Management & Change by IILM Institute for Higher Education

Management & Change Journal of IILM Institute |for Higher Education (Listed in Cabell’s Directory of Publishing Opportunities, Texas, USA) Email: management.change@iilm.edu

Editor Prof. Vandana Srivastava Professor Operations and Management Sciences IILM Institute for Higher Education Email: vandana.srivastava@iilm.edu

EDITORIAL ADVISORY BOARD Ahmed, Abad Ex-Pro-Vice Chancellor, University of Delhi, Delhi. Balachandran, V. Bala Distinguished Professor, J.K. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois. Baxi, Chetan Former Dean, Research, Management Development Institute, Gurgaon. Chatterjee, N.R. Dean Emeritus, IILM Institute for Higher Education, New Delhi. Coree, Joseph Professor, Robert Morris College, Pittsburgh, USA. Ghosh, Avijit Professor, Stern School of Business, New York University, USA. Jain, P.K. Professor of Finance, Dept. of Management Studies, Indian Institute of Technology, New Delhi & Former President, GIFT Society. Joshi, J. Rama Professor, Shri Ram Centre for Industrial Relations, New Delhi. Khan, M.Y. Ex-Professor, Dept. of Financial Studies, University of Delhi, Delhi. Mamkoottam, K. Professor, Faculty of Management Studies, University of Delhi, Delhi. Mukherji, Badal Professor TERI University & Former Director, Delhi School of Economics, Delhi. Nair, N.K. Professor Shri Ram Centre for Industrial Relations, Human Resources, Economic & Social Development, New Delhi. Panchmukhi, V.R. Ex-Chairman, Indian Council of Social Science Research. Pandey, I.M. Chairman, Academic Council, Pearl School of Business, Sector 32, Gurgaon. Pandit, V.N. Ex-Professor, Delhi School of Economics, University of Delhi, Delhi. Sheth, N.R. Ex-Director, Indian Institute of Management, Ahmedabad. Singh, J.D. Director, Jaipuria Institute of Management, Noida. Szell, Gyorgy Professor, University of Osnabruck, Germany. Vrat, Prem Professor Emeritus, MDI Gurgaon, Former Vice-Chancellor, U.P. Technical University, Lucknow and Former Director, IIT Roorkee. Manuscript Submission Contributions are invited in diverse areas of management from interested authors. In each issue of the journal it is normally planned to include research papers, case studies, original conceptual papers/ perspectives, short communications, management cases and book reviews. For contributors guidelines, authors may refer to the inside back cover. Enquiries should be electronically made to the Editor, Management & Change, IILM Institute for Higher Education at e-mail management.change@iilm.edu Frequency and Subscriptions Management & Change is published bi-annually i.e. twice a year (No.1: Summer; No.2: Winter). Annual subscription rates are as follows: Within India – Institutional: Rs. 750; Individual: Rs. 500 Overseas – Asian Countries: $50; Other Countries: $150 (Air mail) Demand Draft should be drawn in favour of: IILM Institute for Higher Education, payable at New Delhi. Advertisement rates full page Rs. 20,000; half page Rs. 10,000. Editorial/Subscription Information For editorial queries, please write to the Editor, Management & Change, IILM Institute for Higher Education, Tel: 91-11-40934335, Fax: 91-11-40934335, E-mail: management.change@iilm.edu For subscription related queries please contact Editorial Coordinator (aarti.sharma@iilm.edu). Order for print copies to be made at management.change@iilm.edu Online version for 2012 and later issues are being made available through IILM website (www.iilm.edu) on free downloadable basis. Copyright @ 2014 IILM Institute for Higher Education. All Rights Reserved.

Chronology of Editorial Team of ‘Management & Change’ Volume & Issue (Year)

Editor

Vol. Vol. Vol. Vol.

Prof. Prof. Prof. Prof.

1 1 1 2

No. No. No. No.

1 1 2 1

(1997) (1997) (1997) (1998)

Editorial Coordinator

Prof. Debi S. Saini

Sami A. Khan

Vol. 3 No. 1 (1999) Vol. 3 No. 2 (1999)

Prof. Debi S. Saini Prof. Debi S. Saini

Sami A. Khan Sami A. Khan

Vol. 4 No. 1 (2000)

Prof. Gautam Bhattacharyya

Sami A. Khan

Vol. 4 No. 2 (2000)

Prof. Gautam Bhattacharyya

Vol. 5 No. 1 (2001)

Prof. Gautam Bhattacharyya Prof. Gautam Bhattacharyya Prof. Gautam Bhattacharyya Prof. Gautam Bhattacharyya Dr. Irfan A. Rizvi Dr. Irfan A. Rizvi Dr. Irfan A. Rizvi Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital Dr. K.M.Mital

Yusuf Siddiqui

Prof. M.K. Moitra Prof. M.K. Moitra Dr. Siri D. Vivek Dr. Rajesh Pilania Dr. Rajesh Pilania -

Vol. 14 No. 2 (2010)

Dr. K.M.Mital

Vol. 15 No. 1 & 2 (2011) Ms. Shipra Jain Vol. 16 No. 1 & 2(2012)

Dr. P. Malarvizhi

Mr. George Skaria

Yusuf Siddiqui Yusuf Siddiqui Johnson E.P Johnson E.P Johnson E.P Johnson E.P Johnson E.P Johnson E.P Johnson E.P Johnson E.P Johnson E.P Arun Thomas Arun Thomas Ms. Deepa Khanna Ms. Sarla Rawat Ms. Deepa Khanna Ms. Sarla Rawat Ms. Deepa Khanna

Dr. Sangeeta Chopra

Vol. 17 No. 1 & 2 (2013)

Prof. Vandana Srivastava

Vol. 18 No. 1 (2014)

Dr. Vandana Srivastava Dr. Vandana Srivastava

Dr. Sangeeta Chopra Dr. Silky Kushwah Dr. Sangeeta Chopra Ms. Aarti Sharma Dr. Silky Kushwah Dr. Silky Kushwah Ms. Aarti Sharma

Vol. 6 No. 2 (2002) Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol. Vol.

7 No. 1 (2003) 7 No. 2 (2003) 8 No. 1 & 2 (2004) 9 No. 1 (2005) 9 No. 2 (2005) 10 No. 1 (2006) 10 No. 2 (2006) 11 No. 1 (2007) 11 No. 2 (2007) 12 No. 1 (2008) 12 No. 2 (2008) 13 No. 1 (2009) 13 No. 2 (2009) 14 No. 1 (2010)

Vol. 18 No. 2 (2014)

Saini Saini Saini Saini

Associate Editor

Vol. 2 No. 2 (1998)

Vol. 6 No. 1 (2002)

S. S. S. S.

Sami A. Sami A. Sami A. Sami A.

Zafar H. Anjum Zafar H. Anjum Zafar H. Anjum Zafar H. Anjum Lincy Sebastian Yusuf Siddiqui Zafar H. Anjum Lincy Sebastian Yusuf Siddiqui Zafar H. Anjum Lincy Sebastian Yusuf Siddiqui Zafar H. Anjum Lincy Sebastian Yusuf Siddiqui Zafar H. Anjum Lincy Sebastian Yusuf Siddiqui Yusuf Siddiqui

Vol. 5 No. 2 (2001)

Debi Debi Debi Debi

Khan Khan Khan Khan

Ms. Aarti Sharma Ms. Shipra Jain Ms. Aarti Sharma

ACKNOWLEDGEMENT TO REFEREES Following management professionals acted as referees for contributions made for Management & Change, Vol. 18 No.2 (2014). Management & Change acknowledges their valuable comments and suggestions for improving papers included in the following issue. Management & Change, Vol. 18 No. 2 Anjali Malik

Professor, Marketing and Sales, IILM Institute for Business and Management, DLF Golf Course Road, Sector - 53, Gurgaon - 122003, Haryana, India.

Anjali Singh

Assistant Professor & Assistant Editor - JIMS 8M, Jagannath International Management School, OCF, Pocket 9, Sector B, Vasant Kunj, New Delhi - 110070

Anju Gulla

Former Associate Professor, Marketing & Sales, IILM Institute for Higher Education, 3, Lodhi Institutional Area, New Delhi -110003, India.

Bilal Mustafa Khan

Assistant Professor, Department of Business Administration, Aligarh Muslim University (AMU), Aligarh - 202002, Uttar Pradesh, India.

Kakoli Sen

Professor & Associate Dean, School of Humanities and Social Science (SoHSS), G D Goenka University, Gurgaon Sohna Road, Gurgaon - 122103, Haryana, India.

Monika Jain

Associate Professor, Economics, IILM Graduate School of Management, 16, Knowledge Park - II, Greater Noida - 201 306, Uttar Pradesh, India.

Neha Chibber

Associate Professor, Marketing and Sales, IILM Institute for Business and Management, DLF Golf Course Road, Sector - 53, Gurgaon - 122003, India.

S C Sharma

Retired IES Officer & Director, ICFAI Business School, IDPL Complex, Old Delhi-Gurgaon Road, Dundahera, Gurgaon - 122016, Haryana, India.

Sangeeta Chopra

Associate Professor, Organizational Behaviour & Human Resource Management, IILM Institute for Higher Education, 3 Lodhi Institutional Area, New Delhi - 110003, India.

Sanyukta Jolly

Associate Professor, Organizational Behaviour and Human Resource Management, IILM Institute for Higher Education, 3 Lodhi Institutional Area, New Delhi - 110003, India.

Sapna Popli

Former Director & Professor, Marketing & Sales, IILM Institute for Higher Education, 3, Lodhi Institutional Area, New Delhi -110003, India.

Sujata Shahi

Professor, Organizational Behaviour and Human Resource Management, IILM Institute for Business and Management, DLF Golf Course Road, Sector - 53, Gurgaon - 122003, Haryana, India.

Vandana Srivastava

Director-Undergraduate Business School & Professor, Operations and Information Technology, IILM Institute for Higher Education, 3 Lodhi Institutional Area, New Delhi - 110003, India.

Management & Change, Volume 18, Number 2 (2014)

Management & Change VOLUME 18

NUMBER 2

2014

ARTICLES

Managerial Obsolescence: You Cannot Avert but You can Cure

S P Chauhan Daisy Chauhan

Modeling the Students Learning by Case Method: Indian perspective

Jaydeep Mukherjee

Improving Teaching Learning in Higher Education Institutions : Focus Subject-Based Networks

Neeru Snehi

Differential Adoption of Study Patterns among Management Students in B-Schools

Somiya Mehrotra

Adelaide King's Disentangling Inter-firm and Jashim Uddin Ahmed Intra-firm Causal Ambiguity: Mohammad Jasim Uddin A Critical Review Determining the Predictors of Green Consumer Behavior in India: An Empirical Study Managing Governance Mode Shift in Contract R&D

Adnan Ali Mohd. Adil Anjan Roy

S.A.I.L. - Distribution Strategy for Non-Urban Markets: Jones Mathew A Case Study Rakhi Singh

BOOK REVIEWS Ramaswamy, V S & Namakumari, S (2013). Marketing Management Global Perspective, Indian Context reviewed by Sonia Takkar and Sujit Sengupta.

Contributors Adnan Ali

Anjan Roy

Associate Professor, National Institute Of Bank Management Kondhwa Khurd, Pune 411048, Maharashtra, India. E-mail: aroy@nibmindia.org

Daisy Chauhan

Associate Professor (Organizational Behaviour), Chairperson (Open Programs), Management Development Institute, Mehrauli Road, Sukhrali, Sukhrali, Gurgaon 122001, Haryana, India. E-mail: daisy@mdi.ac.in

Jashim Uddin Ahmed

Associate Professor & Chair, Department Of Management School Of Business, North South University, Bashundhara R/A, Dhaka1229, Bangladesh. E-mail: jashim@northsouth.edu

Jaydeep Mukherjee

Associate Professor - Marketing Area, Management Development Institute, Sukhrali, Mehrauli Road, Gurgaon - 122001 Haryana, India. E-mail: jmukherjee@mdi.ac.in

Jones Mathew

Professor, Fortune Institute Of International Business, Plot 5, Rao Tula Ram Marg, Vasant Vihar,, New Delhi, Delhi 110057 E-mail: mathewjmat@rediffmail.com

Mohammad Jasim Uddin

Lecturer, School Of Business, North South University, Bashundhara R/A, Dhaka-1229, Bangladesh. E-mail: juddin@northsouth.edu

Mohd. Adil

Assistant Professor, Department Of Business Administration, Aligarh Muslim University, Malappuram Centre , Kerala-679340, India. E-mail: adilcms07@gmail.com

Neeru Snehi

Assistant Professor, Department Of Higher And Professional Education, National University Of Education Planning And Administration, 17-B, Sri Aurobindo Marg, New Delhi110016, India. E-mail: neerusnehi@nuepa.org

Rakhi Singh

Associate Professor, Economics & Strategy, IILM Institute For Business And Management, Plot No 71, DLF Golf Course Road, Sector 53, Gurgaon, Haryana 122003. E-mail: rakhi.singh@iilminstitute.ac.in

S P Chauhan

Director (Officiating), Professor (Ob & Hr), Asia-Pacific Institute Of Management, 3 & 4, Institutional Area, Jasola, New Delhi 110025, India. E-mail: spchauhan1954@gmail.com

Somiya Mehrotra

Assistant Professor, Department Of Management Studies, Sikkim Manipal University, Directorate Of Distance Education, Manipal Towers, Third Floor, No. 14, Hal Stage Ii, Old Airport Road, Kodihally, Bangalore560008, Karnataka, India. E-mail: somiya.mehrotra@smudde.edu.in

Sonia Takkar

Assistant Professor, Marketing & Sales, IILM Undergraduate Business School, 3, Lodhi Institutional Area, New Delhi - 110003. Email: sonia.takkar@iilm.edu

Sujit Sengupta

Professor & Area Chair, Marketing & Sales, IILM Institute For Higher Education, Rai School Complex, Lodhi Road, New Delhi 110003. Email: sujit.sengupta@iilm.edu

From the Editor’s Desk MANAGEMENT EDUCATION IN THE 21ST CENTURY: A VIEW POINT “Thirty years from now the big university campuses will be relics. Universities won’t survive.” —Peter Drucker (1997) These words of Peter Drucker were prophetic for higher education, management education being no exception. Education, as the previous generations have known it, is undergoing a major transition. Globalization, emergence of the knowledge economy and rapid development and proliferation of information and communication technology have forced major changes across all sectors, including education. What worked well ten years back is obsolete now, leaving organizations and institutions with no choice but to adapt else they would perish. Though management as a practice is as old as civilization, management as a field of education is only about a century old. In a short span of time, management education has emerged as a new and powerful branch of education that has trained people for various roles as a manager. While the initial several decades have been years of growth and consolidation; both globally and within the country, the turn of the century has seen a lot of skepticism about management education. The reasons for this are manifold. Firstly, globalization has changed the world in more ways than one can imagine. While the effects of globalization can be easily seen in the economy and various sectors, its manifestations in education have been implicit yet far reaching. A very interesting viewpoint has been presented by Vaira (2004) in this context by identifying two main and opposed interpretations concerning globalization outcomes, namely the convergence thesis and the divergence thesis. The convergence thesis emphasizes the homogenization processes which tend to bring together processes both global and local. On the contrary, the divergence thesis emphasizes different, pluralistic and localized responses to globalization processes (Vaira, 2004).These two contrasting effects of globalization

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call for a deep institutional change that involves deinstitutionalization of the traditional policy and values frameworks and the parallel institutionalization of new ones. At the same time, globalization has also resulted in a demographic shift and development of new workplaces. The demographic profile of the individuals seeking management education has changed and continues to change â&#x20AC;&#x201D;particularly with regard to age (e.g., older); gender (e.g., more females); race and nationalities (e.g., more diversity) and experience ( e.g. working professional). Also, new workplaces have emerged with a major shift in job type from manufacturing to services, and often virtual organizations. The future managers should therefore have a global perspective to be able to manage institutional, economic and cultural diversity (Bhandarkar, 2008; Friga, Bettis and Sullivan, 2013; Rao et al, 2014). In this scenario fresh challenges have emerged for management institutions in terms of the curriculum, pedagogy, processes and resources required to bridge the gap between expectations of a changing globalized world and management graduates. Secondly, the new knowledge based economy requires different skills. It is often felt that management education is in crisis as it is too narrowly and analytically orienting future managers who will need to lead in a socially and ecologically complex world, where simple answers just do not work (Waddock and Lozano, 2013). Infact, limited development of critical thinking ability and a traditional teaching vs. learning approach is increasingly being questioned (Pfeffer and Fong, 2002, 2004; Waddock and Lozano, 2013; Datar, Garvin and Sullivan, 2010; Friga, Bettis and Sullivan, 2013). The dynamic and knowledge driven work places of the 21st century require managers to hone integration skills so as to frame problems holistically, act creatively and innovatively, think critically and communicate effectively. They will be not just recognized for the ability to achieve operational efficiency but their ability to understand the roles, responsibilities, and purpose of business by balancing the objectives of business and multiple stakeholder demands. Leadership, creativity and innovation, critical thinking and communication, and understanding the purpose of business, find their place in the list of gaps often identified by employers (Datar, Garvin and Sullivan, 2010; Bhandarkar, 2008). Also, at an individual/ personal level, future managers should have depth as a person to shed any stereotypes, understand the balance between a career and commitment to an organization, develop a commitment to practice, Management & Change, Volume 18, Number 2 (2014)

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understand one’s own limitations, and work out one’s expectations in a reasonable manner (Bhandarker, 2008). Last but not the least, education has been profoundly affected by Disruptive Technologies. Over the years there has been an overall shift in the comfort and familiarity with technology in the learning process, so much so that one can use the term “Disruptive technologies” even in the context of education. Disruptive technologies, a term championed by Clayton Christensen (1997), described a new technology application that leads to a disruption in an industrial value chain. The proposition states that smaller, lower margin companies can go higher end with next-generation technology and better serve existing demand while even creating new market space (Friga, Bettis and Sullivan, 2003). While one may typically associate the disruptive nature of technology with manufacturing sector, education is a prime target for disruption given advances in computer technology, communications platforms, and the Internet. Technology has altered the traditional models of education delivery. As interactive communication software and other applications continue to develop, basic assumptions regarding education’s value chain, specifically the distribution of knowledge, will require reassessment (Ives & Jarvenpaa, 1996; Duderstadt, 1999; Friga, Bettis and Sullivan, 2003; Nord, Paliszkiewicz and Koohang, 2014).The students of the new generation are extremely technology savvy and do not shy away from using social media and other technologies for information and knowledge sharing and as an alternate form of education. The availability open courseware, social media and videos have made the role of the faculty and the traditional modes of teaching redundant. Another major development that is poised to emerge as a disruptive technology is in the form of MOOCs, Massive Open Online Courses, a new approach to higher education. MOOCs have the advantage of massiveness, i.e. they attract students from different countries with their number now being close to one million, and, openness i.e. anyone is able to participate in an online course for free (Yuan & Powell, 2013). The scalability potential of MOOCs can encourage participation of an indefinite number of participants, thus making it available to all learners. Over the last few years, driven by an increased acceptance by students, there has been a sharp increase in the number of world’s best B schools embracing MOOCs as an alternate mode of delivery. With the availability of some of Management & Change, Volume 18, Number 2 (2014)

