, researchers, academicians and students to utilise MA as a
tool for innovation and learning.
Morphological Analysis
As mentioned earlier, morphological frameworks are powerful in
representing the anatomies of entities – both physical and conceptual.
Morphological frameworks consist of two components: (1) the dimensions
of the entities; and (2) the options of the dimensions. These dimensions
and options completely represent the form and structure of the entities.
The steps to be followed in developing a morphological framework as
recommend by Zwicky (1967) are underlined in Table 1. These steps are
more relevant for organisations wanting to use MA for problem solving
or developing new products/services.
Table 1: Steps in Morphological Analysis
Step
One
Two
Tasks
Formulate the problem to be solved (e.g. designing a new product or feature)
Identify all the parameters/dimensions and corresponding variants/options
of the key entity in focus
Three Construct the morphological framework by mapping the dimensions (and
sub-dimensions if any) and the corresponding options of the entity
Four Scrutinise and evaluate all the options available in the morphological
framework
Five Choose the best option that solves the problem that was formulated in
step one
The power of MA is explained by presenting morphological frameworks
for toothbrush, pen, and innovation in the following sections.
Morphology of a Toothbrush
As a first example, the MA of a toothbrush is discussed. The basic
dimensions of toothbrush include body, neck, head, and bristles (Figure 1).
Based on this, a basic morphological framework of a toothbrush is
presented in Table 2. The dimensions and corresponding options of the
Vol. 2, Issue 1, March 2014
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various dimensions of a toothbrush are elaborated in the framework. It
should be noted that the list of dimensions and options presented in the
framework is only indicative and not exhaustive. Every toothbrush that is
available in the market can be placed along a dimension (or dimensions)
of the morphological framework. For a layperson, the morphological
framework will provide a bird’s eye view of the available toothbrush
options, and for a practitioner it will be a basis for designing a new
toothbrush that is currently not available in the market.
Figure 1: Dimensions of a Toothbrush
The toothbrush that is being daily used could be square in shape, made of
plastic, having a bent neck with a round head, and having nylon bristles
arranged in three rows. Similarly, every toothbrush that is there in the
market can be mapped to this framework. In a New Product Development
exercise, teams can use this framework to identify new combinations of
features that are presently absent in toothbrushes.
Table 2: A Basic Morphological Framework of Toothbrush
Dimension
Body
Neck
Head
Length
Width
Thickness
Shape
Material
Grip
Length/Width
Flexibility
Profile
Number
Length/Width
Cross section
Shape
Options
Different Lengths
Different Widths
Different Thickness
Square
Circular
Hexagonal
Rectangle
Plastic
Wood
Steel
Aluminium
Rubber
Soft Squishy
Ribbed
Different Lengths/Widths
Flexible in one
Rigid Other modifications
direction
Straight
Bent
One
Two
Different Lengths/Widths
Different cross sections
Round
Diamond
Others
32  Annual Research Journal of SCMS, Pune
Bristles
Material
Texture
Arrangement
Length/Width
Vol. 2, Issue 1, March 2014
Nylon
Animal Hair
Others
Extra Soft
Soft
Medium
Hard
In three rows
Others
Different Lengths/Widths
Morphology of a Pen
To further elucidate the concept of MA, a basic morphological framework
of a pen (that we use commonly) is presented in Table 3. It can be
observed that the major dimensions of a pen, namely, Body, Cap, Refill,
and Nib are identified as key dimensions. Further, sub-dimensions such
as shape, material, colour, etc., are also identified, and the variants/options
are explicated in the framework.
Table 3: A Basic Morphological Framework of Pen
Dimension
Body
Cap
Refill
Nib
Options
Shape
Cylindrical Hexagonal
Square
Cube
Material
Steel
Plastic
Rubber
Wood
Colour
Black
White
Grey
Type
No Cap
Presence of Cap
Material
Plastic
Steel
Rubber
Wood
Material
Plastic
Steel
Rubber
Ink-material
Gel
Liquid
Ink-colour
Blue
Black
Red
Type
Cartridge
Jotter
Tube
Roller
Fine-tip
Diamond
As explained in the case of a toothbrush, any pen available in the market
can be mapped uniquely against the morphological framework presented
above. For instance, the pen being used could be of a cylindrical shape,
made of steel, grey in colour, having a cap made of steel and gel ink with
a roller type of nib. When an entrepreneur looks at this, he/she could
design a new pen which has a hexagonal shape and is made of wood.
There could be several such combinations of dimensions/options that is
currently not available in the market, but would meet customer needs.
Thus, the framework would serve as a good starting point to initiate New
Product Research and Development.
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Annual Research Journal of SCMS, Pune
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Morphology of Innovation
To explain how MA can be applied even to abstract concepts or ideas,
a basic morphological framework of Innovation is presented in Table 4.
The basic idea here is to develop morphology of Innovation. Thus, the
scope is restricted to the concept or idea of Innovation. Based on literature
(Gopalakrishnan and Ganesh, 2003) and experience, the key dimensions
of innovation, namely, types, stages, modes, participants, strategies, and
outcomes are identified, and the options corresponding to these dimensions
are also listed (see Table 4). The framework is explained in detail below.
This framework could be used by researchers to understand the landscape
of research studies conducted in the area of Innovation. For example,
researchers can map every research paper that has been published in the
area of Innovation onto this framework and identify existing research gaps.
Academicians could use this to teach the concept of Innovation while
organisations can devise Innovation strategies based on the framework.
However, it has to be noted that this framework is not exhaustive and
has scope to be developed further.
Types
Innovations are generally classified into two types, product and process
innovation (Utterback and Abernathy, 1975). However, Pavitt (1990)
quotes Schumpeter’s view of Innovation, which includes new forms of
organisation, new markets and new sources of raw materials. Here, we
classify innovations into three types:
• Product (includes Services)–Microsoft introducing Windows XP
software in the US market; A logistics company offering on-line
tracking of goods.
• Process–Increase in the capacity utilisation of a power plant; Reductions
in customer turn-around time in a bank.
• Structural–Changes in team structures within an organisation; Changes
in the manner an organisation structures its market.
34  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 4: A Basic Morphological Framework of Innovation
Dimension
Types
Options
Product
Process
Structural
Continuous/Incremental
Radical/Breakthrough/Disruptive
Stages
Ideation
Selection DevelopImplemenDisseminament
tation
tion
Modes
Concentrated
Distributed
Participants Organization Customers Suppliers
Education
Competitors
and Partners
and R&D
Institutions
Strategies
Outsourced
Self-Managed
Outcomes Tangible
Patents, Products, Processes, etc.
Intangible
Frameworks, Architecture, Brand, etc.
Context
New Product Training and Customer Support Operations
Development Development
Innovations are also classified as:
•
Continuous (or, incremental), i.e. step-by-step improvements –
Introduction of new versions of existing software.
•
Discontinuous (or radical), i.e. something radically new – Introduction
of a totally new software (e.g. introduction of the LINUX operating
system).
Stages
Innovation processes in organisations go through different stages starting
from the generation of an idea, and ending in commercialisation (in the
case of product innovations) or implementation (in the case of process
and structural innovations). The first stage in the innovation process
is the creation of a suitable environment for generation of new ideas.
Only ‘promising’ ideas are chosen for further development. Managers
allocate resources for the growth of these chosen ideas. After an idea is
sufficiently developed, it can be taken to the market. When a creative idea
is implemented it transforms into an Innovation. The next stage is the
diffusion of knowledge about this Innovation within the organisational
boundaries. Thus, Innovation processes go through the stages of (idea)
generation, selection, development, implementation (or commercialisation)
and dissemination (or diffusion).
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Modes
Innovation processes can either be:
• Concentrated–The task is allocated to a small team and the whole
process takes place within a small unit (say, the R&D division or a
Strategic Business Unit).
• Distributed–Small teams that are distributed across the spatial units of
an organisation work on the same or different aspects of the Innovation.
The choice of the mode of generation will depend primarily on the type
of innovation, the infrastructure, and knowledge requirements.
Participants
Innovation processes are increasingly becoming collaborative. Now,
Innovation is not solely an organisational process where only employees
belonging to the R&D unit of an organisation contribute. It has evolved
to include multi-disciplinary teams that make it an organisation-wide
process. The recent trend is ‘Collaborative Innovation’ where organisations
involve their customers, suppliers and partners, educational and research
institutions, and sometimes even competitors, in the Innovation process.
Strategy
There are two broad innovation strategies:
• Self-managed–where the whole Innovation process is managed within
an organisation, utilising its own resources.
• Outsourced–adopted mainly when an organisation does not possess
the necessary infrastructure, resources or competence, or wishes to
focus on its core competence.
Outcomes
The main outcomes of Innovation are new products, processes or
organisational structures. Innovation also generates knowledge assets–both
tangible (like products, patents, processes, design, etc.) and intangible
(like new frameworks, architectures, competencies, brand image, etc.).
36  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Context
Lastly, the context in which Innovation takes place within an organisation
could be: (1) New Product Development; (2) Training and Development;
(3) Customer Support; or (4) Core Operations.
Conclusions
The intention of this paper is to introduce and emphasise the
effectiveness of using tools such as MA to support innovation and R&D
in organisations. The power of MA was revealed through the examples
of morphological frameworks developed for a toothbrush, pen and
innovation. From an academic and research perspective it is hoped that
the use of MA would provide fresh insights into their disciplines of
inquiry, and make the teaching-learning process more interesting. From
a practitioner’s perspective, MA would serve as a basis for identifying new
products and market opportunities, and designing new systems.
References
Gopalakrishnan, K. and L.S. Ganesh, ‘The Influence of Knowledge Management
on Organisational Innovation’, pp. 82–88, in D. K. Banwet, S.S. Yadav and
K. Momaya, eds., Management of R&D in the New Millennium, New Delhi:
Macmillan, 2003.
Pavitt K., ‘What We Know about the Strategic Management of Technology’,
California Management Review, Spring, 1990, pp. 17-26.
Ritchey, T., ‘General Morphological Analysis – A General Method for NonQuantified Modelling’, Swedish Morphological Society, 2002.
Utterback, J. and W. Habernathy, ‘A Dynamic Model of Process and Product
Innovation’, Omega, vol. 3, 1975, pp. 639–56.
Zack, M. H., ‘Developing a Knowledge Strategy’, California Management Review,
vol. 41, no. 3, 1999, pp. 125–45.
Zwicky, F. and A. Wilson, New Methods of Thought and Procedure: Contributions to
the Symposium on Methodologies, Berlin: Springer, 1967.
Zwicky, F., Discovery, Invention, Research – Through the Morphological Approach,
Toronto: The Macmillan Company, 1969.
Commodity and Derivatives Market
for Agricultural Development
Mohammed Jamshed* and Shamim Ahmad*
ABSTRACT
India is an agrarian economy. Leading the economy to the desired
state of progress depends heavily on utilising our core strength in
agriculture to meet the competitive world challenges. Commodity
market has crucial implications and affects agricultural productivity,
food security and the socio-economic development of the country. The
derivative market platform can stimulate a two way process where the
market creates demand and vice versa in a global context. The present
study explores the link of the production capacity of India with the
structure of the Indian commodity market and share of agriculture
in the exchange-based commodity market. An in-depth analysis
of the Indian agricultural market is undertaken from the world
perspective, considering the Global Food Security Index and Network
Readiness Index. The study examines the environmental changes and
regulatory reform for integration of the rural and urban commodity
market, recommends innovative steps in commodity exchanges with
an accountable and transparent trade, and proposes the steps to
strengthen the rural participation in the light of available inventory
and warehousing. A prerequisite to participatory and transparent
regulatory mechanism, that acts with a pro-active, focused, flexible
and dynamic approach, is to manage the risks of failure and adopt
policies by concord in the complexities of the market, and involve
* Department of Agricultural Economics & Business Management, Aligarh Muslim University,
Aligarh, (UP)
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 37–48
38  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
market participants in decision making. Nurturing vigorously the
market automatically enforces cultivation of demand and prosperity
of the participants. It is a trajectory thought process against a halfhearted and pessimistic approach to revamp a meandered economy.
Promoting inclusive growth, sustaining food security and boosting
rural incomes in the country is intrinsically linked to a growth in the
agriculture sector which can be leveraged by an efficient commodity
market.
Keywords: Commodity Derivative Market, Commodity Exchanges,
Regulating Authorities, Agricultural Development
Introduction
Agriculture provides life to everyone in the form of food and fiber. It
provides earning and income to producers, processors, intermediaries,
exporters, industries and government by one way or the other. Agriculture
is, in fact, the heart of our economy. The commodity market is linking our
agriculture with demand. A thousand years old existence of commodity
future and market operation as explained by ‘Kautilya’ is one of the oldest
commodity markets of the world (Kevin 2010). India is among the top
10 producers in the world for rice, buffalo milk, wheat, cow milk, fresh
vegetables, sugarcane, potatoes, groundnut, peppermint and buffalo
meat (Nageshwara and Rao, 2009). The liberalisation has given a way to
challenge the world through the core strength of Indian agrarian economy.
The Indian commodity market has witnessed regulation and de-regulation
since inception. Even after a number of committees and the respective
recommendations the commodity market is struggling to get a practical
liberalisation. The UNCTAD and the World Bank’s joint Mission Report
‘India: Managing Price Risk in India’s Liberalise Agriculture: Can Futures
Market Help?’ (1996) highlighted the role of future markets as marketbased instruments for managing risks, and suggested the strengthening
of institutional capacity of the regulator and the exchanges for efficient
performance of these markets. Another major policy statement, the
National Agricultural Policy, 2000, also expressed support for commodity
futures. The Expert Committee on Strengthening and Developing
Agricultural marketing (Guru Committee, 2001) emphasised the need
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Annual Research Journal of SCMS, Pune
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for and role of future trading in price risk management and in marketing
of agricultural produce.
Problem Statement
Leveraging the agriculture sector by efficient commodity markets is
a real challenge before us. The existence of a well structured, widely
dispersed (commodity, as well as region wise), integrated, transparent,
participatory and properly regulated commodity and derivative markets is
inevitable. The present state, structure, functioning and regulatory system
are all indicating deficiencies and call for smart, speedy and pragmatic
adjustments at the regulatory, as well as operational levels of commodity
markets. In spite of the huge potential capacity in the quality production
of many agricultural commodities, the country is ranked at the bottom
low in terms of the Global Food Security Index (GFSI). In fact, the
missing market linkage in our agriculture is the matter of concern for us,
and the smooth functioning of the commodity markets offer a solution
to this problem. But our commodity markets as on now are not ready
to shoulder this responsibility. A reform is needed in them. The whole
scenario, present status, shortcomings and the desired adjustments as
desired in the commodity market are indicated area-wise in the following
paragraphs.
The Scenario
The story of the Indian agricultural commodity market is totally different
and deviated from the global standards. India is among the world’s five
largest producers of meat and livestock with one of the fastest growth
rate. India was ranked among the world’s largest producers of most of the
agricultural items including some cash crops such as tobacco, coffee and
cotton in 2012 (Singh at el., 2013). The challenges of irrigation, roads,
storage, cultivation land, poor electricity, finance and transportation, etc.,
are culminating poverty, suicide and urbanisation among the agriculture
population. The solution lies in developing agriculture to generate value
for the global population, and linking it with the markets. The commodity
exchange of India, which ranks among the top 10 in the global commodity
bourses has the capacity to do it.
40  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Figure 1 represents proportionate weight of India’s production of the world
production of 15 top commodities moving proportionately. The trend
shows the consistency in the Indian agricultural production year-on-year
in line with world commodity production.
Figure 1: India’s Weightage of World Commodity Production
Structure and Regulation
The agricultural commodity market is divided into exchange traded and
non-exchange traded types (Figure 2). The Indian agricultural commodity
market has a widespread network across 28000 small and large mandis
of which 7,557 are regulated under the respective state APMC Acts (The
Hindu, Business Line, 27 October 2013).
The commodity market is regulated by Forward Market Commission
(FMC) under the Department of Economic Affairs, Ministry of Finance.
There are Forward Contracts (Regulation) Act, 1952 and Forward
Contracts (Regulation) Rules, 1954 empowering the FMC. The nonexchange traded commodity market is regulated through state level
Agriculture Produce Marketing Committees (APMC) Act, Department
of Agriculture and Cooperation, Ministry of Agriculture. Apart from the
APMC Act, activities of market functionaries are regulated by several
other legal instruments promulgated by the Central government and the
States. These laws and orders cover different aspects or commodities in
the country or a certain state.
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Annual Research Journal of SCMS, Pune
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Figure 2: Structure of Indian Commodity Market
Present Status of Derivative Market
There are six national and eleven regional exchanges in India participating
in commodity trade (FMC, 2014). There are 113 commodities notified for
trade under Section 15 of the Forward Contracts (Regulation) Act [FC (R)
Act] 1952. The numbers of traded commodities are 45 in all the exchanges
during 2013–14. The total number of agricultural commodities in the
approved list is approximately 90 which includes food grains and pulses,
oil seeds and oil, spices, fibers and manufactures, and other commodities.
There were not more than 34 agricultural commodities traded on the
exchange platform during 2013–14. The total traded value of these
agricultural commodities is less than 15 per cent of the total commodity
traded during 2013–14 even after a huge decline in commodity volume.
The actual contribution of agricultural commodities’ trade was just 11 per
cent last year. The average daily traded value of agricultural commodities
is less than Rs. 5,000 crore as against Rs. 29,000 crore for non-agricultural
commodities.
Table 1: Comparison of Agricultural Commodities if Agricultural
Commodities VS All Commodities
Trade Summary
Value in Rs. Crores
1st Jan to 31st Jan
2013–14
2012–13
Total value of trade in agri commodities
1,51,989 1,63,308.9
Cumulative value of trade in agri
25,32,006 36,71,257
commodities
Total value of all commodities trade
6,56,301.8 14,55,131
Cumulative value of all commodities trade 1,74,32,027 2,80,69,569
Source: Website of respective exchanges.
% Change
−6.93159
−31.0316
−54.8974
−37.8971
42  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
World Commodity Market Benchmark
In the global perspective, commodity market is utilised in a broader
range to stimulate trade practices of the commodity sector. It has been
serving the purposes of market creation, market access, stimulating
regional integration, facilitating the provision of finance, price discovery,
price transparency, price risk management, reducing counterparty risk,
infrastructure enhancement, quality assurance or upgrading, and uplifting
export driven commodity economy. This may be through the use of
instruments other than futures, options, swaps, spot or cash trade for
immediate delivery, forward contracts on warehouse receipts, the trade
of farmers repurchase agreements, or ‘repos’. Alternatively, the focus is
to evolve a system and process on facilitation activities rather than just
providing a trading environment. We need to mention here two of the
impact factor Indexes which show India’s global capacity or ranking in
addressing the domestic commodity market challenges, namely:
Global Food Security Index
India stands seventieth in the ranking of 107 countries’ indexes (Figure 3).
The three dimensional analysis reflects shrinkage and inefficiency in
the infrastructural investment, supply chain, quality food and per head
production capacity of the country. There are eighteen variables under
three categories suggesting India in the bottom ranking category in the
Global Agricultural Food as mentioned in the pyramid (The Economist,
2013). 68 per cent of more than 120 crore people living on less than $2
a day are below poverty line (GFSI, 2013; Venu and Rukmini, 2013).
Figure 3: India’s Position in GFSI
Moreover about half of the country’s populations are from the smallholder
farming community, who need a favourable market to survive the resource
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 43
constrained agricultural sector. The emphasis is on building a sustainable
structure to garner the deprived part of rural India.
Network Readiness Index
The revolutionary liberalised economy pioneered the digitalised market
structure as an emboldened move to carve the agrarian economy into
the global standard. The NRI aims to measure the ability of countries
to leverage information and communication technologies (ICTs) for
improved competitiveness and wellbeing (Osorio et al., 2013). NRI studies
54 individual variables based on the 10 pillars’ index emphasising the
environment as a key driver for its impact on the countries’ economy and
society. The improvement in the environment is based on the political
and regulatory changes along with a business and innovation roadmap.
India stands critical on the NRI Index in comparison to the rest of the
world. The scores are measured on a scale of 1–7 from best to worst
performing economies and appearing from dark green to red, respectively
in Figure 4. On the accumulation of these scores India is under orange
color on the map in the graph below with 3.88 scores. The economies
with less than 3.3 score are treated as worst economies with red color.
The performance and rating of the commodity market can be judged
by these global standards. A real time adjustment in the functioning
may be brought to effect by an ICT (Information and Communication
Technology) platform.
Figure 4: Global NRI Maping with Scores
44  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Use of ICT Platform: A Reform Driver
Information and Communication Technologies (ICTs) have a demonstrably
positive effect on income growth in countries (Roller and Waverman, 2001;
Waverman, Meschi and Fuss, 2005). In rural areas, ICT can raise incomes
by increasing agricultural productivity (Lio and Liu 2006). Current limited
evidence from individual farmers and fishermen in India supports the
conclusion that ICTs improve incomes and quality of life among the rural
poor (Goyal, 2010; Jensen, 2007). ICT delivers a smart, speedy, skilful,
scalable and structured commodity and derivative market to build a road
map for a developed India which could be globally acknowledged. The
application of ICT platform for expansion of market, ensuring presence
in the remote areas, and improving productivity will positively impact the
quality of life and income among the agricultural participants. Despite the
scarcity of evidence to support this notion (Forestier, Grace and Kenny,
2002), there is need of a broad policy initiative to ensure the acceptability
of ICT in all areas of agricultural economy. Promoting inclusive growth,
sustaining food security, and boosting rural incomes in the country is
intrinsically linked to a growth in the agriculture sector which can be
leveraged by an efficient commodity market.
The Global Information Technology report analyses the driver and
impact of ICT on the economy, allowing the countries to measure their
technology. The NRI report measures the ICT infrastructure, the cost
of access in these infrastructures, and the presence of necessary skills to
ensure its optimal use. The uptake and use of ICT at the government,
business and individual levels, the business innovation environment,
regulatory framework, and finally the economic and social viability are
the factors to make this happen.
Analysis and Strategies
The analysis reveals the scope of policy adjustments and reform guided by
the global standards and expectations. India has undoubtedly a potential
to lead the world in agriculture by 2050. The focus on the gray areas
in the efficient functioning of supply chain and commodity markets is
a pre-requisite to a prosperous and dominant agrarian economy. But
it needs a clear vision in the domestic scenario and pitfalls, and ways
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
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to overcome them. The study finds a dearth of such measures and
recommends measures to resolve the crises. In specific terms we need to
target the following:
• The integration of the capacity of production or linking the farm
based production with the digitalised market.
• The supply chain efficiency should lead to reduce wastages of
commodity to increase the remuneration to the producer, as well as
trader.
• Having Virtual Integrated Commodity market inclination towards the
producer-centric products to attract need based participation. It will
overcome the problems of inbuilt shriveling commodity exchanges
and weak participation, and strengthen them for achieving the actual
sense of global standards.
• To organise rural markets and provide a well-connected uniform
trading platform that encourages a healthy competitive environment
among producer community.
• The articulation of the agricultural service sector to nurture
entrepreneurship and innovative business structure.
A resourceful commodity market will lead to strengthening of the
environment, and create a prosperous economy and society. The
achievement of global competitive commodity market needs process based
involvement of the participating stakeholders. The micro and macro factors
indicate that the active resolution is much needed to provide oxygen to
the Indian commodity and derivative market. The analysis recommends
the creation of a congenial environment to inculcate an inclusive growth
orientation in the commodity market of global standard. The achievement
depends on a socially and economically healthy commodity market
mechanism. The political and regulatory practices are the means to provide
such a system. The targeted regulatory reforms can only change the rule
of the game and the face of agriculture in the country.
Conclusion
The amelioration of national commodity market demands an orientation
and objective driven global perspective. The results may be witnessed
46  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
only by the empowerment and capacity building of the Commodity and
Derivative Market Authority. The shrinkage in volume and less attractive
state for the participant needs an urgent and thorough investigation. The
market regulating authority is presently under the ambit of the Ministry
of Finance. The huge commodity market which is not on the technology
interface operationally works under the Ministry of Agriculture. The loss
of direction is reflected by this also. The facilitation of a transparent, fast,
proactive, equipped and scalable market is a concern for the whole nation.
The three directional regulatory reforms are postulated as given below:
•
Structural Reform: It emphasises decollectivisation of agriculture and
market, integration of future and spot market on a single window,
compulsory digital transactions, empowerment of entrepreneurs, one
regulation for all mandi/APMC and boards.
•
Process Reform: ICT based yard/mandi, as well as settlement and
clearance, market driven facilitation and assistance to cover physical
delivery of commodities, consolidate multi-legal Instrumentc or acts
under one act, rational goods and service tax.
•
Behavioural Reform: Opening up of Foreign Investment, ICT based
monitoring linked with trading work station of mandi/ APMC/
trader/ broker, participatory and responsive way of handling.
In a nutshell, we can conclude that the current role of FMC is insufficient
to cover the dynamism of an agrarian economy in the new liberalised
world. The authoritative and participation style, substance, and support
in the modern ICT driven world need some vital readjustments and
revision in approach.
References
Faostat (2014), Food and Agriculture Organisation of the United Nations. Retrieved
from http://faostat.fao.org/site/339/default.aspx
FMC (2014), Forward Market Commission, Mumbai. Highlight and Important
Developments for the Fortnight from 1.1.2014 to 15.1.2014. Retrieved
from Forward Market Commission, website http://www.fmc.gov.in/show_file.
aspx?linkid=1_1_14 % 20to%2015_ 1_ 14-168917509.pdf
Forestier, E., J. Grace and C. Kenny, ‘Can Information and Communication
Technologies Be Pro-Poor?’, Telecommunications Policy, vol. 26, no. 11, 2002,
pp. 623–46.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 47
GOI (2012), Agricultural Census Division, Department of Agriculture & Cooperation
2010–2011. Retrieved from Agriculture Census Division Government of India,
website http:// agcensus.nic.in/document/agcensus2010/agcen2010rep.htm
Goyal, A., ‘Information, Direct Access to Farmers, and Rural Market Performance
in Central India’, American Economi Journal: Applied Economics, vol. 2, no.
3, 2010, pp. 22–45.
Jensen, R., ‘The Digital Provide: Information (Technology), Market Performance, and
Welfare in the South Indian Fisheries Sector’, Quarterly Journal of Economics,
vol. 122, no. 3, 2007, pp. 879–924.
Kevin, S., Commodity and Financial Derivatives, 2010. Retrieved from books.google.
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Lio, M. and Meng-Chun, L., ‘ICT and Agricultural Productivity: Evidence from
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Creating Social Entrepreneurship by
Design: Bamboo Product Success with
Involvement of Community Groups
Nachiket Thakur and B.V. Sangvikar
ABSTRACT
World economy is growing at a phenomenal pace. After the IT
revolution, ‘Design’ has caught the imagination of the world. Globally
the ‘Design’ based economy has grown multifold. It has impacted the
social structure of the global society. India is seeing a paradigm shift
owing to this global trend. Indian design talent is being increasingly
recognised globally. A good product design is created in a highly
complex process which follows a pattern, and is divided into various
phases or development steps. The Design Process forms an integral
part of the evolution of a good designed product.
I-CAN Design is a design process conceptualised and formulated
by this author for evolving any product design. Inspiration,
Conceptualisation, Adaption and Nurture are the four pillars of this
design process. Each phase is subdivided into activities which help in
coming out with the optimised solution for the given product problem.
I-CAN Design suits product development for any industry or field.
This universal design thinking approach optimises the development
time and the intended solution.
* Department of Business Administration, D.D.U. Gorakhpur University, Gorakhpur,
Uttar Pradesh
** Department of Management Studies, Vishwakarma Building, Shaheed Jeet Singh Marg,
Indian Institute of Technology, Delhi.
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 49–64
50  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
I-CAN Design was deployed in the development of bamboo
products at Bamboo Masters, Pune in the state of Maharashtra,
India. A team comprising designers, artisans, assemblers and
marketing experts participated in this activity. The case study was
a combination of experimental design and participant observation
done by the author.
The research questions were:
1. Will ICAN Design Process be successful in a small cottage
unit of bamboo products?
2. Will this process be profitable to the entrepreneur and will it
improve the skills of the artisans in making bamboo products?
3. Will it improve the efficiency of the artisans?
4. Will it increase the earnings of the artisans and the profitability
of the entrepreneur?
It was an action research in which the researcher formed a group
with two others. Thus, it was also participatory, descriptive, and
exploratory.
Terrabamboo pendant is a contemporary product for urban
use, designed using a hand woven bamboo mat, hand crafted terra
cotta (backed clay) and bamboo beads. Special focus was to deploy
and promote the age old traditional skills of the rural craftsman in
these two sustainable and easily accessible natural materials. The
design process employed, manufacturing technique and the social
participation ensured success for this bamboo product. Design became
the key differentiator to establish a successful social entrepreneurship
model based on traditional bamboo craft.
Keywords: I-CAN Design, Design Process, Terrabambu, Bamboo
Mat, Modular, Sustainable, Bamboo Masters
Introduction
It has been established that Design Process is an integral part of the
evolution of a good designed product. Such products lead to consumer
satisfaction, and better sale and profitability of the enterprise.
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Annual Research Journal of SCMS, Pune
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This author had demonstrated from the qualitative and quantitative data
that the I-CAN Design Process achieved a good success in respect of three
products designed earlier. It has been demonstrated that the corporate
leaders, product designers, marketing personnel and other stakeholders
consider design as an important ingredient of the product success.
The present study attempted to find if the I-CAN Design Process can lead
to similar results in a bamboo craft industry in the unorganised sector.
This cottage industry has negligible capital investment and low working
capital, and unskilled labour, and is without marketing and sales personnel
in its employment.
Learning from the success of high technology and high worth products, the
low tech and high skill-based industries, like craft, is destined to benefit
the most. However, there are no studies to decide if this presumption is
true. The present case study is an attempt to find out how the principles
of design processes can be exploited for the benefit of the entrepreneur in
the bamboo craft cottage unit, its workers, marketing and sales personnel,
and ultimately the consumer.