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the best and customized business programs at a click of the mouse and transcending boundaries of time zones and physical locations, the future of traditional courses and delivery models is uncertain. It therefore becomes pertinent to question how education in general and management education in particular will evolve to survive. Capacity, Convenience, Geographic Reach and Brand emerge as the new critical success factors. Clearly it requires concentrated efforts by institutions to handle strong resistances, conûicts and tensions to bring about a change in the curriculum, pedagogy and, most importantly, mindsets, to conciliate, adapt, translate and assemble the new with the old, merge the local with the global. Whether management education will be able to handle these tectonic changes of the 21st century is yet to be seen! REFERENCES: Bhandarker, A. (2008). Shaping business leaders: What B-Schools don’t do. New Delhi: Response Books. Sage Publications. Datar, S. M., Garvin, D. A., & Cullen, P. G. (2010). Rethinking the MBA: Business education at a crossroads. Boston: Harvard Business Press. Friga, P. N., Bettis, R. A. & Sullivan, R. S. (2003). Changes in Graduate Management Education and New Business School Strategies.Academy of Management Learning and Education.2 (3). 233-249. Nord, J. H., Paliszkiewicz, J. & Koohang, A. (2014). Using Social technologies for Competive Advantage: Impact on Organizations and Higher Education. Journal of Computer Information Systems. 92104 Pfeffer, J. & Fong, C. T. (2002). The end of business schools? Less success than meets the eye. Academy of Management Learning and Education. 1. 78–95. Pfeffer, J., & Fong, C. T. (2004). The business school “Business”: Some lessons from the US experience. Journal of Management Studies. 41.1501–1520. Management & Change, Volume 18, Number 2 (2014)

Rao, T. V., Saxena, S., Chand,V. S., Narendran, R., Bharathan.K., & Jajoo, B.H. (2014). Responding to Industry Needs: Reorienting Management Education, Vikalpa. 39(4).1-10. Vaira, M. (2004).Globalization and higher education organizational change: A framework for analysis, Higher Education.48.483â&#x20AC;&#x201C;510. Waddock, S. & Lozano, J. M. (2013). Developing More Holistic Management Education: Lessons Learned From Two Programs. Academy of Management Learning & Education.12(2). 265â&#x20AC;&#x201C; 284. http://dx.doi.org/10.5465/amle.2012.0002 Yuan, L. & Powell, S. (2013) MOOCs and open education: Implications for higher education. Cetis White Paper. IILM Institute for Higher Education

Vandana Srivastava

Management & Change, Volume 18, Number 2 (2014)

MANAGERIAL OBSOLESCENCE: YOU CANNOT AVERT BUT YOU CAN CURE

S P Chauhan1

Daisy Chauhan2

It is well said that the better the employees, the better the organization. The quality of an organization gets reflected in the quality of its people or “right” people. The increasing complexity and uncertainty of the environment requires different and greater knowledge. Knowledge is becoming a dependable source of sustained competitive advantage and the basic capital and trigger of development. In this dynamic business environment, the key to an organization’s survival and growth is, in addition to the technological advancement, continuous endeavour towards the overall development of its workforce. While decisions on adopting various measures for technological advancement and its operations and application fall within the domain of organizational strategy, those relating to the growth and development of its people is the joint responsibility of the employer and the employee. Continuous learning is becoming increasingly important and organizations are without a doubt acknowledging the need to invest or the holistic development of their employees so that they are able to better contribute towards accomplishing the organizational goals. Today, when organizations are going for a flat and lean hierarchical structure, what is required is determined and collaborative efforts to improve the competencies of the people so that they do not become obsolete. This paper discusses the concept of human obsolescence and is exploratory in nature in which an attempt has been made to review existing literature on 1

Director (Officiating), Professor (Ob & Hr), Asia-Pacific Institute Of Management, 3 & 4, Institutional Area, Jasola, New Delhi – 110025, India. E-mail: spchauhan1954@gmail.com 2 Associate Professor (Organizational Behaviour), Chairperson (Open Programs), Management Development Institute, Mehrauli Road, Sukhrali, Sukhrali, Gurgaon - 122001, Haryana, India. E-mail: daisy@mdi.ac.in

2 Managerial Obsolescence: You cannot avert but you can cure

the basis of which a conceptual framework on managerial obsolescence has been developed so as to identify the causes and effects of managerial obsolescence. This paper has also attempted to suggest some initiatives to be adopted by the individuals and the effective interventions to be made by the organization to tackle the problem of obsolescence. Keywords: Human Obsolescence, Inevitable, Knowledge, Interventions, Curable. INTRODUCTION In the emerging changing global environment when countries no longer operate within their geographic boundaries, organizations have to face the challenges of competition, both within the country and from outside. In response to the challenges posed by increased competition, the globalization of business, and rapid changes in information technology, organizations continue to transform themselves (Hammer and Champy, 1993). The new organizational forms are flat, team-oriented, customer focused, and collaborative. In addition to having the requisite technical competence, working in such organizations requires new skills in the social processes of learning, sharing, and collaborating (Wheeler, 1998). The demand for employees with a new set of skills will have a profound impact on how we educate our managers in the next century. The information explosion and dynamic changes stimulated by the knowledge revolution have vastly increased the potential threat of professional obsolescence. Covey (2004) in his book â&#x20AC;&#x153;The 8th Habitâ&#x20AC;? (p.295) cautioned when he said that over 20 per cent of the present workforce is becoming obsolete, and that unless they rededicate and reinvent themselves, within a few years, another 20 per cent will become obsolete. In order to survive in the present dynamic environment, professionals will have to update themselves to meet the new challenges confronting them. In such a volatile environment professionals need to unlearn the old skills, knowledge, personnel practices and management techniques. They need to relearn and update themselves with the new ones for their personal and professional development and to be able to contribute towards self and organizational effectiveness. Stressing the significance of the knowledge in the present era, Chauhan and Chauhan (2008) writes that it is quite important to gain knowledge in college but it Management & Change, Volume 18, Number 2 (2014)

S P Chauhan, Daisy Chauhan 3

is also equally important to continue gaining knowledge after college. This is not the time to take rest. Thus the need is to adopt continuous learning as a way of life. Perhaps one of the most difficult aspects of obsolescence is the fact that it often arises over a long period of time in many subtle ways, identified as ‘creeping obsolescence’ by Mahler (1965). Also, many managers are reluctant to admit it or face up to its consequences even at a later stage. Jones (1977) found that it was only on becoming redundant that managers often admitted to the fact that they were out-of-date. Perhaps this is not so surprising; as managers they feel it necessary to project a positive selfimage and superior performance. Also, in turn, some subordinates help to reinforce this myth for various reasons, some of which are not always very healthy. Managers, like others, do not want to ‘lose face’ in front of subordinates and so will not always admit to lack of knowledge or an inability to do something. They often hide this by becoming angry, aggressive or shifting the problem to someone else. In the study conducted by Jones and Cooper (1980), one manager put it quite succinctly, ‘the way to survive is, not to make a decision on anything, and pass all matters which are potentially difficult onto someone else’. The ‘buck-passing manager’ is well known to most organizations but what is not often realized is the harm he can do not only to himself, but also to his subordinates and his organization. The human consequences of technological advancement are of much concern to modern society. However, whereas much attention is directed to the impact of this advancement on people as users of technology, little is known about its impact on people who create, develop, and work with these technologies (Bloch, 1984; Bracker and Pearson, 1986). The exponential rate of scientific and technological progress implies that knowledge becomes obsolete at an accelerated pace. Further, one can expect the skills one has to be obsolete in three to five years (Nocera, 1996). The process affects the lives of most people in this age of technology, but it has a special significance for professionals. As they are the people who create, develop, and work with technology, they need to be engaged in continuous learning throughout their careers in order to stay current. During the working years of a professional, maintaining a high level of competence is a critical issue for which the constant renewal of Management & Change, Volume 18, Number 2 (2014)

4 Managerial Obsolescence: You cannot avert but you can cure

knowledge is a necessary condition. The unending effort to keep up-todate requires an enormous investment of energy. Frequent adjustments are necessary, and professionals are faced with situations in which their knowledge no longer applies. As a result, the threat of professional obsolescence is imminent in the careers of people who work in rapidly advancing fields of knowledge. To be able to function effectively in the world of modern technology, professionals must continuously update their knowledge and skills so that they do not stay behind and are not threatened by obsolescence. Managers and human resource practitioners need to understand how the threat of obsolescence is perceived, and what professionals actually do to alleviate this threat. As a result of the expansion of new knowledge and the potential deterioration of previously held expertise, it is apparent that managers and professionals will be vulnerable to obsolescence once their formal professional education/training is completed. It is after that point that they become dependent on their own self-education strategies for updating, which are unlikely to be as systematic or comprehensive as those in the formal setting they have left. CONCEPT OF OBSOLESCENCE Shearer and Steger (1975) assume that a person’s obsolescence can be inferred from comparisons between knowledge of an individual and the knowledge of others in the professional group. According to them “A person is obsolete to the degree that, relative to other members of their profession they are not familiar with or otherwise unable to apply the knowledge, methods and techniques that generally are considered to be important to members of their profession”. Ferdinand (1966) is of the view that “obsolescence exists when an individual uses viewpoints, theories, concepts or techniques that are less effective in solving problems than others currently available in that field of specialization”. The most commonly subscribed to definitions of obsolescence are those which are related to job performance (Burack and Pati 1970; Dubin 1990; Harel and Cohen 1982; Reeser 1977; Kaufman 1974; Fossum, Arvey, Robbins and Paradise 1986; Mahler, 1975; Pazy, 1996). All these define obsolescence as the discrepancy between job performance and an Management & Change, Volume 18, Number 2 (2014)

S P Chauhan, Daisy Chauhan 5

expected level of competence which incorporates new knowledge being introduced into a profession. Burack and Pati (1970) argue that obsolescence arises when ‘innovation’ results in a ‘discrepancy between job needs and job capabilities’ and therefore when ‘the knowledge/skills of the individual are not sufficient to accomplish the job’. From the above given definitions of obsolescence one can safely assume that the overriding factor is the difference between what people deliver and what is required of them. In line with this concept of obsolescence, for the purpose of this paper, the definition given by Jones and Cooper (1980) has been taken which states that “managerial obsolescence is the extent to which a manager’s knowledge and skills have failed to keep pace with the current and likely future requirements of his job”. While being non-obsolete would ensure that you are competent to fulfill the present and future demands of your job/organization, employability would help you compete in the present global environment. Vittal (1999) opines that the most important aspect of the HRD in the 21st century is that in the age of technology and global competition, nobody can ensure lifetime employment. What is important is to have lifetime employability. This is basically extending the scope of obsolescence further to include some other factors such as attitude and behaviour which are major contributors towards effectiveness. LITERATURE REVIEW In this section of the paper an effort has been made to understand the work which has been done by the behavioural scientists and others and also to unearth the gap where researchers need to carry out the research work in the times to come. Some of the factors covered under this section are those which have direct or indirect effect on the human obsolescence. Some of the parameters on which a focus has been maintained for literature review are: 1.

Personality Characteristics

Personality Factors and Achievement Needs

Job Characteristics and Obsolescence

Influence of Boss and Colleagues on Obsolescence Behaviour

Organizational Structure and Climate

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6 Managerial Obsolescence: You cannot avert but you can cure

Personality Characteristics Jones and Cooper (1980) discussed in their research a number of personal characteristics which are likely to influence or affect a manager’s updatedness. Some of these are: age, work experience and mobility, perception of their learning ability, attitude to importance of updating, membership of professional associations, educational and professional/ technical qualifications, and, type of updating activities engaged in. (i) Age Age has attracted some attention as a correlate of obsolescence Dalton and Thompon (1971), Kaufman (1974), Shearer and Steger (1975), Steiner and Farr (1986), Kozlowski and Farr (1988), Willis and Tosti-valley (1990), Aryee (1991). Shearer and Steger (1975) found that obsolescence in young employees decreased until mid-thirties and increased thereafter. However, the overall picture of age and obsolescence is inconsistent. Some studies have not found a relationship between age and obsolescence (Kaufman, 1978; Aryee, 1991); others have found a positive relationship (Dalton and Thompson, 1971) while others have reported a negative relationship (Jones and Cooper, 1980; Pazy, 1994). Widely held age stereotypes regarding lack of motivation, resistance to change, and inability to learn (Rosen and Jerdee, 1976) may diminish older employees’ abilities and desire to acquire new technological skills (Garfein, Schaie and Willis, 1988). Lack of training opportunities (Kaeter, 1995), “underuse” of training (Sterns and Dorsett, 1994), and a significant lapse of time since formal education can cause older workers’ skills to become outdated. According to Lawrence (1998) generally older people are believed to have grey hair, resist change, and/or be technologically incompetent. (ii)

Work Experience and Mobility

There are many assumptions made by managers who feel that the longer the work experience a manager has had, the more up-to-date he must be. This is not always true, for many managers with many years experience may have had these in a very limited job or company. Hence, they may be expert as far as their particular job is concerned, and even Management & Change, Volume 18, Number 2 (2014)

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this is not always true, but they may be out-of-date relative to colleagues in other disciplines or companies. Research conducted by Glennon (1999) revealed that mid-career engineers held different perceptions of the utility of formal updating from younger and older engineers. Specially they regarded formal courses as less useful and often perceived informal learning as sufficient for keeping up-to-date. What motivates a manager to become mobile? Many reasons are given in the literature. Ream (2000) made an observation that people who change jobs do so because they perceive that they gain greater autonomy, authority, challenge, and income. Freiberg and Freiberg (2000) opinioned that continued marketability is an extremely high value for todayâ&#x20AC;&#x2122;s worker. People are rewarded for periodically changing jobs because every time they change, they gain more experience and acquire new skills. Maiman (1998) made an observation that in the future people will have not one, but many careers. Mant (1969) suggests that mobility among managers is a response to lack of job challenge or frustration in their careers. Furthermore, Hanson (1977) indicates that this leads to a demand for more effective career development and career planning. Wool (1973) and Blood and Hulin (1967) found that managers with low morale and frustrated in their careers, were forced to do something to re-stimulate themselves, often leading to career changes as a way of coping with the problem. However, it does not appear to be an effective way of coping with managerial obsolescence. Perhaps this is because obsolescence is a more deep-rooted problem, which requires ongoing developing, rather than a sudden job change which may not necessarily help the individual at all in terms of his/her professional growth. (iii) Perception of Learning Ability Maiman, (1998) opinioned that the truly successful will be those employees, managers, consultants, and corporations who boast flexibility and a high tolerance for change in their basic skill sets. The results of the study conducted by Jones and Cooper (1980) also showed that â&#x20AC;&#x2DC;up-todate managersâ&#x20AC;&#x2122; had a positive perception of their learning ability, enjoyed new learning experiences and felt that their learning ability had improved Management & Change, Volume 18, Number 2 (2014)

8 Managerial Obsolescence: You cannot avert but you can cure

in recent years. Perrucci and Rothman (1969) conclude, that ‘those managers who engaged in learning experiences long into their careers were the least likely to become obsolete’. Goggin (1999) opinioned that technology has caused the need to continually update knowledge, skill and abilities (KSAs). He further observed that obsolescence occurs when the demands of the job are higher than the workers’ KSAs. He suggested that to avoid obsolescence, workers must continually develop new KSAs. (iv) Attitude to the Importance of Updating Fischer (1996) observed that lifelong learning has emerged as one of the major challenges for the worldwide knowledge society of the future. A variety of recent events support this claim: (1) 1996 is the “European year of Lifelong Learning,” (2) UNESCO has included “Lifetime Education” as one of the key issues in its planning, and (3) the G7 group of countries has named “Lifelong Learning” as a main strategy in the fight against unemployment. Handfield-Jones (2000), made an observation that talent can be bought, but the best companies develop their own. Companies develop their executives by giving them feedback, coaching, mentoring, and training but more than anything else, executives need on-the-job experience in appropriate positions. According to Fossum et al., (1986) and Aryee (1991), Corporate policy and demands can limit their functional work behaviour and prevent them from keeping upto date. Organizational policy can positively influence updating if technical competencies are rewarded. Aryee (1991) found that job involvement is another aspect of job factors which can facilitate updating. The Engineering Manpower Commission (1986) found that encouraging peer interactions at work was an important updating strategy. According to Dubin (1990) peer interaction facilitates updating by providing reliable information on current technical developments, by suggesting new approaches to technical problems based on their own experiences and by acting as sounding boards for new ideas. (v)

Membership of Professional Associations

According to Jones and Cooper (1980) membership of professional associations is significantly related to obsolescence. They suggested that

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this is an important way of helping managers cope with or prevent the onset of obsolescence. Rothman and Perrucci (1971) found in their research that obsolescence tends to decrease as the extent of involvement in professional activities increases. Haas (1968) found in his research that membership of professional associations is an important factor in helping managers to keep up-to-date. However, Jones and Cooper (1980) found in their research that attendance at professional society meetings is not helpful in maintaining up datedness. (vi) Educational and professional/technical qualifications Perrucci and Rothman (1969) reported that education and experience influence vulnerability to obsolescence. They found in the case of engineers, that those with advanced degree exhibited significantly less obsolescence than those with only a bachelor’s degree. They also found that the highest level of obsolescence was experienced by those in administrative positions, while the lowest was experienced by those in research and development positions. They also reported that limited technical responsibility increased vulnerability to obsolescence, by allowing the degeneration of existing knowledge through disuse, and failing to stimulate self-education because it was not necessary. Jones and Cooper (1980) found in their study that the longer people study, the longer they delay obsolescence (vii)

Updating Activities

Glennon (1999) discussed nine updating activities in his research work. These are: On-the-job problem solving; Courses outside of your organization; Informal conversation with peers; Independent reading; Inhouse courses; Guidance from supervisors; Supervising juniors; Shortduration seminars; and Library-assisted reading. Highlighting the importance of these activities, Glennon (1999) also ranked these activities from most to least important and found that while “On-the-job problem solving” activity is most important, and “Library-assisted reading” is found to be least important. This finding is also consistent with that of Pazy (1996). It is important to note that informal methods are found to be high ranking when ranked against the more formal methods. (Glennon, 1999). Management & Change, Volume 18, Number 2 (2014)

10 Managerial Obsolescence: You cannot avert but you can cure

Personality Factors and Achievement Needs in Relation to Obsolescence There has been little research done to study the relationship between personality factors and obsolescence. Yet, Gaudet and Carli (1957) report that personality factors have been identified as the major cause of failure among managers. Two aspects of personality have been found to be important determinants of managerial obsolescence: (1) the individualâ&#x20AC;&#x2122;s self-concept (Kaufman,1974), and (2) responding to uncertainty (Shearer and Steger, 1975). Another personality variable tested by Aryee (1991) was locus of control. When managers learn that they can effectively master the challenges of their environment, feelings of competence, selfesteem, and confidence emerge as integral parts of their self-concepts (Hall,1971). The converse is also true in that, those who fail to master their environment, experience feelings of low competence, low self-esteem and low self-confidence. Motivation has long been cited as an important determinant of obsolescence (Burack and Pati, 1970; Dubin, 1972; Farris, 1973; Kaufman, 1974, 1989, 1994; Bracker and Pearson, 1986; Steiner and Farr, 1986; Dubin, 1990). In Dubinâ&#x20AC;&#x2122;s (1990) model of updating, individual motivation together with the work environment define and govern updating behaviour. A further factor which has been found to influence managerial susceptibility to obsolescence is intelligence. In fact, Kaufman (1974) goes so far as to state inadequate cognitive ability is the most important personal characteristic that predisposes a professional to obsolescence. His research indicates that the higher a managerâ&#x20AC;&#x2122;s intellectual ability at the outset of his/her career, the more likely s/he is to keep up-to-date. Those with low intellectual ability tend to go into jobs which do not demand a high level of cognitive skills. This often leads to lack of use, resulting in a negative perception of their own learning ability. This, of course, tends to frighten professionals from attending courses or seminars for instance, and so they rapidly go out-of-date and become obsolescent. (i) Achievement Motivation Achievement motivation is another factor which appears to influence Management & Change, Volume 18, Number 2 (2014)

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susceptibility to managerial obsolescence (Rothman and Perrucci, 1971; Hall, 1971; Dubin, 1972; Kaufman, 1974; Levene, 1976; and Reeser, 1977). According to Levene (1976) those managers with high achievement needs will tend to move into dynamic growth orientated organizations and will constantly seek new challenges and goals. Those with low achievement needs will tend to gravitate towards more structured organizations such as government bodies or large multinational companies. Job Characteristics and Obsolescence Raudsepp (1964) explains using the term “felt obsolescence” and indicates that although managers’ knowledge and skills might be going out-of-date, they will be influenced by the type of jobs they have. If they have a challenging job requiring the use of existing knowledge and skills, together with the development of new knowledge and skills, they will remain up-to-date longer than those who work in more routine jobs or those who move into administration. The brief note ‘Preventing Skill Obsolescence”, published by European Centre for Development of Vocational Training (2012), hints towards an Optimal skill level for each job which can prevent skill obsolescence. Both lower skill level and higher skill level may lead to obsolescence. Jones and Cooper (1980) found that the nature of the managerial role suggests that at least some of the variation in the process of becoming obsolete might have its genesis in the alternative career paths chosen by individuals. For example, if an individual enters an administrative position it is likely to render him more vulnerable to obsolescence, as he will have less time for updating technical knowledge than if he entered a teaching or research career. This was also the finding of Rothman and Perucci (1971) who reported that the highest levels of obsolescence were experienced by those in administrative positions, while the lowest were experienced by those in research and development positions. They conclude that obsolescence tends to decrease as the extent of involvement in professional activities increases. (i) Technological Change A major factor affecting managers’ ability to keep abreast with new developments is the rapid technological changes occurring in industry at Management & Change, Volume 18, Number 2 (2014)

12 Managerial Obsolescence: You cannot avert but you can cure

all levels. Fox (1965) in his article on â&#x20AC;&#x2DC;Personal Obsolescenceâ&#x20AC;&#x2122;, identified automation and cybernetics as two factors most instrumental in causing technological change. These factors have become even more evident in recent times with the move towards capital-intensive industries, resulting in higher rates of unemployment and redundancies at both management and other levels (Hartley, 1978 and Jones, 1979). Crossman (1960) is of the view that the extent of obsolescence is affected not only by the rate of technical change, but also by the relative state of technological refinement or degree of automation. This is evidenced in Marn and Heffernanâ&#x20AC;&#x2122;s (1960) study of power plants where it was found that: ...97% of the employees reported that their jobs required more training now than earlier, jobs were perceived by the men to be ones with increased responsibility requiring greater degrees and amounts of training than did their older jobs. (ii) Level of hierarchy According to Jones and Cooper (1980), the hierarchical level of managers was significantly related to only one aspect of obsolescence. The results of their study indicated that the more senior the managers, the more up-to-date they rated themselves. The reason for this may lie in the fact that the more senior the managers, the more challenging they found their jobs. The more senior they were, the more important their decisions were in relation to both their functions and their companies. They further explained that in addition to the above reasons, senior managers were also older, more likely to be qualified in finance, have the most management experience, and to have worked outside the country and at a management level. All these factors when taken together seem to be quite important, whereas individually they may not be so. Dalton, Thompson and Price (1977) indicate that as a manager gets older he tends to be more willing to take risks and is less concerned with security, particularly as he gets closer to retirement. The finding that older senior managers were less obsolete than younger junior/middle ones has important implications for the future of their companies. If young junior/

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middle managers feel that they are obsolete then the consequences of this for their own careers as well as for their organizations are serious. This is especially so, since they are the ones who are in direct contact with technological changes. Whether in fact they are the most obsolete is difficult to say, but if they are, then there is a great need to tackle obsolescence at this level. The answer may lie in the fact that junior and middle managers may be under-utilized in terms of their ability. This has been found to be an important factor demotivating managers to keep up-to-date (Hirch, 1958; Kornhauser, 1962; Raudsepp, 1964; and Ritti 1971b ). This is because under-utilization leads to loss of job satisfaction, frustration and lack of motivation to update, which reinforces the argument that senior managers should be aware of the importance of assigning challenging jobs to their subordinates (Kaufman, 1974). (iii) Challenge of job Challenge of job was also found to be significantly related to most aspects of obsolescence. The related variable of, ‘the extent to which managers’ jobs utilised their professional skills and abilities’, was likewise significantly related to obsolescence (Jones and Cooper, 1980). These results are consistent with the findings of Raudsepp (1964), Ritti (1971b) and Kaufman (1974), all of whom indicate that job challenge is a major factor in keeping managers up-to-date. The misutilization or underutilization of managers was found to result in frustration and dissatisfaction (Kaufman, 1974). Influence of Boss and Colleagues on Obsolescence Behaviour (i) Relationships at Work According to a study of almost 800 people who had experienced incivility at work, conducted by the University of N. Carolina at Chapel Hill’s Kenan-Flagler Business School, Pearson (2000) found that rude behaviour can affect employee productivity in a number of ways. “There is less dedication and people stop going that extra mile.” Worse still, “employees tend to take out their frustration on the organization, not the instigator”. Dubin (1972), found that one of the chief situational determinants for motivating managers to update themselves is the behaviour

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14 Managerial Obsolescence: You cannot avert but you can cure

of their supervisors. Supervisors were not found to be assisting their subordinates’ growth and development in a study of engineers carried out by Dubin and Marlow (1965) and of managers by Dubin et al., (1967). Locke (1970) concludes that the supervisor aids in the motivational process by helping the subordinate to specify his goals within the context of his job and ensuring that the facilities exist for the subordinate to update his skills and to realize his goals. This takes the supervisor out of his traditional ‘regulator role’ and into that of developer and facilitator of subordinates’ motivational potential. Organizational Structure and Climate, and Professional Obsolescence Organizational climate can be defined as ‘organizational and management practices that influence motivation, condition attitudes, and shape behaviour on the part of its members’ (House and Rizzo, 1971). In reference to this, Dubin (1972) notes that some professionals are made obsolete by the organization in which they work. They are kept obsolete by unstimulating work and by the limited demands and rigid controls that prevent them from enlarging the scope of their work. Hesseling (1971) states that ‘….organizations must create a challenging environment for inquisitive and speculative members who feel themselves deeply rooted in the organizational reality’. A suitable organizational climate is essential if it is to provide the kind of work environment conducive to keeping managers up-to-date and preventing the onrush of obsolescence. If employees are to expend the necessary energy to remain competent, the organization must be committed to professional development. Continuing professional development must be an integral part of the organizational culture at every level of the hierarchy (Sterns and Dorsett, 1994). (i) Misutilization and Underutilization Two major causes of managerial job dissatisfaction are what Kaufman (1974) calls ‘misutilization’ and ‘underutilization’. Misutilization is greatest when managers experience light intellectual demands in their jobs together with heavy time pressures. It results from managers working under time Management & Change, Volume 18, Number 2 (2014)

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pressure at assignments so routine that could and should be done by clerical personnel. This is confirmed by Ritti (1971a) when he states that the two most important causes of obsolescence among professionals are: 1.

Work assignments that do not require knowledge of the latest developments; and

The pressure of work that leaves no time or energy for study.

Jones and Cooper (1980) revealed in their research that three out of four engineers who reported considerable mis-utilization in their work have a problem keeping up-to-date with new developments. On the other hand, over half of those who feel that mis-utilization is not a problem report having no trouble keeping up-to-date. Under-utilization is similar to mis-utilization in that it involves only light intellectual demands on the job, but the under-utilised individual has light rather than heavy time demands. (ii) Company policy on updating Kozlowski and Hults (1987) found in their research that a climate that is supportive of activities relating to updating is more likely to discourage professional obsolescence. Kozlowski and Hults (1987) hypothesised that the facilitation of performance and updating activities to prevent obsolescence is thought to require the development of a congruent organizational climate. Furthermore, they concluded that organizations must develop strategies that will foster continual knowledge and skill updating among their incumbent technical professionals. Research conducted by Jones and Cooper (1980) found a high correlation between obsolescence rating and presence or absence of a policy for updating staff, but it was not statistically significant. Many writers indicate that managers must be given stimulating jobs if they are to be encouraged to update (Kaufman, 1974; Van Atta et al., 1970; and Hall, 1971). An organization should have a written policy that requires updating for its employees. Many organizations have educational assistance funds that reimburse employees who complete continuing education courses, but few organizations make continuous updating mandatory. In a research Management & Change, Volume 18, Number 2 (2014)

16 Managerial Obsolescence: You cannot avert but you can cure

study conducted by Dubin et al., (1967) on engineers, it was found that 79% engineers reported that their companies had educational assistance programs, but three-fourths reported that this availability had no effect in motivating them to undertake additional work. Evidence derived from these studies also indicated that taking additional course work was not sufficiently rewarded in industry and was not a requirement for promotion or salary increase. The availability of financial assistance for selfimprovement is obviously not a sufficient incentive for updating in employees. (iii) Rewards for high management performance Specific interest has been shown in the role of organizational reward policies and organizational reward climate in encouraging employee participation in professional development (Kaufman, 1974; Steiner and Farr, 1986). Kaufman (1974) also opinioned, that if a professional sees that his efforts in self-development are not rewarded by the organization, the greater the likelihood that he will become obsolete. Jones and Coopers (1980) revealed in their research study that rewards for high management performance were found to be significantly related to managerial obsolescence. Classification of Obsolescence One way to classify obsolescence is given by Grip (2006). He proposes two broad categories â&#x20AC;&#x201C; Technical Human Capital Obsolescence, which includes obsolesce due to weakening of abilities due to aging. The second category, of Economic Human Capital Obsolescence, is more manageable, and is due to technological and economic changes in the industry. Measurement of Obsolescence Individual Level â&#x20AC;&#x201C; Professional Obsolescence scale has been developed by one of the present authors (Chauhan, 2003) and has been used by other researchers in India. Organizational Level - Grip (2006) suggests few indicators to gauge the industries more prone to skill obsolescence. The indicators include: 1. Management & Change, Volume 18, Number 2 (2014)

S P Chauhan, Daisy Chauhan 17

Number of patents filed by the companies in a particular industry, 2. Average investment in new machinery by companies in a particular industry, 3. Average Investment in Training by companies, and, 4. Number of employees laid off by particular industry. CONSEQUENCES OF OBSOLESCENCE According to Jones and Cooper (1980) there are a number of possible outcomes, all of which are not very optimistic for the individual, nor indeed for the organizations (Figure 1). Some may become so incapable that they are demoted, retired or made redundant. Others may even cause so many problems that whole departments or indeed companies may have to close as a result of incompetence. The recent trend of organizations going in for Voluntary Retirement Scheme could be one way of tackling the problem of excess manpower and those who fall in this category are likely to have been identified as ineffective or obsolete.

Figure 1: Degree of Influence Implications of Managerial Obsolescence Source: Jones and Cooper (1980)

The problem of obsolescence has far-reaching consequences, for not only can it affect the individual, but also his department and organization. This in turn will, of course, affect the economy of a country. Consequences of Obsolescence â&#x20AC;&#x201C; Rishipal and Jain (2013) have empirically proven that in addition to obsolescence being detrimental to employment prospects of the employee, it is also highly co-related with Counter Productive Behaviour among employees. They studied government organizations in India and used the Professional Obsolescence Scale Management & Change, Volume 18, Number 2 (2014)

18 Managerial Obsolescence: You cannot avert but you can cure

developed by one of the present authors. Waitley (2004) in his book Empires of the Mind said that ‘……the only empire that will survive in the twenty-first century will be the empire you build within your own mind.’ Waitley communicating the unavoidability to get adapted in this changing and challenging environment also said that ‘unless many giant companies adapt, they will become the dinosaurs of the twenty-first century, and millions of ‘worker dinosaurs’ – individuals who will become obsolete because they lack the knowledge and skills to compete in the new knowledge era – will share that fate.’ HOW TO TACKLE THE HUMAN OBSOLESCENCE Since the main consensus of the literature revealed that combating of obsolescence was a shared responsibility between the organization and its employees, the problem of obsolescence can be tackled by a twopronged approach: (1) Initiatives taken at the individual level for self development and updating; and (2) Interventions like training and continuing education to be taken at the organizational level. Initiatives at the Individual Level At the individual level professionals can work towards updating themselves to maintain their effectiveness in their present jobs and also prepare themselves for taking up more responsible and challenging jobs in the future. The individual’s responsibility for updating has been clearly brought out by Drucker who recommends that managers take specific command of their career advancement opportunities with lifetime education and acceptance of complex project assignments (Pressly, 1999). A prepost study on effects of training on perceived obsolescence by Mohan and Chauhan (1999) has shown that training helped in reducing the perception of obsolescence particularly on the dimensions like (1) Selfinitiated updating activities; (2) Attitude towards learning; (3) Professional knowledge/skills; and (4) Motivation to update. Initiatives at the individual level can be taken with regard to the following three areas: •

Develop a work ethic : By putting the onus for continuous professional growth on oneself;

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•

Set high development goals: Each year set high but attainable goals and stretch oneself to achieve those goals; and

•

Make professional development your first loyalty: Keep enhancing one’s skills in ways that will help ensure employability in and outside of the organization.

The importance of self-initiation for self-development has been aptly put forth by Hull (1964) in his observation that “A man who wants to develop himself does – a man who wants to be developed rarely is”. To stay ahead of the opportunity curve, Kotter (1997) in his book, The New Rules: Eight Business Breakthroughs to Career Success in the 21st Century, advised that it is essential to aggressively seek learning opportunities at work, not just to maintain job satisfaction but also to ensure your employability in a turbulent economic environment. He further emphasizes that success at work demands new approaches, skills, techniques, and more. A turbulent environment offers opportunities for growth for those willing to take risk and reflect honestly on their experience. Mohan and Chauhan (1999) found in their study that without continuous training and updating skill and knowledge, the possibility of obsolescence increases. Speaking on obsolescence and the need for learning K.V Kamath, (2013) Chairman, ICICI Bank said “I grow obsolete at the end of every year and so I take ten days to rejuvenate myself. I have decided that next year I will commit a full month to learning.” Interventions at the Organizational Level At the organizational level steps may be taken to provide a work environment which promotes innovativeness, creativeness and risk-taking on the part of individuals in dealing with on-the-job problems so that this proactive approach contributes to the overall effectiveness of the professionals and the organization. Superior organizations are taking a number of steps to ensure that their workforces are equipped to stay ahead (Mohan and Chauhan, 1999). Fossum et al., (1986) and Aryee (1991) are of the view that organizational policy can positively influence updating if technical competencies are rewarded. Brownell (2000) explained that the importance of training has been Management & Change, Volume 18, Number 2 (2014)

20 Managerial Obsolescence: You cannot avert but you can cure

brought out by business researchers in a recent Nation’s Business article which found that at present American business spends about 1 per cent of its payroll on employee training. To compete successfully in the 21st century, however, will require businesses to expend closer to 3 per cent of their payroll on training. Which method to mitigate obsolescence should be used in which setting? Guettel et al., (2009) gives a case study based account of which HR strategy is most apt for which type of dynamic setting of the firm, to prevent obsolescence. They suggest in highly dynamic settings (Exploration orientation) like in R&D organizations, on the job learning is most apt. In reutilized companies (Exploitation orientation), off-the-job training and further formal education is more appropriate. In organizations which have both the orientations to some extent (i.e. ambidextrous organizations), team based working structures and job design are suitable. They even suggest choosing a different market position, based on the organizations present competencies. Organizations should make concerted efforts towards training in the following ways: •

Make training function a “mainstream activity” of the organization and align the HRD strategy with the overall organizational strategy.

•

Identify the training needs of the managers at different levels.

•

Commitment and support of top management is a prerequisite for training to have the desired effect.

•

In addition to top management commitment, the middle level also needs to be convinced of the importance of training for their subordinates so that their training can be put to maximum and best use.

•

Provide the appropriate conditions for the training to be transferred into the work situation. Pre and Post Training assessment need to be carried on the managers trained.

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•

Make training “impact-based” rather than “activity-based”. Training should be assessed for its impact and not merely as a necessary activity.

•

Promotion should be given on the basis of improved performance rather than on the number of training programs attended by managers.

•

Encourage risk taking and decision-making at all levels to provide on-the-job training and problem-solving opportunities.

•

Encourage managers to pursue learning by sponsoring them for education/training programs.