Many institutions, like Bamboo Studio at IDC; the IIT, Mumbai; NID,
Ahmadabad; Cane and Bamboo Centre, Guwahati; IPRITI, Bangalore;
KONBAC, Kudal; and Bamboo Centre, Lavasa, Pune, have benefited by
‘Design’ for their bamboo products.
Objective of the Study
The Pune region has a cluster of automobile production centres. Each
centre is a multi-crore high-tech modern organised industry. Each of these
units has a large number of highly trained engineers and skilled workforce.
Each is a capital-intensive activity. These centres deploy design processes
that help the centres to be profitable, workers to earn good wages, and
consumers to get impressive and well-designed vehicles.
The bamboo craft, on the other hand, is a cottage industry manned by
untrained and unorganised artisans who were not exposed to product
design processes. The industry is not a cost-intensive and high investment
business activity.
52  Annual Research Journal of SCMS, Pune
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Research Questions
The research questions were:
1. Will ICAN Design Process be successful in a small cottage unit of
bamboo products?
2. Will this process be profitable to the entrepreneur and will it improve
the skills of the artisans in making bamboo products?
3. Will it improve the efficiency of the artisans?
4. Will it increase the earnings of the artisans and the profitability of the
entrepreneur?
Research Methods
Case Study with a Combination of Experimental Design
and Action Research
This author is an industrial product designer trained at the Industrial
Design Centre of the Indian Institute of Technology, Powai, Mumbai,
and leads a team of product designers at the Mahindra Composites Ltd.,
Pimpri, Pune. He used the I-CAN Design Process to prove that design is
essential for the success of products. He got involved in designing and
developing products in bamboo using this process.
The study was planned as follows:
• The author participated in this activity along with people from the
bamboo community under an NGO, Bamboo Utilities, Research and
Development (BURUD) at Hadapsar, on the eastern outskirts of Pune
city from 2004.
• An independent brand was created as a business enterprise named
‘Bamboo Masters’ which was spearheaded by the entrepreneur,
Rajendra Sakpal.
• Activities were carried out under the team of ‘Bamboo Masters’ at
every stage of the development and marketing of the products. They
were as follows:
Vol. 2, Issue 1, March 2014
1.
2.
3.
4.
6.
Annual Research Journal of SCMS, Pune
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Conceptualisation of a bamboo product
Market study for need assessment, profile of the potential consumer
Product design ideation
Production design, survey of the potential customers,
Packaging, marketing
Data Collection
I-CAN Design
Many practising designers, academicians and experts have come up with
different design processes for the development of new products. ‘Design
Thinking’ or ‘Design Process’ has been an integral part of many product
successes. The experience of handling different design projects, analysing
different types of design process, and this researcher’s understanding led
to the evolution of a design process, which he calls I-CAN Design.
I-CAN Design, a Design Process was formulated for evolving any product
design. I-CAN is an acronym of Inspiration, Conceptualisation, Adaption
and Nurture that are the four pillars of this design process (Figure 1).
Each phase is subdivided into activities which help in coming out with
the optimised solution for the given product problem. I-CAN Design
suits product development for any industry or field. This universal design
thinking approach optimises the development time and the intended
solution.
‘Design Thinking’ or ‘Design Process’ is a multi-disciplinary activity.
Nobody can work in isolation. It has to be a team work. Every member
of the team is equally important. Every individual in the design process
has to be well equipped, passionate about his/her work and should have
the confidence within. The philosophy of I-CAN Design is that the activity
starts with the ‘individual’ who is an expert in a particular field. The
input is pooled in for the common goal, and at the end that ‘individual’
is responsible for the delivery of the product aspect which the ‘individual’
is expert of. Thus, a group along with an individual’s identity works for
the bigger and common goal of problem solving.
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Vol. 2, Issue 1, March 2014
Figure 1: I-CAN Design Process Map
I-CAN Design Process – An Integral Part of the Development
The process for development of a bamboo product was initiated at
‘Bamboo Masters’, at Hadapsar, on the eastern outskirts of Pune, in
Maharashtra, and has the following features:
1. Initiate it at the Start: Every member of the team was involved from
May 2008
2. User-centred approach
The team adopted the ‘User Centred Approach’. It related to human
behaviour, needs, and preferences to be given equal importance along with
technology and business economics. This allowed the development team
to differentiate between the needs and the wants of the user. It captured
the unexpected insights and helped the team to collectively conceive a
product which correctly reflects the aspiration of the user.
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Annual Research Journal of SCMS, Pune
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Fast Prototyping and Testing
The wheelbarrow of ideas was tried out in quick succession. The cycle
of rapid prototype, experimentation, and re-modification were executed
quickly. Small teams of ‘Bamboo Masters’ members were given sufficient
freedom to make quick prototypes to test out the ideas which helped
finalise the design quickly.
Expert Opinion
The design ecosystem was nurtured by seeking inputs from experts. This
helped in understanding different materials, processes, and methods of
creating the bamboo-based product.
Co-create
The team explored ways to work with several diversified inputs.
Case Study of Development of Terrabambu Pendant
The Bamboo Masters had already developed and sold bamboo products
without deploying the ICAN Process. These were well-received, but the
production, productivity and quality had limitations. It was also difficult
to scale up the activities for replication and higher production volumes.
The following product variants were developed during this process (figure
2):
Figure 2 : Terrabambu Pendant
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Vol. 2, Issue 1, March 2014
Product Explanation
The Terrabamboo pendant, an indoor lamp, is a contemporary product
designed using a hand-woven bamboo mat, hand crafted terracotta
(baked clay) and bamboo beads. Special focus was to deploy and
promote the age-old traditional skills of the rural craftsman in these two
sustainable and easily accessible natural materials. The various parts were
manufactured by women ‘Self-Help’ groups and assembled thereafter.
The bamboo strips required for the product were manufactured with
a semi-automated machine at a central location. This ensured the right
quality, dimensions and finish of the strips. A weaving fixture was given
to the various interested people, mostly women, who created the woven
mats. This ensured that all the mats were made of the same standard.
These mats were bought back from the individual’s home or from the
‘Self Help’ group centres at the central processing location. The terracotta
piece was manufactured at the local potter as per the given design and
specifications. Converting components into the product was done at the
central processing unit. The product was marketed through various gift
shops and interior shops across the city.
This provides a sound business model for the artisans, as well as the
promoter of the product. More such applications and items need to
be created. This will happen only with increasing awareness about this
wonder material. The products are developed using modern manufacturing
machines, fixtures and processing techniques. The production approach
of sub assembly manufacturing at dedicated workstations gives the best
inputs from skilled workmen. The assembly line setup ensures very good
repeatability and quality of the product.
I-CAN Design Process Adopted
This time the Bamboo Masters team decided to adopt the I-CAN Process
under the guidance and involvement of this author. It was carried out as
per the following steps:
Inspiration
Inspiration to develop a product in bamboo came from the resilience
of bamboo – an inherent characteristic of the natural material, the
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Annual Research Journal of SCMS, Pune
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traditional skills of the artisans, and the possibility of getting to feel nature
(Figure 3).
Picture 3
Market Demand: The development team members at ‘Bamboo Masters’
undertook a survey to assess the market demand. It revealed that:
•
There was a constant quest of the urban consumers to have something
different and new, using traditional artistry with eco-friendly material.
A market existed for a product which fulfilled this desire of the user.
•
Product applications ranging from table top accessories and jewellery
to interior decoration items were in great demand.
•
Outlets like Fab India are instrumental in fuelling the growth of this
market.
•
A methodical approach was adopted to gauge the requirement of the
market through a survey conducted by KARWAK, a speciality store
for eco-friendly gift articles. Interior decoration items emerged as the
most sought after products which need constant innovation.
•
Competition: The survey revealed that there was competition to such
products made by machines and other mass-manufacturing methods
from roadside, one-off products produced by the unorganised sector.
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User Need: The study offered the following user profile for the product:
•
Higher middle class and above, young middle aged 25–45 years,
having own house, who spend on exclusive interior use products.
He/she needs gifting items for his/her friends, family and business
associates. Wants to establish himself/herself as a person promoting
an eco-friendly way of life. He/she takes pride in displaying his/her
prized possession, and considers himself/herself innovative modern by
giving such exclusive gifts.
•
The product should be easy to use, install, pack and transport. The
product has to be rustic yet urban and contemporary. Use of garish
colours is a complete no-no. The surface-colour should be subtle. The
product should be available easily when required.
•
Branding possibility is an advantage.
Understanding the Craft–method of Manufacturing: There were meetings
for discussion to understand the available craft forms – baked clay and
bamboo.
•
The craft skills and the facilities available were analysed. The method
of manufacturing was studied.
•
Bamboo strip making is a traditional art with the ‘Burud’ community
in Maharashtra. It is used extensively to make utility baskets. This skill
was taken as a source for designing the product.
•
The art of making pots on a potter’s wheel was another probable craft
which was studied. The possibilities of various forms of pots getting
manufactured with what accuracy was explored.
•
The artisans’ limitations and strengths were analysed to aid him/her
to create the product.
•
The artisan was considered the focal point and the first consumer of
the ‘Design’.
•
Rajendra Sapkal, the leader of the organisation, and his team were
the key members of this activity.
Product Integrator: The establishment or group of facilitators who would be
instrumental in integrating the products was identified. Their requirements
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for manufacture of these products were studied. They, thus, become vital
‘users’ of the product before it would go out in the market.
Marketing and Sales: The front face of all the activities is the Marketing
and Sales force. This user is of paramount importance, whose requirements
were noted down. They required a detail account of the nature of the
product, its unique selling prepositions, and product differentiators to
aid them to market the product.
Design Brief: With these user expectations, a design brief was created for
an indoor lamp as follows:
1. Product for the urban house hold
2. Modular construction
3. Easy to install and maintain
4. Unique/different from competition
5. Should have terracotta (baked clay) and woven bamboo as a material
of construction
Technology: The manufacturing process considered was the traditional
potter’s wheel for the clay component, and bamboo sliver (thin strips of
bamboo to make mat) making and weaving for the bamboo component.
These manufacturing methods, their advantages and limitations were
studied and analysed before the start of the conceptualisation phase.
Conceptualise
Ideate: Multiple concepts were evolved for the product. This ideation
phase did not have any restrictions as far as feasibility was concerned.
The wheelbarrow of ideas was evaluated for various criteria. Feedbacks
from various stakeholders on the product ideas were sought. The artisans
were the primary source of interaction and feedback in this development
phase. In addition, the product integrators and the marketing team gave
in the much needed inputs.
Concepts for the method of construction of the main body of the
lamp were created. The interdependence of the baked clay component,
the diameter of the bulb, and the end caps were ideated with different
construction. Various shapes and sizes were explored as follows (Figure 4).
60  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Figure 4: Various Shapes and Sizes
Adaptation
Quick prototypes were created using the available material–paper. Various
permutations and combinations were tried out to confirm the thought
process. These mock-ups were tested for its intended purpose. The
adaption of the design for the product was strengthened by re-creating
and modifying the test results. The material and process to be used was
analysed for ease of manufacture considering the appropriateness of the
intended design (Figure 5).
Picture 5:
Various options in the bamboo mat pattern were tried out to aid the
proper throw of light from the lamp. The possibility of a foldable cylinder
was also explored. The edge detailing for the cylinder of a specific diameter
was arrived at. The diameter of the cylinder got decided in relation to
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the diameter of the light source. To help achieve the desired diameter of
the bamboo mat cylinder, it was decided to use the available polyvinyl
chloride (PVC) water pipe as a reference for its repeatability.
The terracotta end-caps were made accordingly. The dimensional tolerance
achieved after the clay gets dried up were tested and finalised. For fixing
the bamboo cylinder various options were tried out.
Nurture
The crucial stage of the development process is nurturing the ‘Design’
which gets created to achieve the task at hand. The detailed component
design, its detailing was worked out. Design for manufacturability is the
focal point of this phase. The decision of the manufacturing flow, assembly
details, and finalisation of the bill of materials (product ingredients) was
taken here. Refinement in design in terms of the surface texture, finish,
colour, embellishment was done Figure 6).
Figure 6: Product Components
The design was refined with all the considerations, and various modular
versions were created. Different fitment methods were made as per the
requirement for vertical, horizontal, and table top mountings.
Once the product was fully built, the communication material for its
marketing was conceptualised and created. The pitch was for the corporate
buyer, as well as the individual buyer. An appropriate packing material
was devised.
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Production Value Chain:
Figure 7
Launch in the market: The product was introduced in the market in 2009,
through Karwak, a marketing consultancy in Pune. It had already helped
establish a network of workforce who got the opportunity of working from
their own homes, and was still part of a bigger chain of manufacturing
this unique product.
Rajendra Sapkal, the master craftsman, became the focal point of the
creation of this product. He managed the activity with the help of four
full time workers, who assembled the entire product. A cluster of 20
to30 women, who feed in the components to the main assembly station,
was evolved. The success of the activity was multiplied by the number
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of people who have been impacted with livelihood development due to
‘Design’.
Product Economics: The economics of one of the orders for 1,500 pieces
for corporate gifting on Diwali (Table 1).
Selling Price: Rs 400 per unit
Cost Price: Rs 210 per unit
Table 1
1
2
3
4
5
6
Strip cutting
Mat making
Cylinder making
Terracotta end caps (2 no.s)
Assembly
Packing
Total expenditure
20
45
30
30
35
50
210
The cost of marketing, capex and overhead, along with the profit was
recovered from the selling price of the product. All the stake holders in
the production value chain gained a lot of insight, learning, and a decent
remuneration for the collective efforts put in by them.
The ICAN Design Process was subsequently used to develop the following
products (Figure 8):
Figure 8: Products Designed by ICAN Design Process
Summary and Conclusion
The product developed using the ICAN Design Process created value in
the following manner:
64  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
•
Simple throwing on potter’s wheel and bamboo mat-weaving
technique were used to design this ‘terrabambu’ pendant.
•
Adequate provision was made in the design of the product and
selection of production process to ease manufacturing, assembly and
installation.
•
Peg and hole detailing to assemble the bamboo mat component and
the terracotta top/ bottom component was incorporated.
•
Variants were developed using the basic top bottom piece in terracotta
and the bamboo mat cylinder.
•
Modern, yet simple methods of jigs and fixtures were deployed and
taught to the traditional artisans, as well as first time workers.
•
Individual components were manufactured at various locations–at the
homes of every craftsmen.
•
Final assembly and finishing was carried out near the point of sale.
This was a typical example of a ‘spoke and wheel’ arrangement.
•
This helped decentralise the manufacturing process and achieve a
perfect assembly line approach. The expertise of the individual was
put to maximum use where ever it was required the most.
The I-CAN Design Process proved to be successful in a small cottage
unit. The success could be measured in terms of profitability for the
entrepreneur, Rajendra Sakpal, who was in the business for over two
decades. For him, it was the first systematic approach to design, develop
and produce a bamboo product. The artisans were able to earn better and
could improve their skills. That they were happy with the approach was
proved by their continued participation during the production process
of subsequent products,
The confidence level of the sales and marketing team to take in such
challenging orders increased. Corporate gifting requirements at KARWAK
saw an upward trend.
The I-CAN Design Process proves to be applicable to low tech high human
skill products similar to the high technology, machine manufactured
products.
‘Design’ became the key differentiator to establish a social entrepreneurship
model.
Worker Participation in Management
Decision Making Within Selected
Establishments in Uttar Pradesh, India
Nachiket Thakur*
ABSTRACT
This article is concerned with an investigation of the existing level
of worker participation in management decision making within the
Indian work environment. The study involved a survey in which
a total of 217 non-management employees drawn from two work
organisations in Uttar Pradesh (Flour Mills and Sugar Mills) were
used as subjects. Interview schedule and in-depth interview were
the main research techniques adopted for data collection, while
percentage distribution and chi-square statistical techniques were used
to analyse the data collected for the study. Results show that employees
in both organisations demonstrate a high interest in participation
in the decision making process within their respective workplaces.
However, the actual level of involvement in management decision
making demonstrated by the employees was found to be relatively low.
There is significant relationship between education and employees’
involvement in decision making at Flour Mills. In Sugar Mills, there
is a significant relationship between age and employees’ involvement
in decision making, as well as between frequency of employees’
consultation and organisational commitment. The study reveals a
growing desire of non-management employees in the Indian work
environment to exercise greater involvement in the decision making
process of their enterprises.
* Department of Business Administration, D.D.U. Gorakhpur University, Gorakhpur, Uttar
Pradesh
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 65–81
66  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Introduction
The concept of worker participation represents a popular theme in the
analysis of the world of work among scholars in the fields of Industrial
Sociology, Industrial Relations, as well as management. It refers to any
arrangement which is designed to involve low cadre employees (workers)
in the important decision making within the workplace. This implies that
rather than saddling only a group within the enterprise (for instance,
management) with the responsibility of making decisions, all those who
are to be affected by these decisions (including the workers) would be
involved in its formulation and implementation.
In recent time, scholars have directed increasing attention to the issue
of worker participation and its broader corollary, industrial democracy
(Mankidy, 1984; Yesufu, 1984; Adewumi, 1989; Verma and Syha, 1991;
Weller 1993; Kester and Pinaud, 1996; Adu-Amankwah and Kester,
1999). These concerns reflect a growing interest in finding ways to make
work more meaningful and satisfying to the workers. This rests on the
belief that the organisational goals of high productivity and harmonious
industrial relations are best achieved when the higher level needs of the
human elements (workers) are satisfied. Worker participation implies
arrangements designed to involve workers in the enterprise’s decision
making process. This allows for workers’ involvement in the initiation,
formulation and implementation of decisions within the enterprise. The
concept can also be understood in terms of a new approach to industry and
society in which people want to be interested with the taking of decisions
which have direct bearing on them. MacGregor (1960) contended that
worker participation consists basically in creating an opportunity under
suitable conditions for people to influence decisions which affect them. It
is a special case of delegation in which the subordinate gain greater control,
greater freedom of choice with respect to bridging the communication
gap between the management and the workers. This serves to create a
sense of belonging among the workers, as well as a conducive environment
in which the workers would voluntarily contribute to healthy industrial
relations.
The Problem
The spread of democratic value to virtually every society today has brought
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Annual Research Journal of SCMS, Pune
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the need to examine the implications of this trend to other spheres of
life. With respect to the economic sector, employees are faced with the
dilemma of how to cope with authoritative management in the workplaces
while living in a democratic society which guarantees basic fundamental
freedom. In addition, the denial of worker’s active involvement in decision
making is held to be one of the major causes of the problems which
are manifested daily in the work lives of the modern employees. The
implication of these to employees of increasing exposure to a monetised
society, rising education and wider contact among people resulting from
the break-up of artificial barriers was to shift these aspirations to a more
satisfying work experience, greater control over the organisation of work,
greater opportunity for personal development, and wider scope in exercise
of initiatives. Specifically, the refusal of work organisations to recognise
the human factor in industrial production through greater involvement
of employees in its management decision making would tend to create
several human problems in this setting. A worker is a social being who
brings his personality, hopes, aspirations, anxieties, feelings and attitude
to the workplace. He seeks satisfaction and meaning in his work as he
does in other spheres of life. However, when he finds that his work
does not provide him with the opportunity to realise his potentials (for
instance, through strict management control) he tends to engage in
negative behaviours like absenteeism, apathy, low commitment and low
productivity. The implication of these negative tendencies resulting from
strict management control has, therefore, raised serious concern among
scholars interested in healthy industrial relations.
Objectives of the Study
The central objective of the study is to determine the level of worker
participation in management decision making in the Indian industry.
The specific objectives are to:
•
ascertain workers level of involvement in the decision making process
of their workplaces;
•
establish the general attitude of workers towards worker participation
in management decision making;
68  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
•
determine factors which aid or hinder the observed level of
participation; and
•
investigate the implications of worker participation to workers and
their organisations.
Rationale for the Study
The rationale for the study is anchored on the need to raise the
productivity level of workers through appropriate motivational techniques.
The involvement of workers in management decision making is considered
as a means for inducing motivation in the workers leading to positive
work attitude and high productivity.
The study is also deemed desirable in view of the benefits of worker
participation to the organisation and the society at large. Worker
participation has been seen as capable of providing workers conducive
work environment, opportunity to exercise their innate potentials, and
willingness to pursue the corporate goals of the organisation.
Review of the Literature
Worker participation has been explained as a plank of industrial democracy
(Adewumi, 1991). Mills (1977) described the spread of industrial
democracy to Western Europe in the 1970s as a story of capitalism in
transition. In his words, in countries which are witnessing this transition,
industrial democracy affects the nature, control and even ownership of
private enterprise, the nature, control, power and bargaining areas of the
labour union, and the roles and contributions and rights of the individual
worker in contemporary and future industrial society [cited in Heisler
and Houck, (1977: 116)].
The description mentioned earlier shows that industrial democracy affects
many aspects of lives of different people in a modern society. This reason
may explain the wide clamour for the introduction of worker participation
arrangement in most countries.
Mills (1977) identified four basic forces underlying the clamour for
industrial democracy. The first one was political in nature, pushed
primarily by socialists, and moderate labour and political leaders. The
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Annual Research Journal of SCMS, Pune
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second was an industrial or economic force championed by innovative
and socially-oriented management and at times, by unions. The third
was an intellectual and theoretical force pushed by MacGregor (1960),
Maslow (1964) and Emery, Thosrud and Trist (1964).
Growing public distaste, desire and disillusionment with traditional
institutions and their leadership, growing aberrant social behaviours
including crime and drug abuse generate a new demand for participative
right of every kind including women’s rights.
This fervour explains rising workers’ demand for increasing influence
in management decision making. The increasing interest in worker
participation has been traced to a number of factors. First, is the real or
anticipated political pressure which was designed to extend the popular
democratic dispensation in the larger society to the economic sphere.
Second is the growing pressure on the collective bargaining system
arising from continuing difficulties from negotiating in the context of
high inflation and in some instances increasing disenchantment with
the dialogue of confrontation. Third, and more importantly, is the
endemic problem within the modern industrial system which may tend
to encourage employers to consider experimenting with different forms of
participation. Lastly, the growing interest in participation was encouraged
by the problem associated with denying powerful groups (for example,
shop stewards and work groups) formal and legal means of exercising their
rights. When such a situation arises, the workers concerned will employ
informal bargaining methods and illegitimate facts to achieve their goals.
To forestall these negative trends, the management is forced to introduce
certain participation schemes (Mills, 2009).
The industrial democracy movement can be seen, therefore, as part of
the Quality of Work Life Movement (QWLM) which spread throughout
Europe during the early 1970s. A major impetus to this movement
was provided by the Workers Constitution Act Passed by the German
Bundestag in 1972. The Act imposed a mandatory Worker Council on
every German enterprise employing more than five employees.
In the 1990s, the industrial democracy movement took the form of
what Freeman and Rogers (1993:13) called employee representation.
Like worker participation and other stands of industrial democracy,
employees’ representation connotes greater influence of workers in several
70  Annual Research Journal of SCMS, Pune
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aspects of the work. It also involves restructuring management to meet
the new demands of efficient management, international competition,
rapid technological change, and changing work force expectation of work
(Freeman and Rogers, 1993: 111).
A related concept to employee participation is joint Governance. The
concept was developed by Verma and Cutcher-Gershanfield (1991) who
defined it as:
An ongoing formal process where workers and their immediate supervisors
or union and management bear joint responsibility for making decisions
which may be narrow (for instance, involving a single tissue) or it may
be broader covering a wide range of issues.
Joint governance would then be taking to imply statutory arrangements
that are meant to provide equal decision making power to subordinate
employees. However, like other programmes with similar objectives, joint
governance provides little opportunity for real decision making power to
employees. Wellins-Byham and Wilson (1991) argued that in some joint
governance programmes, workers are involved at the shop floor levels in
issues relating to production and equality. However, in this instance, rarely
were these workers provided with any concrete decision making power. In
some of the programmes, employees were given advisory roles, which in
few cases may confer them with an influential voice. But this is still far
short of sharing decision making power which a full worker participation
arrangement would imply.
Levine and Tyson (1990) distinguished between consultative and
substantive forms of participation. In consultative forms, employees
provide information or advice, but management retains the right to make
decisions. In more substantive participatory systems workers have greater
autonomous control over methods and pace of work, and make decisions
that substantively affect the production process. This distinction between
consultative and substantive forms of participation is what Rubestein,
Bennett, and Kochan (1992) called ‘off-line’ versus ‘on-line’ participation.
These terms distinguish between workers who make suggestions to
management through problem-solving groups off the job and workers
who make decisions with respect to work tasks or quality control as part
of their daily work responsibilities (Kester, Zammit and Gold, 2002).
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Studies have also focused on the effect of worker participation on
organisational performance (Kelly and Harrison, 1992; Levine and
Tyson, 1990; Lawler et al., 1992). These studies found that participation
programmes have positive, or in some cases, ambiguous effect on
productivity. Furthermore, employee participation and industrial relations
practices may interact so that the sum of the effects on plant performance
is stronger than the effects on the individual practices themselves (Cooke,
1994). Lastly, effects on productivity are expected to be greatest when the
organisation adopts a coherent system of work organisation and industrial
relations practices (Dunlop, 1958; Cutcher-Gersenfeld, 1991; Kochan
and Useem, 1992). In the view of Kester, Zammit and Gold (2002),
democratic participation is no longer primarily a battleground between
capital and labour, implying a win-lose game, but a common challenge,
a win-win game that forces all parties to reconsider the rules of the game
and the roles of the actors.
With respect to the status of worker participation in the developing
world, Mankidy (1984), and Kester and Schiphorst (1986) have argued
that in these countries, labour relations are characterised by a break-up
of existing patterns. In many of these countries, there is an increasing
awareness that the labour relations produced in these countries are grossly
defective. Trade unions are also seen as very weak in many of them. Lastly,
on the ideological ground, collective bargaining is rejected because of its
emphasis on the dependent wage labour position of the worker.
Kester and Thomas (1981) have demonstrated that there is a fast growing
interest in the development of worker participation in developing
countries. In their studies, they found one form of worker participation
or the other in these countries. In some cases, worker participation was
introduced as an essential part of the development strategy. For instance,
in Tanzania, the idea of worker participation formed an important aspect
of her socialist ideology. This is anchored on the notion of man centred
development strategy.
In India, the institutionalisation of worker participation within the nation’s
industrial relations system was championed by several scholars. Fashoyin
(1992), Adewumi (1993) and Imaga (1994) have suggested that worker
participation in management decision making represents a means of
72  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
reducing industrial conflict, raising workers productivity and ensuring
rapid socio-economic development.
Adewumi (1990: 7) contended that the Indian industrial relations system
is guided by the underlying philosophy of industrial democracy. This
implies the establishment of institutions and machineries through which
management and workers meet on equal footing to discuss, consult and
negotiate the terms and conditions of employment. In reiterating the
principle of industrial democracy as the guiding spirit of Indian’s industrial
relations system, the National Labour Policy states,
If management must participate in decisions for determining the share
of the worker from the results of the co-operative use of labour and
capital, then the worker is equally entitled to participate in the decisions
relating to share of capital, namely, profit and indeed all decisions hitherto
arrogated to itself by the employer or management relating to the whole
organisation and operation of the enterprise; determining objectives
and policies, the relative share of the co-operating factors of production
(Yesufu, 1992: 142).
Adewumi (1993: 76) argued that the only avenue for the realisation of the
objective of worker participation in management decision making in India
is through the collective bargaining machinery. However, it is evident that
this machinery is very defective in India because of its restrictive nature.
Consequently, such arrangements cannot confer effective participation
rights to the workers.
Theoretical Framework
The human relations and participatory democratic theories are adopted to
guide our study on worker participation in management decision making.
The human relations theory stems from the understanding that the cooperation of workers is desirable for the attainment of the objectives of
high productivity and industrial peace. It contends that workers would
be better motivated if they are treated like human beings rather than as
irrational objects. For instance, by making them have a feeling that the
organisation accords them recognition by involving them in the decision
making process. In the light of the theory, the worker is to be perceived
in terms of his membership of a social group rather as an individual.
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Annual Research Journal of SCMS, Pune
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Consequently, his behaviour is seen as a response to group norms rather
than simply being directed by financial consideration. Workers should
then be expected to react to group norms so that when they are given
the opportunity to take part in management decision making, they are
likely to respond positively to organisational issues.
The democratic participatory theory emphasises on conditions which
are necessary for effective participation and functions performed by
participation to the individuals and society. For instance, Rosseau (1956)
contended that through participation in decision making, the individual
sense of freedom is increased since it gives the worker a very real degree
of control over the course of his life and structure of his environment.
Again, it serves to increase the value of individual freedom by enabling
him to be his own master.
Mills (1965) sees the industry as an area where the individual could
gain experience in the management of the collective just as he could in
government. The theory views the political arena as a kind of market place
in which individuals constantly attempt to maximise the benefits and
minimise losses they could gather from the political process. It assumes
that man is selfish in the sense that each participant would be motivated
by the desire to protect or enhance his own personal interest. The theory
assumes that increased participation is likely to increase the feeling of
political efficiency that ordinary citizens possess. This helps to increase
the potential so that their actions can have an effect on public policy and
lead to a greater sense of control over their communal lives. In essence,
greater participation in one sense of life leads to greater participation in
other spheres, i.e. the workplace (Pateman, 1970).
Methodology
The study adopted the case study approach for the purpose of conducting
an empirical investigation on the issue of worker participation in
management decision making in the India work environment. The study
was conducted between the months of October 2012 and November
2013. Main data were collected both through the primary and secondary
sources. Primary sources of data were derived from the questionnaire and
in-depth interview methods, while secondary sources were acquired from
74  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
company records, bulletins and other official documents. The adoption
of these tools helped to collect both quantitative and qualitative data.
The questionnaire was in three sections–the first contained questions on
respondent’s personal data, the second on the level of worker participation,
while the third was based on worker participation structures.
The study population comprised of workers in two selected organisations
in Uttar Pradesh, namely, a Flour Mills and Sugar Mill. A total of 227
subjects drawn from the two selected establishments constituted the
sample for the study. The subjects were selected through a combination
of clustering and systematic sampling methods.
Hypotheses
The following testable hypotheses were formulated to guide the attainment
of the research objectives. There is a relationship between employees’
socio-economic status and the level of involvement in decision making
such that:
1. An employee in higher job position tends to exercise more involvement
in management decision making than another in lower job position.
2. An employee who possesses higher educational qualification would
tend to have more influence in management decision making than
other who possesses lower educational qualification.
3. A young employee would more likely demonstrate more involvement
in management decision making than his older counterpart.
Findings and Discussions
As evidenced from tables 1 to 8 the demographic composition of the
subjects reflects that the majority are male, middle aged with low
educational qualification. This finding is a reflection of the structure of
the Indian industrial labour force in which middle age male workers are
more represented than their female counterpart. It also reflects on the
occupational status of the subjects of the study, all of whom are lower
cadre workers.
Findings on respondent’s frequency of involvement in the decision
making process of their organisation as reflected in Table 4 shows that
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Annual Research Journal of SCMS, Pune
respondents in the two study organisations demonstrated generally low
measure. However we found that employees in Sugar Mills have a higher
frequency of involvement than those in Flour Mill.
Table 1: Sex Distribution of Respondents
Sex
Flour Mill
Sugar Mill
No.
%
Male
60
66.6
Female
30
33.4
Total
90
100
Source: Author Field Work, 2013
No.
77
60
137
%
56.2
43.8
100
Table 2: Age Distribution of Respondents
Age
Flour Mill
Sugar Mill
No.
%
No.
%
30 years or less
35
38.8
53
38.7
Between 30–40 year
41
45.6
65
47.4
41 years and above
14
15.6
19
13.9
Total
90
100
137
100
Source: Author Field Work, 2013
Table 3: Respondent Educational Qualification
Educational Qualification
Primary Sch. Cert.
Flour Mill
No.
%
2
2.2
Sugar Mill
No.
%
6
4.4
Sch. Cert and Equivalent
38
42.2
43
31.4
OND/NCE Certificate
30
33.3
64
46.7
First Degree
11
12.2
16
11.7
Post Graduate
9
10
8
5.8
Total
40
100
137
100
Source: Author Field Work, 2013.
76  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 4: Distribution of Respondents by Frequency of Involvement in the
Decision Making Process of the Workplace
Frequency of
Involvement No.
Flour Mill
Sugar Mill
No.
%
No.
%
Not at all
25
27.8
14
10.2
Occasionally
43
47.8
76
55.5
Often
20
22.2
45
32.8
No Response
2
2.2
2
1.5
137
100
Total
90
100
Source: Author Field Work, 2013.
Table 5: Respondents Involvement in the Decision Making in
Administration of Social Facilities
Frequency of
Involvement
Not at all
Not at much
Much
Total
No.
38
32
20
90
Flour Mill
%
42.2
35.6
22.2
100
Sugar Mill
No.
%
59
43.0
54
39.4
24
17.6
137
100
Source: Author Field Work, 2013.
This variation could be explained by the relatively higher educational
status of respondents from the Sugar Mill. In addition, in this company
there are a larger number of professionals who are more willing to seize
the opportunity of participation in management decision making.
Results of in-depth interviews conducted with some respondents attest
to our findings. When asked about the extent to which he is involved in
the making of decisions within the company, an insurance clerk in the
insurance underwriting office of the Sugar Mill replied:
“The management in this company does not consider it as its duty to
contact junior employees on how decisions are made.”
A factory operator in the Flour Mill has this to say when asked the same
question:
“I am always busy in the factory, may be this is why I don’t know about
decision making.”
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Annual Research Journal of SCMS, Pune
 77
It is possible to observe the obvious variation in reasons advanced by
the two informants on why they demonstrated low involvement in
management decision making. While the informant from the Sugar Mill
expressed that his low or lack of involvement was due to management
unwillingness, the respondent from the Flour Mill indicated that he was
not much involved in management decision making because of his busy
schedule work.
It is also interesting to know that a number of the respondents indicated
that they had no interest in participating in the management decision
making of their workplaces. This category of employees demonstrated
a non-challant attitude towards their involvement in the management
decision making. As a respondent in the Flour Mill says:
“I am in this company to work and earn my salary. I have no business
with decision making. I am not paid for such job.”
An opinion like this reflects the instrumental orientation of some of the
workers in the two study establishments. Being mostly junior workers,
these respondents tend to demonstrate more interest in earning a living
from work rather than to satisfy the higher order needs of self expression
through participation.
However, in spite of this tendency, our findings show that a substantial
proportion of respondents in both study organisations reported that they
are involved either regularly or occasionally in the management decision
making process of their companies. In the words of a respondent in the
Sugar Mill:
“Management in this company does not hesitate to involve some of us
in the decision making process whenever it is necessary.”
This opinion is similar to the one expressed by a Foreman in the Flour
Mill:
“As a senior staff, I and other Foremen in the various units are made to
contribute to the decisions in matters relevant to our department.”
Views like the one above show that respondents have some measures of
involvement in the decision making process of their organisation.
78  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 6: Relationship between Respondents Educational Level and
Involvement in Management Decision Making
Organisation
Educational Level
None
Casionally
Flour Mills
Low
6(50%)
4(33.3%)
Moderate
7(10.3%)
34(50%)
High
1(5%)
5(25%)
Sub-Total
14(15.6%) 43(47.8%)
x2 = 3.74. d.f. 4; P ≥ 05
Low
Moderate
High
Sub-Total
x2 = 3.74. d.f. 4; P ≥
4(18.2%)
10(9.4%)
2(22.2%)
16(11.7%)
05
Involvement in Decision Making
Often
Total
Sugar Mills
14(63.6%)
57(53.8%)
5(55.6%)
76(53.5%)
2(16.6%)
27(9.7%)
14(70%)
33(36.7%)
129(100%)
68(100%)
20(100%)
90(100%)
4(18.2%)
39(36.80%)
2(22.2%)
45(32.8%)
22(100%)
106(100%)
9(100%)
137(100%)
Table 7: Relationship between Respondents Age and Involvement in
Management Decision Making
Organisation
None
Age Group
Occasionally
Flour Mills
30 yrs or less
6(17.1%)
21(60%)
31–40 yrs
4(10%)
18(45%)
41yrs and above
3(21.4%) 4(28.6%)
Sub-Total
13(14.6%) 3(48.3%)
x2 = 6.6; d.f. = 4; P ≤ 05
Sugar Mills
30 yrs or less
4(18.2%) 27(51.9%)
31–40 yrs
10(9.4%) 42(64.6%)
41yrs and above
0
2(36.8%)
Sub-Total
15(11.1%) 76(53.5%)
x2 = 6.61; d.f. = 4; P ≤ 05
Often
Involvement in Decision
Making
Total
8(22%)
18(45%)
7(50%)
33(37.1%)
35(100%)
40(100%)
14(100%)
89(100%)
16(30.8%)
17(26.2%)
12(63.2%)
45(33.12%)
52(100%)
65(100%)
14(100%)
136(100%)
The study also indicated other factors which could influence employee
involvement in management decision making. Tables 4 to 8 show the
relationship between age, education and job position, and respondents’
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Annual Research Journal of SCMS, Pune
 79
level of involvement. As shown in Table 6 given earlier, there is a
statistically significant relationship between respondents’ educational
attainment and their involvement in management decision making in
the Flour mill, while such relationship was absent in the Sugar Mill.
This finding demonstrates that the respondents’ measures of involvement
are related to their educational qualification in the Flour Mill. In this
company, while those who possess low educational qualification exercise
low measure of involvement, those with higher education demonstrated
equivalent level of involvement in management decision making.
Table 8: Relationship between Respondents Job Position and Involvement in
Management Decision Making
Job Position
Involvement in Decision
Making
Not at all
Occasionally
Often
Flour Mills
Low cadre
8(21.6%)
20(54.1%)
9(24.3%)
Middle cadre
3(7.5%)
16(40%)
21(52.5%)
High cadre
1(16.7%)
3(50%)
2(33.3%)
Sub-Total
12(14.5%)
39(47%)
32(38.5%)
x2 = 7.5; d.f. = 4; P ≤ 05
Sugar Mills
Low cadre
8(16.0%)
30(60%)
12(24%)
Middle cadre
5(6.4%)
43(55%)
30(85.5%)
High cadre
0
1(33%)
2(66.7%)
Sub-Total
13(9.9%)
74(56.5%) 44(33.6%)
x2 = 6.54; d.f. = 4; P ≤ 05
Total
37(100%)
40(100%)
6(100%)
83(100%)
50(100%)
78(100%)
3(100%)
137(100%)
It is evidenced from these findings that an individual’s educational
qualification could influence the level of involvement he could exercise.
This finding is not surprising since those with higher educational
qualification tend to have more knowledge about management decision
making, and are also more likely to seize the opportunity to be involved
in the affairs of their organisations.
80  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Conclusion and Recommendations
Based on the findings of the study it could be concluded that workers
in the study establishments are generally not much involved in the
management decision making within their respective establishments.
On the other hand, the workers generally demonstrated high interest
in management decision making. The study therefore confirmed that
while the workers demonstrated positive attitude towards involvement in
decision making, the actual level of involvement they exercise is negative.
However, we found that workers in the Sugar Mill demonstrated more
involvement in management decision making more than their counterparts
in the Flour Mill. This implies that workers in the service sector are more
involved in management decision making than those in the manufacturing
sector of the Indian economy.
Workers who are subjects of the study generally demonstrated the
willingness to accept the responsibility of involvement in management
decision making whenever such opportunity arose. However, many
hold the view that management decision making is the preserve of the
management. This implies that while the workers are willing to accept
the responsibility of greater involvement in management decision making
they are not ready to challenge the management in this regard. Another
conclusion reached from the study is that respondent’s level of income in
management decision making has an implication on certain organisational
factors. Specifically, the commitment level demonstrated by the workers is
a factor of the extent of influence they exercise in management decision
making.
Finally, from the respondents’ assessment of management attitude towards
workers participation, it could be concluded that the management in the
Indian work enterprises are not favourably disposed towards granting
workers a significant measure of involvement in management decision
making. This finding would lead us to conclude that a lot needed to be
done to change the current negative disposition of the Indian management
towards workers involvement in management decision making. More
importantly, the current obstacles against effective workers participation
in India could be tackled through:
•
Enlightenment programmes for workers on their rights to seize the
opportunity of involvement in decision making;
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Annual Research Journal of SCMS, Pune
 81
•
Provision of monetary and other incentives for workers to encourage
them sustain the current interest in participation;
•
Liberalising management structure so as to allow for greater workers
involvement; and Training programmes for workers in management
functions as a way of properly equipping them on their decision
making role.
References
Adu-Amankwah, K. and G. Kester.eds., How to Make Democratic Participation
a Success: An Africasn Trade Union Challenge, Rotterdam: Textua, 2005.
Adewumi, F., Industrial Relations Economic Development and Democracy: A
Preliminary Note, 2010, pp. 59–82.
Cutcher-Gershenfeld, J., Recent Developments in U.S. Employee Involvement Initiatives:
Erosion or Diffusion, 2010, pp. 1–32.
Dunlop, J., Industrial Relations System, New York: Holt, 2012.
Fashoyin, T., Industrial Relations and African Development, New Delhi: South,
Asian Publishing Ltd., 2011.
Freeman, R.B. and J. Rogers, Who speaks for as? Employee Representation in a
non-union Labour Market, 2012, pp. 13–14.
Goldar, N., Productivity in Indian Industry, Delhi: Allied Publishers, 2009.
Gujarati, D, Basic Econometrics, 4th edition, New Delhi: Tata McGraw Hill, 2004,
pp. 47–57.
Image, E.U., Industrial Democracy in the Third World: A Study of India and Nigeria,
New Delhi: South Asian Publishers, 2008.
Hoppock, R, Job Satisfaction, New York: Harper, 2008, pp. 1–25.
Landers, R., J. Rebitzer and L. Talyor, ‘Rat Race Redux: Adverse Selection in the
Determination of Work Hours in Law Firms’, American Economic Review, vol.
86, no. 3, 2000, pp. 329–48.
Subramanian, G., Indian Sugar Industry, Madurai Kamaraj University Publication,
2012.
Geospatial Technology: Opportunity
in Fostering Social Enterpreneureship
Navendu Chaudhary*
ABSTRACT
Geographic Information Technology, or Geospatial Technology, is a
blend of computer hardware and software used to analyse and visualise
spatial data (Goodchild, 2001). The mapping techniques employed in
Geographic Information System (GIS) has evolved into an intelligent
mapping system that can support various fields of inquiry. For the
last two decades, these systems have become an indispensable tool in
the hands of decision makers, researchers, as well as participants in
social sectors in economically advanced countries (Hilier, 2007). In
India, however, these technologies are in a nascent stage. This paper
argues that these technologies are well suited for fostering social
enterpreneuership, and greatly advance the capabilities of social sector
undertakings. This paper examines the role that Geospatial Technology
can play in fostering social enterpreneureship with specific case studies
carried out at Symbiosis Institute of Geoinformatics, Pune.
Keywords: Social Enterpreneureship, Geospatial, GIS, Remote
Sensing, Spatial Analysis
What is Geospatial Technology?
Geospatial Technology is a blend of computer hardware and software
designed to capture, store, display and analyse geographic . The capturing
*
Symbiosis Institute of Geoinformatics, Pune.
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 82–92
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Annual Research Journal of SCMS, Pune
 83
of geographic data often relies on remote sensing and global positioning
technology. Remote sensing is a common term used for data acquisition
from platforms such as aircraft or satellites, that provide a bird’s eye
view. Providing social services are inherently involved in working with
underprivileged and inert-connected human settlements. Geography thus
matters in project planning and execution. Remote sensing, coupled with
Geo-positioning technology and traditional surveys can give us the realtime perspectives upon project management. The economically advanced
countries have already embraced Geospatial Technology to serve as a
standard framework for project management (ESRI, 2011). In India, the
social services sector can greatly benefit from their experience to effectively
serve the pressing needs of the large Indian population.
Considerations of Geospatial Technology
1. Hardware: Computer systems have evolved in the last decade to handle
enormous amount of data. They are today reasonably priced and easily
available. The hardware needs to be checked for memory, storage and
graphics capacity. These requirements will vary based on whether the
user will visualise or analyse the data. Analytical capabilities will require
more robust systems
2. Software: Multitude of geospatial softwares are available in the market.
Some are simple viewers, generally available free of cost. Some are
sophisticated and possess a wide range of geospatial tools. Many
are proprietary, but recent advances in open source Geographic
Information System (GIS) have created much simpler and cheaper
alternatives. Good geospatial software should be able to work with
geographic data, can interface with relational database management
system, possess necessary geospatial tools to analyse the spatial data,
and have user friendly graphic user interface. Some of these softwares
allow user to customise the Graphical User Interface (GUIs) which
come in handy for entrepreneurs to create products to suit their client
needs.
3. Data: Geospatial softwares rely largely on good quality data sets. The
data sets are mainly of two types: one is Spatial data which represents
the location features, such as addresses, coordinates, etc. The second
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type is an Attribute data which is the data that holds the information
about a particular location or coordinate in the spatial data set, such
as the number of people living at a particular address. The successful
implementation of geospatial techniques will largely depend on the
quality of data collected.
Social Services in India
Social work grew out of humanitarian and democratic ideals, and its
values are based on respect for the equality, worth, and dignity of all
people (Hazra, 2014). In India a large number of people depend on
public provision of food, housing, health care and education. To serve
such a large section of the society is a mammoth task. The service sector
in India is beset with inadequacies in terms of funding, resources and
the use of technology. The services such as food provision and health
care are often critical enough to warrant use of highly efficient systems.
The government machinery is often overwhelmed due to the large,
dependant population that is distributed over a country as large as India.
India is currently the seventh largest country in the world in terms of
area, the third largest in terms of population, and ranks first in terms
of population under the poverty line. It is believed that this pressure of
public provisions will hamper India’s progress through its inefficiency and
inequality (Banerjee, 2014).
In India the social and community services budget of the central and
state government has been increasing year on year, and yet has remained
woefully inadequate. This gap in the need for public provisions and the
timely supply through various government programmes have given rise
to social enterpreneuership. Various non-governmental organisations are
filling in for the perceived inability of the government to provide these
essential services, for example, in cities like Mumbai more than 2,50,000
children are being educated by NGOs on a daily basis. These NGOs
often work together in their own synergistic environment (Segran, 2008).
This creates the need for effective communication and coordination.
The NGOs have been relatively successful in fulfilling the objectives
while having meagre means to do so. This is where technology can
help in increasing the reach and efficiency. It is essential for these social
entrepreneurs to have a collaborative network of social entrepreneurs that
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enables them to share ideas, spread innovations and manage projects.
The Indian Parliament is currently in the process of passing the New
Companies Bill with amendments to Corporate Social Responsibility
(CSR) policy. This would give rise to better opportunities for entrepreneurs
to take up the social route.
Needs of Social Service Sector
These social workers played a leading role in the social survey movement
that brought activists, journalists, social scientists, businessmen, academics,
and charitable foundations together for a common cause, that is, to serve
the neediest of people. These early social entrepreneurs used field surveys,
interviews, statistics, and maps to document the living conditions of the
poor in modern cities (Hilier, 2007).
There are three broad levels of intervention for social work professionals.
The first is ‘Macro’ social work which is regional in nature and involves
the society or communities as a whole. This type of social work practice
would include policy forming and advocacy on a national or regional
scale. The second level of intervention is ‘Meso’ social work practice. This
level would involve work with NGOs , smaller organisations, or self help
groups (SHGs). This practice would include policy making within a social
work agency, or developing programmes for a particular neighbourhood.
The final level is the ‘Micro’ level that involves services to individuals and
families. These are very small scale works carried out at the hut level in
a slum, or school, etc. (Hazra, 2014).
The social sector, thus needs: (1) Social surveys, (2) Framework, (3)
Management of Resources, and (4) Improving Delivery on the Micro,
Meso and Macro levels.
For centuries social surveys have generated awareness amongst the
population of various societal ills, such as hunger, poverty, disease,
inequality, etc. Landmark survey by Charles Booth in London or Jane
Adams in Chicago paved the way for social surveys as a starting point
in the social intervention movements (Bulmer et al., 2011). Today,
Geospatial Technology can help us realise the full potential of these
surveys. Integrating Geospatial Technology in the survey work will allow
the social work professional to strengthen the survey methodology. The
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surveys can be seamlessly shared, reproduced and visualised in both
time and space. Such integration is commonly used by public health
professionals in the study of epidemics.
The social survey is one of the best known and most widely used approaches
to investigation in the social services. It helps the understanding of the
current status of services, and allows the agency to evaluate the ‘Gaps’ in
the services. It is often conducted by filling up a questionnaire for data
collection used by surveyors. These surveys are not mere data collection
techniques, but involve designing research in order to meet specific goals.
Such surveys need to be tested and evaluated periodically to ensure that
they do indeed represent the social landscape. Geospatial techniques are
found to be useful in order to design and execute such surveys and aid
in visualising or analysing the data in space and time (O’leary, 2003).
Geospatial applications show the ability and potential in addressing
important social issues at the international, national, and local levels.
Spatial analysis capabilities, which allow users to examine and display
health data in new and highly effective ways are the key to successful
implementation of geospatial techniques. Spatial analysis refers to the
‘ability to manipulate spatial data into different forms and extract
additional meaning as a result’(Clarke, 1999).
It involves several methods and procedures, pertaining to geography,
statistics, and other disciplines, for analysing and relating spatial
information. Spatial analysis also helps in understanding Spatial
relationships, those based on proximity and relative location. Such
understanding is vital for social work involving interaction with
communities or their environments. The social entrepreneurs can utilise
Geospatial Technologies such as GIS, Remote sensing and Global
positioning System to serve social sectors by contributing to governmental/
NGO, business or academic sectors (Figure 1).
The social surveys are never analysed in isolation, they always have a
context. Often the context is the ecosystem or general population, or a
combination of both. For example, if we are to study epidemics, we need
to address the context of climate, landscape and population distribution.
The climate influences the disease proliferation, the landscape interlinks
the climate and human settlement, which in turn influences the spread
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of the disease. Integrating these influences is a mammoth task and can be
made simple by use of Geospatial Technology. At Symbiosis Institute of
Geoinformatics, we have used Geospatial Technology to map the dengue
epidemic in the city of Pune, in association with the National Institute
of Virology.
Figure 1: Social Enterpreneureship Positioning
Geospatial Application in Social Service Sectors
At Symbiosis Institute of Geoinformatics, we encourage students to create
Geospatial applications specifically designed for the needs of social sectors.
The Figure below shows an application developed by a student to record
and archive data received during spotting and collection of snakes by
‘SarpaMitra’, or friend of snakes. This group of people have been tasked
to respond to the spotting and subsequent ‘catch and release’ snakes.
They are largely voluntary groups and have little means to invest in a
system that caters to their need. The application was developed with the
help of mobile device (GPRS) and android platform, whereby the cost is
minimal and the device is commonly available. The software developed
records the location and photo of the captured snake, and sends the
relevant information along with a geotagged photo to a server or to the
registered email. This information, thus can be archived centrally, and can
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be maintained and retrieved on need basis. This information can later be
analysed and used for setting up proper policies of snake handling and
possible remuneration for the individuals (Shedge, 2014).
Geospatial applications are especially useful in cases like mapping diseases
and their patterns. Following is a joint effort of Symbiosis Institute
of Geoinformatics and the National Institute of Virology to map the
prevalence of vector borne diseases in the city of Pune (Figure 2). The
analysis was carried out by using the Global Positioning System (GPS),
Remote Sensing and Geospatial tools.
Figure 2: Incidences of Vector Borne Diseases with Underlying Landscape
This type of system can be used to map location of patients juxtaposed
with the presence of mosquito and climate/environmental data to bring
about trends in existing epidemics and predictive model for future
epidemics. Remote sensing and GIS technologies have been used to
study the effects of environmental factors, socio-economic factors, and
weather conditions on the reported number of dengue incidences. These
technologies have been widely used in the public health sector for disease
surveillance. Remote sensing data is utilised to enumerate environmental
factors, such as changes in land use/land cover, Normalised Difference
Vegetation Index, land surface temperature, topographic variations, etc.
Remote sensing data was also useful in generating the Digital Elevation
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Model (DEM), and a Google Earth Satellite Imagery is an ideal base-map
on which all other layers can be overlaid. These data were stored together
with other ancillary data obtained from relevant agencies in the GIS
database for further analysis and mapping (Chopda, 2012). The results
are illustrated as Figures 2 and 3.
Figure 3: Patient Location with Underlying Attribute Data
Limited physical access to primary health care is a major factor
contributing to the poor health of populations in developing countries,
particularly in mountain areas with rugged topography, harsh climates
and extensive socio-economic barriers. Assessing physical access to primary
health care is an important exercise for health care planners and policy
makers. The development of GIS technology has greatly improved this
assessment process in industrialised countries where digital cartographic
data are widely available. In developing countries particularly in mountain
areas, however, detailed cartographic data, even in hard copy form, are
non-existent, inaccurate or severely lacking.
Public health and health care are important concerns of developing
countries, and access to health care is a significant factor that contributes
to a healthy population. In response to these issues, the World Health
Organization (WHO) has been working on the development of methods
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and models for measuring physical accessibility to health care using
spatial information integrated on to a Geospatial platform . Geospatial
Technology is used to assess physical access to primary health care in
blocks or talukas of Pune district, Maharashtra, India. The methods
involved extensive fieldwork in the region, utilising GPS technology in
the development of the GIS and gathering other pertinent health data for
the study. Satellite imagery also contributed to the development of the
GIS and the modelling process. More importantly, the study highlights
Figure 4: Resource Map of Service Area
Figure 5: Resource Map with Location of PHCs
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the use of GIS technology as a powerful tool in improving physical
accessibility of primary health care centres in developing countries. The
results of these methods are used for cost effectiveness analysis, population
coverage estimates, as well as for resource planning within countries. There
are several benefits for better health planning and policy development
through the use of geospatial methods for potential improvements in
the future (Banerjee and Dasgupta, 2013). The results are illustrated in
Figures 4 and 5.
Summary
The examples discussed above provide a mere glimpse of what can be
achieved using geospatial technology. These technologies are already
prevalent in economically advanced countries such as the USA or Canada.
The use of Geospatial Analysis improves the delivery of social services
by manifolds. In India, however, this is still a nascent technology. At
Symbiosis Institute of Geoinformatics we are creating opportunities
for the students to become social enterpreneures through developing
applications on geospatial platforms that can be readily applied in the
social services sector.
References
Hilier, Amy , ‘Why Social Work Needs Mapping’, Journal of Social Work Education,
vol. 43, no. 2, July 2007, pp. 205–21.
Banerjee, Anandini and Sriparna Dasgupta, Measuring Physical Accessibilty to
Primary Health-Care Centres in Pune District, Maharashtra is using Geo-spatial
technologies, Thesis, Symbiosis Institute of Geoinformatics, 2013.
Hazra, Anupam, ‘Current Prospects of Social Work in India’, Career Guide,
Employment News, 2008.
Banerjee, Debosree,‘Social Sector in India’, ICRIER Think Ink, 2014.
ESRI, ‘Place Matters in the Helping Professions: GIS for Human and Social Services
Organisations’, ESRI White Papers, 2011.
Whal, Grace Segran, ‘Social Entrepreneurship Emerging in India’, The International,
Social Entrepreneurship Conference, Chennai, 2008.
Clarke, Keith C.,Sara L. McLafferty and Barbara J. ‘Perspective On Epidemiology
and Geographic Information Systems: A Review and Discussion of Future
Directions, Tempalski, GIS and Public Health, vol. 2, no. 2, 1999.
92  Annual Research Journal of SCMS, Pune
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Bulmer, Martin, Kevin Bales and Kathryn Kish Sklar, The Social Survey in Historical
Perspective, 1880–1940, Cambridge Publication, 2011.
Miller, Robert L. and John D. Brewer, The A-Z of Social Research, Sage Publication,
2003.
Chopda, Sneha, Combining Google Earth and GIS Mapping Techniques in a Dengue
Surveillance System to Develop Dengue Risk Map for Pune Municipal Corporation,
Thesis, Symbiosis Institute of Geoinformatics, 2013.
Maheswari, T., ‘Social Sector Scenario of India after the Economic Reforms’, Socioeconomic Voices, vol. 2, no. 2, April 1996.
Intrapreneurship Prerequisites and
Outcomes in High-Tech Industries
Nishith Dubey*, R.G. Chouksey*, Canchal Mehra*
and Atul Mishra*
ABSTRACT
For achieving profitable growth, many companies have developed new
approaches to innovate and to create new businesses. Management
acts as a facilitator and promoter of intrapreneurship. Management
activities affect organisational culture and the basic assumptions of
intrapreneurship in terms of risk taking, innovation, creativity and
learning to result into change within the organisation. It is evident
that intrapreneurship provides a ground for competitive advantage to
an existing organisation. During the first stage of the study, the effect
of total pre-requisites of intrapreneurship on the total intrapreneurship
outcome, and its factors and dimensions amongst the employees having
1to10 years of work experience in hi-tech industries was determined.
The final sample of 80 executives was drawn on a random basis from
various hi-tech industries located in and around Indore.
Keywords: Innovate, Intrapreneurship, High-Tech Industries, Risk
Taking, Creativity.
Introduction
To achieve profitable growth, many companies have developed new
approaches to innovate and to create new businesses. Successful companies
change, innovate, and orient themselves entrepreneurially to become
competitive (Zahra, 1991; Zahra et al., 1999, Christensen and Raynor,
2003). This implies that while existing capabilities provide the basis for
the current performance of a company, without renewal, these capabilities
are likely to constrain future ability to compete (Leonard-Barton, 1992).
* National Institute of Technical Teachers’ Training and Research, Bhopal, Madhya Pradesh.
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 93–102
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Thus, institutionalising entrepreneurship is not at all easy, though everyone
wishes to have it always.
Intrapreneurial Phenomenon
The basis of intrapreneurship is recognising an opportunity, exploiting
it, and trusting that exploiting an opportunity in a way that deviates
from previous practice will succeed and support the realisation of the
organisation’s aims (Heinonen, 1999). Here, intrapreneurship is defined
to mean an entrepreneurial way of action in an existing organisation,
i.e. the company’s commitment to innovation in terms of three related
components: product innovation, proactiveness, and risk taking (Miller
1983). Product innovation refers to the ability of a company to create
new products or to modify existing ones to meet the demands of current
or future markets. Proactiveness is a company’s capacity to compete in the
markets by introducing new products, services or technologies.
Risk taking indicates the company’s willingness to engage in business
ventures or strategies in which the outcome may be highly uncertain
(Zahra and Covin, 1995). Together these components form an A-type.
This strategic renewal of an existing organisation entails areas, such as
mission reformation and reorganisation, as well as system-wide changes
within the organisation (Zahra, 1991, 1993, 1996). The renewal activities
relate to the concept of a firm’s business and its competitive approach in
the markets.
The primary factors retarding intrapreneurship are the cost of failure is
too high, and the rewards of success are too low. Intrapreneurs need to
be given the space in which to fail, since failure is an unavoidable aspect
of the intrapreneurial process. This is not to say that organisations should
condone failure, but rather that organisations need to begin to measure
and attribute failure to either the intrapreneur’s fault, or circumstances
beyond the intrapreneur’s control, and punish or reward accordingly.
Pre-requisites and Outcome of Intrapreneurship
Several researchers have attempted to understand the factors that
stimulate or impede intrapreneurship. Areas such as external environment,
organisation, its strategy, and management activities have been presented as
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factors affecting intrapreneurship (Miller, 1983; Guth and Ginsberg, 1990;
Kuratko et al., 1990; Heinonen, 1999). Intrapreneurship is a process,
which occurs in interaction with the environment (Van de Ven, 1993).