CONCLUSION AND SOME SUGGESTIONS FOR FUTURE WORK On the job training, job rotation, job enlargement and job enrichment can be some of the measures to ensure enhancement of competencies of managers and thereby addressing the issue of obsolescence. The problem of obsolescence can be tackled by the managers taking upon themselves the onus of continuously looking for opportunities to update themselves through self development and skill improvement. Organizations also need to look at their entire training and education systems to provide opportunities for their employees to continuously improve their skills throughout their life so that their enhanced competencies can contribute towards organizational goals. Some industries are inherently prone to obsolescence. Employees in these industries have to update their skills more frequently. Although training is the most obvious solution to obsolescence, its effect can be optimized if the dynamics of the organizations are also considered while choosing different forms of training. Employees doing low skilled jobs are more prone to obsolescence than employees doing high skilled jobs, additionally, there is an optimal skill level of each job which prevents obsolescence. Organizations need to carry out a study of the extent of obsolescence among their employees by using psychometric tests and assessment of employees by their superiors. The performance appraisal can have this as one of the parameters for assessing the competence of employees and Management & Change, Volume 18, Number 2 (2014)

22 Managerial Obsolescence: You cannot avert but you can cure

their readiness for promotion to the next level. Also, at very senior levels training could be mandatory for promotion to the next level. REFERENCES: Aryee, S. (1991). Combating obsolescence: Predictors of technical updating among engineers. Journal of Engineering and Technology Management, 8, pp. 103-119. Bloch, E. (1984). Countering obsolescence in the workplace. Research Management, 27,6. Blood, M. R., & Hulin, C. L. (1967). Alienation, environmental characteristics, and worker responses. Journal of Applied Psychology. 51, 284-290. Bracker, J.S., & Pearson, J.N. (1986). Worker obsolescence: The human resource dilemma of the ‘80s. Personnel Administrator. 31(12), 109-116. Brownell, E.O. (2000). 12 Good reasons for revamping your employee training, Employee Benefit News, March 2000. 14(3). Burack, E.H. & Pati, G.C. (1970). Every company’s problem – managerial obsolescence, Personnel, 2. Chauhan, S.P. (2003). Construction of the Professional Obsolescence Scale using Job Involvement and Burnout as Validation Tools, Ph.D. Thesis, Panjab University, Chandigarh. Chauhan, S.P. and Chauhan, Daisy, (2008). Human Obsolescence: A Wake-up Call to Avert a Crisis. Global Business Review. 9:1: pp. 85-100. Covey, R. Stephen (2004). The 8th Habit, From Effectiveness to Greateness. New York, NY 10020: Frankelin Conrny Co. pp. 295 Crossman, E.R.F.W. (1960). Automation and Skill Problems of Progress in Industry, HMSO, London, pp. 4-5, 35, 38, 42-43.

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Dalton, G.W. & Thompson, P.H. (1971). Accelerating obsolescence of older engineers, Harvard Business Review. 49(5), pp. 57-67. Dalton, G.W., Thompson, P.H. & Price, A.L. (1977). The Four Stages of Professional Careers â&#x20AC;&#x201C; A New Look at Performance by Professionals. Organization Dynamics, AMACON, New York. pp. 19-42. Drucker, Peter F. (1968). The age of discontinuity, Harper and Row, New York. Drucker, P. (1998). The Next Information Revolution, In SU Management Magazine â&#x20AC;&#x201C; Winter, 1999. Dubin, S.S. & Marlow, H. Le Roy. (1965). A survey of continuing professional education for engineers in Pennsylvania. Department of Planning Studies, Continuing Education, The Pennsylvania State University. Dubin, S. S., Alderman, E. & Marlow, H.Le Roy (1967). Managerial and Supervisory Education Needs of Business and Industry in Pennsylvania, Department of Planning Studies, Continuing Education, The Pennsylvania State University. Dubin, S. S. (1972). Professional Obsolescence, English University Press, New York. Dubin, S. S. (1990). Maintaining competence through updating. In Willis, S.L. and Dubin, S. S. (eds.) Maintaining professional competence. San Francisco: Jossey-Bass. Engineering Manpower Commission (1986). Towards a more effective utilization of the American Engineer. American Association of Engineering Societies. European Centre for the Development of Vocational Training (2012), Preventing Skill Obsolescence, Briefing Note Farris, G. F. (1973). Motivating R and D performance in a stable organization, Research Management. 16(5), pp. 22-27. Management & Change, Volume 18, Number 2 (2014)

24 Managerial Obsolescence: You cannot avert but you can cure

Ferdinand, N. (1966). On the obsolescence of scientists and engineers, American Scientists. 54. Fischer, G. (1996). Presentation at the NSF Symposium “learning and Intelligent”. Center for Lifelong Learning and Design, Dept. of Computer Science and Institute of Cognitive Science University of Colorado, Boulder. Fossum, J.A., Arvey, R.D., Paradise, C.A., and Robbins, N.E. (1986). Modeling the skills obsolescence process; A psychological/economic integration. Academy of Management Review. 11, 362-374. Freiberg, K. & Freiberg, J. (2000). Best Practices. Business Credit, March. 102(3), pp. 52, 2p, 1c. Garfein, A.J., Schaie, K.W., & Willis, S.L. (1988). Microcomputer proficiency in later-middle-aged and older adults: Teaching old dogs new tricks. Social Behaviour, 3, 131-148. Gaudet, F. J. & Carli, A. R. (1957). Why executives fail, Personnel Psychology. 10(1), pp. 7-21. Glennon, R. (1999). Occupational Obsolescence in the Engineering Industry: Participating in Professional Development and the Personal Understanding of Being Up-to-date., Ph.D. thesis, The Queen’s University of Belfast, June. Goggin, N.L. (1999). Job Performance and Work Experience. University of North Texas, College of Education, Department of Kinesiology, Health Promotion and Recreation, Lecture 13. Grip, Andries de (2006), Evaluating Human Capital Obsolescence, Presented at Seminar on Human Capital and Labour Market Performance, Brussels (ROA - W – 2006/2E). Guettel, Wolfgang H., Konlechner, Stefan, Kohlbacher, Florian , & Haltmeyer, Beate (2009) Strategies Against Competency Obsolescence : The Case of R &D–Intensive Organizations, Int. J. Human Resources Development and Management. 9(2/3). Management & Change, Volume 18, Number 2 (2014)

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Hall, D. T. (1971). Potential for career growth, Personnel Administration. 34(3), pp. 18 30. Hammer, M. & Champy, J. (1993). Reengineering the Corporation, New York: Harper Collons. Handfield-Jones, H. (2000). How Executive Grow. McKinsey Quarterly; March 01, Issue 1, p.117, Section: Organization. Hanson, M. C. (1977). Career development responsibilities of managers, Personnel Journal. 56(9), pp. 443-445. Harel, G. H. & Cohen, L. K. (1982). Expectancy theory applied to the process of professional obsolescence. Public Personnel Management Journal. 11, 13-21. Hartley, J. F. (1978). An Investigation of Psychological Aspect of Managerial unemployment, Doctoral dissertation, UMIST. Hass, F. C. (1968). Executive Obsolescence, AMA Research Study 90, New York. Hesseling, P. (1971). Factors in the organization climate which stimulate innovation in professional knowledge and skills, in Dubin, S.S. (ed.), Professional Obsolescence, English university press, New York, pp. 107-118. Hirch, I. et al., (1958). Increasing the productivity of scientists, Harvard Business Review. 36(2), pp. 66-76. House, R. J. & Rizzo, J. R. (1971). American Psychological Association, Experimental Publication System, 12MS, pp. 481, June, Washington DC. Hull, J. W. (1964). Management’s Responsibilities for Tomorrow’s Managers, in Simon Ramo, Mason W. Gross, J.W. Hull, and lawrence A. Appley. Meeting Today’s Responsibilities for Tomorrow’s Managers (Los Angeles: California Institute of Technology).

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26 Managerial Obsolescence: You cannot avert but you can cure

Jones, A. N. (1977). Redundant Executives. An identification of their training needs and subsequent development of relevant training programs, The Industrial Training Authority, Dublin (unpublished). Jones, A. N. (1979). Managerial Obsolescence and Its Associated Factors, Doctoral Dissertation, UMIST. Jones, N. A. & Cooper, L. C. (1980). Combating Managerial Obsolescence, Philip Allan Publishers Limited, Oxford OX5 4SE. Kaeter, M. (1995). Are older workers getting a bad rap: Age-old myths. Training, 32, 61-66. Kamath, K. V. (2013). Economic Times, Corporate Dossier, December 20, 2013 to 2 January, 2014. Kaufman, H. G. (1974). Obsolescence and Professional Career Development, American Management Association, New York. Kaufman, H. G. (1978). Continuing education and job performance: A longitudinal study. Journal of Applied Psychology. 63(2), 248251. Kornhauser, W. (1962). Scientists in Industry: Conflict and Accommodation, University of California Press, pp. 139. Kotter, J. P. (1997). The New Rules: Eight Business Breakthroughs to Career Success in the 21st Century. Reprinted Edition, Pub. Free Press. Kozlowski, S. W. J. & Farr, J. L. (1988). An integrative model of updating and performance. Human Performance. 1(1), 5-29. Kozlowski, S. W. J. & Hults, B. M. (1987). An exploration of climates for technical updating and performance. Personnel Psychology. 40, 539-563. Lawrence, B. S. (1998). New wrinkles in the theory of age: Demography, norms and performance ratings. Academcy of Management Journal. 31, 309-337. Management & Change, Volume 18, Number 2 (2014)

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Levene, M. (1976). The Second Time Around, Davis Poynter, London. Locke, E. A. (1970). The supervisor as a motivator: his influence on goal setting, in Bass, B.M., Cooper, R. and Hass, J.A. (eds), Managaing for Accomplishment, health, pp. 57-67. Mahler, Walter R. (1965). Every companyâ&#x20AC;&#x2122;s problem â&#x20AC;&#x201C; managerial obsolescence. Personnel, July-Aug., pp. 8-10. Maiman, J. (1998). Trends in Human Resources. The CPA Journal, Issue Oct. Mant, A. (1969). The Experienced Manager, BIM, London. Marn, F. C. & Hefferna, L .R. (1960). Automation and the Worker, Henry Holt. Mohan, V. & Chauhan, S.P. (1999). A Pre-post test design to study the effect of training on perceived obsolescence. Presented at Seminar on Research Methods in Management, UBS, Panjab University, Chandigarh, 10-11 Dec., 1999. Nocera. J. (1996). Living with layoff. Fortune. 6, 73, April 6. Pazy, A. (1994). Cognitive schemata of professional obsolescence. Human Relations. 47(10), 1167-1199. Pazy, A. (1996). Concept and career-stage differentiation in obsolescence research. Journal of Organizational Behaviour. 17, 59-78. Perrucci, R. & Rothman, R. A. (1969). Obsolescence of knowledge and the professional career, in perrucci, R. and Gerstl, J. (eds.), The Engineers and the Social system, John Wiley. Pressly, Thomas (1999). Peter Drucker on the Profession of Management, Ohio CPA Journal. 58(2), pp. 33. Rao, T. V. (1990). The HRD Missionary, OxFord and IBH Publishing Co. Pvt. Ltd., New Delhi.

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28 Managerial Obsolescence: You cannot avert but you can cure

Raudsepp, E. (1964b). Engineers talk about obsolescence, Machine Design, Vol. 36(15), pp. 148-151. Ream, R. (2000). Changing Jobs? Itâ&#x20AC;&#x2122;s a Changing Market, Information Today; Feb. 17(2), pp.18, 3p. Reeser, C. (1977). Managerial Obsolescence â&#x20AC;&#x201C; an organization dilemma. Personnel Journal. 56(1), pp. 27-31, 43. Rishipal & Jain, Nidhi (2013). Employee Obsolescence and Counterproductive Work Behaviour among Employees of Government Organizations and Departments, European Journal of Business and Management. 5(27). Ritti, R. R. (1971a). Dual Management. Does it work?, Research Management. 14(6), pp. 19-26. Ritti, R. R. (1971b). Job enrichment and skill utilization in engineering organizations, in Maher, J.R. (ed.), New perspectives in Job Enrichment, Van Nostrand Reinhold, pp. 131-156. Rosen, B. & Jerdee, T. H. (1976). The nature of job-related age stereotyped. Journal of Applied Psychology. 61, 180-183. Rothman, R.. A. & Perrucci, R. (1971). Vulnerability to knowledge obsolescence among professionals. The Sociological Quarterly. 12(2). Ryan, E. B., Szechtman, B., & Bodkin, J. (1992). Attitudes toward younger and older adults learning to use computers. Journal of Gerontology: Psychological Sciences. 47, pp96-101. Shearer, R. L. & Steger, J. A. (1975). Manpower obsolescence: A new definition and empirical investigation of personal variables. Academy of Management Journal. 18(2), 263-275. Steiner, D. D. & Farr, J. L. (1986). Career goals, organizational reward systems and technical updating in engineers. Journal of Occupational Psychology. 59, 13-24. Management & Change, Volume 18, Number 2 (2014)

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Sterns, H. L. & Dorsett, J. G. (1994). Career development: A life span issue. Experimental Aging Research. 20, 257-264. Van Atta, C. M., Decker, W. D. & Wilson, T. (1970). Professional Personnel Policies and practices of R and D Organizations, University of California Laqwrence Livemore laboratories, Report 00735, pp. 1-71. Vittal, N. (1999). Strategies for Meeting the HRD Challenges in the 21st Century in the “HRD in the New Millennium” ed. By Udai Pareek and V. Sisodia, Tata McGraw-Hill Publishing Company Limited, New Delhi, pp. 37- 43. Waitley, Denis (2004). Empires of the Mind; Lessons to Lead and Success in a Knowledge-Based World, New Delhi: Nicholas Brealey Pub. Wheeler, B. C. (1998). The State of Business Education: Preparation for the Past? Selections, 14(2), 19-21. Willis, S. L. & Tosti-Valley (1990). How adult development, intelligence, and motivation affect competence. In Willis, S. and Dubin, S.S. (1990). Maintaining professional competence: Approaches to career enhancement, vitality and success throughtout a working life. San Francisco: Jossey-Bass. Wool. H. (1973). What’s wrong with work in America? A review and essay, Monthly Labour Review. 96(3), pp. 38-44.

Management & Change, Volume 18, Number 2 (2014)

MODELING THE STUDENTS LEARNING BY CASE METHOD: INDIAN PERSPECTIVE

Jaydeep Mukherjee1 There have been significant changes in the academic environment of management students in the past couple of decades, like access to internet, change in the reading habits, but the case methodology remained same. Case learning model given in literature was empirically tested. The empirical evidence supported that student’s learning was correlated positively with class discussion, faculty facilitation, and post class reflection. However the relationship between class discussion and reflection as well as relationship between pre-class preparations on learning were not supported. The findings were further explored with the students and faculty to arrive at case method adaptations. Keywords: Case Method of Learning, Case Teaching in India, Case Based Pedagogy, Student’s Learning by Case Method. The case method of teaching was used in 19th century in Harvard University, USA and has been a popular pedagogy in management education since early 20th century (Corey, 1998). It is being followed in Indian management education since 1960s with the setting up of Indian Institute of Management. In India, the case pedagogy in practice is essentially fashioned on the original tenets of the Harvard Business School model, propagated through various faculty development programs conducted by business schools. There have been very significant changes in the context of the academic environment of the Indian postgraduate management students in the last couple of decades, like access to internet, change in the reading habits, and proliferation of case methodology (Srinivasan, 2005). The existing literature on case based learning also tends to propagate the original 1

Associate Professor – Marketing Area, Management Development Institute, Sukhrali, Mehrauli Road, Gurgaon – 122001 Haryana, India. E-mail: jmukherjee@mdi.ac.in

32 Modeling the students learning by case method: Indian perspective

tenets that serious students would develop their own pattern of thinking, analysis, and judgment or suggest minor modifications based on the faculty experience and perceptions only (Murthy, 2005). The success of pedagogy in imparting learning to students in postgraduate level is likely to depend on the previous experiences of undergraduate pedagogy, environmental realities, and culture. Many faculty members in India have been making their own adjustments to the original model based on their specific student base, experience and skills. Case based learning is experiential learning and co-creation activity as the learning opportunity is designed and controlled by not only the faculty but the students as well (Bonoma, 1989). There is however, no empirical research on the actual impact of these adaptations on the students learning as perceived by the student, which has led to faculty perspectives without any scientific grounding. The students are major stakeholders in the process of learning and its utilization. As such, there is a need to conduct empirical research to find out the way the students are learning by the case method. The findings would have the possibility of providing empirical basis for adapting the case based pedagogy students in India and improving their efficacy. THEORETICAL BACKGROUND & LITERATURE REVIEW A case is a chunk of reality brought to the classroom. It is believed that students with different perspectives spend hours in analysis. In class, the instructor asks questions, moderates, and guides the case discussion. The end of class comes, with many hands waving in the air but without anyone having arrived at “the right answers’. Students continue to debate outside the classroom, and so the learning continues – learning how to think, how to plan, and how to act as managers (Farmer, 2008). In practice, the students challenge the case for various reasons; too little or too much information, poorly written and confusing. In class, the students are silent or passive; because either they had not read it well or they cannot relate to the context. The faculty starts lecturing about the case, berating the students and explaining “the point”. Students leave knowing the “right answer”. There is a gap between the ideal and the real

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Jaydeep Mukherjee 33

and raises many question for the practice of case method of teaching (Dowd, 1992). The method and its variations Business school professors increasingly focus their time and energy on discipline based research, which does not always translate into lessons for business managers. Cases provide practical, relevant context that can be linked to managerial experiences; anchor concepts theoretical frameworks in analogous settings making it a very effective tool to educate managers (Gavin, 2007). The case method has its variants as well. Today, most teachers use the case method based on concepts they wish to illustrate rather than the nature of the situation or industry in which the case is based. Some teachers do not explicitly teach a concept, but instead guide the class discussion so as to bring out the concept. Other teachers give a lecture or hold class discussion on the concept before they use the case. Some give the case as a group project for analysis followed by a presentation or report submission (Krishnan, 2005). The case method is not about ‘what to do’ but ‘how to think about things’. There are instances of badly taught cases where a case was illustrative of problems and instructor was forcing the class to come to a single solution (Bijapurkar, 2005). The case method is not a pure breed. It depends on the faculty, the subject and teaching objectives. In class, it could be used as basis for unscripted role-play performed by the participants (Monippally, 2005). Also, in case of participants with work experience, it would enable richer discussion based on relating one’s own experiences (Raghuram, 2005). Challenges and adaptations There is a general decline in reading as a cultural practice, the growing prestige of technological forms of rationality, the demand for multimedia and / or gaming forms of interactivity and exacerbation of cultural differences in academic life, which impact case based learning methods very profoundly (Srinivasan, 2005). Management & Change, Volume 18, Number 2 (2014)

34 Modeling the students learning by case method: Indian perspective

Management education has a considerable population of working executives who join part time programs. They have inadequate preparation and are less willing to participate in class. Since they are far removed from their college / university days and have not been serious students for years, many find the return to classroom to be a difficult adjustment. Some of these are use of summaries, provision for explicit lessons at the end of the class, and need for greater structure and direction (Gavin, 2007). Single function cases frozen at a given moment of an organizational life can no longer be of interest for the electronically networked, who know more and can learn faster (Joseph, 2005). Hence, the case based method needs to be modified. Case philosophy and the model A case describes a specific situation, centers on a decision or problem important to the field, and deals with issues facts and figures associated with the decision (Farmer, 2008). They are normally structured in a manner that the reader is invited to take the role of a decision maker in the context of the case and makes the decision (Harling and Akridge, 1998). The focus of the educatorâ&#x20AC;&#x2122;s preparation is on how to solicit and control the discussion so as to achieve specific learning objectives. This is done by developing a set of leading questions and introducing the same at the appropriate time in the discussion (Harling and Akridge, 1998). The method has three distinct phases in which the participants learn, pre class preparation, class discussion and post class reflection. It demands a discipline of its own. Preference for ready solutions, unwillingness to stretch, pre-deciding relevance, unwillingness to shake oneâ&#x20AC;&#x2122;s zone of comfort, and looking for guruâ&#x20AC;&#x2122;s wisdom will not result in the desired level of involvement (Corey, 1996; Dixit, 2005). Pre class preparation would require the students to master the case details individually by putting in adequate time to study, look for solutions on the internet, explore concepts in books and discussion with peers (Harling and Akridge, 1998). If the above does not happen, there is serious hampering of the learning (Mitra, 2005). The class participation required involves participation by raising Management & Change, Volume 18, Number 2 (2014)

Jaydeep Mukherjee 35

different questions, bringing out different perspectives, and deriving insights. It is not important to speak but speak meaningfully (Hammond, 2002). The faculty helps in facilitation of the class and guides the discussion by asking appropriate questions, sharing perspective and channelizing the classroom communication effectively (Murthy, 2005, Bonoma, 1989). After the class is over, students should review what happened in the class, reflect on it, discuss with classmates and even the faculty over a period. This is expected to reinforce the learning in terms of concepts, frameworks and generalization (Harling and Akridge, 1998). RESEARCH GAP Literature mentions that ideal model does not get fully and exactly implemented in the real course and classroom situations. The reasons could be classified under three broad heads. First, the case process is not understood and followed and hence there is implementation inefficiency. Second, often there is adaptation of the case method by the faculty, most likely to suit the student as well as personal pedagogical preferences. Hence, the method followed may be different from that prescribed by the case method. Third, contextual reality of the student may be different from the ideal assumed by the case method due to pedagogical conditioning to teacher driven learning, time and workloads not conducive to the preparation and reflection aspect of case method etc. Though the gap between the ideal and the real exists, there has been no literature that studies the actual learning experience of the student as perceived by them. The case method being a co-creation process between the faculty and the students, it is a significant gap, which needs to be explored. FORMULATION OF HYPOTHESES AND LEARNING MODEL Based on the literature review, the following hypotheses were formulated: H1: There is a significant positive relationship of class discussion on the perceived learning of the student by case method. Management & Change, Volume 18, Number 2 (2014)

36 Modeling the students learning by case method: Indian perspective

H1a: There is a significant positive association of class discussion on the post class reflection in the case method. H2: There is a significant positive association of faculty facilitation on the perceived learning of the student by case method. H2a: There is a significant positive relationship of faculty facilitation on the post class reflection in the case method. H3: There is a significant positive relationship of pre class preparation on the perceived learning of the student by case method. H3a: There is a significant positive association of pre class preparation on the post class reflection in the case method. H4: There is a significant positive relationship of post class reflection on the perceived learning of the student by the case method. The conceptualized structural model could be pictorially represented as Figure 1.

Figure 1: The Conceptualized Structural Model

RESEARCH METHOD Sample Design In this study, the population included management students who had adequate exposure to case method of learning. The sample was drawn from a target audience of postgraduate management students of a reputed Management & Change, Volume 18, Number 2 (2014)

Jaydeep Mukherjee 37

business school in India. Only students who had completed three full terms and had reasonable exposure to learning by the case method, were considered. It covered full time residential students and part time students. A copy of the questionnaire was distributed to 200 full time and 200 part time students who met the selection criteria. After removing incomplete questionnaires, only 333 questionnaires were found to be useable for analysis and further study. They consisted of 185 full time residential students and 148 part time students. Out of them 58 students had less than one year of work experience, 65 had between one and three years, twelve had three to five and 52 had more than five years of work experience. Analytical Tool The variables were interrelated and multidirectional relationships were predicted by the theoretical conceptualization. Structural equation modeling was the preferred technique to analyze the same. AMOS4 software was used for the analysis. Sample size Sample size is important when performing Structural Equation Modeling. 15 responses per parameter is considered an appropriate ratio for sample size (Kenny and McCoach, 2003; Hair et al., 2007). Hence, for a questionnaire, which measured 22 parameters, a sample size of 333 respondents was considered adequate. Operationalization of variables The latent variables were measured by using descriptive statements derived on the basis of parameters given in the literature. The responses were collected in Likert scale, with response from Strongly Disagree to Strongly Agree. One question in each construct was kept in reverse order in order to ensure data quality. The final operationalization of all the constructs is given in Exhibit1. The instrument The instrument was pilot tested and the Cronbach alpha figures derived by SPSS20 software were calculated. The items that were reducing the Management & Change, Volume 18, Number 2 (2014)

38 Modeling the students learning by case method: Indian perspective

reliability figures were dropped and the final analysis was done with items for which Cronbach alpha figures were more than the acceptance range of 0.6. The final Cronbach alpha figures of the instrument are given in Table1. Table 1: Cronbachâ&#x20AC;&#x2122;s Alpha Construct class discussion faculty facilitation perceived learning pre class preparation post class reflection

Cronbachâ&#x20AC;&#x2122;s Alpha 0.632 0.663 0.799 0.708 0.62

HYPOTHESIS TESTING AND MODEL FIT Measurement Model Measurement model shows how constructs were operationalized by sets of measured items. Confirmatory Factor Analysis (CFA) allows the researcher to specify the actual relationship between the items and factors as well as linkages between them (Salisbury et al., 2001). For this research, a four-factor model distinguishing class discussion, faculty facilitation, pre class preparation and post class reflection was used. Validity Construct validity is there if a set of measured items actually represent the theoretical latent construct those items were designed to measure (Hair et al., 2007). The results (Table 2) confirm the overall fit of a measurement model when employed to confirmatory factor analysis. Table 2: Model Fit Indices for Measurement Model Statistic df GFI AGFI RMSEA Parsimony Ratio

Recommended value < 3.00 > 0.90 > 0.80 < 0.06 > 0.80

Obtained value 1.77 0.91 0.89 0.05 0.86

According to (Hair, 2007) one incremental fit index (CFI), one goodness of fit index (GFI), one absolute fit index (AGFI, CFI) and one Management & Change, Volume 18, Number 2 (2014)

Jaydeep Mukherjee 39

badness of fit index (RMSEA), with chi-square statistic should be used to assess a modelâ&#x20AC;&#x2122;s goodness of fit. Results of this study show all the different types of indices in the acceptable range. Hypothesis testing The standardized path coefficients of the four constructs under investigation were measured. All the path coefficients were significant at the level of 0.05 with the direction of influence as hypothesized. The regression weights were analyzed for testing the hypotheses. The results indicated that the empirical data supported all the hypotheses except H3 and H1a. Thus, we could conclude that the empirical evidence supported that the perceived learning was correlated positively with class discussion, faculty facilitation, and post class reflection. Similarly, post class reflection was positively connected to faculty facilitation and pre class preparation. The detailed results are in Table3. Table 3: Estimated Standardized Path Coefficients Hypothesis number H1 H1a H2 H2a H3 H3a H4

Hypothesized relationship Class discussion --> learning Class discussion --> reflection Faculty facilitation --> learning Faculty facilitation --> reflection Pre class preparations --> learning Pre class preparations --> reflection reflection --> learning

Estimate 0.23

S.E. C.R. 0.08 2.83

P 0.00

0.13

0.07 1.88

0.06

Result at 5% level of significance Supported Not Supported

0.39

0.1

4.05

0.00

Supported

0.31

0.08 3.89

0.00

0.01

0.1

0.09

0.93

Supported Not Supported

0.38 0.43

0.08 4.57 0.17 2.54

0.00 0.01

Supported Supported

Model Fit After assessing the eligibility of scale for measuring different variables in the study, the next step was to test the hypothesized relationships in a structural model. The recommended value of (discrepancy / df) should be less than three (Carmines and McIver, 1981). Hair et al., (2007) argue that chi-square value is sensitive to sample size and number of variables,

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40 Modeling the students learning by case method: Indian perspective

therefore discrepancy / df value was not taken as a sole indicator of model fit. The recommendation of GFI should be greater than 0.9 (Hooper, Coughlan and Mullen, 2008; Hair et al, 2007), AGFI should be greater than 0.80 (Muenjohn and Armstrong, 2008) and CFI should be greater than 0.8 (Watchravesringkan, Yan and Yurchisin, 2008) were used. The fit measures for the hypothesized structural model are given in Table 4. They indicated a good fit of the empirical data with the hypothesized structural model. Table 4: Model Fit Indices for Structural Model Statistic df GFI AGFI RMSEA Parsimony ratio Parsimony adjusted CFI

Recommended value < 3.00 > 0.90 > 0.80 < 0.10 > 0.80 > 0.80

Obtained value 1.766 0.912 0.887 0.048 0.861 0.788

Since the empirical tests had not supported two of the hypothesis out of the seven originally proposed by the structural model, there was need to consider a revised structural model, which incorporated the above results. Hence, the original structural model was modified to remove the relationship of pre class preparation with learning, and class discussion on reflection, to arrive at the revised structural model (Figure 2).

Figure 2: The Revised Structural Model

The model fit measures for the revised structural model are given in Table 5. Management & Change, Volume 18, Number 2 (2014)

Jaydeep Mukherjee 41

Table 5: Model fit indices for revised structural model Statistic Chi-square Df df GFI AGFI RMSEA Parsimony ratio Parsimony adjusted CFI

Revised structural model 354.89 201 1.766 0.910 0.887 0.048 0.870 0.795

Relative Performance of the Models For both the models, results show all the different types of fit indices were in the acceptable range. In sum, various model fit indices indicated that both the hypothesized model and the revised model fitted well with the present data set. However, the results confirmed the Parsimony ratio improved to 0.870 from 0.861 and Parsimony adjusted CFI improved to 0.795 from 0.788 for the revised structural model. Since the revised model was more parsimonious and had equivalent figures for the other fit indices, the same was accepted. DISCUSSION The pre class preparation did not seem to directly associate with the perceived learning of the students. It could be because the pre class preparation was not effective or students were tuned to consider their learning process to start from the class only. Class discussion seemed to have no direct relationship with the post class reflection. This could be because there were no unresolved questions left at the end of the class, which sufficiently challenged the students to reflect subsequently. This is not in line with what the literature on case learning methodology suggests. The unsupported hypotheses and their validation by the revised structural model suggested that case methodology was not working as it was supposed to be (as per the existing literature). To elicit a more Management & Change, Volume 18, Number 2 (2014)

42 Modeling the students learning by case method: Indian perspective

grounded explanation, the findings were discussed in depth with faculty who were experienced in the pedagogy and students themselves. The following were the takeaways from the deliberations: Students perceived the case study materials as part of the personal preparation for the class hence do not consider it as part of â&#x20AC;&#x153;learningâ&#x20AC;?. The genesis is possibly the conditioning with the lecture mode and other teacher driven pedagogy that is prevalent in the undergraduate and graduate education in India. Students felt that their pre class case preparation was often not adequate. Hence, the actual learning by the case method was primarily driven by the class discussion, faculty facilitation and post class reflection. Further probing revealed the following reasons about the reasons for inadequate preparation: a.

They were aware that case methodology required pre-class preparation for the best results. However, they were constrained by the time pressure they encountered at the overall program level, managing tight schedule and multiple submissions, evaluations and projects.

The scheduling was such that they had too many case studies on same day and hence they did not have time to devote on each of the cases. Lengthy cases were more difficult and most students gave one quick reading before the class, thus the assimilation of nuances was unlikely.

Sometimes the cases were given to them at short notice and they were not even announced earlier, hindering preparation. Short cuts as recourse to the internet resources and splitting work in groups also aggravated the lack of individual preparation.

Not preparing were not perceived to reduce the learning by case method, hence they did not put much effort to prepare.

Class discussion was not correlated with post class reflection, which was explained as:

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Since the case study was unstructured, the retention of learning was only from those discussion threads that were closed in the class. The unresolved parts were mostly not retained for post class reflection.

Many times irrelevant class participation occurred frequently, as there were marks awarded for the class participation. Similarly, group based and faculty driven classes could not get large number of students engaged in class discussion and hence the same was not effective in triggering post class reflection.

Tight schedule of the postgraduate programs did not allow much time for reflection.

Faculty perspective Most of the faculty not only gave an explanation, they also offered suggestion for how they attempt to overcome the same. 1.

The postgraduate management students are primarily experiential learners. Hence, the class discussion and faculty facilitation registers the most in their learning process. Also, they have limited time to prepare for the case or reflect on what happened in the class. Hence, the direct learning impact of the pre class preparation and impact of class discussion on the reflection are likely to be low. The way to address it is to start the case discussion with a synopsis of the case, to help in better assimilation of discussion. Post-class assignment also triggers the reflection aspect of the case based learning.

Pre class preparation, unless done very rigorously, is a cursory understanding of the context and not real learning. Thus, most of the students would not link the pre class preparation to the eventual learning, which the faculty is able to create in the class.

Possibly the students do not understand the full power of the case based model and how much can be achieved in case it is utilized to its full potential. Hence, there is need for a powerful case based learning module like Written Analysis and Communication as is followed in institutes like Indian Institute of Management, Ahmedabad. Management & Change, Volume 18, Number 2 (2014)

44 Modeling the students learning by case method: Indian perspective

PRACTICAL IMPLICATIONS OF THIS RESEARCH The case based learning methodology is distinctly different from the faculty driven and self-study based learning models prevalent in Indian undergraduate education system. Hence, the first step for effective use of the pedagogy would be imparting appreciation of case based learning philosophy, process and outcome among the students and faculty. There is a minimum threshold of preparation, which is a pre-requisite for case based learning to be effective. Hence, evaluation mechanisms like quizzes, written case-note submission could be used to foster preclass preparation. An often-neglected aspect is academic administrative aspects like the scheduling of the classes, time and method of distribution of cases and the overall program workload; it should be such that there is adequate time and material to prepare adequately. This aspect is normally beyond the scope of an individual faculty and right authorities in academic administration are to be sensitized. Class discussion is a very important element of learning. Very often, it is driven by the marks for class participation, leading to interactions that do not add value. Since the method favors extroverts, the faculty should try to create an inclusive co-creation environment, which facilitates participation of the introverted students also. Post class reflection is hindered because of hectic schedule of students, who have various competing demands on their time. It could possibly be triggered by some post class readings and assignments. LIMITATIONS Although the study has been done taking into account methodological rigor, some limitations remain. Firstly, the sampling used is convenience sampling and it has been taken from only one institute. Secondly, other variables like the course materials, lecture, project etc. also would influence the case based learning in some direct or indirect manner, have not been studied. The perceived learning construct has been measured as self

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reported, and hence may not represent the actual learning achieved by the student. SCOPE FOR FURTHER RESEARCH The model could possibly be improved by measuring the actual learning data (like grades) apart from the self-reported perceived learning. There could be a specific study on what parameters the pre class preparation depended on. The sample could be expanded to a more representative set of respondents (like including more number of business school students across India) to make inferences. Learning effectiveness of the case method could be compared with other pedagogy that is used, like projects, assignments and lectures. REFERENCES: Bijapurkar, R. (2005). Going back to the future of case method. Vikalpa. 30(4), 109-111 Bonoma, T. V. (1989). Learning with cases. Harvard Business School Publishing. 9-589 - 080,110. Carmines, E. G. & McIver, J. P. (1981). Analyzing Models with Unobserved Variables: Analysis of covariance structures. Social Measurement: Current Issues. 65â&#x20AC;&#x201C;115. Corey, E. R. (1998).Case Method Teaching. Harvard Business School Publishing. 9-581-058,1 -15. Corey, E. R. (1996). The use of cases in management education. Harvard Business School Publishing. 9-376-240, 1-4. Dixit, M. R. (2005). Case Method in the New Milieu: an Opportunity for Reinvention. Vikalpa. 30(4), 89-100. Dowd, J. J. (1992).Case Method Teaching: Suggestions for Practice. Marketing Education Review. 2, 44-47. Farmer, J. H. (2008). An introductory note on the case method. Richard Ivey School of Business. 908M85, 1-6. Management & Change, Volume 18, Number 2 (2014)

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Gavin D. A. (2007). Teaching executives and teaching MBAs: Reflections on case method. Academy of management learning and education. 6(3), 364-374. Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. (2007).Multivariate Data Analysis(6th ed.). Pearson Education India. Hammond, J. S. (2002).Learning by the case method. Harvard Business School Publishing.9-376-241,1 – 4. Harling, K. F. & Akridge, J. (1998).Using the case method of teaching. Agribusiness.14(1), 1-14. Hooper, D., Coughlan, J., & Mullen, M. (2008).Structural equation modelling: guidelines for determining model fit. Articles. 6(1), 53– 60. Joseph J. (2005).What is the future of case method in management education in India. Vikalpa. 30(4), 120-124. Kenny, D. A., & McCoach, D. B. (2003). Effect of the number of variables on measures of fit in structural equation modeling. Structural Equation Modeling. 10(3), 333–351. Krishnan, R. T. (2005). The case method in Indian management education. Vikalpa. 30(4).112 – 115. Mitra, S. (2005). Some reflections on adopting the case method of teaching. Vikalpa. 30(4),115-118. Monippally, M. M. (2005). The case method in ‘teaching’ managerial communication. Vikalpa. 30(4), 106-111. Muenjohn, D. N. & Armstrong, P. A. (2008). Evaluating the structural validity of the Multifactor Leadership Questionnaire (MLQ), capturing the leadership factors of transformational-transactional leadership. Contemporary Management Research. 4(1), 3-14. Murthy, K. R. S. (2005).What is the future of case method in management education in India. Vikalpa. 30(4), 111-112. Management & Change, Volume 18, Number 2 (2014)

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Raghuram, G. (2005).What is the future of case method in management education in India. Vikalpa. 30(4), 118-120. Salisbury, W. D., Pearson, R. A., Pearson, A. W., & Miller, D. W. (2001).Perceived security and World Wide Web purchase intention. Industrial Management & Data Systems, 101(3/4), 165-176. Srinivasan, S. K. (2005).WAC and the case method. Vikalpa. 30(4), 8889. Watchravesringkan, K. T., Yan, R. N., & Yurchisin, J. (2008). Crosscultural invariance of consumersâ&#x20AC;&#x2122; price perception measures: Eastern Asian perspective. International Journal of Retail & Distribution Management. 36(10), 759â&#x20AC;&#x201C;779.