It appears that the environment plays a profound role in influencing
intrapreneurship: the more dynamic, hostile and heterogeneous the
environment, more emphasis an organisation places on intrapreneurial
activities (Zahra, 1991, 1993). The intrapreneurship literature highlights
the importance of organisational factors for the pursuit of intrapreneurship
(Zahra, 1991; Heinonen, 1999; Antoncic and Histrich, 2001; Heinonen
and VentoVierikko, 2002).
Management acts as a facilitator and promoter of intrapreneurship.
Management activities affect organisational culture and the basic
assumptions of intrapreneurship in terms of risk taking, innovation,
creativity and learning to result into change within the organisation.
Management activities ensure that the organisation has a clear and
understood vision and direction. The organisational setting also includes
the way work is being organised, such as power and responsibility, division
of work, rules, etc. Altogether, these organisational factors direct the
employees in their intrapreneurial efforts, as well as ensure that employees
are empowered and committed (Thompson, 1999).
Previous studies indicate that managerial support, i.e. organisational
structure, as well as reward and resource availability, affects intrapreneurial
activities within the organisation (Hornsby et al., 1993; Antoncic and
Hisrich, 2001). All the potential elements of intrapreneurship are the
factors assumed to affect intrapreneurship on an organisational level.
Within intrapreneurship, as within entrepreneurship, the individual is
the key actor, making it understandable that why intrapreneur’s personal
attributes, roles, and functions are focal areas of intrapreneurship research
(Carrier, 1996). The individual skills and attitudes describe the capabilities
and willingness of any potential intrapreneur to act intrapreneurially. It is
evident that intrapreneurship provides a ground for competitive advantage
to an existing organisation.
Hi-tech Industries
Traditional industries are conventional, use low technology and are labour/
semi-automated, and which are evolutionary in nature with a very slow
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phenomenon of development and change. Many of these are process
industries where the sub-processes are interrelated and not independent.
Thus, it is not possible to change individual sub-processes as the inputs
and outputs of a sub-process do not match with the related processes.
In the recent times, there is an emerging growth of hi-tech industries.
These industries are mechanised/automated/knowledge-based, and use
the latest upgraded technology. In these types of industries, adoption of
advanced technology is very fast. They have extended knowledge base
and are revolutionary in nature.
The factors differentiating traditional industry from hi-tech industry may
have their impact on intrapreneurship. Length of work experience of an
executive also affects intrapreneurship. One of the important and primary
trait of intrapreneurs is risk taking. Many studies have suggested that
risk taking in an executive increases with the length of work experience.
Therefore, with increasing length of work experience, executives may
contribute to intrapreneurship differently in hi-tech industries.
Objectives of the Study
To determine the effect of total prerequisites of intrapreneurship on
the total intrapreneurship outcome, its factors and dimensions amongst
employees having 1 to 4 years and 7 to 10 years of work experience in
hi-tech industries.
Research Methodology
The present investigation is an exploratory study to understand the
impact of total intrapreneurship prerequisites on the total intrapreneurship
outcome, its factors and dimensions in Indian industries with special
reference to hi-tech organisations. Further, the study has also focused
on highlighting the effect of factors and dimensions of intrapreneurship
prerequisites on the total intrapreneurship outcome, its factors and
dimensions. The intrapreneurship prerequisites, work experience and type
of industry being independent variables, the intrapreneurship outcome has
been chosen as the dependent variable. The level of work experience in
terms of length of service, and industry in terms of type of organisation
were taken as under:
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• Work experience: From 1 to 10 years
• Industry: Hi-tech Industries
The Design
The study was undertaken to test a null hypothesis formulated under
research problems. During the first stage of the study, the effect of total
prerequisites of intrapreneurship on the total intrapreneurship outcome,
and its factors and dimensions amongst the employees having 1to10 years
of work experience in hi-tech industries was determined.
Sample
The elements of the universe were comprised of employees with work
experience of 1 to 10 years in hi-tech industries. The final sample of 80
executives was drawn on a random basis from various hi-tech industries
located in and around Indore. An initial sample of 90 elements was
collected for drawing the final sample of executives having work experience
from 1 to 10 years, while controlling the effect of extraneous variables such
as gender, background, education, and hierarchy by randomisation and
elimination. The incomplete sets of measures were rejected besides those
in which socially desirability scores were found beyond optimum range.
Tools for Data Collection
Primary data was collected as per requirement of the research design. For
this, two standardised psychometric measures were developed to elicit
the responses from intrapreneurs: one for intrapreneurship prerequisites
and another for the outcome. Factors of intrapreneurship prerequisites
are enterprising, disciplined, achievement-oriented, influential, self
efficient, action-oriented, people oriented, persistent, problem solving
approach, composed, learning-oriented, receptive, quality of life, and the
dimensions of intrapreneurship prerequisites are daring , prudent and
erudite. Factors of intrapreneurship outcome are change and development,
proactivity, empowerment, sense of responsibility, customer-orientation,
and dimensions of intrapreneurship outcome are result and efficacy.
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Tools for Data Analysis
To test the difference between the means of samples of employees of all
types of industries having 1–10 years of work experience with low and
high responses of prerequisites with the sample size of more than 30, the
‘z’ test was used.
The sample was classified into high and low total prerequisites of
intrapreneurship, and ‘z’ values of the total outcome. Factors and
dimensions of intrapreneurship outcome were computed to test the eight
null hypotheses out of which five were rejected (Table 1).
H01: Total prerequisites of intrapreneurship do not affect the total
outcome of intrapreneurship amongst the employees having 1to
10 years of work experience in high-tech industries.
The hypothesis stands rejected (z = 3.03, < p. 0.01).
Thus, employees with high total prerequisites of intrapreneurship are
higher in the total outcome of intrapreneurship amongst the employees
having 1 to 10 years of work experience in high-tech industries.
H02: Total prerequisites of intrapreneurship do not affect the change
and development factor of intrapreneurship outcome amongst the
employees having 1 to 10 years of work experience in high-tech
industries.
The hypothesis stands rejected (z = 8.39, p < 0.01)
Thus, employees with high total prerequisites of intrapreneurship are
higher in the change and development factor of intrapreneurship outcome
amongst the employees having 1to10 years of work experience in hightech industries.
H03: Total prerequisites of intrapreneurship do not affect the
empowerment factor of intrapreneurship outcome amongst the
employees having 1 to 10 years of work experience in high-tech
industries.
The hypothesis stands rejected (z = 6.75, p < 0.01).
Thus, employees with high total prerequisites of intrapreneurship are
higher in the empowerment factor of intrapreneurship outcome amongst
the employees having 1 to10 years of work experience in high-tech
industries.
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Annual Research Journal of SCMS, Pune
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H04: Total prerequisites of intrapreneurship do not affect the customerorientation factor of intrapreneurship outcome amongst the
employees having 1 to10 years of work experience in high-tech
industries.
The hypothesis stands accepted.
H05: Total prerequisites of intrapreneurship do not affect the proactivity
factor of intrapreneurship outcome amongst the employees having
1 to 10 years of work experience in high-tech industries.
The hypothesis stands accepted.
H06: Total prerequisites of intrapreneurship do not affect the sense of
responsibility factor of intrapreneurship outcome amongst the
employees having 1 to 10 years of work experience in high-tech
industries.
The hypothesis stands accepted.
H07: Total prerequisites of intrapreneurship do not affect the result
dimension of intrapreneurship outcome amongst the employees
having 1 to 10 years of work experience high-tech industries.
The hypothesis stands rejected (z = 4.80, p < 0.01).
Thus, employees with high total prerequisites of intrapreneurship are
higher in the result dimension of intrapreneurship outcome amongst the
employees having 1 to10 years of work experience in high-tech industries.
H08: Total prerequisites of intrapreneurship do not affect the efficacy
dimension of intrapreneurship outcome amongst the employees
having 1 to 10 years of work experience in high-tech industries.
The hypothesis stands rejected (z = 3.81, p < 0.01).
Thus, employees with high total prerequisites of intrapreneurship are
higher in the efficacy dimension of intrapreneurship outcome amongst the
employees having 1 to10 years of work experience in high-tech industries.
Table 1: Test of Significance between the Means of Total, Factors and
Dimensions Intrapreneurship Outcome as a function of High and Low Total
Prerequisites of Intrapreneurship (z-test)
TIO
OF1
M X-1
4.2586
4.4247
SD X-1
0.364
0.414
M X-2
3.9709
3.5506
SD X-2
0.5879
0.5287
Z Value
3.034 **
8.3967**
100  Annual Research Journal of SCMS, Pune
OF2
OF3
OF4
OF5
OD1
OD2
M X-1
4.4175
4.0737
4.3904
3.9868
4.2492
4.2649
SD X-1
0.2042
0.2505
0.4265
0.529
0.2689
0.2555
M X-2
3.8333
4.159
4.3376
3.9744
3.8548
4.0484
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SD X-2
0.6001
0.7217
0.6066
0.4828
0.6039
0.3979
Z Value
6.7504**
0.972
0.622
0.153
4.806**
3.812**
TIO:
Total intrapreneurship outcome
OF1:
Change and development factor of intrapreneurship outcome
OF2:
Empowerment factor of intrapreneurship outcome
OF3:
Customer-orientation factor of intrapreneurship outcome
OF4:
Proactivity factor of intrapreneurship outcome
OF5:
Sense of responsibility factor of intrapreneurship outcome
OD1: Result dimension of intrapreneurship outcome
OD2: Efficacy dimension of intrapreneurship outcome
M X-1: Outcome mean of the employees having high total prerequisites
M X-2: Outcome mean of the employees having low total prerequisites
SD X-1: Standard deviation of the employees having high total prerequisites
SD X-2: Standard deviation of the employees having low total prerequisites
*
: Significant at 0.01 level.
Conclusion
Employees with high total prerequisites of intrapreneurship are higher in
the total intrapreneurship outcome, its factors of change and development,
and empowerment, as well as dimensions of result and efficacy amongst
the employees having 1to10 years of work experience in high-tech
industries.
References
Antoncic, Bostjan and Robert D. Hisrich, ‘Intrapreneurship: Construct Refinement
and Cross-cultural Validation’, Journal of Business Venturing, vol.16, 2001, pp.
495–527.
________, ‘Intrapreneurship: Construct Refinement and Cross-cultural Validation’,
Journal of Business Venturing, vol.16, 2002, pp. 495–527.
________, ‘Clarifying the Intrapreneurship Concept’, Journal of Small Business and
Enterprise Development, vol. 10, no. 1, 2003, pp. 7–24.
Christensen, C.M., The Innovator’s Dilemma, Boston, MA: Harvard Business School
Press, 1997.
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Annual Research Journal of SCMS, Pune
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Resource, Development and
Innovation in the Indian Industry
S.R. Sheeja*
ABSTRACT
Research and Development (R&D) has a major role in economic
development. While developed countries give much importance to
research and innovation, these remain as relatively unexplored areas
in less developed countries. In the current global scenario, Indian
firms have to reorient themselves to R&D-based innovation, as their
products have to compete with highly technology-based products of
advanced nations in local and international markets. Against this
background, this article attempts to examine whether there has been
significant increase in R&D expenditure in the Indian industry after
the introduction of the new economic policy in 1991. The study
reveals that low priority attached to R&D in India is a matter of
concern. Out of the total national R&D expenditure, the share of the
Industrial sector is very low. The pharmaceutical group appears to
be the most innovative segment among various groups of industries.
In comparison with their counter parts in the public sector, private
sector firms focus more on R&D activities.
Keywords: R&D Expenditure, Innovation, Industrial R&D
Introduction
There is widespread recognition that Research and Development (R&D) is
* School of Distance Education (SDE), University of Kerala, Senate House Campus,
Trivandrum, Kerala.
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 103–116
104  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
a key and vital component of economic development. It is a set of related
activities undertaken to create innovations. OECD Frascati Manual defines
(OECD, 1963) R&D as ‘creative work undertaken on a systematic basis
in order to increase the stock of knowledge, including knowledge of man,
culture and society, and the use this stock of knowledge to devise new
applications’. R&D activities are essential for design and development
of new products, improvement in the quality of products, introduction
of new raw materials, energy conservation, etc. Many empirical studies
(Griliches, 1984; Mansfield, 1995) have pointed out that investment in
R&D is positively associated with economic growth. The existence and
strength of the association between R&D activities and economic growth,
however, depend on the capacity of each region to transform R&D
investment into innovation1 and eventually innovation into economic
growth.
In this era of globalisation, countries and firms have to reconfigure their
competencies (Mahajan, 2011) to survive and succeed in the rapidly
changing business environment. Success depends on the capacity to
generate new scientific knowledge, and to transform it to commercial
applications. R&D-based innovations are essential for firms to survive
and compete in the global market. While developed countries give
much importance to research and innovation, these remain as relatively
unexplored areas in less developed countries. Given the limited financial
resources, developing countries have been slow in using technology to
produce good quality and low cost products to compete with highly
technology-based products of advanced nations in local and export
markets.
Against this background, like other developing countries, India also
needs to gear up local R&D to enhance its technological capability.
For business enterprises that have paid little attention to innovative
activities, reorienting themselves to R&D-based innovation is a difficult
task. The government has been encouraging industrial units to take up
R&D activities by paying special attention to promotion and support to
R&D. It has implemented several fiscal measures, like tax incentives, tax
holidays, excise and customs duty schemes, special incentives to emerging
sectors, etc. India has declared 2010–20 as the ‘Decade of Innovation’
and has also established the National Innovation Council. The Science,
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Annual Research Journal of SCMS, Pune
 105
Technology and Innovation Policy of 2013 (STIP, 2013) aims to bring
further perspectives to bear on innovation in the Indian context.
Financial and human resources represent the principal inputs to R&D
and, often, they are used as indicators of the commitment of industry to
innovation. Level of R&D expenditure and ratio of R&D expenditure to
Gross Domestic Product (GDP) are the most commonly used measures
of innovativeness as they capture the resources devoted to improve
technological capabilities in the future.
There are only a few attempts (Mani, 2008; Bhattacharya and Lal 2008;
Sheeja, 2004) to examine whether there has been significant increase in
R&D expenditure in the Indian industry after the introduction of the new
economic policy in 1991. In this context, the main objective of this article
is to throw light on the important trends and pattern of R&D expenditure
in the Indian industry in the post-liberalisation period. Such an exercise is
essential for understanding whether the R&D efforts in India are keeping
pace with the expansion of the industry and the economy in general. The
present study is based on the official statistics2 on R&D published by the
Department of Science and Technology (DST), Government of India.
The structure of the article is as follows: The second section describes
trends and pattern of R&D investment in India with a focus on industrial
R&D. The third section compares the innovative efforts of private and
public sectors. The fourth and concluding section sums up the main
findings of the article.
Trends and Pattern of R&D Investment in
the Indian Industry
Aggregate R&D expenditure in India increased considerably during the
post-liberalisation period (Table 1). It increased from Rs. 4,513 crore in
1991–92 to Rs. 37,778 crores in 2007–-08. In terms of absolute amount,
there is substantial increase in R&D investment. However, the priority
a nation attaches to a particular sector can be assessed in terms of its
relative share in GDP. The relative share of R&D in India’s GDP is very
low as it is only around 0.8 per cent of GDP. As shown in Table 1, it was
less than 0.80 per cent in the 1990s and slightly improved from 2000
onwards, and by 2007–08 it became 0.88 per cent of GDP. Here, it is
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Vol. 2, Issue 1, March 2014
worth reminding ourselves that the Science, Technology and Innovation
Policy of 2003 (STIP 2003) had targeted to raise the expenditure on R&D
to 2 per cent of GDP by the end of tenth five year plan. The National
Innovation System failed miserably in achieving this target. The new STIP
2013 also envisages enhancing R&D expenditure to 2 per cent of GDP.
As the business sector is gripped by recessionary conditions, again this is
a difficult task (Mani, 2013).
Average growth rates in total expenditure have been worked out. Indian
R&D expenditure showed an average growth rate of 14.42 per cent during
1991–2008. The average annual growth rate was 15.74 per cent during
1991–2000 and 13.09 per cent in 2000–08.
Table 1: R&D Expenditure in India Since 1991 (Rs. crores)
Year
R&D Expenditure
R&D Expenditure as Percentage of GDP
1991–92
4,512.81
0.78
1992–93
5,004.60
0.76
1993–94
6,073.02
0.79
1994–95
6,622.44
0.73
1995–96
7,483.88
0.71
1996–97
8,340.17
0.72
1997–98
10,611.34
0.77
1998–99
12,473.17
0.79
1999–2000
14,397.62
0.82
2000–01
16,198.78
0.86
2001–02
17,038.15
0.82
2002–03
18,088.16
0.80
2003–04
19,726.99
0.79
2004–05
21,639.58
0.84
2005–06
28,776.65
0.89
2006–07
32,941.64
0.87
2007–08
37,777.90
0.88
Source: Various reports of DST, GOI.
An international comparison (Table 2) of relative shares of R&D
expenditure of some developed, as well as developing countries shows that
India is in the lowest spending category (less than 1 per cent category).
China’s position is in the second category as it spends more than 1.4 per
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Annual Research Journal of SCMS, Pune
 107
cent of GDP for R&D. Most of the developed countries spend a higher
proportion of GDP for R&D activities. While Israel spends more than
4.5 per cent of GDP for R&D, countries like Japan and Sweden spend
3.4 per cent and 3.8 per cent of GDP respectively on R&D. Given the
international trend, the declining importance attached to R&D in India
is a matter of serious concern. This widens the already existing technology
gap between India (Kumar and Aggarwal, 2000) and other industrialised
countries. Gearing up of R&D expenditure is the need of the hour as far
as the Indian economy is concerned.
Table 2: Relative Share of R&D: An International Comparison
0.0 –1.0 (%)
1.1–2 (%)
Brazil
Netherlands
(0.82)
(1.69)
India
Canada
(0.88)
(1.97)
Pakistan
China
(0.44)
(1.42)
Sri Lanka
UK
(0.19)
(1.80)
Mexico
Australia
(0.50)
(1.78)
Argentina
Netherlands
(0.49)
(1.69)
Source: R&D Statistics 2007–08, DST, GOI.
above 2%
France
(2.12)
Germany
(2.52)
Israel
(4.53)
Japan
(3.40)
Sweden
(3.82)
USA
(2.61)
In India the central government continues to shoulder the major share of
financial resources devoted to R&D activities. Out of the total national
expenditure, the central sector (central government inclusive of public
sector industry) with its contribution of nearly 59 per cent accounts
for the bulk of R&D expenditure.. The share of private sector3 is only
around 30 per cent. An examination of the pattern of R&D expenditure
in India in the post-liberalisation period (Table 3) reveals that, during
1991–92 to 2000–06, around 70 per cent of R&D expenditure was
incurred by the institutional sector, and the industrial sector accounts
for nearly 25–30 per cent. The small share of industrial sector in the
national R&D expenditure is one of the major handicaps of Indian R&D
system. In most of the developed countries, the share of industrial4 sector
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Vol. 2, Issue 1, March 2014
in national R&D expenditure is more than 50 per cent (R&D statistics
2007–08, DST, GOI).
Table 3: Structural Pattern of R&D Expenditure in India (Rs. crores)
Year
1991–92
1992–93
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–2000
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
Institutional R&D
expenditure
3,391.48
(75.15)
3,654.4
(73.02)
4,547.67
(74.88)
4,888.96
(73.82)
5,429.23
(72.55)
6,007.16
(72.03)
7,735.67
(72.9)
9,158.25
(73.41)
10,982.16
(76.28)
12,432.57
(76.75)
12,978.09
(76.17)
13,630.97
(75.36)
14,164.69
(71.80)
14,342.74
(66.28)
20,028.18
(69.60)
Industrial
R&D expenditure
1,121.33
(24.85)
1,350.2
(26.98)
1,525.35
(25.12)
1,733.48
(26.18)
2,054.65
(27.45)
2,333.01
(27.97)
2,875.67
(27.10)
3,314.92
(26.6)
3,415.46
(23.72)
3,766.21
(23.25)
4,060.06
(23.83)
4,457.19
(24.64)
5,562.30
(28.20)
7,296.84
(33.71)
8,748.47
(30.40)
Note: figures in brackets indicate percentage.
Source: Various reports of DST, GOI.
Total R&D expenditure
4,512.81
(100)
5,004.6
(100)
6,073.02
(100)
6,622.44
(100)
7,483. 88
(100)
8,340.17
(100)
10,611.34
(100)
12,473.17
(100)
14,397.62
(100)
16,198.78
(100)
17,038.15
(100)
18,088.16
(100)
19,726.99
(100)
21,639.58
(100)
28,776.65
(100)
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Annual Research Journal of SCMS, Pune
 109
The following pages focus only on R&D expenditure carried out in the
Indian industry. Table 4 shows the distribution of R&D units and R&D
expenditure among the important segments of the Indian industry. Out
of the 1220 R&D units, the largest number (176) of units was in the
chemical industry group. On the basis of number of R&D units, Drugs
and Pharmaceuticals (161) and Electrical and Electronic (144) equipment
occupied the second and third positions respectively. The highest
percentage share (37.36 per cent) of R&D expenditure was incurred by
the Drugs and Pharmaceutical group. The Pharmaceutical group is one
of the most innovative industries in the Indian manufacturing sector. The
Transportation segment occupied the second position by contributing
14.74 per cent. These two industrial groups together contributed around
52 per cent of the total industrial R&D. It is interesting to observe that
these two segments of the Indian industry together account for more than
half of the total industrial R&D.
Table 4: Distribution of Industrial R&D Among Major Industrial Groups
Industry Group
No. of R&D Units
Drugs and Pharmaceuticals
161
Transportation
64
Defence Industries
16
Electricals and Electronics
144
Chemicals (other than fertilizers)
176
Fuels
23
Information Technology
21
Bio-Technology
71
Metallurgical Industries
61
Industrial Machinery
31
Telecommunications
32
Others
420
Total
1,220
Source: R&D Statistics 2007–-08, DST, GOI
Percentage Share
of total Industrial
R&D Expenditure
37.36
14.74
6.89
5.68
4.35
4.32
4.21
3.68
3.07
1.84
1.83
12.05
100
The average growth rates of R&D expenditure of major industrial groups
in the Indian industry during 1991–2006 have been calculated (Table 5).
The highest average growth of 49 per cent was observed in the Information
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Vol. 2, Issue 1, March 2014
Technology segment. Drugs and pharmaceuticals occupied the second
position with a growth rate of 30 per cent, followed by Transportation
which experienced 20.6 per cent growth in R&D expenditure. Among
these nine segments of the Indian industry, Drugs and Pharmaceuticals
is the only sector in which R&D expenditure increased at a substantially
higher rate during 2000–06 in comparison with the previous period. Fuels
experienced almost the same growth rate during these two time periods. It
is quite distressing to see that in the case of all other segments the average
growth rate of R&D expenditure declined during the second period.
Table 5: Average Growth Rate of R&D Expenditure of Major Segments
of the Indian Industry
Industry Group
Metallurgical Industries
Fuels
Electrical and Electronic Equipment
Telecommunication
Transportation
Information Technology
Chemicals
Drugs and Pharmaceuticals
Defence
1991–2000
13.14
14.18
11.49
12.94
22.57
76.85
18.16
24.89
17.48
Industrial Sector
2000–06
1991–2006
7.74
10.44
14.42
14.30
9.24
10.37
9.05
11.00
18.71
20.64
21.63
49.24
3.41
10.79
34.96
29.89
10.61
14.05
Note: Figures indicate percentage.
Source: Calculated from various reports of DST, GOI.
A Comparison between Public and Private Sectors
The break-up of aggregate industrial R&D expenditure by public and
private sectors in the post-liberalisation period is shown in Table 6. Data
show that, with in the Indian Industry, the private sector’s contribution
was higher than that of the public sector throughout the period. While
the share of private sector was less than 65 per cent during 1991–94 and
it increased to almost 80 per cent during 1995–96. There was further
increase in the percentage share of the private sector and from 1997–98
onwards, and by the year 2005–06, almost 85 per cent of industrial R&D
was undertaken by the private sector. As compared to the public sector,
the private sector has more number of R&D units also. According to
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Annual Research Journal of SCMS, Pune
 111
latest available data (R&D Statistics 2007–08, DST), out of 1,755 R&D
units in the Indian industry 1,643 units ( 93.6 per cent) are in the private
sector and there are only 112 units (6.4 per cent ) in the public sector. So
both in terms of number of units and share of R&D expenditure, private
sector is the major player within the Indian industry.
Table 6: Break-up of R&D Expenditure Within the Industrial Sector
(Rs. crores)
Year
1991–92
1992–93
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–2000
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
Public Sector
484.39
(36.67)
513.95
(38.06)
542.81
(35.59)
414.61
(23.92)
427.58
(20.81)
512.73
(22.20)
539.24
(18.11)
651.02
(18.92)
730.76
(17.82)
820.28
(16.81)
NA
1,078.07
(23.56)
1,091.03
(19.61)
1,257.88
(17.24)
1,304.26
(14.91)
Private Sector
836.25
(63.33)
836.25
(61.94)
982.54
(64.41)
1,318.87
(76.08)
1,627.07
(79.19)
1,796.96
(77.81)
2,438.25
(81.89)
2,790.41
(81.08)
3,365.38
(82.16)
4,058.83
(83.19)
NA
3,498.30
(76.44)
4,471.27
(80.39)
6,038.96
(82.76)
7,444.21
(85.09)
Note: Figures in brackets indicate percentage.
Source: Various reports of DST, GOI.
Industrial Sector
1,320.64
(100)
1,350.20
(100)
1,525.35
(100)
1,733.48
(100)
2,054.64
(100)
2,309.69
(100)
2,977.49
(100)
3,441.42
(100)
4,096.14
(100)
4,879.11
(100)
NA
4,576.37
(100)
5,562.30
(100)
7,296.84
(100)
8,748.47
(100)
112  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
The average annual growth of R&D expenditure in the industrial sector
(Table 7) during 1991–2006 is 16 per cent. While the private sector
experienced a high growth rate of 19 per cent, the corresponding figure
for the public sector was only less than 9 per cent. However, compared
to the 1990s, the average growth rate was lower in the industry and its
private sector during 2000–06.
Table 7: Average Growth of R&D Expenditure in the Indian Industry (Percentage)
Sector
Public
Private
Industrial Sector
1991–2000
7.35
22.79
17.91
2000–06
10.29
15.41
14.24
1991–2006
8.82
19.10
16.08
Note: Figures indicate percentage.
Source: Calculated from various reports of DST, GOI.
A comparison between the average growth rates in R&D expenditure
of major industrial groups within the public sector and private sector is
presented in Table 8. Within the public sector, the highest average growth
was found in transportation (44 per cent) while the pharmaceutical
group exhibited a negative growth rate. All industrial groups, except
Transportation, Drugs and Pharmaceuticals, and Chemicals, experienced a
lower average growth of R&D expenditure during 2000–06 in comparison
with the previous period. Within the private sector, the highest growth
rate in R&D expenditure was observed in Information Technology (61
per cent), followed by Fuels (33 per cent) and Drugs and Pharmaceuticals
(31.6 per cent). In segments like Fuels, Telecommunication, and Drugs and
Pharmaceuticals, the growth rate of R&D was higher in the second period
(2006–07) as compared to the previous period. Here, it is worth noting
that even though Fuels experienced a high growth rate, the absolute
amount spent on R&D was much less, where as, sectors like Drugs and
Pharmaceuticals incurred a sizeable amount for R&D. The private sector
investment in R&D is concentrated in two or three industries, namely,
the Pharmaceuticals, Chemicals and Automotive industries.
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Annual Research Journal of SCMS, Pune
 113
Table 8: Average Growth of R&D: A Comparison Between
Public and Private Sector (Percentage)
Industry Group
Metallurgical Industries
Fuels
Electrical and Electronic
Equipment
Telecommunication
Transportation
Chemicals
Drugs and Pharmaceuticals
Defence
Information Technology
Public Sector
1991– 2000– 1991–
2000
06
2006
9.74
5.28
7.51
14.70 14.01 14.36
34.08 −3.63 15.25
Private Sector
1991– 2000– 1991–
2000
06
2006
21.84 9.94 15.89
15.26 52.30 33.30
15.41 13.89 14.65
13.35 −7.27 3.04 18.20
−12.89 101.72 44.42 10.56
−0.66 14.13 6.73 6.39
−7.05 −4.19 −5.62 27.86
15.98 10.23 13.11 NA
NA
6.63
NA 99.54
30.32
17.65
3.19
35.29
53.38
23.07
24.26
14.11
4.79
31.58
NA
61.31
Source: Calculated from various reports of DST, GOI.
Resource and development intensity4 is an indicator used to assess the
relative importance given by industries to R&D. R&D intensity in the
Table 9: R&D Intensity in the Indian Industry
Year
1991–92
1992–93
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–2000
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
Public Sector
0.47
0.44
0.44
0.26
0.25
0.30
0.32
0.35
0.34
0.32
0.27
0.38
0.35
0.33
0.30
Private Sector
0.60
0.67
0.71
0.62
0.65
0.64
0.60
0.54
0.48
0.50
0.61
0.46
0.54
0.62
0.66
Source: Various reports of DST, GOI.
114  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Indian industry is only 0.55 which implies that the industry spends only
55 paise per 100 rupees of sale on R&D activity. This clearly indicates
that Indian firms assign low priority to R&D activities. In most of the
developed countries, the R&D intensity varies between 3−4 percent (‘R&D
statistics 2007−08’).
A comparison between public and private sectors with respect to R&D
intensity is shown in Table 9. Throughout the period, compared to the
public sector, R&D intensity was higher in the private sector. In 2005–06,
R&D intensity is 0.66 in the private sector and 0.30 in the public sector.
This implies that while the firms in private sector spent 66 paise per 100
rupees of sale on R&D activity, firms in the public sector spent only
30 paise out of 100 rupees sales.
Conclusion
Even though there has been substantial increase in the aggregate amount
devoted to R&D in the post-liberalisation period, its relative share in
GDP is very low. This is a matter of concern especially in view of the
critical role that R&D and innovations have in the growth process. As the
industrial sector accounted for a comparatively smaller share of national
R&D, gearing up of industrial R&D is essential for the Indian economy.
Within the industry, R&D is concentrated in two segments, namely,
Drugs and Pharmaceuticals, and Transportation. The Pharmaceutical
group is the most innovative segment of the Indian manufacturing sector.
The analysis also revealed that R&D intensity is very low in the Indian
industry. Low R&D intensity indicates that Indian firms are not spending
even one rupee out of hundred rupees of sales turnover on R&D.
Within the industry, in terms of both the number of R&D units and
amount of R&D expenditure, the private sector outweighs the public
sector. Moreover, the average growth of R&D expenditure in the private
sector was more than twice the corresponding figure for the public
sector. Compared to the public sector, the private sector has higher R&D
intensity also. All these findings suggest that by realizing the vital role
of R&D, industrial units in the private sector focused more on R&D
efforts while their public counterparts failed to devote sufficient attention
to R&D activities.
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The findings of the study confirm that, in today’s knowledge-based global
environment, the low priority attached to R&D activity in the Indian
industry is a critical issue. Expansion of industrial R&D activities is
the need of the hour as far as a developing country like India is concerned.
Notes
1. Innovation is the transformation of new knowledge and ideas into
commercial applications.
2. The most authentic source of data regarding R&D expenditure in India
is ‘Research and Development Statistics’, published by the National
Science and Technology Management Information System (NSTMIS),
Department of Science and Technology (DST), Government of India.
This report is prepared at periodic intervals. At present, the latest
available report of DST is the ‘R&D Statistics 2007–08’. This report
contained data on R&D expenditure regarding the national economy
up to the year 2007–08 and the industrial sector up to 2005–06.
3. See R&D Statistics 2007–08, http:// nstmis-dst.org/rndststop07-08.
htm, accessed on 30 May 2013.
4. R&D intensity is R&D expenditure expressed as a percentage of sales
turnover.
References
Bhattacharya, S. and K. Lal, Industrial R&D in India: Contemporary Trends, www.
nistards.res.in, 2008.
Deolalikar, A. B. and R. E. Evenson ‘Private Inventive Activity in Indian
Manufacturing: Its Extent and Determinants’ in R. E. Evenson and G.
Ranis, eds., Science and Technology: Lessons for Development Policy, London:
Intermediate Technology Publishers, 1994.
Department of Science and Technology (DST) (Various Years): Research and
Development Statistics, Government of India, New Delhi.
Griliches, Z., ed., R&D, Patents and Productivity, Chicago: Chicago University Press,
Chicago, 1984.
Grossman, G.M. and E. Helpman, Innovation and Growth in the Global Economy,
Massachusetts: The MIT Press, 1992.
Katrak, H., ‘Imported Technology, Enterprise Size and R&D in a Newly Industrialised
Country: The Indian Experience’, Oxford Bulletin of Economics and Statistics,
116  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
vol.47, no.2, 1985, pp. 213–29.
Mahajan, ‘The Emergence of New R&D Paradigms in the Indian Pharmaceutical
Industry: Post TRIPS Period’, Journal of Intellectual Property Rights, vol.16,
July 2011, pp. 321–29.
Kumar, N. and A. Agarwal, Liberalisation, Outward Orientation and In-house R&D
activity of Multinational and Local Firms: A Quantitative Exploration for Indian
Manufacturing, Version1.2, November, 2002; depot.gdnet.org
Mani, S., Industrial R&D in India: Broad Indications, 2008; www.nistards.res.in
Mani, S., The Science, Technology and Innovation Policy 2013: An Evaluation, vol.
XLVII, no. 10, 2013, pp. 16–19.
Mansfield, E., ‘Innovation, Technology and the Economy’, Selected Essays of Edwin
Mansfiled, vols. I and II, Brookfield: Edward Elgar, 1995.
OECD, Measurement of Scientific and Technical Activities, Directorate for Scientific
Affairs, Paris, 1963.
Science, Technology and Innovation Policy (2013): Ministry of Science and
Technology, Government of India, New Delhi, 2003.
Sheeja, S. R, ‘R&D and its Impact on Firm Level Performance: A Case Study of
Chemical Industry in India’, Ph.D Thesis submitted to the University of
Kerala, Thiruvananthapuram, 2004.
Women Entrepreneurship as the Way
for Economic Development
Sabiha Fazalbhoy*
ABSTRACT
The role of women entrepreneurs has changed over the years in the
world. Participation and their importance have been commendable
in the country’s economic growth and development. The World
Development Report, 2012 represents that women owned businesses
show great potential source of future for economic growth and job
creation. Therefore, many initiatives have been started by United
Nations to promote and motivate women entrepreneurship in
developing and under developed countries, such as efforts in SubSaharan African countries.
Looking at the above opportunities, India has also supported many
women entrepreneurs by providing loans and advances, helping them
to establish their business, making them self- sufficient by providing
vocational skills, and creating many jobs for other women in the
respective areas. These opportunities are need-based in India, and
many factors are driving these forces.
This article analyses the role of women entrepreneurs with respect
to the banking institutions. This article studies these aspects in four
parts; the first part deals with growth of women entrepreneurs in
India, the second part studies tapping this growth in financing
women entrepreneurs which is a major problem of failure in their
businesses, third deals with the role of self help groups (SHGs) in
promoting finances and empowering them through capacity building
* Symbiosis Centre for Management Studies, Symbiosis International University, Pune
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 117–127
118  Annual Research Journal of SCMS, Pune
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programmes, and the fourth part deals with future policies of the
government providing conducive environment for their business and
for their livelihood.
Keywords: Women Entrepreneurs, Financing, Self Help Groups,
Government Policies
Introduction
‘You can tell the condition of a nation by looking at the status of its
women.’
– Jawaharlal Nehru
Empowerment of women has emerged as an important issue in recent
times. The economic empowerment of women is being regarded these days
as a Sine-quo-non of progress for a country; hence, the issue of economic
empowerment of women is of paramount importance to political thinkers,
social scientists and reformers.
The emergence of women entrepreneurs and their contribution to the
national economy is quite visible in India. The number of women
entrepreneurs has grown over a period of time, especially in the 1990s.
Women entrepreneurs need to be lauded for their increased utilisation of
modern technology, increased investments, finding a niche in the export
market, creating a sizeable employment for others, and setting the trend
for other women entrepreneurs in the organised sector. While women
entrepreneurs have demonstrated their potential, the fact remains that they
are capable of contributing much more than what they already are. Women’s
entrepreneurship needs to be studied separately for two main reasons. The
first reason is that women entrepreneurship has been recognised during
the last decade as an important untapped source of economic growth.
Women entrepreneurs create new jobs for themselves and others, and also
by being different. They provide the society with different solutions, like
management, organisation and solutions to business problems, as well as
the exploitation of entrepreneurial opportunities. The second reason is
that the topic of women in entrepreneurship has been largely neglected
both, in society in general and in the social sciences. Entrepreneurship
amongst women has been a recent concern. Women Entrepreneurs may
be defined as the women or a group of women who initiate, organise and
operate a business enterprise. The government of India has defined women
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 119
entrepreneurs as an enterprise owned and controlled by a woman having
a minimum financial interest of 51 per cent of the capital and giving at
least 51 per cent of employment generated in the enterprise to women.
Like a male entrepreneur a women entrepreneur has many functions.
They should explore the prospects of starting new enterprises; undertake
risks, introduction of new innovations, coordination administration and
control of business, and providing effective leadership in all aspects of
business. This article analyses the role of women entrepreneurs in the
growth of the country’s economy and the impact of banking institutions
on their growth. The study is divided into four parts; the first part deals
with the growth of women entrepreneurs in the country, the second part
deals with tapping this growth through finances obtained through banking
institutions, third deals with the role of SHGs in empowering women
entrepreneurs, and the fourth part deals with policies of the government
in providing conducive environment for their business and growth.
Literature Review
The literature review is divided into four parts. The first part of the
literature review showcases the growth of women entrepreneurs in India.
It is estimated that women entrepreneurs presently comprise about 10 per
cent of the total number of entrepreneurs in India, with the percentage
growing every year. If the prevailing trends continue, it is likely that in
another five years, women will comprise 20 per cent of the entrepreneurial
force (Saidapur et al., 2012). The studies also reveal that a number of
women entrepreneurs have been encouraged to undertake entrepreneurial
activities.
Empirical evidence shows that women contribute significantly to the
running of family businesses mostly in the form of unpaid effort and
skills. The development of women entrepreneurship has become an
important aspect of our plan priorities. Several policies and programmes
are being implemented for the development of women entrepreneurship
in India (www.indiatogether.org/women/business/renuka vishwanathan).
The case of Rama Devi, who is currently president of the Association of
Lady Entrepreneurs of Andhra Pradesh (ALEAP), portrays that she was
pushed into her current business,which was initially started by her husband
and ran into huge losses, although today she can claim to have revived
120  Annual Research Journal of SCMS, Pune
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Shivani Engineering Industries (articles.economictimes.indiatimes.com).
According to Sanjukta Mishra, a study by Dr Joshi, H.G. Ms Veena Rao
ICTTM Global Institute of Management, Bhubaneswar-the industrial
performance of Asia-Pacific region propelled by Foreign Direct Investment
(FDI), technological innovations and manufactured exports has brought a
wide range of economic and social opportunities to women entrepreneurs.
The development of women entrepreneurship has become an important
aspect of our plan priorities. Several policies and programmes are being
implemented for the development of women entrepreneurship (India.
http://www.indianmba.com/Faculty_Column/FC1073/fc1073.html). The
second part of the literature review focuses upon the problem of finances
for women entrepreneurs which has led to several failures. 2012 shows
that women often have fewer opportunities than men to gain access to
credit for various reasons, including lack of collateral, unwillingness to
accept household assets as collateral, and negative perceptions of female
entrepreneurs by loan officers. A study by Das (2000) shows that more
than 50 per cent of the women used their own funds or funds borrowed
from their spouse or family to set up their business. Another such study
done among women entrepreneurs in Coimbatore District, Tamil Nadu
points out financing the enterprise as a major problem faced by the
women entrepreneurs (Mangai et al., 1992). Financial problem is a major
problem faced by all respondents. They face this problem at the time of
starting, as well as during the operations of their business enterprises,
problem of getting loan and subsidy, insistence of collateral security and
margin money requirement, time taken to process loan, tight repayment
schedule, poor financial management and maintenance of accounts
Jayammal, 2012)According to a report by the United Nations Industrial
Development Organisation (UNIDO), ‘despite evidence that women’s loan
repayment rates are higher than men’s, women still face more difficulties
in obtaining credit’, often due to discriminatory attitudes of banks and
informal lending groups (UNIDO, 1995). Lack of knowledge about
marketing the product was the major problem faced by 76 per cent of
the respondents. 74 per cent faced financial problems regarding loan
and subsidy, whereas inadequate government assistance was reported as a
problem by 70 per cent respondents (International Journal of Social Science
and Interdisciplinary Research, 2013). Women entrepreneurs are more likely
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 121
to cite access to finance as the first or second barrier to developing their
businesses (BBR Women Entrepreneurship 2013).
The third part of the literature review studies the impact and role of
SHGs in the growth of women entrepreneurs in promoting finances for
them, and empowering them through capacity building programmes.
There are significant gender differences in the access to and use of
credit,particularly formal credit. The role of micro-credit is to improve
the socio and economic development of women and improve the status
of women in households and communities. As said by Sathiabama, the
micro entrepreneurships are strengthening women empowerment and
removing gender inequalities. The SHG’s micro-credit mechanism makes
the members to involve in other community development activities.
Micro-credit is promoting the small scale business enterprises, and its
major aim is to alleviate poverty by income generating activities. Studies
reveal that a number of SHGs, such as Abhinav Farmers Co-operative
Society, Grassroots, Grameen Bank, Assam Tea Corporation, etc., are
actively participating in empowering women by providing them support
through credit and self supporting business activities. Studies also unveil
the fact that SHGs are primarily established for women by the women,
and in states like Tamil Nadu and Kerala they have been tremendously
successful. NABARD also launched a pilot project for women on SHGs in
collaboration with commercial banks and regional rural banks. In addition,
refinancing facilities are available through national banks for financing
under the non-farm sector. Studies in three states reveal that the SHGs
established have helped in better recovery of loans, development of thrift
and self help among members, effective use of credit for the purchase of
income generating assets, and empowerment of women.
The fourth part of the literature review studies about the future policies of
the government which provide a conducive environment for the business
and livelihood of women entrepreneurs. According to the final report of
the fourth All India census of the micro, small and medium enterprises
(MSME) in the unregistered sector shows that the rural areas had a larger
share of unregistered MSME sector as compared to urban areas in respect
of enterprises, employment, gross output, and that the urban areas were
dominated by the original value of plant and machinery and market value
of fixed asset. Thus, rural area accounted for almost 60 per cent of the
122  Annual Research Journal of SCMS, Pune
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total number of enterprises with their share contributing almost 57 per
cent of employment, 50 per cent of investment in plant and machinery,
45 per cent in fixed assets and 56 per cent in gross output of the total
unregistered MSME sector. However, in urban areas with more than 39
per cent of the enterprises contributing to almost 50 per cent of investment
in P&M, 55 per cent in fixed investment, 43 per cent of employment
and 44 per cent of the output of unregistered MSME sector, urban areas
also contributed reasonably well to the growth of the MSME sector.
Government policies for the unregistered sector, particularly in the rural
sector, need to be developed keeping in mind the need of this sector. As
pointed out by Sanjukta Mishra in her study, the current policies of the
government provide direct and indirect financial support, Yojna schemes
and programmes, technological training and awards, and federations
and associations. However, these are not enough as most of the women
entrepreneurs are based in the unorganised unregistered rural sector of the
economy. The literature review conducted throws light upon the growth
of women entrepreneurs in the country, challenges faced by them, and
the financial constraints.
Data Analysis and Interpretation
Women entrepreneurship is growing at a rapid rate in the world. The
factors influencing these women across sectors globally are opportunities
created by globalisation, integrated markets and jobs, support from the
family, major support from the government through various programmes
started internationally and domestically for women entrepreneurs,
improvement in their standards, and health and education. Table 1 shows
the benefits of entrepreneurship and empowerment. This includes rise
in income, self worth, self confidence and social status in life. Due to
empowerment and motivation, women entrepreneurs create employment
for many more women in the community and in a country. Then only
a country will be considered inclusive.
The number of female-owned enterprises is growing at a faster pace than
that of male counterparts. These figures are more visible in developed
nations than developing nations. Still, few factors are restricting
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Annual Research Journal of SCMS, Pune
 123
Table 1: The Benefits of Women Entrepreneurship-Empowerment
S.
Benefits of
Empowerment
No. Entrepreneurship
A Rise in economic Increased income
status
Increased consumption
Control over spending
Confidence in sustaining trend
B Self worth
Finds greater ability to lead
To work in groups
To resolve conflict
Freedom to make business life and own decision in life
Gets recognition in work
C Self confidence
To be proactive
To face critics
To take risks (calculated risk)
To influence others
D Social status
Positive image
More gender equality
Sociability–net working
Involvement in community works
Involvement in political activities
Encouraging other women to entrepreneurship
Source: Geetha Sulur and Barani Gunatharam*
*Note: This case study has been done in Tamil Nadu on empowering women
entrepreneurship.
women entrepreneurs in developing countries, like access to finance,
lack of relevant education and experience, domestic responsibilities, and
access to vocational skills and training. All these factors are limiting
women entrepreneurs to excel in their respective fields. Out of all
factors, the major problem lies with the access to finance. Table 2
suggests critical factors for the future growth of the firm with reference
to fashion and apparel enterprises. Access to finance has registered
66.1 per cent and assistance with business planning has accounted for
18.6 per cent of the critical factors for future growth. This shows the
importance and role of banks in financing women entrepreneurs to
promote and ensure growth of enterprises in the long run.
124  Annual Research Journal of SCMS, Pune
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Table 2: Critical Factors for the Future Growth of the Firm
S.
No.
1
2
3
4
5
Category
Access to finance
Access to new markets
Assistance with business planning
Providing benefits to workers
Finding skilled workers
Percentage (%)
66.1
5.1
18.6
5.1
5.1
Source: Veena Rao, Venkatachalam and Joshi, ‘Challenges faced by women
entrepreneurs running micro, small and medium scale fashion and apparel business
– A study on fashion and apparel enterprises in coastal Karnataka’.
In India, women entrepreneurs identified majorly with micro, small
and medium enterprises because many women start their enterprises
with a very low net worth (low budget enterprise) and ensure low risk.
Therefore, women participation as per revenue is less due to the size of
their enterprises, but create more volume and employment in various
sectors (Annual report of MSME 2012–13) (Table 3). As per the fourth
All India census of MSME, the number of women enterprises in the
registered sector are 2.15 lakh (13.72 per cent) and unregistered sector
are 18.06 lakh (9.09 per cent) of the total sectors. This figure clearly
shows the number of women enterprises that are under the unregistered
sector. This indicates that many women enterprises would start up their
enterprises if the government makes policies for unregistered sector where
more benefits can be reaped by women entrepreneurs. They could get
more opportunities and benefits if they come under the registered sector.
The MSME sector contributes to 44.7 million enterprises. It creates
employment for more than 80million jobs, this being the second
largest after agriculture. It contributes 45 per cent of the total industrial
manufacturing and above 40 per cent of India’s total exports. The microenterprise and micro-finance widely accepted development strategy for
poverty reduction. This responsibility has been equally taken up by
government, commercial banks and civil society. The role of SHGs in
providing micro-finance has been enormous in last one decade. Self help
groups with micro finance are effective in reducing poverty, empowerment
women and creating self sufficiency in rural development. As per
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Annual Research Journal of SCMS, Pune
 125
the Annual Report of SHGs, an increasing number of micro-finance
institutions prefer women members as they are better and more reliable
borrowers. Considering the importance of the MSME sector and the
need for rural development,the role of micro-finance through SHGs has
been given due importance especially to women entrepreneurs,who are
bringing economical and social changes in their livelihood.
Kerala and Tamil Nadu are such examples where women entrepreneurship
and micro-enterprises have grown due to extensive support of SHGs.
They have provided micro-finances, capacity building programmes by
training women, and have nurtured them with their financial support.
Today, the reserve bank of India (RBI) also understands the role and
importance of SHGs in financing, and has extended medium sized loans
to women entrepreneurs in support with NABARD. The beauty of
women entrepreneurs is the motivation for other women to come up and
participate with equal opportunities and maintain their enterprises. Across
the world maximum start ups have failed due to financial problems faced
by women entrepreneurs, but today due to SHGs, trust has been built
amongst the women entrepreneurs to realize and make their dreams come
true. Therefore, this type of growth is truly an inclusive growth in India.
Table 3: Women Entrepreneurship in India – A Study
States
Tamil Nadu
Uttar Pradesh
Kerala
Punjab
Maharashtra
Gujarat
Karnataka
Madhya Pradesh
Other States and UTs
Total
No of Units
Registered
9,618
7,980
5,487
4,791
4,339
3,872
3,822
2,967
1,4576
57,452
No. of Women
Entrepreneurs
2,930
3,180
2,135
1,618
1,394
1,538
1,026
842
4,185
18,848
Percentage
30.36
39.84
38.91
33.77
32.12
39.72
26.84
28.38
28.71
32.82
Source: Micro, small and medium industries report from the ministry under the
Government of India, 2012–13.
As the table reveals, women entrepreneurs are present in all states of the
country and self-help supplemented with mutual help can be a powerful
126  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
vehicle for the women entrepreneurs in their socio-economic development.
They provide support through :
•
Participative financial services management are more responsive and
efficient;
•
Women entrepreneurs are provided with credit support, savings and
other services;
•
Lower transaction cost and much lower risk costs for the banks;
•
Creation of a common fund by contributing small savings on a regular
basis;
•
Flexible and a democratic system of working;
•
Loaning is done mainly on trust, with least documentation and
without any security;
•
Defaults are rare mainly due to group pressure; and
•
Periodic meetings of non-traditional savings.
Thus SHGs provide support and empower women in establishing
their businesses.
Conclusion
Women entrepreneurship is both about women’s position in the society
and about the role of entrepreneurship in the same society. Women
entrepreneurs face many obstacles, specifically in marketing their product
(including family responsibilities), that have to be overcome in order to
give them access to the same opportunities as men. The entry of rural
women in micro- enterprises must be encouraged and aggravated. Rural
women can do wonders by their effectual and competent involvement
in entrepreneurial activities. The rural women have the basic indigenous
knowledge, skill, potential and resources to establish and manage
enterprise. Now, the need is for knowledge regarding accessibility to loans,
various funding agencies, procedures regarding certification, awareness on
government welfare programmes, motivation, technical skill and support
from family government and other organisation. More over, formation and
strengthening of rural women entrepreneur’s network must be encouraged.
The banking institutions must offer formalised credit facilities, and
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Annual Research Journal of SCMS, Pune
 127
this sector must be included in the registered sector category by the
government to promote entrepreneurship among rural women. This
support will help the women to strengthen their family bonds through
financing their businesses, and thus help in the economic growth of the
country. This article highlights the importance and need of the rural
women entrepreneurs to be included in the government’s registered sector
which would pave the way for economic development of the country.
Thus, it can be asserted that women entrepreneurs can perform better,
both in urban and rural areas, given that the government provides them
financial support by including them under the registered sector.
References
http://www.entrepreneur.com/article/227163
http://www.indiatvnews.com/business/india/breaking-news-successful-femaleentrepreneurs-india-3242.html?page=7
http://www.dcmsme.gov.in/schemes/treadwomen.htm
http://www.dcmsme.gov.in/data-stat.htm
http://www.dcmsme.gov.in/publications/pmryprof/pmryprofile.html
http://www.dcmsme.gov.in/reports/CGTMSE%20AR%202012-13.pdf
International Journal of Social Science and Interdisciplinary Research ISSN 2277
3630IJSSIR, vol. 2, no. 4, April, 2013.
BBR Women Entrepreneurship, (2013).
Saidapur et al., 2012.
www.indiatogether.org/women/business/renuka vishwanathan apur et al., 2012.
Mangai et al., 1992.
Jayammal, G, Problems of Women Eentrepreneurs in Coimbatore, Retrieved September
12, 2012.
Report by the United Nations Industrial Development Organization (UNIDO).
India.http://www.indianmba.com/Faculty_Column/FC1073/fc1073.html.
Entrepreneurial Development and structural support by Vasant Desai.
Case studies on self help groups.
A Study on Entrepreneurial
Seriousness Among Small
Education-Based Business
Owners in Bhilai
Sanjay Mishra* and Ranjeeta Mishra**
ABSTRACT
Lots of work has been done on the studies and factors affecting
the entrepreneurial performance. According to most of the existing
models motivation is the most important element for the success of
small businesses. This study analyses entrepreneurial performance
on a different parameter called Entrepreneurial Seriousness. The
fundamental belief is that Entrepreneurial Seriousness is a strong prerequisite to entrepreneurial performance and success of the venture.
Various factors, like willingness to acquire knowledge, willingness to
perform, willingness to adopt difficult skills, willingness to take mental
stress, need to achieve, willingness to maintain good relations with
people, and desire to innovate and appreciate ideas were identified that
affect the entrepreneurial seriousness. It included both entrepreneurs
who primarily are teachers and coaches, and those who entered the
business of education, coaching and training as investors, hence
arranging for the factors of producing the service. They ranged from
entrepreneurs dealing in self developed educational products and
services to franchisees of different well-known players. The scope of
the study is kept limited to Education-based Business Entrepreneurs
* Head Academics, Lotus Business School, Pune
** Independent Researcher
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 128–137
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Annual Research Journal of SCMS, Pune
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in Bhilai. The sample is taken from the entrepreneurs operating
in the education domain with an annual turnover of less than Rs.
2.5 million. They are all pre-dominantly single owners. The sample
size taken is 62, of which 58 respondents were found suitable for
analysis. Primary data is collected from the sample. The data collection
technique has been a questionnaire based survey. Mean scores and
Standard Deviation have been used for statistical analysis to draw
conclusions. The conclusions drawn indicate that there is a pattern
among the sampled entrepreneurs with respect to entrepreneurial
seriousness that affects the performance directly or indirectly.
Keywords: Education Based, Bhilai, Business Entrepreneurs,
Entrepreneurial Performance, Entrepreneurial Seriousness.
Introduction
Most of the studies and theoretical models on performance of enterprises,
particularly pertaining to small businesses, motivation has been treated as
the key element (Blawatt, 1995; Naffziger et al., 1994; Herron Robinson,
1993; Keats and Bracker, 1988; Cragg and King 1988; Hollenback and
Whitener, 1988). The objectives that the entrepreneurs wish to seek from
the ownership of a small business also have a bearing on the performance
of the enterprise. The premise of the research is developing a better
understanding on the entrepreneurial motivation that will help to study:
1. Behavioural patterns of Entrepreneurs.
2. Relationship between these patterns and the performance in business.
We however cannot undermine the impact of motivation on the business
performance. For example, in the western world, entrepreneurs get into
business with a worthy idea and the possibility of value building. In India
and other developing economies, it is still a secondary option to failure in
obtaining government jobs. Even the states like Gujarat that are known for
Business and Entrepreneurial acumen are showing a decline in the instinct
due to much lucrative options available in the government and private
sector. Some of the communities like Marwaris, Sindhis and Punjabies
display traditional interest in entrepreneurship. In addition to this, some
of the work done reveals a clear relationship between the managerial style
and entrepreneurial characteristics (Orhan, Scott, 2001; Parag Crammer
130  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
2001). This, in fact, has given rise to the concept of Intrapreneurship.
Some of the forward looking and professionally managed companies like
NIIT have been nurturing this idea by consistently recruiting managers
with entrepreneurial characteristics, providing them some vital work
experience with the business heads and then allowing them to set their
own ventures as Intrapreneurs. Lots of studies have been undertaken to
find the relationship between impacts of Formal Management Training
on the growth related entrepreneurial attitude, planning skills, and growth
pattern of enterprises. Most of the recent work done is with a focus of
studying the internal drive of the entrepreneur that has lead to the success
of the enterprise.
As motivation has been the basis of most of the theoretical models of
entrepreneurial performance, it becomes logical to establish the drive
that makes work for the business, and then to develop a method for the
measurement of entrepreneurial seriousness. Together, these dual objectives
would distinguish the work.
An Entrepreneur is defined as a person who is self employed, initiates,
organises, manages and assumes responsibility for a business, and offers
a personal challenge which happens to be the major driving force. He
is open for accepting financial risks in lieu for additional gains in case
the firm makes profits. It is quite often seen as an aversive career as it
is envisaged with uncertainty, frustrations, impediments and failures.
The topic of entrepreneurial motivation has evolved from organisational
psychology. Early research followed the path of traits resulting in
behaviour, like entrepreneur’s initiation, direction, sustainment, etc., that
distinguish an entrepreneur from the general public. Major contributors
were McClelland (1961) who discussed N for achievement (N-Ach)
(high need for achievement) as a common personality trait present in
entrepreneurs. Other major contributors are (Churchill and Lewis, 1986;
Shaver and Scott, 1991).
Gilad and Levine (1986) proposed two closely related explanations of
entrepreneurial motivation, called the Push and Pull theory, former being
an outcome of lack of opportunities and job dissatisfaction resulting
in entrepreneurship, the latter advocating the entry of people into
entrepreneurship as a volunteering exercise due to independence seeking
behaviour, self fulfilment, wealth and other desirable outcomes. Research
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 131
suggests that it is pull that brings in seriousness to the entrepreneurs’
behaviour (Keeble et al., 1992; Orhan and Scott, 2001). Process oriented
models that are developed recently assume entrepreneurship as a complex
cognitive function. Humans have the ability to think and predict possible
future outcomes, and work on the possibility of their attainment. All these
evaluations lead to a concept called entrepreneurial seriousness.
Victor Vroom (1964) is the mainstay of explaining entrepreneurial
motivation in traditional cognitive models. Motivation is conceptualised
as the product of expectancy, instrumentality and valence. Expectancy
is analogous to measures such as perceived feasibility and self efficacy,
measured in terms of answers to the question, ‘How confident you are
towards your performing the task? Mone (1994) discussed two measures
of self efficacy, process and outcome.
Process refers to confidence of successful completion of task, where as
Outcome refers to people’s confidence towards achievement of results.
Most of the modern models are based on these conceptions of an
individual’s intent, such as desirability, outcome expectations, net benefits
and perceived utility of decision taken. Entrepreneurial seriousness
fundamentally deals with two questions:
1. Is entrepreneurship desirable to me?
2. Is entrepreneurship feasible for me? (Segal, Dan Boriga and
Schoenfeld, 2005).
Organisation of the Paper
The paper discusses the profile of the town of Bhilai. It further discusses
the methodology and literature review for establishing the dimensions of
entrepreneurial seriousness followed by analysis and results of findings.
Background
The town of Bhilai, where the study is conducted, is one of the major
Industrial centres of the state of Chhattisgarh. The population of Bhilai
is around 1 million. It is a predominantly industrial town habituated by
a cosmopolitan population mainly employed in the Bhilai Steel Plant.
The literacy level is close to 100 per cent. Quality of life is fairly high
132  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
due to high disposable income. With the change in socio-political and
economic scenario the lifestyle, demographic mix, employment patterns,
etc., has changed considerably. Entrepreneurship has emerged as a new
way of employment.