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Exhibit 1: Operationalization of variables Construct Pre class preparation

Classroom discussion

Faculty facilitation

Post class reflection

Perceived Learning

Operationalization I give adequate time for studying the case before the class Before a case discussion, I consult books and articles to figure out relevant concepts that can be applied in a given case I normally do not spend much time in analyzing the case before I go for a case discussion I regularly discuss with some of my classmates about the case before I go to the class The more intense is the classroom discussion is there, better is the outcome of discussion The more variety in the perspectives of the students, the better is the case discussion in the class the better prepared the students are, the better is the classroom discussion The quality of the class is not determined by the number of students participating, but the quality of insights Faculty brings in fresh perspectives, which helps me learn Sometimes faculty is not effective in communication leading to ineffective learning The faculty is able to guide the discussion and help us see the facts in a new perspective Faculty normally brings in conceptual understanding which are relevant, either directly or indirectly to the case My case study learning continue after the class also I think about the learning that I have derived after the class is over I discuss the case study with my classmates after the class is over There are significant gains possible if we reflect about the case study after the class I very often get back to the faculty to discuss the learning in the class, after the class is over Case discussion is an effective method to learn management concepts Case discussions help me retain the understanding for long period I think I can use the learning of the case study in practical contexts Case study is not a very effective method to learn management There are very good insights which are gained through the case method

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Reverse framing

IMPROVING TEACHING LEARNING IN HIGHER EDUCATION INSTITUTIONS FOCUS SUBJECT-BASED NETWORKS Neeru Snehi1 The central focus of academic reforms in Indian higher education sector is on quality of teaching - learning in higher education as it matters for student learning outcomes. The 12th Five Year Plan has re-emphasized the stepping up of initiatives to create active learning environments in colleges and universities and has envisaged establishing subject-based networks. However, fostering quality teaching-learning presents universities and colleges with a range of challenges. To address this challenge, one of the important strategies recommended include creation of networks among subject specific professionals and interdisciplinary practitioners within the university and among different universities. The present paper reviews this approach as practiced in countries such as UK, USA, Australia and other European countries. This approach may help in learning from the experience of others and in establishing subject-based networks among Indian universities and colleges. In this context there is need to delineate and articulate conceptual framework for subject networks in Indian context. Meanwhile establishing subject-based networks has become one of the initiatives in the National Mission on Teachers and Teaching. This paper is focused on identification and analysis of the issues, challenges and strategies for developing subject-based networks for enhancing quality education. An attempt is also be made to suggest a framework /structure for establishing these networks in Indian higher education system. Keywords: Higher Education, Teaching Learning, Subject- Based Networks 1

Assistant Professor, Department Of Higher And Professional Education, National University Of Education Planning And Administration, 17-B, Sri Aurobindo Marg, New Delhi- 110016, India. E-mail: neerusnehi@nuepa.org

50 Improving Teaching Learning in Higher Education Institutions...

INTRODUCTION Higher education in India is undergoing major academic reforms since the past decade. The central focus of these reforms is on quality of teaching -learning in higher education as it matters for student learning outcomes. However, fostering quality teaching-learning presents universities and colleges with a range of challenges as the education sector is facing pressures from many directions. Higher education institutions need to ensure that the education they offer meets not only the expectations of students, aspirations of parents/society, requirements of employers, both today and for the future. The continuing large scale expansion of higher education system in the country not only requires vision but also the strategies which are aligned with the current practices and innovations in teaching and learning. Developing universities and colleges as learning organizations/ communities where pedagogical practices are developed and shared needs leadership, collaboration and ways to address and implement innovations. Curricular and pedagogical reforms, enhancing research, student engagement and support, internationalization may also result in fostering quality teaching-learning. The major challenges recognized relating to teaching-learning in higher education institutions by Teaching Learning Network of U21 (Universitas, 21) include: leadership of educational change, curricular and pedagogical reform, the teaching-research nexus, student engagement, broadening the educational experience and internationalization. The U21 Network recognizes that there are particular challenges and opportunities relating to T&L in research-intensive universities and there is genuine scope for collaboration to identify and share good practice in a number of areas. Especially, the need to enhance quality of teaching-learning at the undergraduate level or collegiate teaching is cited time and again. To address this challenge, the strategies recommended include creation of networks among subject specific professionals and interdisciplinary practitioners within the university and among different universities. This may help in learning from the experience of others and in building links between individuals with shared interests; organizing a conference/workshop/seminar and encourage the development of policy papers/resource materials/ position papers and thought-provoking articles etc. Further, this would help in developing and supporting a practitioner community for greater Management & Change, Volume 18, Number 2 (2014)

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sharing. In UK, one of such initiatives is to promote subject/discipline wise teaching-learning as it is the subject level where most networking and exchange takes place. The subject-specific services that are most valued by the sector, includes: workshops and seminars, teaching development grants, journals, support and guidance for staff new to teaching, resources and networking opportunities (HEA). The 12th Five Year Plan has re-emphasized the stepping up of initiatives to create active learning environments in colleges and universities. In order increase collaboration and networking among the universities and colleges it is envisaged to establish subject-based networks (to develop subject-specific model curricula and packaged, re-usable digitized content such as packaged lectures and open source textbooks). Examples of subject-based networks such as Network of Social Work Education led by the Tata Institute of Social Sciences and the mathematics initiative taken by Delhi University may be studied and adapted for other fields/subjects. It is in this context, this article aimed to review and understand the concept of subject-based networks evolved and initiated in other countries and to analyze their relevance and adaptation in Indian higher education system. The paper is organized into four sections. A review of subject based initiatives in some countries is presented in the first section. It also highlights the rationale of activities carried out under their initiatives. The second section brings forth the implications of subject based initiatives in Indian higher education institutions. The final section attempts to develop and present the mechanism for moving forward. I. SUBJECT/ DISCIPLINE BASED INITIATIVES: A REVIEW Subject/ discipline based initiatives were taken up in England, Scotland, Australia and entire UK in late 1900’s to fulfill the need for thematic networks to support research and knowledge exchange and promote partnerships among higher education institutions. Since the ‘disciplines’ influence the ways in which academic work/content is organized, relationship of academics to knowledge and their students, and, type of intended learning outcomes at higher education level, it is perceived that initiatives conceived around it would improve quality of teaching-learning imparted. Some of the examples include UK’s Subject Learning Centers, discipline based initiatives in Australia, ERASMUS Academic Networks, Learning Networks in USA. Management & Change, Volume 18, Number 2 (2014)

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ERASMUS Academic Networks -ERASMUS Academic Networks are designed to promote European cooperation and innovation in specific subject areas under the program of Lifelong Learning. They contribute to enhancing quality of teaching in higher education, defining and developing a European dimension within a given academic discipline, furthering innovation and exchanging methodologies and good practices. This is achieved by means of cooperation within the network between higher education institutions, university faculties and departments and may also involve professional associations and enterprises as well as other organizations. It is vital that the entire network be actively associated with its activities. In order to further the subject specific knowledge, these networks are supposed to bring together an appropriate range of relevant stakeholders concerned by the theme addressed and shall address topics of direct relevance for the European higher education policy. The main focus shall be sharing knowledge, discussing methodologies, promoting the exchange of experience and disseminating good practice in this field as well as producing and promoting creativity and innovation. It is expected that these networks shall address current, emerging and future developments of the subject area. Co-operation within networks is expected to lead to outcomes which will have a lasting and widespread impact on higher education institutions and their environment across Europe in the field concerned (http://eacea.ec.europa.eu/llp/results_projects/ project_compendia_en.php). In UK, the Higher Education Academy, an independent organization supports higher education institutions with strategies for the development of research and evaluation to improve the learning experience for students. The HEA started 24 discipline-based Subject Centres to support Subject specific learning and teaching issues. These subject centres are based in higher education institutions throughout the UK. The subject centres/networks established by the Higher Education Academy aims to improve learning and teaching in UKâ&#x20AC;&#x2122;s higher education (www.heacademy.ac.uk/). The strategic aims listed at Economics network are: 1.

Identifying, developing and disseminating evidence-informed approaches

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Brokering and encouraging the sharing and implementation of effective practice and innovation

Supporting individual staff, departments and institutions in initiating and responding to change

Informing, influencing and interpreting policy

Celebrating and raising the status of teaching

Operate a dynamic, highly participatory working environment that supports effective management, delivery and monitoring.

The Mission of network was to enhance the quality of learning and teaching throughout the Higher Education subject specific community. The literature reveals that the success of the subject centres since their inception has been considerable. They have initiated a range of innovatory practices; funded the publication of valuable research related to teaching learning issues and articulated the views of both teachers and students energetically and with clarity. In doing so, they have provided an invaluable (and previously unavailable) discipline-specific contribution to education and training for university teachers while substantially increasing both the profile and prestige of teaching and learning in the UK academy. Thus it is evident that the focus/aim of subject centres was to provide and utilize the expertise and knowledge throughout the UK and to improve learning and teaching in the subject. The literature reports that these mutually-supportive groups ensure collective impact and economies of scale while enabling the sharing of expertise, ideas and best practice. They function as a forum for common issues (through an annual conference/ workshop etc.), act as an advocate for the sector/ discipline/subject, enable joint funding across the network, and look outwards to audiences as well as inwards to solve issues for improving the sector. The subject-based networks are usually based at the faculty/ department of the University. These networks utilise the expertise of subject specific academics and educationalists from across the higher education sector, and works closely with the professional bodies in the sector. The networks provide resources for Lecturers such as detailed teaching lessons Management & Change, Volume 18, Number 2 (2014)

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in the form of handbooks, guide for teachers and teaching assistants, case studies, publish research in a peer-reviewed journal, give awards, fund teaching learning development projects, host conferences, organize departmental workshops etc. The Networks also organise workshops for graduate teaching assistants and new lecturers for their professional development. Discipline based networks- The Australian Learning and Teaching Council: The Australian Learning and Teaching Council (http:/ /www.olt.gov.au/) set up ‘Learning Networks’ for enhancing teaching and learning in higher education across Australia. Three types of networks namely discipline based networks, state based networks and national networks were set up and they receive funding to support the dissemination of grant project outcomes and embed good practice in learning and teaching in higher education. The network funding aims to consolidate existing connections in the sector and help foster new collegial and cross-institutional links to generate high-level collaborative approaches to teaching and learning issues. The Discipline-Based Initiatives Funding Scheme intended to support the exchange and dissemination of good practices within disciplines. Apart from helping to promote dissemination and development of effective learning and teaching, the grants are intended to raise awareness of the importance of effective teaching and learning methods, and to facilitate networking between institutions and across the sector. For instance one of the discipline networks ‘Network of Associate Deans of Learning and Teaching in the Discipline of Education (NADLATE) was led by Australian Council of Deans of Education Inc. The Network aimed to build a sustainable network of Associate Deans of Teaching and Learning in the Discipline of Education to: share knowledge, identify issues, and provide leadership about learning and teaching in the Discipline of Education; establish and maintain an open access database of best practice in all aspects of learning and teaching; build leadership capacity and develop strategies to respond in a timely manner to current and emerging issues and agendas, e.g. participation, engagement and success of Indigenous, low SES and rural/remote students; build a sustainable infrastructure to Management & Change, Volume 18, Number 2 (2014)

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provide support, mentoring and enhance professional development; encourage, support and embed a culture of good learning and teaching across the Discipline of education in all faculties and schools of Education, and; build on the capacity, information and networks established during the Teaching Teachers for the Future (TTF) project and the Discipline Scholar Project and other national agendas such as academic standards. In case of Law education, the purpose of the Law AD Network is to promote collaborative approaches to teaching and learning in Australian legal education. The Network intends to lead, encourage and document good practices in learning and teaching in the discipline of law and to create processes and strategies to sustain the network as a sub-Committee of the Council of Australian Law Deans (CALD). It receives funding from the Office of Learning and Teaching. The Discipline based Networks are funded by Australian Learning and Teaching Council. They are lead by discipline leaders and are hosted at faculties of universities or other higher education institutions. Involvement of existing associations or organizations for developing hub for sharing learning objects. These Networks have their own Steering Groups and have established Communities of Practice (CoPs) to focus the work of the Network around themes of interest and relevance. Use of Online forums, web based technology is an important dimension for sharing and resource building. Improving teaching learning in USA: Carnegie Foundation for Advanced Study, USA-The Carnegie Foundation for the Advancement of Teaching is an independent policy and research center working for improving teaching and learning. The Carnegie Foundation is committed to developing networks of ideas, individuals, and institutions to advance teaching and learning. They bring together scholars, practitioners, and designers in new ways to solve problems of educational practice i.e. by integrating the discipline of improvement science into education with the goal of accelerating the fieldâ&#x20AC;&#x2122;s capacity to learn to improve. The foundation acts as an integrative force, seeking to create networked improvement communities which can harness and focus the dynamism and energy to realize educational improvement. Carnegie Foundation gathers researchers,

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teachers, designers, practitioners, students and policymakers, organised as Networked Improvement Communities. These communities of thinkers and doers invent new knowledge and approaches. Carnegie inspires these innovators to design, develop, evaluate and refine tools, materials, roles, procedures, data and other artifacts and information that will improve teaching and learning (http://www.carnegiefoundation.org/ ). Similarly, The International Higher Education Teaching and Learning Association (HETL) is a certified non-profit organization in the State of New York (USA) and classified as a public charity. The aim of HETL is to bring together higher education professionals and thought leaders from around the world to dialogue, network, and collaborate on issues relevant to teaching and learning in higher education. The vision of HETL is to generate new knowledge and to advance the scholarship and practice of teaching and learning in higher education ( https://www.hetl.org/). Another organization, The Professional and Organizational Development (POD) Network in Higher Education is devoted to improving teaching and learning in higher education. Founded in 1975, POD provides its members with personal and academic relationships that are essential for professional growth. It focuses on lifelong, holistic, personal, and professional learning, growth, and change for the higher education community. The organization aims to provide support and services for its members through publications, conferences, consulting, and networking, offer services and resources to others interested in faculty development and fulfill an advocacy role, nationally, seeking to inform and persuade educational leaders of the value of faculty, instructional, and organizational development in institutions of higher education (podnetwork.org/ ). While reviewing the contribution of SOCRATES- Thematic Networks to the enhancement of engineering education in Europe, Borri, Guberti and Maffioli (2005) pointed out that several Thematic networks in engineering education were operational. They analyzed the work carried out in three engineering education networks namely- H3E Thematic Network (Higher Engineering Education for Europe), E4 Thematic Network (Enhancing Engineering Education in Europe) and TREE Thematic Network (Teaching and Research in Engineering in Europe). They reported Management & Change, Volume 18, Number 2 (2014)

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that, these thematic networks contributed in many aspects such as harmonising the studies, the development of life-long learning, the effective use of ICT, appraisal of the quality, accreditation, innovation of the learning methods, and last but not least, the birth of a network of institutions trusting each other. They opined that, these contributions must be exploited fully (Ruffio, 2000). In case of ESC i.e. Education Subject Centre in UK, the director pointed out that, “Subject centres occupy a unique position in the education landscape. Our independent and pedagogically informed role makes us a valuable and trusted source of ideas and resources for education practitioners.” Similarly, another study conducted in Norway aimed at gaining insights from the 16 Thematic Network Projects completed, analyzing and assessing the impact from these projects on higher education in Europe, and especially in Norway. They also investigated the contribution of Norwegian universities and benefits accrued through participation in these networks. The researchers concluded that participation of Norwegian universities was at par with other European universities and the participation brought about useful insights and experiences, mostly at the personal level. At the same time they reported that some networks experienced significant impact on their targeted fields of study in Norway, but for most networks, tangible impact was less visible. These analyses, they opined, must be interpreted with caution, because they rely on personal experiences by participants in the projects. As mentioned earlier, discipline based networks in Australia are established and funded by Australian Learning and Teaching Council Ltd (ALTC) and the Office for Learning and Teaching (OLT). The annual reports published by these discipline-networks documents the activities planned, conducted, factors contributing to productive networking and development and implementation of evaluation plan by them during the year. A diagrammatic representation of the dynamics of a sustained and sustainable network was derived from collective analysis of network members observations and perceptions (Figure 1). The diagram’s iterative cycle shows how the formation of cross-institutional relationships occurs through peer interactions, creating ownership of the network, which in turn furthers the formation of continuing relationships, and so on. Management & Change, Volume 18, Number 2 (2014)

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Figure 1: Elements creating a sustainable and sustained Network Source: NSW/ACT Promoting Excellence Network, p 5.

The challenges identified in regard to the sustaining and development of network includes distance between institutions for holding regular face to face meetings, frequent changes of staff and their responsibilities within the institution, dissemination of outcomes and resources and the most important maintaining the momentum of activities. At the same time, the network offered friendship, collegiality, opportunities for mentoring, encouragement, and reduced sense of isolation through communication channels established for the network. In addition it also acted as a forum for professional support and development, a bridge between theory and practice, sharing of experiences of change and transition and bringing together a range of academic and professional staff whose areas of expertise and institutional contexts overlap and complement each other (Wilson and Moore, 2013). Subject centres/ Discipline based Networks- Important observations Characteristics of the Subject centres/ discipline based networks as emerged from the review of UK, Australia, ERASMUS, and USA case studies are summarized below.

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•

The subject centres established aimed to promote high quality learning and teaching in all subject disciplines in higher education. It was intended to support the sharing of innovation and good practices in learning and teaching including the use, where appropriate, of communications and information technology.

•

These SSNs/DBNs are essentially the hubs which are located at the relevant faculty of the University and provide network access/ close contact/platform or forum to all the members/ stakeholders (Teachers, students, research scholars, parents and also to academics from larger associations or societies).

•

These subject centres were /are established in the concerned faculty in the universities with one lead university

•

These subject hubs work in collaboration with the relevant professional bodies and even with the committees of Heads of Departments. Consequently, interdisciplinary approach and collaborations improve the teaching and learning experiences of everyone in these disciplines in Higher Education Institutions and becomes national and international hub in the exchange of knowledge on learning and teaching across the disciplines. The communities established provide a voice for disciplines’ growth, contributing to government consultations and policy developments.

•

The member universities/institutions associated with subject centres may have nation-wide brief and their activities and events are located at different places. The activities organised by the subject/discipline networks include National Conferences, Departmental workshops, an annual new Lecturers’ Workshop, Project funding, On-line Resource database, Publications including newsletters/ journal and also Support for the individual disciplines through the subject-based Senior Advisors/ academics/ professionals.

The funding for these networks comes through government higher education bodies, member /partner institutions and contributions from professional/discipline based societies and associations.

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Subject- based Networks- Indian initiative Initiatives for establishment of Subject-based networks (Discipline based Networks) is at nascent stage in India. The concept is being promoted and emphasized as a tool to bring academic reforms in higher education sector. One of the initiatives attempted is Network of Social Work Education led by the Tata Institute of Social Sciences. Network of Social Work Education led by the Tata Institute of Social Sciences has been launched for quality enhancement of Social Work Education in India in 2012. It is aimed at addressing the long standing demand for a platform for communication across the schools. It was emphasized that the subject network of social work would focus on developing a depository of knowledge and creates an online knowledge base to link the resources of all the schools of social work in the country (Report, TISS, 2012). Meanwhile, a review of subject based organizations existing in the country reveal that apart from professional councils, number of Associations/ Societies/Councils for different disciplines and faculties (e.g. social sciences, science congress etc.) are functioning to review current practices, promote networking and collaboration and innovation for strengthening the relationship between HEIs. The profile of these institutions varies from each other. Most of these bodies are membership based and function at national level or associated with their international counterparts. II.

IMPLICATIONS FOR INDIAN HIGHER EDUCATION INSTITUTIONS

Looking back, the higher education scenario in India consists of a vast number of higher education institutions i.e. colleges /universities. These institutions are highly diverse in terms of resources, governance, affiliation, funding and performance. Higher education in the country is currently undergoing substantial academic and governance reforms and funding increases as evident from Twelfth Five Year Plan allocations. Since teaching is the mainstay of education process, quality of teaching learning taking place in the universities and colleges is one of the major concerns. In addition to policy reform, economic and external factors are also driving change in higher education learning and teaching. Teaching quality needs to be high and a differentiating factor for the sector as the number of Management & Change, Volume 18, Number 2 (2014)

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private providers grows and the level of national and international competition increases. At the same time the student population is becoming increasingly diverse with increasing inter-state mobility of domestic students and also increasing number of international students. As learning and teaching is the core business of any university or higher education provider, initiatives to improve quality of teaching learning in the universities and colleges are of urgent need. Further, there is hierarchy that exists in the system of higher education between colleges and universities in India. There is minimal interaction between teachers of colleges and university departments, except on occasional circumstances. The synergy between the undergraduate and the postgraduate departments and research units lacks in Indian universities. Hence the undergraduate colleges do not get any chance to learn from the experiences of teachers and teaching of students in postgraduate departments. Nor do postgraduate teachers of a particular subject are able to connect themselves to the undergraduate students and teachers. It is expected that the subject-based networks would bridge the gap between undergraduate and the postgraduate education by allowing teachers across all the colleges and universities to join the network. The colleges and universities do follow common norms and quality standards regulated by universities and University Grants Commission. In this sense institutions of higher education have scope for integration with each other. However, collaboration and partnership between institutions on aspects related to teaching and research is lacking. Even experiences, knowledge pool of institutions are hardly shared among teachers and institutions. This deprives higher education institutions to be organically linked with each other. The subject-based networks will remove isolation of universities and colleges and sharing of resources will be promoted. As mentioned earlier, The 12th Five Year Plan has emphasized the stepping up of initiatives to create active learning environments in colleges and universities. In order to increase collaboration and networking among the universities and colleges, it is envisaged to establish subject-based networks (to develop subject-specific model curricula and packaged, reusable digitized content such as packaged lectures and open source textbooks). Thus, major objectives for setting up subject-based networks are: Management & Change, Volume 18, Number 2 (2014)

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To keep pace with the enormous expansion of knowledge and the advancement of technology in the changing scenario, it is essential to achieve integrity and collaboration among different territorial educational systems

To impart knowledge and to create equal opportunities and access for teaching, learning and research to the stakeholders of higher education situated in remote and inaccessible areas of the country

To develop subject-based network of the academicians as the aim of higher education is to acquire knowledge by an individual and to use it not only for his/her own development and learning but also for the social and national development.

Establishing subject-based networks among Indian universities and colleges may emerge as one the mechanisms to bring reform in teachinglearning at higher level. However, in order to set up subject networks in Indian colleges and universities calls for delineating and articulating conceptual framework for subject networks in Indian context. The broad issues and concerns included for consultation and discussion are presented in the following paragraphs. â&#x20AC;˘

How to conceptualize/define a subject network? What are the motivations for establishing these groups? Constitution of groupswhether it is a small group or has large number of institutions/ departments as members? Delineate the vision and mission of these subject networks? Process for establishment of these Networks?

â&#x20AC;˘

What should be the aims of these networks- The basic aims of these networks may be to enhance collegiate teaching, furthering innovation, exchange of best experiences, exchange of students, providing platform to students and young faculty to present seminars and discuss issues common to the subject, opportunities for peer-group learning, publication of research papers/Journals, collaboration and mutual sharing of resources etc. On the other hand they may be formed as specialized groups catering to frontier areas of research. Can they provide platform for professional development and or performance appraisal activities?

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â&#x20AC;˘

Where to situate these networks? - at college level, university, state, Zonal or National? The issue is whether to propose it for a wider participation of institutions or initiated at small scale.

â&#x20AC;˘

Participation in these subject networks- Who will be the participating members -faculty/department or University/college? Will it be voluntary or compulsory? How will these groups be organized? Who will lead the Network? Mechanism for Networking and collaboration with professional associations and enterprises as well as other organizations in order to share knowledge, discussing methodologies, promoting the exchange of experience and disseminating good practices in this field as well as producing and promoting creativity and innovation.

â&#x20AC;˘

Resource mobilization and Funding- Who will fund these subject networks-Government through a grant scheme/ university/ department/ college? Whether it will be one time grant? Will there be some membership fee? How to manage these resources?

III. WAY FORWARD- A PROPOSAL As mentioned earlier, there is an urgent need to establish subjectbased networks to encourage exchange of ideas and knowledge among practitioners of higher education and to build excellence in teaching, learning and research by empowering teachers and researchers. This would promote much needed partnership and collaboration among teachers and institutions and inculcate trust, confidence and accountability and develop a culture of collaborative teaching and research. Therefore, Subject-based Network in higher education may be developed as a voluntary association of academicians willing to cooperate in searching and sharing of knowledge related to teaching, learning and research. It will empower teachers and researchers and help improve the quality of higher education. It will function as an academic network by and for the stakeholders of higher education for imparting and disseminating knowledge. A sample proposal/outline for establishing subject-based networks was developed during a Workshop on subject- based networks at NUEPA. The profile of the participants included Deans, Heads of Departments and Professors from different disciplines and different universities across the country. The proposed design of subject-based network is presented below. Management & Change, Volume 18, Number 2 (2014)

64 Improving Teaching Learning in Higher Education Institutions...

Proposal It is proposed to establish subject-based networks to encourage exchange of ideas and knowledge among practitioners of higher education and to build excellence in teaching, learning and research by empowering teachers and researchers. This would promote much needed partnership and collaboration among teachers and institutions and inculcate trust, confidence and accountability and develop a culture of collaborative teaching and research. Vision Generate knowledge in respective subjects encouraging innovations and creativity, providing opportunities to all stakeholders of higher education to explore knowledge and to act as catalyst in resolving the issues of teaching, learning and research. Mission 1.

Promoting excellence in teaching learning and research through networking and collaboration

Establishing network of universities for mobilization of knowledge and its management

Generating and acquiring subject based knowledge from various sources and dissemination to stakeholders to promote teaching, learning and research

Objectives 1.

To develop a teaching and learning environment and creating a knowledge corpus through sharing of knowledge resources among academic network within and across the universities

To build a pool of competent human resources with proactive orientation towards changing and imparting pragmatic knowledge

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To establish a meaningful and viable Subject-based Networks program among different universities which will be applicable to all the disciplines for their excellence in teaching, learning and research

Functions As a minimum, each network is expected to carry out the following operational activities: 1.

Create a website and other appropriate tools to support information exchange and dissemination;

Produce an annual report on the state of innovation in its area of activity;

Provide full information about the networkâ&#x20AC;&#x2122;s events and activities;

Organize an annual meeting in the thematic area of the network. It can take the form of an open seminar or conference encouraging collaboration with other networks;

Take appropriate measures regarding the evaluation of the networkâ&#x20AC;&#x2122;s performance.

Other important activities should include the following: 6.

To analyze the comparative teaching methods and experiment with new teaching methods;

Identify high quality teaching material and place it at the disposal of the members of the network;

Share practices related to semester system, choice based credit system and continuous and comprehensive evaluation with a view to constantly improving it;

Help the members of the network on problems related to subject and towards finding common solutions;

10. Share research findings of the doctoral, postdoctoral research works Management & Change, Volume 18, Number 2 (2014)

66 Improving Teaching Learning in Higher Education Institutions...

and help the newly inducted researchers, including those registered under Ph.D program in identifying references, formulating research design and helping in qualitative and quantitative research methods to analyze the research findings; 11. Subject-based network will network with another related subjectbased network in order to promote inter-disciplinarily and help in formulating new interdisciplinary course design by an individual or institution; 12. It will promote learner centeredness and discuss ways of optimizing learning outcomes as well as adapting curricula to the needs of society; 13. Subject-based networks will help in developing ethics and value system on aspects relating to teaching and research and sensitize stakeholders to develop organization culture; 14. Promoting synergies between teaching and research, notably by encouraging higher education institutions to integrate research results in their teaching; 15. Promote synergy between undergraduate teaching and post graduate teaching and institutions; 16. A subject-based network will organize a conference of related subject-based network to promote interdisciplinary; Constitution of Subject-based Network A professor/Senior faculty can form an association of subject scholars, not less than 30 members from at least ten different institutions belonging to at least three different universities, who will be the members of the Subject-based Networks. The composition of the members of the network will be as follows: â&#x20AC;˘

At least 50% will be teachers employed on permanent/regular basis.

â&#x20AC;˘

Rest of members will be other than regular teachers (retired teachers, non-regular teachers, free lance researchers and those who are

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already doctorate or registered for Ph.D. or pursuing research in individual capacity. The proposer will be a professor/Senior faculty who will initiate the proposal for Subject-based Networks. The proposal will be routed through existing subject department of the university or a college covered under 2f and 12(B) of the UGC Act. The colleges will be only those having College with Potentials of Excellence status, Autonomous College and NAAC Accredited colleges. The proposal will be submitted to the UGC through the proper channel on announcement of the scheme by UGC. Membership of the network will be for two years and at the end of every two years, the renewal of the membership by the individual member will take place. The member of the particular subject network can join maximum of 3 Subject-based networks. The Constitution of the Steering Committee of Subject-based network The proposer of the Subject-based Networks will constitute the Steering Committee of the subject-based network. The Steering committee will have members of the subjects concerned, including nominated, as follows: 1.

Professor (proposer) â&#x20AC;&#x201C; Chairperson

Two Professors of the Subject

Two Associate Professors of the Subject

Two Assistant Professor of the Subject

One member concerned nominated by the VC of the concerned University, where a subject-based network is established.

One member nominated by the head of the host Postgraduate department or Principal of the college

One nominee of the subject of the University Grants Commission.

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68 Improving Teaching Learning in Higher Education Institutions...

The Chairperson of the Steering Committee will have executive responsibility to run the affairs of the Subject-based networks. The Committee will be responsible for the proper use of fund received and get the account audited in time and submit it to the UGC through proper channel. The host institution through which the proposal of Subject-based Network is routed will be responsible for necessary infrastructure for the functioning of the network. Steering Committee will ordinarily run its business through online communication but will meet at least once in a year. The Steering Committee of Subject-based Network will have the following functions: a)

To consider the proposal for membership of individual, approval and updating of the membership and expulsion of members who have violated any ethical practice of being a member of the network

Overall supervision of all activities and consultancies will be the responsibility of the Committee

It will constitute, from time to time, Sub Committee for ICT integration, information network including print, electronic & social media etc, organization of its activities including seminars and conferences etc

All materials will be submitted to the Steering Committee who will decide the worthiness of the material to be put on the network.

Any other matter concerning the smooth running of Subject-based Network.

Accreditation and recording of authorship of knowledge material to be placed on the network will be the responsibility of the Steering Committee. There should be transparency in this process.

•

The material, idea, instruments, tools - IPR – under the process of patenting or under the process of ‘rights’ can be placed on the network without infringing upon or disturbing the legal process.

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Ethical Responsibility Since knowledge is not value neutral, there is possibility of it being influenced by certain personal biases. Besides, there is always threat to use knowledge without proper recognition of the creator of knowledge. It will be the responsibility of the Steering Committee to use ethical practices in the management of knowledge through the subject-based networks. Grievance Redressal If any member of the Subject-based Network is aggrieved for certain reasons the usual procedure to address the grievance by any member will be to address the problem faced by the member to the Steering Committee who will resolve the disputes or settle the grievance of the member of Subject-based Networks. Target During 12th plan at least 100 subject-based networks, not more than five in a particular subject, can be established with an approximate unit cost of Rs. 50 lakhs each and maintenance cost of Rs. 15 lakhs each every year. Thus, the foregoing discussion reflects establishing subject-based networks as a potential strategy for improving teaching-learning in the universities and colleges. Also, the National Mission on Teachers and Teaching has incorporated the strategy as one of the initiatives to be undertaken in the Twelfth Five Year Plan period. The establishment of subject-based networks is expected to expedite the ongoing academic reforms and contribute in improving the quality of academia as well as teaching learning in the higher education institutions. REFERENCES: Borri, C., Guberti, E. & Maffioli, F. (2005). Thematic Networks Contributions to the Enhancement of Engineering Education in Europe, http://www.sefi.be/wp-content/abstracts/1142.pdf Enhancing the Higher Education Student Learning Experience; www.escalate.ac.uk Management & Change, Volume 18, Number 2 (2014)

70 Improving Teaching Learning in Higher Education Institutions...

GOI (2012). Report of Twelfth Five Year Plan (2012-2017), 3, Planning Commission, New Delhi. Report (2012). National Consultation on National Network of Schools of Social Work for Quality Enhancement of Social Work Education in India May 2 - 3, 2012, School of Social Work, Tata Institute of Social Sciences, Mumbai. Report (2013). Workshop on Establishing Subject- based Networks on Teaching Learning among Universities August, 29 â&#x20AC;&#x201C; 31, 2013, NUEPA, New Delhi, (unpublished). Ruffio, Philippe (2000). Changing the University: the supporting role of the Erasmus Thematic Networks (a three-year perspective). Report to the EC. Wilson, A & Moore, N. (2013). Final Report: NSW/ACT Promoting Excellence Network WEBSITES: http://eacea.ec.europa.eu/llp/results_projects/project_compendia_en.php http://www.carnegiefoundation.org/ http://www.heacademy.ac.uk/ https://www.hetl.org/ http://www.olt.gov.au/ http://www.universitas21.com/ http://www.universitas21.com/article/educational/details/59/teaching-andlearning-network\podnetwork.org/

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DIFFERENTIAL ADOPTION OF STUDY PATTERNS AMONGST MANAGEMENT STUDENTS Somiya Mehrotra1 Service sector constitutes 56.4% of India’s total GDP, highest after industry sector. India’s literacy rate had grown from 52.2% in 1991 to 74.04% in 2011.The education industry in India is both organized and unorganized. The formal education is varied in nature and comprises many courses for all levels of students. India is growing rapidly on this front and specifically, management education is at its pinnacle. Management education faces a serious condition; there are more number of institutions and less number of students. The reason behind this is the lack of interest arousal and more distraction towards aspired job opportunities. This research paper is an empirical study to assess the differential adoption of study patterns by management students. Several B Schools in and around the Rohilkhand region are studied to assess the learning patterns. The findings of the study would help B Schools bring changes to gain the interest towards studies by students in this competitive world. The results of the study show that females are ahead in learning through traditional methods of learning and students who have prior work experience have a different learning pattern. It also highlights that the pattern of studies has dramatically changed and there is an urge to understand the need of today’s students’ leaning and studies pattern. Keywords: Study Patterns, Learning Patterns, Teaching Methodology, B-Schools, Management. INTRODUCTION Around 1901, service industries employed less than 30% of the workforce. This sector has since seen the strongest growth. The service 1

Assistant Professor, Department Of Management Studies, Sikkim Manipal University, Directorate Of Distance Education, Manipal Towers, Third Floor, No. 14, Hal Stage Ii, Old Airport Road, Kodihally, Bangalore-560008, Karnataka, India. E-mail: somiya.mehrotra@smudde.edu.in

72 Differential Adoption of Study Patterns Amongst Management Students

sector includes transport, communication, wholesale and retail trade, education and health services, and construction. The education sector in India is poised at a crucial stage in its growth. Indiaâ&#x20AC;&#x2122;s demographic advantage of having a large population of youth coupled with low gross enrolment ratios, presents a huge opportunity to education sector players. At the same time, the growth of the Indian economy and upward movement of income levels is boosting spend on education, which already accounts for the second-highest share of wallet for middle-class households. Additionally, a tremendous interest from entrepreneurs and private equity players is generated due to steady cash flows, recession-proof nature of the sector, and, negative working capital requirements. Government support for the sector has also seen a boost with substantial reforms and increased financial outlays being announced and implemented. These reforms aim at not only strengthening the sector but facilitating planned expansion of the sector. The interplay of all these factors has made education an attractive sector with multiple opportunities, as can be seen by the high growth many players are witnessing and pursuing. This has led to the opening up of new institutes within or without government sector. Large investments are now available in this sector. But this increase in the number of institutions is not coping up with the increased demand for quality education. Moreover, the students are not self-motivated to react to different kinds of learning practices. It has been claimed that the study approach adopted by a student will vary dependent, in part, upon the nature of the learning task at hand. The same student will change approaches from one task to another. Moreover, different assessment techniques in various courses lead to different learning patterns. Learning and teaching should go hand in hand. In todayâ&#x20AC;&#x2122;s world of technology, modes of imparting education have changed. Education can be said to be a process through which a society passes on the knowledge, values and skills from one generation to another. Learning can be defined as the acquisition of new skills, knowledge, and values. Different courses require different learning patterns. There are many factors that affect oneâ&#x20AC;&#x2122;s learning process. This research paper deals with the learning process amongst management students. One of the biggest reasons that students join this Management & Change, Volume 18, Number 2 (2014)