Bhilai is home to a host of industries ranging from steel to cement (with
the presence of giants like SAIL, ACC, JAYPEE, BEC, SIMPLEX, HEG
to name a few), rolling mills, earth movers’ manufacturing (Simplex),
service organisations like hotels, restaurants, retail outlets, banks, financial
services, insurance offices (with a presence of all major companies), high
quality super speciality hospitals (ABSR, CCMH, JLNH&RC, RDC,
etc.), apparel and garment outlets, cinema halls and other entertainment
and socio-cultural centres, high quality schools (both owned by Bhilai
Steel Plant and private players) and a number of good centres for higher
education (including the state owned Technical University CSVTU,
management, engineering, nursing, dental, education and many other
regular colleges of high repute).
All the above mentioned are big and organised ventures involving large
investments, and permissions and clearances from various agencies.
Moreover, these are controlled by a small elite group of the town
(< 0.1 per cent of the population). Another area where Bhilai has created
enormous fame for itself is the coaching, teaching and training industry
(mostly unorganised). These are generally owned by well qualified,
belonging to middle class, ambitious young and middle-aged male
entrepreneurs. The town has seen very successful/reasonably successful/
not so successful/ failed/forced to leave the field of small time educationbased entrepreneurs. Every year many new players enter the arena, and at
the same time many leave or continue with losses. Few make it big and
continue to dominate their respective segments year after year. It is this
observation that has drawn me to conduct this study with an intention
to examine the relationship between entrepreneurial seriousness and their
performance in the venture.
Conceptual Framework
Entrepreneurship can be seen as an effort by an individual in order to
capitalise on an available opportunity in the market place by arranging
and managing the resources required to exploit opportunities. It is
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 133
hence a behavioural orientation of the individual that creates ventures
of value to self and society. (Timmons 1994; Barton, Cunnigham,
Lischoren, 1991; Gartner,1989). This helps recognize the role played
by an entrepreneur at various stages of the complex development of the
venture. (Hill and Mcgowan, 1996; Chell et al., 1991; Magowan and
Rocks, 1995; Carsrud and Johnson, 1989). Entrepreneurs, in order to
succeed, need a combination of personality traits, a propensity of creativity
and innovation, and appropriate managerial skills. He is hence primarily a
visionary and change agent. The effectiveness of an entrepreneur depends
on the experience and motivation level, argues Griener (1972). Hence,
knowledge and experience can be taken as key personal resources for an
entrepreneur. Foresight is another key for entrepreneurial success that
helps being prepared for unwarranted situations.
Entrepreneurial success happens to be composed of two traits: Personal
Characteristics and Managerial Skills. Strategic awareness and motivation
seem to be core elements in the success process and serious commitment
towards the enterprise.
Seriousness is also related to the reward structure. Baumol (1994) suggests
that entrepreneurs value reward and feel more motivated if the reward is
useful, of high utility and desirable for his career. Parag and Cramer (2001)
established that people turn into serious entrepreneurs if the expected
reward is higher than the wages of gainful employment.
Two questions were asked by Shaver and Scott (1991) that decide on the
degree of seriousness and choices made by the entrepreneur. These are
‘can I make a difference?’, and ‘do I want to do it?’. Shapero and Sokol
(1982) discussed that the seriousness in entrepreneurial intention is also
a function of perceived credibility and desirability.
To summarise, the framework that could be built from existing literature
will comprise of dimensions, like willingness to acquire knowledge,
to perform, adopt difficult skills, take mental stress, need to achieve,
maintain a positive relation with others, and the desire to innovate
and appreciate ideas. The two terms entrepreneurial motivation and
seriousness may be closely related, but may not be the same for all
intents and purposes.
134  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Methodology
The research is conducted among existing entrepreneurs. The scope of the
study is kept limited to small time education-based business entrepreneurs
in Bhilai. The sample is taken from the entrepreneurs operating in the
education domain with an annual turnover of less than Rs. 2.5 million.
They are all pre-dominantly single owners. Single owners are deliberately
chosen as they bear the highest risk and can reach clear conclusions. The
sample size taken is 62, out of which 58 respondents were found suitable
for analysis. The 5 point Likert scale was administered having a five point
agreement index. The average life of businesses was taken to be above 3
years. Out of many entrepreneurs in the category, the sample was drawn
on local references and convenience. Primary data is collected from the
sample. For the purpose of finalising the parameters a detailed interview
of five entrepreneurs was conducted at the place of work or residence as
per the choice of the respondent. The data collection technique has been
a questionnaire based survey. Mean scores and Standard Deviation have
been used for statistical analysis to draw conclusions.
Findings and Discussion
Table 1: Overall Finding of the Total Sample
Seriousness Dimension
Willingness
Willingness
Willingness
Willingness
Willingness
Willingness
Willingness
to
to
to
to
to
to
to
acquire knowledge
perform
adopt difficult skills
take mental stress
achieve
maintain positive relationship with others
innovate and appreciate ideas
Mean
Score
3.85
4.22
3.75
3.05
4.5
3.5
3.45
Standard
Deviation
0.95
0.77
1.2
1.22
0.75
0.6
1
The study indicated towards expected results with some interesting
findings. The findings for the total sample are tabulated in Table 1.
Mean scores and Standard Deviation for Entrepreneurial Seriousness
are summarised. Willingness to achieve scores the highest mean value
of 4.5, and the willingness to take mental stress scores 3.05 which is
the lowest. Hence, it can be concluded that N-Ach is very high in all
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 135
entrepreneurs, irrespective of them being serious or non-serious. A closer
look on other factors brings out the clear difference for serious and nonserious entrepreneurs in terms of other parameters as discussed later. The
respondents were generally found to be averse to mental stress which
is well expected as all the entrepreneurs are no different than normal
human beings.
The study was carried further by dividing the respondents into serious
and non- serious entrepreneurs as shown in Table 2. This was done by
taking the mean scores of all the parameters for individual respondent.
Respondents scoring above 3.5 were considered to be serious and less than
3.5 as non-serious. Out of the total sample 62 per cent were found to
be serious. The study indicated towards some very interesting differences
between the two types.
Table 2: Serious and Non-Serious Entrepreneurs Compared and Contrasted
Seriousness Dimensions
Willingness to acquire
knowledge
Willingness to perform
Willingness to adopt
difficult skills
Willingness to take
mental stress
Need to achieve
Willingness to have
positive relations with
others
Willingness to innovate
and appreciate new ideas
Serious
Entrepreneurs
Mean Standard
Scores Deviations
4.2
0.5
Non-serious
Entrepreneurs
Mean
Standard
Scores
Deviations
3.1
1
Mean
Difference
1
4.5
4.22
0.49
0.7
3.6
3
0.86
1.3
0.86
1.12
3.45
1
2.2
0.9
1.2
4.7
4
0.4
0.5
3.7
3.3
1.01
0.4
0.7
0.6
4
0.7
2.85
1.05
1.2
The serious entrepreneurs displayed a higher inclination towards acquiring
new information and knowledge as compared to the non-serious
counterparts with a mean difference of 1. They are found to be so as they
are proactive in new knowledge search so as to remain competitive in the
field. This is in conformance with the findings of the literature reviewed.
136  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Serious and non-serious entrepreneurs show serious differences in the case
of willingness to adopt difficult skills with mean scores of 4.22 and 3 with
Standard Deviations of .7 and 1.3 respectively. Non-serious entrepreneurs
have a tendency of outsourcing difficult skills which is evident in lowered
margins resulting in further non-seriousness towards the business.
Another parameter that showed a sharp difference with high mean
difference of 1.2 is willingness to take mental stress. The non-serious
entrepreneurs were found to have less active motivation that would lead
to involvement in business, leading to a high need of thinking and stress
taking for running the business.
The non-serious entrepreneurs also showed a mental block towards new
ideas. It was understood that it is primarily due to efforts put in by the
two groups to improve business process. The ‘t’ test was conducted to
find out the difference of means between the two groups on the identified
dimensions. The value was found to be 3.9, which is significantly higher
than the table value of ‘t’ which is equal to 2.179 at 95 per cent confidence
level. It can hence be concluded that there is marked difference between
the serious and non-serious entrepreneurs on the identified parameters
of seriousness.
Conclusion
The result shows a marked difference between serious and non-serious
entrepreneurs on the dimensions of willingness to take mental stress,
willingness to adopt difficult skills, and willingness to appreciate new
and innovative ideas. 36 entrepreneurs of a sample of 58 were found to
be serious.
References
Baumol, W. J., ‘Entrepreneurship: Productive, Unproductive and Destructive’, Journal
of Political Economy, vol. 98, 1994, pp. 893–921.
Gartner, W. B., ‘Who is the Entrepreneur? Is the Wrong Question’, Journal of
Entrepreneurship: Theory and Practice, vol. 13, no. 4, Summer, 1989, pp. 47–68.
Gilad, A. and M, Scot, ‘Strategic Awareness, Personal Commitment, and Planning
in Small Business’, Journal of Management Studies, vol. 2, no. 6, 1985,
pp. 597–631.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 137
Blawatt, K., ‘Defining an Entrepreneur: A Conceptual Model of Entrepreneurship’,
CCSBE-CCPME Proceedings, 1995, pp. 893–921.
Campwell, C. A., ‘A Decision Theory Based Model for Entrepreneurial Act,’
Entrepreneurship Theory and Practice, vol 17, no. 1, 1992, pp. 21–9.
Bandura, A., Social Foundations of Thought and Action: A Social Cognitive Theory,
N.J.: Prentice Hall Englewood Cliffs, 1986.
Skill Development and Vocational
Training in the Handicraft Sector
in Jammu and Kashmir: Special
Reference to District Anantanag
Showkat Ahmad Sheikh* and Sharad Tiwari*
ABSTRACT
Handicraft is a pivotal source of employment generation of Jammu
and Kashmir state. This industry is unique in terms of skill design, cost
and quality of products and thus provides a competitive advantage on
other national and international players of handicrafts market. The
various training centres train the large number of educated youths and
the youth who had dropped out of the education system, giving them
technical training to earn their livelihood. In the backdrop, the present
research article is an endeavour to study various avenues of social and
economic upliftment of the state in terms of revenue generation, foreign
exchange, raising the standard of labour, and employment generation.
The article focuses on the overall performance of skill development
and the training programmes in the field of handicraft, how it can
help generate the above features, and also thereby provide suitable
suggestions in order to make the industry more market oriented,
contemporary in skills and designs, and sustainable in future.
Keywords: Handicraft Industry, Employment, Production, Sales,
Economic Development, Exports, Revenue
* Government Hamidia Arts and Commerce College, Barkatullah University, Bhopal, Madhya
Pradesh
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 138–155
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 139
Introduction
The handicraft industry in Jammu and Kashmir is an important sector
contributing to the overall development of current and other allied
sectors in term of wealth and employment creation, thus occupying an
important place in the economy of Jammu and Kashmir. It is basically
a cottage industry and provides direct and gainful employment to more
than 3 lakh people and has the potential to facilitate the path of raising
the living standard of citizens residing within and outside the boundary
of the state. The handicraft products have earned global acclaim for their
exquisite designs, craftsmanship and functional utility. The woollen and
silken carpets of the state remain unparalleled on the national scene for
quality and design. The crewel embroidered pashmina, embroidered raffle
shawls, pattern of Kani shawls, intricate wood carving, production of
flora design on paper mache goods, etc., are some of the world famous
traditional crafts of the state. In fact, the Kashmiri craftsman, possessing
a unique talent for intricate workmanship, is one of our most important
resources. This industry has a tremendous potential, and has to be
perceived with concern and with a precise understanding of its values.
As an export oriented industry, it has contributed considerably towards
foreign exchange earnings worth crores of rupees annually. It is a cottagebased industry, which does not require heavy capital investment and heavy
infrastructure such as machinery, buildings and power.
Planning Commission vide its order no. Q-20017/1/06/LEM/LP dated 6
March 2006 has constituted a Working Group on Skill Development and
Training under the chairmanship of Secretary (Labour and Employment).
The terms of reference basically require that the existing skill development
programmes may be reviewed with the intention of suggesting suitable
strategies and mechanisms to meet future challenges. The terms of
reference are fairly comprehensive and therefore, it requires a totalitarian
approach towards all aspects of skill development programmes.
Importance of Skill Development and Training
Skills and knowledge are the driving forces of economic growth and social
development of any country. The economy becomes more productive,
innovative and competitive through the existence of more skilled human
140  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
potential. The level of employment, its composition, and the growth
in employment opportunities are the critical indicators of the process
of development in any economy. Increasing pace of globalisation and
technological changes provide both challenges and growing opportunities
for economic expansion and job creation. In taking advantage of these
opportunities, as well as in minimising the social costs and dislocation,
which the transition to a more open economy entails, the level and
quality of skills that a nation possesses are becoming critical factors.
Countries with higher and better levels ofskills adjust more effectively to
the challenges and opportunities of globalisation.
Review of the Literature especially in Skill Development
Benchmarking of Skill Development Deficit and
Plan to Achieve Target by 2022
According to the 2007–08 Economic Survey 64.8 per cent of India’s
population would be in the working age of 15–64 years in 2026, up
from 62.9 per cent in 2006. Other projections also indicate emergence
of young India with 800 million in the productive age group by 2015,
compared to 600 million in China.
According to a study conducted by the Confederation of Indian Industry
(CII) and Boston Consulting Group (BCG) India has a large population
base of 1.14 billion with a demographic shift in favour of working age
group (15–59 years) while the overall population is projected to grow at
1.4 per cent over the next 5 years. The working age is expected to grow
at 2.15 per cent. If the present trend continues, 109 million persons
will attain working age during the period of 2007–12. The net addition
to the workforce is, therefore, expected to grow to 89 million of which
around 13 million are likely to be graduates/post graduates, and about
57 million are likely to be school drop outs or illiterates. A significant
share of incremental demand is likely to be for skilled labour–graduates
and vocationally trained people are expected to account for 23 per cent
of incremental demand by 2012. The study further estimates that India
is likely to increase deficit of 5.25 million employable graduates and
vocationally trained workforce by 2012.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 141
Another study by BCG for PHD Chamber of Commerce and Industry
has estimated that by 2020 the world will have a shortage of 47 million
working people, but India will have a surplus of 56 million people. In
order to reap the benefits of demographic dividend India will have to,
therefore, equip this manpower to meet the requirement of skill talent
across geographies.
CII has conducted studies in select sectors of the economy in the following
states:
Punjab: Textiles, Auto/Auto Components, Light Engineering, Food
Processing, Real Estate and Construction, Retail and Location based
entertainment.
Tamil Nadu: Textiles, Construction, Auto/Auto Components, Light
Engineering, IT/ITES, Leather.
Andhra Pradesh: Construction, Textiles, Tourism, Healthcare,
Engineering, IT/ITES, Pharma, Biotech, Paper, Minerals.
Jammu and Kashmir: Handicrafts, Hospitality, Agro-processing,
Construction, ITES, Repair Servicing.
On the basis of above study CII has projected the following requirement
of skilled workers.
Objective
•
Main objective is to identify the Skill Development and Training
Programmes that play an important role in the country’s economy.
Methodology
After collecting primary data from entrepreneurs of handicrafts enterprises
and secondary data from various publications of government offices,
the data has been classified and tabulated for making further analysis
and interpretation. Following are the statistical techniques used in this
research article:
1. To workout the trend line and trend values of production, sales,
revenue and employment the formula of regression has been used:
Y = a + bx
142  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Y = dependent variable
x = independent variable
a = intercept coefficient; and
b = the slope coefficient
The normal equation used to determine the value of a and b is as follows:
∑Y = Na + b∑X
∑XY = a∑X + b∑X2.
2. To find out the correlation between number of units and employment,
Karl Pearson’s coefficient of correlation method has been used:
r = ∑dxdy ∕ √∑dx2∑dy2
Where,
r = Karl Pearson’s coefficient of correlation.
∑dxdy = Total of the product of the deviation of values from
their respective arithmetic means in both the series.
∑dx2 and ∑dy2 = the deviation of dx and dy are squared up and their
totals, ∑dx2 and ∑dy2 are obtained.
3. For testing the hypothesis that ‘to identify the economic growth of
handicraft industry and potential of earning has been low’, the ‘t-test’
has been used, and the formula for t-test is given by
t = ryx√N−2/1−r2yx
Where, ryx= Karl Pearson’s coefficient of correlation;
N = number of observations.
Handicraft Sector
The present article is conducted on the basis of primary data as well as
secondary data, the research work which shows how the skill development
and training programmes will generate the employment, production,
revenue, exports, and sales in the particular sector. The present study is
to be based on the handicraft sector of Jammu and Kashmir with special
reference to District Ananatang.
The performance of skill development and training programmes in smallscale industry sector units in the district are analysed in this section. The
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 143
performance analysis includes the production, employment, sales and
revenue sample SSI units in the district Anantanag.
Production of Small-Scale Enterprises
The production of the selected small-scale enterprises under study is
presented year- wise to see variation and trend over the period. The period
of 1990–91 to 2011–12 has been analysed for this purpose.
Production of Handicraft
The year wise production level of handicraft sector for the period from
1990–91 to 2011–12 is presented in the Table 1.
Table 1: Year-wise Production of Handicrafts (Rs. in lakhs)
Year
Actual value of
Production (Rs. in lakhs)
1990–91
342
1991–92
364
1992–93
404
1993–94
450
1994–95
486
1995–96
563
1996–97
664
1997–98
756
1998–99
720
1999–2000
21
2000–01
696.33
2001–02
765.94
2002–03
775
2003–04
821.53
2004–05
887
2005–06
900
2006–07
950
2007–08
1614.59
2008–09
1100
2009–10
1000.5
2010–11
1650.3
2011–12
1845
Source: Compiled from field survey.
Y = 154.098 + 56.861X
(Trend value of production)
357.65
414.51
471.37
528.23
585.09
641.95
698.81
755.67
812.53
869.39
926.25
983.11
1039.97
1096.83
1153.69
1210.55
1267.41
1324.27
1381.13
1437.99
1494.85
1551.71
144  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 1 reveals that the production value of handicraft sector and its trend
value calculated from the regression equation (Y = 154.09 + 56.86X)
during the study period (1990–91 to 2011–12) has increased from Rs.
342 lakh to Rs. 1,845 lakh, and the growth rate of production during
1991–92 was 6.43 per cent and during 2011–12 it was 11.79 per cent.
The production depends upon demand. As per the analysis of Table 1,
during the 1999s the demand of handicraft items declined due to political
instability and insecurity, resulting in low tourist flow into the valley. This
table shows the production of handicraft and trend value year-wise during
1990–91 to 2011–12. As it is evident from the table that the production
during the study period shows increasing trend with little deviation from
actual production value, which indicates that the production of handicrafts
has a positive relation, that is, with reference to time the production
increases. The value of coefficient determination, R2 = 0.69 and that of
t = 6.7, which shows that there is significant increase in production of
handicraft during the study period.
Employment of Small-Scale Enterprise
Small-scale enterprises generally provide large number of employment
opportunities to the rural people. The present study intended to analyse
the progress of Small-Scale Industries (SSI) units in terms of employment
generation. The year-wise employment generation of SSI units is presented
sector wisely in the following tables.
Employment of Handicrafts
The year-wise employment generation of handicraft units for the period
of 1990–91 to 2011–12 is presented in Table 2.
Table 2 shows that employment generation of handicraft units was 329
persons during 1990–91 and it was 1,815 persons during 2011–12.
The growth rate of employment generation was by 3.3 per cent during
1991–92, and it was 27.45 per cent during 2011–12. Table 2 shows
the employment in the handicraft units during the reference period of
1990–91 to 2011–12. As it is clear from the table, the employment
has increased over the reference period and the trend values has to be a
positive, which indicates that employment has a positive relation with the
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 145
number of years. The value of t = 10.48 and the value of the coefficient
of determination, R2 = 0.84, which shows that there is a highly significant
increase in the employment of handicrafts units during the study period.
Table 2: Year-wise Employment of Handicrafts (in Nos.)
Year
1990–91
1991–92
1992–93
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–2000
Actual Employment
(in Nos)
329
340
345
352
358
366
374
384
391
393
Y=10.675 + 62.051x
(trend value of employment)
547.78
609.83
671.88
733.93
795.98
858.03
920.08
982.13
1,044.18
1,106.23
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
2006–07
399
528
684
848
972
1056
1096
1,168.28
1,230.33
1,292.38
1,354.43
1,416.48
1,478.53
1,540.58
2007–08
1128
1,602.63
2008–09
2009–10
2010–11
2011–12
Source: Compiled from
1164
1188
1424
1815
field survey.
1,664.68
1,726.73
1,788.78
1,850.83
Sales-Small Scale Enterprises
The sales of the sample small-scale enterprises are presented year wise. The
sales represent total value of sales of production. The sales of small-scale
enterprises are calculated sector wise between the periods of 1991–91 to
2011–12. The analysis of the year wise sales of each sector is given below.
146  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Sales of Handicrafts
The year-wise sales of the handicraft sector for the reference period of
1990–91 to 2011–11 is presented in Table 3.
Table 3: Year-wise Sales of Handicrafts (Rs. in lakhs)
Year
Actual Sales
(Rs. in lakhs)
1990–91
269.8
1991–92
302.8
1992–93
320.3
1993–94
342
1994–95
358
1995–96
404
1996–97
446
1997–98
496
1998–99
569
1999–2000
563
2000–01
568
2001–02
750
2002–03
820
2003–04
900
2004–05
981.2
2005–06
1,050
2006–07
1,166.2
2007–08
1,262.4
2008–09
1,366.6
2009–10
1,431.2
2010–11
1,865.6
2011–12
1,875.4
Source: Compiled from field survey.
Y = 15.13 + 68.89X
(Trend value of sales)
604.88
673.77
742.66
811.55
880.44
949.33
1,018.22
1,087.11
1,156
1,224.89
1,293.78
1,362.67
1,431.56
1,500.45
1,569.34
1,638.23
1,707.12
1,776.01
1,844.9
1,913.79
1,982.68
2,051.57
This shows that the sales of selected samples of handicraft units during
the study period of 1990–91 was Rs. 269.80 lakh and it has increased to
Rs. 1,875.4 lakh during the reference period of 2011–12, at the growth
rate of 12.23 per cent in 1991–92 and 0.52 per cent in 2011–12. The
year-wise performance and growth rate of handicraft sales is presented
in Table 3. The table shows year-wise sales of the handicraft sector and
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 147
the trend value calculated from the regression equation (Y = 15.131 +
68.89X) during the reference period of 1990–91 to 2011–12. It shows
that there is little variance between the actual value and trend value of
the production of handicrafts during the reference period, which means
that there is a positive relation between the increase in production value
and number of years of establishment of handicrafts units during the
reference period. The value of coefficient of determination, R2 = 0.91, and
that of t = 14.2, which shows that there is significant increase in sales of
handicrafts during the study period.
Revenue of Handicraft Industries
The revenue of handicraft industry sector during the study period of
2000–01 to 2011–12 is presented year-wise in Table 4.
Table 4: Year-wise Revenue of Handicraft Sector (Rs. in lakhs)
Year
Actual Revenue
(Rs.in lakhs)
2000–01
26.26
2001–02
26.89
2002–03
29.66
2003–04
33.02
2004–05
34.63
2005–06
37.54
2006–07
35.54
2007–08
35.24
2008–09
37.69
2009–10
39.06
2010–11
45.67
2011–12
57.54
Source: Compiled from field survey.
Y = 22.98 + 2.18X
(Trend value of revenue)
3.28
5.46
7.64
9.82
12
14.18
16.36
18.54
20.72
22.9
25.08
27.26
Table 4 reveals that the revenue of handicraft industrial sector has increased
from Rs. 26.26 lakh during 2000–01 at the growth rate of 2.39 per cent,
to Rs. 57.44 lakh during 2011–12, at the growth rate of 25.99 per cent.
Table 4 shows the revenue which is calculated by the regression equation
(Y = 22.98 + 2.18X) during the reference period of 2000–01 to 2011–12.
It is obvious from the table that the actual value of revenue and trend
148  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
value of revenue do not have much deviation, which is a positive sign, and
indicates that there is a positive relation between the increase in the value
of revenue and number of years. The value of coefficient of determination
R2 = 0.81, which shows that there is a significant increase in revenue of
the handicraft sector during the study period.
The Kashmir valley is recognised throughout the world as far as the arts
and crafts, as well its scenic beauty and bracing climate is concerned. It
is famous for the weaving specialised fabrics, like Pashmina and Kani
shawls, silken, woollen and cotton fabrics. The crafts range from woollen
textiles of fleecy soft texture of matchless excellence in weaving, handwoven carpets of the finest wrap and weft, to the exquisite design worked
on paper-mache, wood work, and silverware, etc. They are products of
unique craftsmanship. The skill of the craftsmen and their capacity for
intricate workmanship are assets which can help development on a much
larger scale. Besides, as an export-oriented sector, it is instrumental in
foreign exchange earnings worth crores of rupees annually.
According to Vincent Cable and Ann Weston (1982) the present
handicrafts production is quite concentrated, both regionally and within
the region. According to one estimate six northern states account for
over 65 per cent of handcraft exports (excluding gems and jewellery, and
handlooms) and 75 per cent of production aggregating Uttar Pradesh’s
40 per cent, Rajisthan’s 10 per cent, with Jammu and Kashmir, Delhi,
Haryana and Punjab each accounting for around 5 per cent. Over 75 per
cent of handloom fabric destined for export originates in the southern
part of the Indian subcontinent.
Jammu and Kashmir has not been able to attract investment from the
private sector, and has remained an industrially backward state due
to its unique economic obstacles arising out of remoteness and poor
connectivity, hilly and often inhospitable terrain, weak resource base,
poor infrastructure, sparse population density, shallow markets, and
most importantly a law and order situation threatened by militancy.
Nevertheless, many small and medium scale industries have come up
basically in the traditional sectors, along with some new areas like food
processing, agro-based units and metallic and non-metallic products.
However, natural factors are more conducive for handicrafts, village
and small scale industries. Besides, due to saturation of employment
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 149
opportunities in government/traditional and non-governmental sectors,
like agriculture, the industrial sector has been declared as the educated
unemployed youths in the state. However, the Jammu and Kashmir state
is on the path of industrialisation in a modest way despite topographical
limitations.
Handicraft is one of the biggest employment providers next to agriculture
sector.
Table 5: Employment, Production and Export in Jammu and Kashmir
Handicraft Industry
S.
No.
Crafts
Employment
1.
2.
3.
4.
5.
6.
7.
8.
9.
Carpet
Shawls
Crewel
Chain stitch
Paper mache
Wood carving
Ari stapple
Willow wicker
Zari
embroidery
Gabba making
Copper ware
Namdha
Leather craft
Pottery
Khatamband
Silver ware
Other
Total
96580
103430
37429
29411
4862
4308
32396
4735
5503
10.
11.
12.
13.
14.
15.
16.
17.
2332
6218
864
563
1106
310
123
20000
350170
% Age
Production % Age Exports in
Employment
in
Production Crores
Crores
27.58
580.27
31.45
412.45
29.53
560.58
30.38
302.00
10.68
231.18
12.52
154.00
8.39
269.02
14.59
*
1.38
87.22
0.05
66.50
1.23
52.19
2.82
36.75
9.25
41.63
2.25
*
1..35
3.31
0.17
*
1.57
7.62
0.14
*
0.66
1.77
0.24
0.16
0.31
0.08
0.03
5.7
100
3.01
37.30
4.69
2.68
0.73
2.41
0.50
55.19
1845.00
0.16
2.02
0.25
0.14
0.03
0.13
0.027
2.99
100
*
*
*
*
*
*
*
32.50
1651.00
Source: Digest of Economic and Statistics Department of Jammu and
Kashmir
Table 5 shows that the shawls generate the highest number of employment
which is 29.53 per cent, and the highest production of carpet is 31.45 per
cent. The table shows that both the products play an important role in
150  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
the fields of generating employment in Jammu and Kashmir. This table
also shows that the total marketing value and export value of products
is Rs. 1651 crore in 2011–12. Similarly, the production figures shown
inTable 6 have risen which shows the handicraft industry in a glance
with the overall production and employment, export revenue, number
of exhibitions and trainees trained from 2001–12. The following table
indicates the potential of handicraft industry in Jammu and Kashmir
Table 6: Year wise Production, Employment, Export, Revenue
and Trainees Trained
Years
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
2006–07
2007–08
2008–09
2009–10
2010–11
2011–12
Employment Production Export Revenue
Estimated (in lakhs)
in
(in crores)
(in lakhs)
(lakhs)
3.29
3.40
3.45
3.52
3.58
3.66
3.74
3.84
3.91
3.50
3.99
4.35
696.00
574.98
710.00
504.25
770.00
549.20
821.53
595.00
887.00
642.00
900.00
705.00
950.00
785.00
1,614.59 867.50
1,100.00 705.50
1,000.50 661.27
1,650.30 1,004.10
1,815.33 1,651.16
26.26
26.89
29.66
33.02
34.63
37.54
35.24
43.40
37.69
39.06
45.67
57.54
No. of
Exhibitions
Conduct
(year wise)
04
04
04
11
19
12
09
10
10
14
15
12
No. of
trainees
(trained)
8,180
7,145
8,640
8,081
6,495
8,061
7,726
7,465
6,918
7,275
7,662
7,789
Source: Directorate of Handicraft in Jammu and Kashmir.
From Table 6, it becomes clear that in the handicrafts industry production
increases from Rs. 3.29 lakh to Rs. 4.35 lakh during the period of
2000–01 to 2011–12. Similarly, the production also rose from Rs. 696.00
lakh to Rs. 1,815 lakh in the reference period (i.e. 2000–01 to 2011–12).
There is an increase in revenue and the number of trainees trained that
shows a positive sign.
Realizing the vast potential for employment, the Jammu and Kashmir
government has undertaken large scale training programmes for the youth
in different crafts, motivating them to use their inherent skills in learning
and creating while conserving the past. In the period of 2009–2011
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 151
over 1 lakh young artisans have been trained in various craft skills, such
as paper mache, woodcarving, chain stitch and staple embroidery, and
other forms of art and craft of the region. Of these, more than 40,000
were trained in carpet weaving only. The employment figures only restate
the fact. Craft Training centres have been set up in far-off areas like
Gurez, Tulel, Chycholi, Shama, Yougma, and Chickens in Ladakh, and
in backward areas of Rajori and Ponch. Besides popularising the craft
outside Kashmir valley, the same Kashmir handicrafts have also been
introduced in training centres in places like Doda. Table 7 shows the
number of handicrafts training centres and trainers trained during the
period 2000–01 to 2010–11.
Table 7: Number of Handicraft Training Centre’s and Trainees Trained
Directorate of Handicrafts
Year
Tr. Centre’s T.T. (lakh)
2000–01
2001–02
2002–03
2007–08
2010–11
553
553
553
553
553
0.08
0.08
0.08
0.08
0.08
Other Agenecies
T.C.
T.T.
(lakh)
–
–
–
–
–
–
–
–
–
–
Total Agencies
T.C.
T.T. (lakh)
553
553
553
553
553
0.08
0.08
0.08
0.07
0.08
Note: Tr. Training; T.T. = Trainees Trained; T.C. = Training Centres
Source: Digest of statistics 2000–01 to 2010–11, Govt. J & K.
The number of training Centre has been constant during the period,
recording a growth rate of 24 per cent in the period of 2010–11. The
Directorate of Handicrafts has become important over the years with the
number of training centres of other agencies having sharply declined.
Table 7 reveals that around seven to eight thousand trainees are trained
in different crafts.
Handicrafts have a special socio-economic significance in Jammu and
Kashmir (Kashmir Times, 2002). Keeping in view the vast potential in
handicrafts for economic activities like the generation of employment
and revenue, the state government has launched various measures to
encourage the growth of the Handicrafts Undustry. Against an allocation
of a mere Rs. 19.50 crore in 1974–75, the budgetary allocation for this
sector has been increased to Rs.24 crore during 1998–99. The production
152  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
of handicrafts crossed the Rs. 400 croremark during 1998–99. There has
also been notable growth in the state’s export in recent years.
According to Jammu and Kashmir Handicrafts Corporation Limited
(2013), there has been an increase of 38.50 per cent turnover to the total
export of handicraft products in financial years of 2011–12 to 2012–13,
aggregating the contribution of Rs.17,970 crore from Rs. 12,975 crore
to the total State Gross Domestic Product (SGDP). According to the
provisional data available from Table 8 given below, the exports of
handicrafts have shown an increase of Rs. 4,994.87 crore, from Rs.
12,975.25 crore to Rs. 17,970.12 crore, an increase of US$ 599.24
million, i.e. the exports increased by 22.15 per cent over the similar
period in 2011–12.
Table 8: Economic Analysis of Jammu and Kashmir Handicrafts to Total
Export Contribution
Items
Rs. in Crores
2011–12 2012–13
Increase/
US$ in
Decrease 2011–12 2012–
in %age
13
over
April–March
April–March
2011–12
47.9560 54.3742
2,603.27 3,328.64 (+) 27.86 542.85 612.17
Art metal
wares
Wood wares
1,560.04 2,745.93 (+) 75.96 325.40 505.01
Hand printed 1,655.04 2,232.47 (+)34.89` 345.12 410.58
textiles and
scares
Embroidered
3,922.57 4,665.74 (+) 18.95 817.95 858.08
and crocheted
goods
Shawls
254.30
448.55 (+) 76.39 53.03
82.49
Zari and Zari
239.81
286.49 (+) 19.47 50.01
52.69
goods
Imitation
575.33 1,017.36 (+) 76.83 119.97 187.10
Jewelry
Misc.
2,164.43 3,244.94 (+) 49.92 451.34 596.78
Handicraft
Total
12,975.25 17,970.12 (+) 38.50 2705.66 3,304.90
Source: Jammu and Kashmir Handicrafts Corporation Limited.
Increase/
Decrease
in %age
over
2011–12
(+) 12.77
(+)55.20
(+)18.97
(+) 4.91
(+) 55.55
(+) 5.36
(+) 55.96
(+) 32.22
(+) 22.15
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 153
During the period the exports of Art metal ware, Wood ware, Hand
Printed Textiles and Scarves, Embroidered and Crocheted goods, Shawls
as art ware, Zari and Zari goods, Imitation Jewellery, and Miscellaneous
Handicrafts showed an increasing trend of 27.86 per cent, 75.96 per
cent, 34.89 per cent, 18.95 per cent, 76.39 per cent, 19.47 per cent,
76.83 per cent and 49.92 per cent in terms of rupees respectively, and
12.77 per cent, 55.20 per cent, 18.97 per cent, 4.91 per cent, 55.55 per
cent, 5.36 per cent, 55.96 per cent and 32.22 per cent in terms of US$
respectively. Overall, an increase in the rupee term was 38.50 per cent
and in the terms of US$ it was 22.15 per cent.
Conclusion
Handicraft Industry has been one of the major parts of India’s economic
development strategy since independence. Today, the Handicraft Industry
occupies a position of strategic importance in the economic structure due
to its significant contribution in terms of generating employment, revenue
and exports. This was based on the analysis of the data collected from the
artisans through field surveys, and some of them from various secondary
organisations. From the above discussion and calculations we can find out
that the skill development and training programmes which are organised
by the government or any other private organisation are very helpful in
the generation of employment, production and economic growth, and
provide very large amounts of sales and exports to our country, as well as
the state’s economy. In this article we can see that all the sectors show a
very high growth and potential to help the economy only by providing
new techniques to artisans, arrangement of new schools of design, and
creating a large number of training centres in rural areas, as well as urban
areas, thus giving a boost to our economy in the future.
Recommendations
Though the strength and opportunities exist in the Handicrafts Industry
of Jammu and Kashmir, but there is a need to develop and implement
strategies in order to explore and develop the hidden agenda, thereby
adding value to the socio-economic contribution of the Handicrafts
Industry to the state. On the basis of the above mentioned threats and
weaknesses, the following strategies can be adopted in order to smoothen
154  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
out the path of an overall development of the state’s economic and social
conditions:
•
Explore the new markets and try to develop existing ones through
identification and exploration strategies.
•
Refine the existing products and try to avail the opportunities at the
global level through promotions and exhibitions.
•
Before introducing the new product It is essential to first go for test
marketing in order to discover faults and omissions therein.
•
Upgrade and try to develop modern strategies for cost minimisation
and profit maximisation.
•
Train and developed new and existing skilled, semi-skilled and
unskilled manpower in order to update them for flexible business
environment.
•
Maintain cost effective production, quality standard, and reasonable
packaging of handicraft products.
•
Adopt market centered philosophy rather than production-centred
and keep quality as the most important value of handicraft products.
•
Cost Effective Distribution Development using both Physical and
Electronic Distribution Channel (Internet, e-Commerce).
•
Enhance national and international Market Development through
exhibitions, trade fairs, trade shows, event management programmes,
and sponsor the events at national and international level in order to
create and attract the minds and purses of national and international
customers for better Foreign and Domestic Revenue.
•
The consumers are not fully aware of the qualities of handicrafts
and are not able to distinguish the handicraft product from general
products on the basis of the criteria given above. There is a need to
generate awareness in a customer’s mind about all the advantages that
can be attained from handicraft uses.
•
Focus should be on brand promotion of the Kashmir handicraft,
product development, assessment and survey of new and existing
markets, and holding of exhibitions in international markets.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 155
References
Annual Plan 1999–2000, Govt. of Jammu and Kashmir, Planning and
Development Department, Srinagar.
Darakhshan, Anjum, ‘A Study of Handicrafts Industry in J&K’, A Journal of
Advances in Management, IT & Social Sciences, vol.1, Issue 4.
Jammu and Kashmir Handicrafts Development Corporation Ltd.
Kashmir Times (2002), ‘Measure underway to Boost Handicraft’, Jammu &
Kashmir.
Kamal, Handloom Research & Design Development Centres Soon, Daily Excelsior,
2002.
Marof, Redzuan and Fariborz, Aref, ‘Constraints and Potentials of Handicraft
Industry in Underdeveloped Region of Malaysia’, African Journal of Business
Management’ vol. 5, no. 2, 2011, pp. 256–60.
Sheikh, Bilal Ahmad, ‘Structural Changes in Jammu and Kashmir Economy’,
Thesis, Kashmir University, J&K, 2010.
Rather, Tariq A., J & K Handicrafts: Ingrained in Socio-Economic Ethos of India,
Press Information Bureau and Govt. of India.
Hashmi, Syed Khalid, ‘Market for Indian Handicrafts’. Excel Journal of Engineering
Technology and Management Science, vol. I, December-January, 2012.
Khan, Waqar Ahmad and Zeeshan Amir, ‘Study of Handicraft Marketing
Strategies of Artisans in Uttar Pradesh and Its Implications’, Research Journal
of Management Sciences, vol. 2, no. 2, 2013, pp. 23–26.
Cable, Vincent and Ann Weston, ‘Working Paper: The Role of Handicrafts
Export’, Problems and Prospects Based on Indian Experience, Overseas
Development Institute, London, no. 10, 1982.
Entrepreneurial Leadership Style(s):
A Taxonomic Review
Yamini Karmarkar*, Meghna Chabra*
and Aashish Deshpande**
ABSTRACT
Entrepreneurial Leadership is the new way of understanding an
entrepreneur. Most business managers expect their employees to
possess the entrepreneurial qualities of innovation, risk-taking, and
independent thinking. Entrepreneurs are a product of society’s needs
and wants. Furthermore, as against the conventional belief that
entrepreneurs are ‘born’, the modern norms suggest that entrepreneurial
abilities can be nurtured from friends, family, community, education
and past experiences. An effective leader influences his/her team in a
desired manner to attain desired goals. Entrepreneurs who have become
the heroes of contemporary enterprises and economic development
adopt varied leadership styles affecting organisational effectiveness
and performance. The concept of entrepreneurial leadership combines
and explores both leadership and entrepreneurship behaviour.
While earlier researchers have ventured to classify entrepreneurship
as a branch of leadership, the contemporary ones are evaluating
leadership as a function of entrepreneurship. From the review, the
springing themes of vision, influence and contextual boundaries were
uncovered. By exploring the phenomenon of entrepreneurial leadership
this study aims to aid the field of entrepreneurship transpose from
a state of fragmentation to consolidation. Additionally, this will
* International Institute of Professional Studies, Devi Ahilya University, Indore
** Department of Management, National Institute of Technical Teachers’ Training & Research,
Bhopal
ISSN 2348–0661 Print
© 2014 Symbiosis Centre for Management Studies, Pune
Annual Research Journal of Symbiosis Centre for Management Studies, Pune
Vol. 2, Issue 1, March 2014, pp. 156–189
help the business world in creating, nurturing and supporting the
entrepreneurial leaders of the future.
Keywords: Entrepreneur, Entrepreneurship, Leadership Styles
Introduction
In the 1800s, French economist Jean Baptiste Say coined the term
‘entrepreneur’ to define an individual ‘who undertakes an enterprise,
especially a contractor acting as the intermediary between capital and
labour.’ More recently as per Dykes, C. (2008) an entrepreneur is a
person who sees a need in the marketplace and sets out to fill that need
with a product or service. There are some entrepreneurs who have a
talent, skill or passion, and find how to best fit it into the marketplace,
and some entrepreneurs that see a need in the marketplace and find
how to best fill that need. However, as pointed out by Navarro (2012),
what this description fails to acknowledge is that there are different types
of entrepreneurship or say entrepreneurial styles—each with specific
characteristics, different levels of risk, and requiring different strategies.
They’re not mutually exclusive, since one type of business can evolve
based on the entrepreneur’s vision.
An entrepreneur is also a manager, and an important category of theories
on managing the people is based on ‘managing motivation to expand
human freedom’–as described by McClelland (1978). The Blake-Mouton
managerial grid neatly presents a typology from the managerial standpoint
(Blake and Mouton, 1964). This grid is also referred to as the ‘leadership
grid’. It is accepted that varied leadership styles – from participative or
democratic to authoritarian or autocratic – apply to management styles
as well. However, Burns (1978) makes a necessary distinction between
the transactional leader and the transformational leader: the first type
of leader is given power to perform certain tasks, and reward or punish
for the team’s performance, while the second motivates its team to be
effective and efficient; transformational leaders are highly visible, use
communication as the base for achieving the goals, and they focus on the
big picture. Ulrich and Cole (1987) argue for the importance of learning
style preferences in enhancing the learning experience and entrepreneurial
propensity. Utilising Kolb’s (1978) four-stage learning model and research
158  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
on the personality characteristics of the entrepreneur, Ulrich and Cole
conclude that entrepreneurial learning style preferences tend toward active
experimentation with some balance between concrete experience and
abstract conceptualisation.
An entrepreneurial orientation can be developed in individuals and can be
exhibited intrinsically and extrinsically in an organisation (profit or nonprofit enterprise) and in bringing forth creative business ideas in business
or non-business activities. Consequently, entrepreneurship is an integrated
concept, which permeates our society at all levels, be it individuals or
business. It is a perspective that has stimulated individuals to once again
ambit into their inner self to discover the innovative spirit that resides in
each of us. It is, in effect, the quintessence of Entrepreneurial Leadership.
Entrepreneurial Leadership competencies, defined as the specific leadership
capabilities required for successfully leading competitive and challenging
activities, recently emerged as vital in the success of entrepreneurial
activities, both in new ventures and in established organisations (Yang,
2008; Fernald, Solomon and Tarabishy, 2005; Cogliser and Brigham,
2004; Gupta, MacMillan and Surie, 2004). However, there is not enough
information on various learning processes through which individuals learn
entrepreneurial leadership competencies (Kempster and Cope, 2010).
Education and entrepreneurial education are also important variables
to be studied in understanding the various entrepreneurial styles. An
inclination or propensity towards entrepreneurship is commonly associated
with a number of personal characteristics which are expected to be an
outcome of a formal programme of education. Education also can serve
a preparatory function in relation to new venture initiation or startup,
whereby the transfer of knowledge, and the acquisition and development
of relevant skills would be expected to increase the self-efficacy (Bandura,
1986) and effectiveness of the potential entrepreneur. Additionally, as
pointed out by Gorman et al. (1997) we might expect the entrepreneurial
learning process to be enhanced through the provision of role models, the
expansion and strengthening of personal networks, and through temporary
apprenticeship placements.
Although entrepreneurship is a not a nascent concept, research and studies
on the same have gained immense momentum in the past 15 years owing
to the fact that there has been widespread recognition that entrepreneurship
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 159
is the engine that drives the economy of most nations. This has lead to
an increasing interest in the development of education programmes to
encourage and enhance entrepreneurship, and a recognition that much
research needs to be carried out into what makes an entrepreneur and how
these characteristics may best be imparted, and furthermore in the various
entrepreneurial styles which in turn is a derivative of the entrepreneurs’
personal goals, values and attitudes, creativity, locus of control and risktaking propensity. Nowadays it is considered as the essential lever to cope
with the new competitive landscape (Hitt and Reed, 2000).
Owing to this perspective, a literature review of the field of entrepreneurial
leadership styles could be the starting point in defining the relations
between varied entrepreneurial styles, and their effects on the efficiency
and effectiveness on the owned businesses. This study is aimed at studying
the literature on Entrepreneurial Leadership style(s) in order to assess
the progress over the time, and furthermore it intends to offer some
recommendations for further efforts.
Entrepreneurial Leadership: Historical Perspective
An entrepreneur is a leader and the search for the traits or characteristics
that affect the style of working of entrepreneurs has been ongoing for
centuries. According to the ‘Trait Theory of Leadership’, leadership is
based on individual attributes. Brockhaus (1982) and Nicholson (1998)
look at the personality traits found in samples of entrepreneurs with
leadership roles: ‘single-minded, thick-skinned, dominating individuals
… unlike managers’ (Nicholson, 1998: 529 and 538). Trait leadership is
defined as integrated patterns of personal characteristics that reflect a
range of individual differences, and foster consistent leader effectiveness
across a variety of group and organisational situations (Zaccaro, Kemp
and Bader, 2004). An entrepreneur is the engine of his/her business, the
driving force behind the vision, mission and initiatives, and the one who
affects the organisational systems, procedures and culture. As pointed out
by Derue, Nahrgang, Wellman, and Humphrey (2011) leader effectiveness
refers to the amount of influence a leader has on individual or group
performance, followers’ satisfaction, and overall effectiveness. Furthermore,
Entrepreneurial Leadership is concerned with building up long-term
reciprocal relationships along the value chain of an organisation, where
160  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
effectiveness is determined by the ability to influence others, set direction,
communicate, motivate, develop change, handle resources strategically, and
encourage others to act in a competitively advantageous and opportunityseeking way (Ireland and Hitt, 1999). Many scholars have argued that
leadership is unique to only a select number of individuals and that these
individuals possess certain immutable traits that cannot be developed
(Galton, 1869). Although this viewpoint has been criticized to a great
extent, there is still immense ongoing research on the effects of personality
traits on leadership effectiveness and efficiency. So the key question which
crops up is, are people ‘born’ with entrepreneurial qualities or can these
abilities be nurtured with formal business education, by family, friends
and community influences and past experiences. Then there are the
push and pull factors. Push factors are the extrinsic factors which push
people towards entrepreneurship like unemployment, family crisis, etc.,
and the pull factors are the intrinsic factors which pull people towards
entrepreneurship like increased self worth, social status, recognition, etc.
A recent study conducted by Eijdenberg and Masurel (2013) revealed that
push and pull factors are not mutually exclusive. In addition, this study
shows that pull factors are even more important than the push factors, and
that, therefore, push factors only play a minor role for entrepreneurs. The
overall implications are that motivation is a more combined and nuanced
construct, and that the western concept of entrepreneurial motivation and
method of measuring entrepreneurial motivation are globally applicable.
Entrepreneurial leadership was conceptualised in 2000 by McGrath and
Macmillan who advocated that the increased uncertainty and competitive
pressures in the globalised dynamic market require a new type of leader.
Thus, they gave the description of the ‘entrepreneurial leader’ as the one
who has an apt ‘entrepreneurial’ approach and precisely the ability to
keep himself/herself abreast with the fast changing situations or markets,
and to exploit opportunities to reap advantage for the organisation before
and faster than others. Post the introduction of this concept a number
of organisations have sought to develop this concept within the business
world.
Antonakis and Autio (2006) specifically identify entrepreneurial
leadership as a ‘neglected area of entrepreneurial research’) and state
‘that entrepreneurship could stand to gain from a closer integration with
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Annual Research Journal of SCMS, Pune
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leadership research’ (p. 203). This study and its proposals are based mainly
on the work of Vecchio (2003), who argues that leadership patterns that
are specific to entrepreneurship have yet to be established by research;
on Bagheri and Pihie (2010), who identified missing links in traditional
entrepreneurship education that make it non-conducive to leadership
learning.
Table 1: Studies Focusing on ‘Historical Perspective on
Entrepreneurial Leadership’
Year
Paper
1869 Galton
1982
1998
1999
2000
2003
2004
2007
2010
2011
2013
Key Findings
Leadership traits cannot be developed and unique to
only select number of individuals.
Brockhaus
Observed personality traits in sample of entrepreneurs.
Nicholson
Entrepreneurs are single-minded, thick-skinned,
dominating individuals … unlike managers.
Ireland and Hitt
Entrepreneurial leadership effectiveness measured by
ability to influence others, set direction, communicate,
motivate, develop change, handle resources strategically,
and encourage others to act in a competitively
advantageous and opportunity-seeking way.
McGrath and
Introduced the concept of entrepreneurial leader as the
Macmillan
need of the hour owing to increased uncertainty and
competitive pressure.
Vecchio
Leadership patterns specific to entrepreneurship yet to
be established by research.
Zaccaro, Kemp and Trait leadership as integrated patterns of personal
Bader
characteristics fostering leader effectiveness.
Antonakis and
Specifically identifying entrepreneurial leadership as a
Autio
‘neglected area of entrepreneurial research’.
Bagheri and Pihie Identifying missing links in traditional entrepreneurship
education that make it non-conducive to leadership
learning.
Derue, Nahrgang, Defining leader effectiveness as the amount of influence
Wellman and
of leader on his followers.
Humphrey
Eijdenberg, and
Emphasising the importance of pull over push factors,
Masurel
thus highlighting entrepreneurial motivation.
Earlier beliefs emphasised that entrepreneurs are ‘born’. Around 2000, the
concept of an entrepreneur leader emerged owing to increased business
162  Annual Research Journal of SCMS, Pune
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dynamism. Then came the identification of entrepreneurial personality
and traits, followed by entrepreneurial education. Henceforth, the
contemporary work on entrepreneurial motivation came up.
The Umbrella of ‘Entrepreneurial Leadership’
The Essence of ‘Entrepreneurial Leadership’
In studying contemporary entrepreneurship, one concept that recurs is
that entrepreneurship is interdisciplinary. Today’s world is experiencing
an entrepreneurial revolution, which is more intense than the industrial
revolution of the twentieth century. Entrepreneurs will continue to
be critical contributors to economic growth through their leadership,
management, innovation, research and development effectiveness, job
creation, competitiveness, productivity, and formation of new industry
(Kuratko and Hodgetts, 2007). An important facet of entrepreneurship
is the creation of business, but that definitely does not portray the
complete picture. What permeates an entrepreneur is the capability to seek
opportunities ahead of others, taking risks beyond security, and pushing
an idea through to reality through a combination of vision, mission
and innovativeness. Overall, every study continues to demonstrate that
entrepreneurs’ ability to expand existing markets, create new markets,
and establish entrepreneurial ventures at a breathtaking pace impacts
individuals, firms and entire nations (Minniti and Bygrave, 2004; and
Morris and Schindehutte, 2005).
Schumpeter (1949), an economist and forefather of entrepreneurship,
has defined that entrepreneurship essentially consists of doing things
that are not generally done in ordinary business routine; it is essentially
a phenomenon that comes under the wider aspect of leadership
(Schumpeter, 1949). Thus, his definition of an entrepreneur was cognate
with that of a leader.
Contemporary entrepreneurs value their independence and are not ‘roving
and casual’. The degree of entrepreneurial activity in a society depends
in part on the esteem and legitimacy accorded to those pursuing the
entrepreneurial route which is often called the ‘road less travelled’. As per
the Global Entrepreneurship Monitor, (GEM) (1999), entrepreneurship
is anchored in the recognition within a population that genuine new
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business opportunities exist. However, while opportunity is a necessary
condition of entrepreneurship, it is not sufficient. For an entrepreneurial
initiative to occur, one must possess the capacity (i.e. the motivation
and skill) to take advantage of the opportunity by starting a new firm.
Entrepreneurship is the point where entrepreneurial opportunity and
entrepreneurial capacity meet. It is quite possible to imagine a situation
rich in opportunity, but impoverished in terms of entrepreneurial activity
simply because few individuals have the motivation or capability to do
anything about the opportunity.
Another interesting finding of that report is a fact that in most active
countries (i.e. US, Canada and Israel) entrepreneurial activity is an integral
and accepted feature of economic and personal life. In the remaining GEM
countries, however, entrepreneurship through enterprise creation remains
a structural and cultural anomaly. In such countries it may take decades
of sustained changes in many national, cultural, political and economic
institutions if they are to join the ‘elite’ of entrepreneurial economies,
thus the proposition that promoting entrepreneurship and enhancing the
entrepreneurial dynamic of a country should be an integral element of
any government’s commitment to improve economic well being.
Other domains reflect a strong interesting entrepreneurship. The World
Economic Forum, sponsor of the annual Davos Conference for the world’s
leading multinational businesses, has recently adopted ‘entrepreneurship
in the global public interest’ as its motto, and is currently extending its
membership categories to include ‘Global Growth Companies’. Also,
business schools throughout Europe, North America and Asia report an
acute shortage of faculty capable of teaching entrepreneurship. All such
developments point to the fact that entrepreneurship is at the top of the
public policy agenda in many countries around the world (GEM Global
1999 report).
Schumpeter argues that people are always divided into two categories:
leaders and followers (Arena et al., 2002). This is not to suggest that
leaders are superior, rather they have an instinctive urge for domination
that involves creativity to permanently change the sphere in which they
appear (Schumpeter, 1919); social class is considered as a way of specifying
specific social functions (Arena et al., 2002). Leaders, and entrepreneurs,
do not form social classes (Schumpeter, 1934) and although they may exert
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influence through their role, they merely contribute to the evolution of
a social structure by using it for specific purposes, and leadership is seen
as a special function that arises only once new possibilities/opportunities
present themselves. According to Schumpeter (1934), an entrepreneur
can be described as a leader in the sense that he/she achieves control
over production, influences others, and is the centre of attention (De
Vecchi, 1995). Schumpeter’s leadership is economic leadership, and does
not have the charm and rhetoric appeal of leadership itself (De Vecchi,
1995). Schumpeter’s work has had a tremendous impact on the field of
entrepreneurship. From the discussions on entrepreneurial profit, the role
of capitalism and economic rationality, he brings sociology and history
back into the picture (De Vecchi, 1995). Considering this, Schumpeter
also refers to Max Weber’s work in understanding the role of leadership in
entrepreneurship studies. He uses Weber to further cement his definition
of an entrepreneur in the perspective of leadership (Schumpeter, 1934).
However, Hartmann (1959) argues that Weber’s approach was more
appropriate than Schumpeter’s when analysing the difference between
the entrepreneur and the manager. Entrepreneurs are considered a source
of formal authority and claim obedience from subordinates by source of
delegation (Hartmann, 1959).
Entrepreneurship is equated with leadership in a business context
has been argued that the leadership literature is more ‘advanced’ than
the entrepreneurship literature (Cogliser et al., 2004).Thus, it can be
concluded that exploring entrepreneurial leadership is a new way of
understanding the entrepreneur. Exploring this phenomenon will help
the field of entrepreneurship move from a locus of fragmentation to
consolidation. A review of both, the entrepreneurship and leadership fields
will conclude that entrepreneurship focuses on the individual entrepreneur/
leader, whereas leadership literature explores the significance of context
and followers (Huynh, 2007). From this review, the emerging themes of
vision, influence and contextual boundaries can be uncovered. The study
of Entrepreneurial Leadership is in need for further development before
an in-depth synthesis of the field can be established (Huynh, 2007).
Schumpeter was probably the first scholar to develop theories in the
field of entrepreneurship. He argued that the technological change and
innovation of a nation come from the entrepreneur. He considered
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entrepreneurship as a phenomenon under leadership. Leadership
literature is more advanced than the entrepreneurship literature. And
exploring Entrepreneurial Leadership is a new way of understanding the
entrepreneur. Entrepreneurship is equated with leadership in a business
context, and thus the concept of ‘Entrepreneurial Leader’.
Table 2: Studies Focusing on Essence of ‘Entrepreneurial Leadership’
Year
Paper
1919 Schumpeter
Key Findings
Leaders having creativity to permanently change the
sphere in which they appear.
1934 Schumpeter
Referred to Max Weber’s work in understanding the role
of leadership in entrepreneurship studies.
Leaders, and entrepreneurs, do not form social classes.
Leadership arises only when opportunities erupt.
1949 Schumpeter
Entrepreneurship: doing things that are not generally
done in ordinary business routine.
Phenomenon that comes under the wider aspect of
leadership.
1959 Hartmann
Weber’s approach more appropriate than Schumpeter’s
when analysing the difference between the entrepreneur
and the manager.
Entrepreneurs considered a source of formal authority
claiming obedience from subordinates by source of
delegation.
1995 De Vecchi
Schumpeter’s work has had a tremendous impact on the
field of entrepreneurship.
Schumpeter’s leadership: economic leadership, not having
the charm and rhetoric appeal of leadership itself.
1999 GEM (global
Entrepreneurship: point where entrepreneurial
entrepreneurship opportunity and capacity meet.
monitor)
Entrepreneurship at the top of the public policy agenda
in many countries around the world.
2002 Arena et al.
People always divided into two categories: leaders and
followers.
Social class considered as a way of specifying specific
social functions.
2004 Minniti and
All studies demonstrate that the entrepreneurs’ ability to
Bygrave
expand existing markets, create new markets, and establish
entrepreneurial ventures at a breathtaking pace impacts
individuals, firms and entire nations.
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Year
Paper
Cogliser et al.
2005 Morris and
Schindehutte
2007 Huynh
Kuratko and
Hodgetts
Vol. 2, Issue 1, March 2014
Key Findings
Leadership literature more ‘advanced’ than the
entrepreneurship literature.
Leadership literature more ‘advanced’ than the
entrepreneurship literature.
Entrepreneurship focuses on the individual entrepreneur/
leader, whereas leadership literature explores the
significance of context and followers.
The study of Entrepreneurial Leadership is in need for
further development before an in-depth synthesis of the
field can be established.
Entrepreneurs as critical contributors to economic growth
through their leadership, management, innovation,
research and development effectiveness, job creation,
competitiveness, productivity, and formation of new
industry.
Ethics in ‘Entrepreneurial Leadership’
Milton Friedman said, ‘Business should be solely devoted to increasing
profits as long as they engage in open and free competition devoid of
fraud.’ To be successful, an entrepreneur has to take care of a number
of constituents where each and every constituent is equally significant
and has to be handled with utmost care. As quoted by John Godbold,
an astute and well-respected entrepreneur, ‘To be a successful business,
you have to take care of a number of constituencies. I have learned that
a successful business is like the legs on a three-legged stool. All the legs
are necessary to keep the stool from toppling over. If there is a weak leg,
the stool may stand but it will not be steady. The first leg of the stool
represents the investors who provide the funds that allow the business to
operate. These investors are taking a risk and should be rewarded through
profits. The second leg of the stool involves the employees who should
be treated fairly with good work conditions, reasonable pay and benefits.
The business should abide by all laws and regulations. The third leg of
the stool is the customer. Without the customer, the employees will not
have job and there will be no profits to the investors. Even with the three
strong legs of the stool, if you step on the stool on an angle it may turn
over. The most important leg is the fourth: including God as a part of
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the business. With four legs, the stool can withstand much more pressure
and weight and is not as apt to topple over.”
Both entrepreneurship and business ethics have been recognised as
scientific disciplines. However, the field of enquiry where the two intersect
is relatively embryonic and only recently the field has started receiving an
augmented research attention.
What is the relationship between entrepreneurship and business ethics?
How can the theoretical framework of one discipline be enriched by the
insights of the other disciplines? How can the unique and specific ethical
challenges faced by new venture creation be effectively understood and
addressed? The growing literature intersecting between entrepreneurship
and business ethics is posing these (and other) questions. Additionally
ethics’ researchers argue for more empirical orientation on small and
emergent firms, rather than just large organisations, in ethics research
(e.g. Spence and Rutherford, 2003), and entrepreneurship scholars point
out the importance of entrepreneurial ethics to the global economy (e.g.
Bucar and Hisrich, 2001).
Entrepreneurs since yesteryears and recently have not only been detrimental
in the economic developments of all nations, but have also excelled in the
socio and philanthropic parameters which is evident by the Corporate
Social Responsibility (CSR) drive which is on the verge of moving from
voluntary to mandatory norms. Majority of the studies have revealed that
entrepreneurship is described as inherently containing a moral imperative
(Anderson and Smith, 2007; Carr, 2003), or at the least, being consonant
with ethical conduct (Surie and Ashley, 2008), while other works point
out that entrepreneurship can actually be detrimental to the society. For
instance, Baumol (1990) points out that opportunistic entrepreneurial
rent-seeking can encourage corruption and its consequences; Davidson
and Ekelund (1994) propose that such outcomes are better characterised
as an evolutionary process that indicates the presence of pareto optimality
mechanisms, and therefore represent timing problems. Nevertheless, the
painful fact remains that although the global development is a custom of
entrepreneurial innovation it can also result in ‘losses and hardships for
some members of society’ because entrepreneurship is ‘destructive of some
stakeholders’ well being even as it creates new well being among other
stakeholders’ (Dew and Sarasvathy, 2007: 267). Davidsson and Wicklund
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(2001:90) have defined ‘robber enterprises’ as those new enterprises, which
might profit at the expense of public or societal goods, that is, the venture
could appropriate private gains while imposing societal costs. These works
have put forth various questions, viz., how should we ethically measure
the disadvantages posed to various stakeholders by entrepreneurship? What
are the ways in which entrepreneurship is socially unproductive? Which
outcomes are morally problematic under which circumstances? Does this
suggest that certain societal constraints should govern entrepreneurship
from a policy standpoint?
Whenever a venture is established the entrepreneur leader faces immense
challenges and pressures in today’s plethora of cutthroat competition.
Lack of training and belonging to a non-business community further
weakens the case as quoted by Boyd and Gumpert (1983): entrepreneurial
organisations face unique challenges; depending on the industry setting
and the specific nature of the business, new ventures often experience
constant change and limited financial resources. So these pressures can
have a profound effect upon ethical decision-making processes, resulting
in ethical situations for entrepreneurs that are fraught with ambiguity
(Chau and Siu, 2000). In addition, specific ethical dilemmas that are
especially salient to entrepreneurs can arise with respect to the division
of profits within the organisation, high risk associated with newness, and
the tradeoff between impression management, legitimation and honesty
(Dees and Starr, 1992). Furthermore, entrepreneurs tend to face ethical
dilemmas involving their own values, organisational culture, employee
well being, customer satisfaction, and external accountability (Payne and
Joyner, 2006).
Further, the avenue defining the relationship between Entrepreneurial
Leadership and innovation is also ripe enough to attract various
investigations and inquiries. Because new ventures often emerge at
the cutting edge of innovation, sorting out the ethics involved can
be particularly challenging, not only because technology is necessarily
always ‘value laden’ (Martin and Freeman, 2004:356), but also because
technological advancement, as with other paradigm-shifting exogenous
shocks, often requires deep reflection in order to decide how to apply
ethical standards, and can even potentially lead to a revision of one’s
ethical judgements. So, the role of the entrepreneur firm as the moral
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change agent is questioned. Under what conditions might new ventures,
in the context of technological advancement and its inherent moral
ambiguity, engage in ‘destructive innovation’ (Harting, Harmeling,
and Venkataraman, 2006), and what are the moral implications that
arise? Turning this notion on its head and relatedly, others suggest that
ethical value tensions can themselves serve as a source of innovation and
entrepreneurship (e.g. Wempe, 2005).
For instance, in the initial stages of venture formation entrepreneurs are
often required to manage social relationships with family and friends who
may also be investors and employees (Starr and MacMillan, 1990); putting
it differently, entrepreneurial stakeholders always have ‘names and faces’
(McVea and Freeman, 2005). This can give rise to unique and complex
ethical problems, especially when the pre-venture and post-venture roles
of the stake holding individuals change; a choice to invest or not invest,
or a mere change in the social character of a relationship may lead to
conflicts of interest or other incentive problems (Dees and Starr, 1992).
The small stakeholder networks associated with small firms have also been
shown to play a role in increasing unethical behaviour, since social ties
can also facilitate collusion and misconduct (Barlow, 1993). The ‘profitmaximisation-for-shareholder-gain’ objective commonly ascribed to larger
firms seems ‘inappropriate for the small business’ (Spence, 2004:118),
and smaller ventures tend to have a correspondingly supportive view of
their competitors (Spence, Coles and Harris, 2001). Furthermore, small
business owners tend to prioritise the interests of customers ahead of
employees or stockholders (Vitell, Dickerson and Festerv and, 2000);
they have also been shown to have differential approaches to community
involvement, and these differing initiatives have heterogeneous effects on
organisational performance (Besser and Miller, 2004).
Besides acting as catalysers in the economic drive of a nation,
entrepreneurship also plays a pivotal role in the societal development.
For instance, it is suggested that entrepreneurs can play an overarching
and prominent role in building a ‘good society’ (Brenkert, 2002); indeed,
the primacy of entrepreneurship within a societal framework is in many
ways a pivotal indicator of socio-economic views on self-determination,
freedom, wealth disparity, and distributive justice (Nielsen, 2002). Small
and medium-sized enterprises, which are often entrepreneurial firms,
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have ubiquitous societal influence on norms of civic engagement and the
building of social capital (Spence and Schmidpeter, 2003). Entrepreneurial
activity is connected with political policies that advance socio-economic
freedom (Bjornskov and Foss, 2008; Sen, 1999). As a direct link between
individual citizens and economic entities, entrepreneurs and their new
ventures have an immediate and particular salience to stakeholder
evaluations and judgements about business citizenship (Wood and
Lodgson, 2002).
Thus, in the finest and the broadest sense it is very important for an
entrepreneur leader to sustain his/her character and integrity in the turmoil
of the business world. The life-purpose of a true leader goes further than
even the noble concept of profit, i.e. benefiting all stakeholders without
hurting the cause of any. Although robust scholarly inquiry has begun
in the stream of entrepreneurial ethics, many research questions are still
left unanswered.
Table 3: Studies Focusing on ‘Ethics in Entrepreneurial Leadership’
Year
Paper
1983 Boyd and
Gumpert
1990 Baumol
Key Findings
Pressure of lack of training and belonging to a non-business
community on an entrepreneur.
Opportunistic entrepreneurial rent-seeking encouraging
corruption and its consequences.
Starr and
Initial stages of venture formation entrepreneurs required
MacMillan
to manage social relationships.
1992 Dees and Starr Trade-off between impression management, legitimating,
and honesty.
Conflict of interest and other incentive problems.
1993 Barlow
Social ties facilitate collusion and misconduct.
1994 Davidson and Presence of pareto optimality mechanisms, therefore
Ekelund
represent timing problems.
1999 Sen
Entrepreneurial activity connected with political policies
advancing socio-economic freedom.
2000 Chau and Siu Ethical situations for entrepreneurs fraught with ambiguity.
Vitell,
Small business owners prioritising the interests of customers
Dickerson and ahead of employees or stockholders.
Festervand
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Year
Paper
2001 Bucar and
Hisrich
Davidsson and
Wicklund
Spence, Coles
and Harris
2002 Brenkert
Nielsen
Wood and
Lodgson
2003 Carr
2003 Spence and
Rutherford
Spence and
Schmidpeter
2004 Besser and
Miller
Martin and
Freeman
Spence
2005 McVea and
Freeman
Wempe
Annual Research Journal of SCMS, Pune
 171
Key Findings
Importance of entrepreneurial ethics to the global economy.
‘Robber enterprises’: new enterprises profiting at the expense
of societal costs.
Smaller ventures correspondingly supportive view of their
competitors.
Entrepreneurs play an overarching and prominent role in
building a ‘good society’.
Primacy of entrepreneurship within a societal framework
a pivotal indicator of socio-economic views on selfdetermination, freedom, wealth disparity, and distributive
justice.
New ventures having an immediate and particular salience
to stakeholder evaluations and judgements about business
citizenship.
Entrepreneurship inherently containing a moral imperative.
Insistence on empirical orientation on small and emergent
firms, rather than just large organisations, in ethics research.
SME’s ubiquitous societal influence on norms of civic
engagement and the building of social capital.
Differential approaches to community involvement having
heterogeneous effects on organisational performance.
Technological advancements reversing ethical judgements.
‘Profit-maximisation-for-shareholder-gain’ objective
commonly ascribed to larger firms ‘inappropriate for the
small business’.
Entrepreneurial stakeholders always have ‘names and faces’.
Ethical value tensions themselves serving as a source of
innovation and entrepreneurship.
Technological advancements inherent moral ambiguity.
2006 Harting,
Harmeling,
and
Venkataraman
Payne and
Entrepreneurs facing ethical dilemmas involving their
Joyner
own values, organisational culture, employee well being,
customer satisfaction, and external accountability.
172  Annual Research Journal of SCMS, Pune
Year
Paper
2007 Anderson and
Smith
Dew and
Sarasvathy
2008 Bjornskov and
Foss
Surie and
Ashley
Vol. 2, Issue 1, March 2014
Key Findings
Entrepreneurship inherently containing a moral imperative.
Entrepreneurship ‘destructive of some stakeholders’ well
being.
Entrepreneurial activity connected with political policies
advancing socio-economic freedom.
Entrepreneurship consonant with ethical conduct.
Entrepreneurship inherently contains a moral imperative. Market
dynamics, lack of training and belonging to a non-business community
exerts pressure on new entrepreneurs. Thus, they are fraught with
ambiguity. Opportunistic entrepreneurial rent-seeking encourages
corruption and social ties facilitate collusion of misconduct. Thus,
an entrepreneur needs to display self-determination, freedom, wealth
disparity, and distributive justice.
‘Entrepreneurial Leadership’ Education
Entrepreneurs are increasingly recognised as powerful stimulators for value
creation at individual, company and societal levels. Entrepreneurship is
innovation, following the instincts, and pushing it beyond known limits
and making it work. It is therefore not surprising that business schools
world-wide are increasingly modulating courses and programmes to
facilitate their students to an alternative to the classical corporate executive
career, instilling entrepreneurial principles and business fundamentals
in youth of all personalities and backgrounds. Still, entrepreneurship
and more so entrepreneurship education are relatively juvenile fields of
study, dating from the 1950s (Schumpeter, 1953), but the concept of
entrepreneurship education has been reaching significant dimensions
from the early 1980s on and contemporarily. Over 1600 entrepreneurs
programmes were developed worldwide by the year 2000 (Katz, 2003)
and the number is increasingly continuously.
Significant emergence of entrepreneurship education as a distinct
field began in the 1980s (Kuratko, 2005; Zeithaml and Rice, 1987).
Downstream value chain issues, such as venture capital, angel financing
and other financing techniques, emerged in the 1990s (Dimov and
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Shepherd, 2005; Shepherd and Zacharakis, 2001; 2002). However, when
a field is to be taught, there has to be some kind of agreement on what
exactly it calls for. This, however, does not seem to be the state of play
in entrepreneurship.
Entrepreneurship is a ‘widely’ dispersed, loosely connected domain of
issues’ (Ireland and Webb, 2007), ‘a mosaic of issues to be explored
(Zahra, 2005, p.254). Entrepreneurship is not an intrinsically specialised
field, rather it is an all pervasive field of diverse disciplines, and for that
reason has been attracting scholars from management, marketing, finance,
anthropology, sociology, psychology, accounting, economics, operations
management and political science. Most important, if the domain of
entrepreneurship and management are to be compared we can define them
neither as mutually inclusive nor exclusive. Their relationship is described
as overlapping (Ireland et al., 2003). The former is considered more
opportunity driven, while the latter is more resource and conversationdriven (Ireland et al., 2003).
Learning entrepreneurial skills is equally important for those students
who are less inclined towards becoming entrepreneurs and wish to pursue
corporate careers, as entrepreneurship can be considered as a mount of
skills interchangeable in any organisational context where innovation,
opportunity recognition, risk-taking and other similar imperatives
occur. Thus, the significance of integrating corporate entrepreneurship
(also called intrapreneurship) into entrepreneurial leadership education.
Corporate entrepreneurship is the creation of new business in large
established organisations through entrepreneurial people being innovative,
creative and generating new ideas (Guth and Ginsberg, 1990; Sathe,
1985). Additionally, intrapreneurship (corporate entrepreneurship) and
the need for entrepreneurial cultures have gained much attention during
the past few years (Zahra, Kuratko and Jennings, 1999; Kuratko, Ireland
and Hornsby, 2001; Morris and Kuratko, 2002).
Today professionals and business educators have evolved beyond the
misconception that entrepreneurs are not made but are born. It is
becoming clear that entrepreneurship, or certain facets of it, can be taught
(Vesper and Gartner, 1997). Peter Drucker, recognised as one of the
leading management thinkers of our time, has said, ‘The entrepreneurial
mystique? It’s not magic, it’s not mysterious, and is has nothing to do
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with the genes. It’s a discipline. And, like any discipline, it can be learned’
(Drucker, 1985). Given the widely accepted notion that entrepreneurial
ventures are the key to innovation, productivity, and effective competition
(Plaschka and Welsch, 1990), the question of whether entrepreneurship
can be taught is obsolete (Charney and Libecap, 2000). Additional
support for this view comes from a ten-year (1985−1994) literature
review of enterprise, entrepreneurship and small business management
education that reported ‘…most of the empirical studies surveyed
indicated that entrepreneurship can be taught, or at least encouraged, by
entrepreneurship education’ (Gorman et al,, 1997, p. 63).
Solomon, Duffy and Tarabishy (2002) conducted one of the most
comprehensive empirical analyses on entrepreneurship education. In their
review of entrepreneurship pedagogy, they stated, ‘A core objective of
entrepreneurship education is that it differentiates from typical business
education. Business entry is fundamentally a different activity than
managing business (Gartner and Vesper, 1994); entrepreneurial education
must address the equivocal nature of business entry (Sexton and Upton,
1987; Van Clouse, 1990). To this end, entrepreneurial education must
include skill building courses in negotiation, leadership, new product
development, creative thinking and exposure to technological innovation
(McMullen and Long, 1987; Vesper and McMullen, 1988)’. Other areas
identified as important for entrepreneurial education included awareness
of entrepreneur career options (Hills, 1988; Charney and Libecap, 2000);
sources of venture capital (Vesper and McMullen, 1988; Zeithaml and
Rice, 1987); idea protection (Vesper and McMullen, 1988); ambiguity
tolerance (Ronstadt, 1987, 1990); the characteristics that define the
entrepreneurial personality (Hills, 1988; Scott and Twomey, 1988; Hood
and Young, 1993), and the challenges associated with each stage of venture
development (McMullen and Long, 1987; Plaschka and Welsch, 1990).
‘Experiential learning’ was found to be widespread and diverse in its
application from the literature (Solomon and Fernald, 1991). The reported
types of learning tools included: business plans (Hills, 1988; Vesper and
McMullen, 1988; Gartner and Vesper, 1994; Gorman et al., 1997);
student business start-ups (Hills, 1988; Truell et al., 1998); consultation
with practicing entrepreneurs (Klatt, 1988; Solomon et al., 1994);
computer simulations (Brawer, 1997); behavioural simulations (Mitchell
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 175
and Chesteen, 1995); interviews with entrepreneurs, environmental scans
(Solomon, et al., 1994); ‘live’ cases (Gartner and Vesper, 1994); field trips;
and the use of video and films (Klatt, 1988).
Technology must be embraced within the classrooms. ‘Clearly, for
entrepreneurship education to embrace the twenty first century, professors
must become more competent in the use of academic technology and also
expand their pedagogies to include new and innovative approaches to the
teaching of entrepreneurship. For example, the use of video conferencing
and streaming of video case studies show promise as viable uses of
educational technology. The ability to bring new ‘live’ perspectives from
different geographic locations and schools will add to the richness of the
educational experience. Cyberspace has virtually erased time and distance
transforming the theory of education into the practice of implementation’
(Solomon, Duffy, Tarabishy, 2002, pp. 82−3).
Today it is imperative for entrepreneurship as a discipline to move
into a leadership footing within our business schools. Besides, one
constituent which is integral to entrepreneurial learning is the constant
flow of communication and dialogues between the existing and aspiring
entrepreneurs. The lessons learned by existing entrepreneurs who have
faced the challenges, paid the prices, and endured the failures when shared
‘make a difference’. ‘Doing the same thing and expecting different results’
has been said to be one of the definitions of insanity. Therefore, it is very
important that the emerging generation of entrepreneurship educators
avoid the paradigm paralysis consuming so many business disciplines.
John Maynard Keynes said, ‘The greatest difficulty in the world is not
for people to accept new ideas, but to make them forget about old ideas.’
We must carry on moving boldly ahead with new ideas.
The contemporary belief that entrepreneurship can be taught,
and hence learned has far more outreached the traditional belief
that entrepreneurs are ‘born’. Modern entrepreneurship education
encompasses skill building courses in negotiation, leadership, new
product development, creative thinking and exposure to technological
innovation. Practical learning tools include interviews and consultation
with practicing entrepreneurs. Recent times have witnessed widespread
attention on intrapreneurship (corporate entrepreneurship).
176  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
Table 4: Studies Focusing on ‘Entrepreneurial Leadership Education’
Year
Paper
1953 Schumpeter
Key Findings
Entrepreneurship and more so entrepreneurship education
relatively juvenile fields of study, dating from the 1950s.
1985 Peter Drucker Entrepreneurial mystique like any other discipline can be
learned.
Sathe
Corporate entrepreneurship: creation of new business.
1987 McMullen and Entrepreneurial education must include skill-building courses
Long
in negotiation, leadership, new product development, creative
thinking and exposure to technological innovation.
Aid in challenges associated with every stage of venture
development.
Ronstadt
Entrepreneurial education source of ambiguity tolerance.
Sexton and
Upton
Zeithaml and
Rice
1988 Hills
Klatt
Scott and
Twomey
Vesper and
McMullen
Entrepreneurial education must address the equivocal nature
of business entry.
Emergence of entrepreneurship education as a distinct field
beginning in the 1980s.
Entrepreneurial education source of venture capital.
Identification of entrepreneur career options as a part of
entrepreneurial education.
Entrepreneurial education defining entrepreneurial personality.
Learning tools including business plans.
Learning tools including student business start-ups
Learning tools including consultation with practicing
entrepreneurs.
Use of videos, films and field trips.
Entrepreneurial education defining entrepreneurial personality.
Entrepreneurial education must include skill-building courses
in negotiation, leadership, new product development, creative
thinking and exposure to technological innovation.
Entrepreneurial education source of venture capital.
Entrepreneurial education source of idea protection.
Learning tools including business plans.
Corporate entrepreneurship: creation of new business.
1990 Guth and
Ginsberg
Plaschka and Entrepreneurial ventures, key to innovation, productivity,
Welsch
and effective competition.
Aid in challenges associated with every stage of venture
development.
Vol. 2, Issue 1, March 2014
Year
Paper
Van Clouse
Ronstadt
Annual Research Journal of SCMS, Pune
 177
Key Findings
Entrepreneurial education must address the equivocal nature
of business entry.
Entrepreneurial education source of ambiguity tolerance.
1991 Solomon and
Fernald
1993 H o o d a n d
Young
1994 Gartner and
Vesper
Experimental learning diverse in application from the
literature.
Entrepreneurial education defining entrepreneurial personality.
Gorman,
Hanlon and
King
Vesper and
Gartner
1998 Truell et al.
Entrepreneurship can be taught, or at least encouraged, by
entrepreneurship education.
Learning tools including business plans.
Entrepreneurship can be taught.
1999 Zahra,
Kuratko and
Jennings
2000 Charney and
Libecap
Widespread attention on intrapreneurship (corporate
entrepreneurship).
Business entry fundamentally different activity than managing
a business.
Learning tools including business plans and live cases.
Soloman et al. Learning tools including consultation with practicing
entrepreneurs.
Learning tools including interviews with entrepreneurs,
environmental scans.
1995 Mitchell and Learning tools including behavioural simulations.
Chesteen
1997 Brawer
Learning tools including computer simulations.
Learning tools including student business start-ups.
Question of whether entrepreneurship can be taught is
obsolete.
Identification of entrepreneur career options as a part of
entrepreneurial education.
2001 Kuratko,
Question of whether entrepreneurship can be taught is
Ireland and
obsolete.
Hornsby
Identification of entrepreneur career options as a part of
entrepreneurial education.
Shepherd and Emergence of downstream value chain issues, such as venture
Zacharakis
capital, angel financing and other financing techniques, in
the 1990s.
178  Annual Research Journal of SCMS, Pune
Year
Paper
2002 Morris and
Kuratko
Solomon,
Duffy and
Tarabishy
Vol. 2, Issue 1, March 2014
Zahra
Key Findings
Widespread attention on intrapreneurship (corporate
entrepreneurship).
Entrepreneurship education differentiates from typical
business education.
Cyberspace has erased time and distance in entrepreneurship
education.
Describing domains of entrepreneurship and management
as overlapping.
Over 1600 entrepreneur programmes developed worldwide
till the year 2000.
Emergence of downstream value chain issues, such as venture
capital, angel financing and other financing techniques, in
the 1990s.
Emergence of entrepreneurship education as a distinct field
beginning in the 1980s.
Entrepreneurship, ‘a mosaic of issues to be explored’.
2007 Ireland and
Webb
Entrepreneurship, a ‘widely’ dispersed, loosely connected
domain of issues’.
2003 Ireland et al.
Katz
2005 Dimovand
Shepherd
Kutatko
The Grim Side of ‘Entrepreneurial Leadership’
The literature about entrepreneurship is supportive and positive, implying
the uniform benefits accruing to the economy, to individuals, and to
businesses as a result of entrepreneurship. But in reality this depicts only
half of the picture. There has been an emerging strand of research that
focuses on the dark side of entrepreneurship (e.g. Baumol, 1990; Kets de
Vries, 1985; Osborne, 1991; Shane, 2008; Webb, Tihanyi, Ireland and
Sirmon, 2009; Wright and Zahra, 2011).A trifling number of researchers
have enquired into the dysfunctional aspects of entrepreneurship pointing
out that there definitely exists a darker side. For instance, Osbourne
(1991) identified the dark side as the ‘corrupting power of ownership’, and
cited examples of situations in which the power of ownership corrupted
the organisation. Cole (1989) described the entrepreneurial self and
alluded to the reality that entrepreneurs are often ‘displaced persons’
who are entering the pursuit of ownership for less than sterling goals.
De Vries (1989) has developed four concepts in his description of some
of the ‘darker sides of entrepreneurship’: the need for control, a sense of
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 179
distrust, the need for applause, and defensive operations. He has further
elaborated that in extreme cases of distorted reasoning and action, the
transition necessary for organisational growth is difficult, if not impossible,
and the organisation may be destined for perpetual smallness, or, more
unfortunately, destruction. An entrepreneur who is facing a great inner
struggle with authority and control issues also has to handle difficulties in
working with others in structured situations, as structure can be stifling.
At least one author has posited that entrepreneurship can be hazardous
to one’s health (Buttner, 1988).
Vast amount of literature is staunched to extolling the rewards,
achievements and successes of entrepreneurs. However, a darker side of
entrepreneurship also exists. The entrepreneur’s confrontation with risks
is immense where he/she is constantly stalked with financial risk, family
and social risk, psychic risk and stress. Besides, as quoted by Kuratko, D.
(n.d.), in addition to the challenges of risk and stress, the entrepreneur
also may experience the negative effects of an inflated ego. In other
words, certain characteristics that usually propel entrepreneurs into success
also can be exhibited to their extreme. The four prominent of these
characteristics that may hold destructive implications for entrepreneurs
are: an overbearing need for control, sense of distrust, overriding desire
for success, and unrealistic optimism. At the same time, he has specified
that all entrepreneurs do not fall prey to these scenarios, nor do each
of the characteristics presented always give way to the ‘destructive’ side.
Nevertheless, all potential entrepreneurs need to know that the dark side
of entrepreneurship exists. Thus, entrepreneurs can be connoted as a
different breed of managers possessing distinct personality characteristics
from others. Sometimes these characteristics, which are pivotal for their
successes, prove detrimental to their personal cause.
Every burst of brilliance holds a dark aspect. De Vries (1989) argues
that: Closely related to the entrepreneur’s need for control is a proclivity
toward suspicious thinking... Because entrepreneurs have pervasive fears
of being victimised, they are continually scanning their environment
for something to confirm their suspicions. So, it becomes imperative
that entrepreneurs, existing and potential, retain an ever-aware attitude
about these potential hazards of entrepreneurship as further elaborated by
McKenna (1996). Self-awareness, in relation to the potential darker side of
180  Annual Research Journal of SCMS, Pune
Vol. 2, Issue 1, March 2014
the entrepreneurial characters, is an important aspect of not only starting
a business, but growing a business beyond the entrepreneurial stage. If the
entrepreneurial character/personality does include the need for control,
a sense of distrust, the need for applause and defensive operations, it is
important for entrepreneurs and potential entrepreneurs to recognise when
such characteristics become negative for the developmental potential of
the entrepreneurial company. If an entrepreneur knows he/she will never
be able to ‘let go’, he/she should remain a successful, small, niche player,
Table 5: Studies Focusing on ‘Grim Side of Entrepreneurial Leadership’
Year
1985
Paper
Key Findings
1988
K e t s d e Emerging strand of research focusing on the dark side of
Vries
entrepreneurship.
Buttner
Entrepreneurship can be hazardous to one’s health.
1989
Coles
1990
1991
1996
2008
2009
2011
n.d.
Identification of entrepreneurs as ‘displaced persons’ who are
entering the pursuit of ownership for less than sterling goals.
De Vries Four concepts in the description of some of the ‘darker sides
of entrepreneurship’: the need for control; a sense of distrust;
the need for applause; and defensive operations.
Proclivity toward suspicious thinking.
Baumol
Emerging strand of research focusing on the dark side of
entrepreneurship.
Osborne Emerging strand of research focusing on the dark side of
entrepreneurship.
Identification of dark side as the ‘corrupting power of
ownership’.
McKenna Self-awareness in relation to the potential ‘darker side’ of the
entrepreneurial character.
Shane
Emerging strand of research focusing on the dark side of
entrepreneurship.
Webb,
Emerging strand of research focusing on the dark side of
Tihanyi, entrepreneurship.
Ireland
and
Sirmon
Wright
Emerging strand of research focusing on the dark side of
and Zahra entrepreneurship.
Kuratko Negative effects of an inflated ego.
Vol. 2, Issue 1, March 2014
Annual Research Journal of SCMS, Pune
 181
or risk personal and organisational self-destruction’. Thus, an entrepreneur
cannot change the nature of his/her journey, but can alter the experiences,
rewards and outcomes of it by playing it safe and staying judicious.
The characteristics that usually propel entrepreneurs into success, if
exhibited in extreme, propels them downwards via an overbearing need
for control, sense of distrust, overriding desire for success, and unrealistic
optimism. So it becomes imperative that all entrepreneurs, existing and
potential, keep a constant vigilance about their respective desires and
attitudes, and stay judicious.
Conclusion
Past thirty years have witnessed an entrepreneurial revolution worldwide.
This revolution is proving more formidable to the twenty first century than
the industrial revolution was to the twentieth century. An innovative spirit
resides in all of us. An entrepreneurial leader discovers his/her creative
spirit, hones his/her skills, and utilises his/her potential to serve not only
his/her personal cause, but also becomes a critical contributor to economic
growth through his/her leadership, innovation, management, research and
development effectiveness, competitiveness, job creation, productivity
and formation of new industry. He/She creates an internal marketplace
for ideas within the organisation, and encourages the employees to act
on these ideas.
Entrepreneurial Leadership is a mandate for all firms, small and big
to survive and flourish. Researchers today are delving into the various
elements that impact Entrepreneurial Leadership. A better understanding
of the elements that comprise this concept is of vital importance in
understanding and developing the concept itself.
The early research of the 1970s focused on how entrepreneurship could
be developed inside existing organisations, thus leading to the emergence
of corporate entrepreneurship over past four decades. The older leadership
theories, viz., traits, situational, behavioural/styles and functional have been
used since decades for increasing leadership effectiveness and efficiencies.
However recent times have witnessed the emergence of leadership
philosophies, viz., ‘steward leadership” and ‘ethical leadership’. James
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Scouller (2011) presented the integrated psychological leadership theory
which attempts to integrate the conventional theories while addressing
their limitations and focusing on the leader’s psychology; emphasising the
idea that leaders should view leadership as an act of service and should care
equally about their follower’s needs alongside their own needs. Thus, the
link between the modern leadership theory and the philosophy of ‘servant
leadership’ has strengthened in the twenty first century. Unlike other
leadership approaches possessing a top-down hierarchical methodology,
servant leadership instead emphasises collaboration, empathy, trust and
most importantly the ethical use of power. The objective is to enhance
teamwork and personal involvement, and enhance the progress of
individuals in the organisation. A ‘servant entrepreneur’ always places
service above profits. That does not mean that he/she is any less savvy as
a businessperson. But service is first. Practicing servant entrepreneurship
is a big shift for majority of us to make; tenuous but big. This concept
can be seen as a long-term concept to work and live, and has the potential
to impact the society in a positive way.
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