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professional course is good job opportunities which they get in the form of rewards after completing this course. There are both intrinsic and extrinsic rewards that motivate students; meaning that they are motivated ‘internally’ or ‘externally’ by the promise of the reward(Stutes, 1995) but recent trends show that reward in terms of better opportunities has declined. The reason behind this steep fall is lack of understanding of management by the students. It is now understood that the traditional form of education needs to be changed. First, students will face a completely different environment when they go on their own into a fast-paced and global world. Second, more studies are recognizing that budding managers learn very differently, and the teacher-lecture approach does not provide the best education for everyone. Third, in today’s environment, knowledge is the main product for sale. To develop this product, students need a high-quality specialized learning situation. Increasingly, B-Schools will have to offer well-rounded education to successfully prepare the next generations of students to meet a wide variety of experiences and face many different challenges.( Dryden & Vos, 1999). The purpose of this study, therefore, is to identify the ways through which more learning can be infused in the students for better career opportunities, and, to suggest measures that can help in betterment of students’ learning. LITERATURE REVIEW In this modern day, a typical classroom situation is no longer restricted to the talk and chalk method. Diversity in teaching and learning styles is beginning to gain more attention as many studies have pointed out that students learn better when instructional strategies match their preferred learning styles (Reid, 1987; Blackmore, 1996; Kang, 1999; Zhenhui, 2001). However, effective matching between instructional strategies and learning styles can only be achieved when teachers are aware of their learners’ needs, capacities, potentials and learning style preferences (Zhenhui, 2001).Learning theoretical process comprises of many things viz., conceptualization of student learning; a description of the instrument; the internal structure of learning strategies, conceptions, and orientations Management & Change, Volume 18, Number 2 (2014)

74 Differential Adoption of Study Patterns Amongst Management Students

in different educational contexts; developments in learning patterns during the school career; consistency and variability in students’ use of learning strategies; dissonance in students’ regulation of learning processes; relations between learning patterns and personal and contextual factors; relations between learning patterns and learning outcomes; and process-oriented instruction. For example, Pask (1988) identified a serialist and holistic strategy that students may employ in achieving understanding. Marton and Saljo (1984) interviewed students about their approaches to learning and identified a deep and a surface approach. Geisler-Brenstein et al., (1996) discerned five types of cognitive learning strategies: deep learning, elaborative processing, agentic learning, methodical learning, and literal memorization. Biggs (1987) made a distinction between three types of learning strategies: deep, surface, and achieving, each corresponding to a particular study motivation: intrinsic, extrinsic, and achievement motivation, respectively. Tait and Entwistle (1996) developed a study strategies inventory that contains scales in the domain of cognitive processes (e.g., deep approach, surface approach, strategic approach, and apathetic approach) and study motivation and affection (e.g., active interest, fear of failure, intention to excel, and lack of direction). Intelligence and capabilities for success in life have been measured through standardized examinations alone. It has been argued that this method is problematic and frequently overlooks students’ true strengths and potentials. This rationale is based on the fact that examination results do not tell as much about a student’s talents, capabilities and potential because all he or she needs to pass an examination is a good memory and the ability to regurgitate facts. The complete determination of success later in life should take into account several other factors, including character, thinking skills and self-esteem. DIFFERENT STUDENTS, DIFFERENT LEARNING PATTERNS Students with different background have different learning styles. In a study (Schroeder, 1993) the results indicate that approximately 60 percent of entering students prefer the sensing mode of perceiving compared to 40 percent who prefer the intuitive mode. The learning styles Management & Change, Volume 18, Number 2 (2014)

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of those who prefer sensing are characterized by a preference for direct, concrete experiences; moderate to high degrees of structure; linear, sequential learning; and, often, a need to know ‘why’ before doing something. In general, students who prefer sensing learning patterns prefer the concrete, the practical, and the immediate. These students often lack confidence in their intellectual abilities and are uncomfortable with abstract ideas. They have difficulty with complex concepts and low tolerance for ambiguity. Furthermore, they are often less independent in thought and judgment and more dependent on the ideas of those in authority. They are also more dependent on immediate gratification and exhibit more difficulty with basic academic skills, such as reading and writing. The path to educational excellence for sensing learners is usually a practice-to-theory route; not the more traditional theory-to-practice approach. Study patterns Adequate use of different learning strategies is one of the most important prerequisites of academic success. The actual use of learning strategies is the result of an interaction between individual and situational variables. Fabry (2012) in his research work described four different patterns in approaches to learning among medical students (“easy-going”, “flexible”, “problematic” and “hardworking” learners). Compared to their peers, the problematic learners had the worst final school grades. In addition changes in the use of learning strategies were identified, most of them occurred during the first term. Park (2000) later conducted a similar study and investigated the PLSP(perceptual learning style preferences) of Southeast Asian students (Cambodian, Hmong, Lao and Vietnamese). and compared them with those of White’s She employed Reid’s (1987) questionnaire on 738 students. The study reported a signiûcant difference in the PLSP of Southeast Asian and White’s students. The study also revealed that Southeast Asian students exhibited either major or minor PLSP for all four basic perceptual learning styles– visual, auditory, kinesthetic and tactile as well as group learning. The strong preference for group learning supports the notion that Asian students are more collaborative in their learning styles (Ramburuth & McCormick, 2001). Therefore, we may see that different students have different learning patterns. Different teaching delivery patterns

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76 Differential Adoption of Study Patterns Amongst Management Students

and evaluations of new educational technologies have tended to compare learning outcomes of instructional delivery methods with the hope that the new technology “will be the one to revolutionize learning” (Parson, 1998). However, results of these evaluations are often disappointing. In a study that compiled 50 years of research comparing different delivery methods of instruction, (Russell ,1998) found no significant differences in learning outcomes, when looking solely at the medium of delivering instruction In essence, Alexander (1995) argued that questions about application of new technologies should not be in terms of media such as print, video, computer, or oral traditions. The most important question should be: What is known about the way students learn via the new technology? The latest in the long line of technologies is the Internet/World Wide Web (WWW). As the popularity of the Internet/WWW increases, its use as a means of delivering instruction is also growing. Alexander (1995, p. 3) believed that “the greatest potential of the Web, however, lies in the fact that we have a chance to learn from the lessons of the previous faded technologies, and an opportunity to develop new learning experiences for students that have not been possible before.” However, Parson (1998) and Alexander (1995) argued that while implementing a new technology, educators should evaluate how students learn via the new technology so as to help with curriculum and instructional designs. Moreover, Parson (1998) stressed the importance of understanding how the new technology can affect learning when it is used by different types of learners. Identifying student learning styles helps educators understand how people perceive and process information in different ways. Garger and Guild (1984, p.11) described learning styles as “stable and pervasive characteristics of an individual, expressed through the interaction of one’s behavior and personality as one approaches a learning task.” According to Cano, Garton, and Raven (1992), one of the most widely studied learning style theories contrasts field-dependence and field-independence. The Group Embedded Figure Test (GEFT), a standardized cognitive test, can be administered to determine the preferred learning styles of learners as either field dependent or field-independent (Oltman, Raskin, & Witkin, 1971). Literature on learning styles suggests that field-dependent learners tend to approach a problem in a more global way, are socially oriented, prefer collaboration, and are extrinsically motivated (Miller, 1997; Raven, Cano, Garton, & Shellhamer, 1993; Management & Change, Volume 18, Number 2 (2014)

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Witkin, Moore, Good enough, & Cox, 1977). In contrast, fieldindependent learners tend to approach a problem more analytically, rely on self-structured situations, prefer competition, and are intrinsically motivated. Garger and Guild (1984) emphasized that both field-dependent and field independent people make equally good learners. Yet, since learning styles affect how successfully people learn in specific situations, educators should be sensitive to learning style differences (Garger & Guild, 1984). Several studies have shown that field-independent learners tend to outperform field-dependent learners in various settings (Annis, 1979; Moore & Dwyer, 1992; Ronning, McCurdy, & Ballinger, 1984). However, in their study related to the effects of learning styles on achievement in a WWW course, Day, Raven, and Newman (1997) found learning styles had no effect on student achievement or attitude in Web-based instruction, which echoes the findings of the study on learning styles in a hypermedia environment conducted by Liu and Reed (1994). Similar to the literature on learning styles, literature on learning strategies explores different ways of learning (Pintrich & Johnson, 1990; Cross & Steadman, 1996; Weinstein & Meyer, 1991). In assuming stability as well as lack of individual control, literature on learning style suggests that it may be difficult for students to change their learning styles (Pintrich & Johnson, 1990). However, literature on learning strategy assumes that studentsâ&#x20AC;&#x2122; motivation and use of learning strategies can be controlled by learners and changed through teaching. According to Cross and Steadman (1996), cognitive learning strategies are behavioral skills learners can use to improve their understanding, integration, and retention of new information. Learning strategies include a wide variety of cognitive processes and behavioral skills (Weinstein & Meyer, 1991). General learning strategy components include rehearsal, elaboration, organization, comprehension, metacognition, and resource management (Cross & Steadman, 1996; Weinstein & Meyer, 1991). Pintrich, Smith, Garcia, and McKeachie (1991) developed a learning strategy instrument, Motivation Strategies for Learning Questionnaire (MSLQ). This instrument includes two main sections: one on motivation and one on learning strategies. The learning strategies section consists of two components and eight scales. The two components were: cognitive and metacognitive strategies, and resource management strategies; the eight scales were: rehearsal, elaboration, organization, critical thinking, Management & Change, Volume 18, Number 2 (2014)

78 Differential Adoption of Study Patterns Amongst Management Students

metacognitive self regulation, time and study environment, effort regulation, and help seeking (Pintrich et al., 1991). Miller (1997b) identified 12 learning strategies used by the students studying agriculture through videotapes. Pausing the tape while viewing and taking notes was the learning strategy that the students used most. Miller (1997b, p. 21) defined learning strategies as “the techniques or skills used by an individual in accomplishing a learning task.” His definition is different and not as broad as the definition in Mayer’s study (1988). Mayer (1988, p. 11) defined learning strategies as “behaviors of a learner that are intended to manipulate a person’s cognitive processes during learning.” OBJECTIVES OF THE STUDY The objectives of the study are to: -

Find various patterns by which students’ prefer to learn management studies.

Find out the gap between teaching methods and students’ learning

Evaluate internet as one of the study tool of today’s generation

Understand the reasons for lack of interest among students towards studies

RESEARCH METHODOLOGY This study used the quantitative method. The total sample size is 102.Out of 102 respondents, 62 are males and 40 are females. Data collection was done for a period of one month using convenient sampling. Responses were randomly drawn from the students of B-schools located in the Rohilkhand region. Basically, 10 different B-schools and colleges were involved. They were asked to complete a survey, designed in the form of structured close ended questions. Statistical Package for Social Sciences (SPSS) version 17.0 was used to analyze the results. Moreover, all the constructs were found to be more than 0.700 in Cronbach’s Coefficient alpha.

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IMPORTANT RESULTS OF THE STUDY: Teaching Methodology

Figure 1: General inclination of students towards basic parameters on the basis of Gender

The Total Sample size was 102 which included 62 males and 40 female students. As per the data available [Fig. 1] we found that 21 out of 62 males i.e., 33.9% of the male students had some set standard of studying and 14 out of 40 females i.e., 35 % had the same trend. When a few students amongst these were interviewed, they argued that a strict pattern towards studies creates more learning and gives them an edge in the competition. Within the same group of sample, 17(27.4%) of the total males relied only on classroom notes given to them by their guides and facilitators whereas 16(40%) of the females had the same response. In the same factsheet, 12(19.4%) of the males and 6(15%) of the females were unable to decide whether classroom notes are sufficient for their learning. 50 male students (80.6%) and 31 female students (77.5%) appreciated internet as an important tool for the studies. Within the same group of sample, 17(27.4%) of the total males relied on the fact that text books are sufficient for their studies whereas 16(40%) of the females had the same response. Some students, 24(38.70%) males and 22(55%) females, had shown a preference to make their own study notes. Management & Change, Volume 18, Number 2 (2014)

80 Differential Adoption of Study Patterns Amongst Management Students

Table 1: Correlation between Work Experience and Other Learning Patterns Textbo Set Classroom_ Internet_ Books oks Standard of Notes_Suffi Imp_For _Per_T Suffici Learning cient _Studies opic ent Work Pearson experience Correla tion Sig. (2tailed)

Prefer_ Mediu Make_S Kind_St m_Stud tudy_No udy_Pat y_Mate tes tern rial

.111

.060

-.012

.060

.083

.054

.268

.551

.906

.551

.408

.591

We developed a pattern on the students who already had some prior work experience to identify whether their learning pattern is different from other non-experienced students. For this, we found the correlation between various such factors viz., Set standard of study pattern, dependency on classroom notes, dependency on internet for studies, referring books, liking and reliability towards books, self-prepared study material, tool for studies and teacher, book, self-study or combination of the three. All these factors were evaluated in context to the students with work -experience and we found that there is a positive correlation amongst such factors except in dependency on the internet where the correlation was -0.012.Moreover all the factors were found to be significant, so the next step was to further evaluate the percentage of their relationship.

Figure 2: Indicator of Experienced Students with Respect to Basic Parameters

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Since, it was found that there is a significant correlation between the students who had some prior work experience and few variables of learning patterns, so we also tried to find out the percentage aspect in the same relationship. It was found that in total of 28 students with work experience, 42.96% of such students favored self-study in a course like management.32.1% of the students relied on classroom notes wherein 10.7% were not in a position to say anything regarding classroom notes. On the contrary, we also found that reliability towards internet was more as compared to any other variable.75% of the experienced students consider internet as an important tool for their management studies. However, 3.6% of the experienced students were not in a position to favor or disfavor anything in this context. We also found the relationship between sufficiency of information available through text books. The finding showed that 32.1% of the experienced students find text books information sufficient but 57.1% amongst such candidates do not find textbooks as sufficient source of studies. They had the argument that text books in library are available easily but editions are old and that they could not find updated and complete information easily.10.7% of such students were not able to take a stand in this context. Similarly, there were few students who did not prefer to make self-notes and study material whereas 57.1% students were interested in making own notes for their studies. Further, it was also important to find out whether these students had a specific study pattern. On the basis of interview, we categorized available responses on the basis of six different categories viz., teacher specific studies, book specific studies, self-study specific studies , combination of teacher specific and book specific, combination of book specific and self-study specific, and, combination of teacher and self-study specific. However, we cannot rely much on these variables only for the purpose of our research since these are student defined variables and self-reference criterion (SRC) has some impact over this evaluation.(See Fig -3)

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82 Differential Adoption of Study Patterns Amongst Management Students

Figure 3: Students defined variables for the different learning patterns

Figure 3 showed that 25% of students with work-experience relied only on the guidance of their teachers and facilitators. 10.7% of the students were focused more on book specific studies, and found books as sufficient source of information.7.1% of the experienced students were following the pattern of self-study, 28.6% were following the combination of the notes given to them by their teachers and the materials collected through reading various books, 3.6% were following the criteria of book reading and self-studies whereas 25% of such candidates were found to be preferring self-study along with guidance received from their facilitators. Role of Internet in studentsâ&#x20AC;&#x2122; orientation towards learning In our study so far, we found that students are relied on internet for their studies to a larger extent. During interview with few such candidates also we noticed that students are more used to internet especially in management studies. The reasons behind this can be many. In order to reach to some conclusion towards studentsâ&#x20AC;&#x2122; liking internet and adopting it as a learning tool, we asked some more questions specific to internet. We tried to evaluate the reasons because of which students get attracted towards internet easily and to our surprise found that most of the students think that the information Management & Change, Volume 18, Number 2 (2014)

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available on internet is valid and reliable. We chose the following attraction parameters on which the inclination of students towards internet was analyzed: possibility of information sharing through internet, availability of recent development in the field of study, quality of information available, easy compiling of data possible, availability of specialized knowledge portals on internet, availability of cheaper rates of internet plans ,wider range of activities possible through IT devices not just studying, information can be easily saved for future purposes, interesting than books, sharing of knowledge becomes easy , fast access to knowledge, and, latest information availability in just a click. We found that out of 102 respondents, 39 respondents agreed with easy information sharing, only 12 respondents agreed with availability of recent information, 34 agreed with good and reliable quality of information availability,17 agreed with easy compiling of data possibility, and, 19 agreed with specialized knowledge portals availability. Most respondents disagreed on availability of recent developments in the field available on internet. Similarly, respondents disagreed on availability of cheaper rates for internet. Respondents also agreed to some extent that internet is not the only benefit available, more bundle of benefits are available with the IT devices, so internet also becomes popular. Keeping information safe for future reference also makes it popular as 47 of the total respondents agreed to some extent. If one wants to have an edge over the information quickly then internet is the best option, as agreed by 38 respondents. Further, 46 respondents agreed that latest and updated information is accessible only through internet (Figure 4).

Figure 4(a): Attitude towards Reasons for Preferring Internet

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Figure 4(b): Attitude towards Reasons for preferring Internet

But a few respondents also faced problems while accessing information from internet such as requirement of registration before entering any website, availability of expensive IT resources, time wastage on searching, less availability of established facts and less availability of right information (Figure 5).We can see from the figure that 57 respondents find registration before accessing any information is a difficult task,33 respondents somewhat agreed that IT resources which are expensive are required for using the internet services which is still not possible for all the students. Moreover, 38 respondents agreed on time wastage during studying from internet.

Figure 5: Attitude towards Problems Faced on Internet

Liking and Preference towards Books In this study, we found studentsâ&#x20AC;&#x2122;inclination in todayâ&#x20AC;&#x2122;s education worlds is more towards internet, so it became important to find out the reasons for this lack of interest in books which are considered as more important and beneficial source of understanding concepts which creates reliable learning. The parameters chosen were: accessibility to personal copy (which Management & Change, Volume 18, Number 2 (2014)

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is not possible for students), non availability of online material, cost of the books, non availability of latest and updated information, less interesting as compared to internet, difficult text language, more requirement of time to read books, and, accessibility only with a modern library. Study reveals that 51 respondents agreed that non availability of books as a personal copy makes it a second priority as compared to internet.45 respondents said that non-availability of online copy of most of the books makes it unpopular now a days. Cost of the books is also an important feature.41 of the respondents dislike books because of high costs.37 of the students said that latest information was not available in books whereas the same is available on the internet. Most of the respondents did not prefer reading books nowadays because it lacks interest arousal.38 such respondents said that they prefer online scrolling for the notes because they can perform multiple tasks simultaneously with learning. (Figure -6 (a))

Figure 6(a): General Attitude towards Books

Similarly, In Figure 6(b) we found that respondents find books less interesting but, availability of matter and quality of content is better in books than any other source.33 of the respondents finds good availability of study material in books which is true also.21 of the total respondents find quality of material available in books is better .On the other hand, 54 of the total respondents said that they find difficulty in understanding the language given in the books and 47 of the respondents said that books are easily accessible only through a library; which makes it a second priority for students since internet is always available to them. Management & Change, Volume 18, Number 2 (2014)

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Figure 6(b): General Attitude towards Books (Specific)

DISCUSSION The finds of the study revealed that: •

Students’ learning process is changing dramatically.

•

Earlier more students were inclined towards books and the classroom discussions only. Growth of the internet has led to many changes in the learning patterns of students.

•

Students now-a-days have an eagerness to learn, yet do not want to spend time on reading. They desire crisp and instant mode of learning. Patience is not seen in today’s generation.

•

Moreover, internet has certain advantages over traditional ways of learning. Students want to keep things always ready and available for future as and when required by them. So they take internet as a better option. Students with prior work experience tend to study more through internet sources. They heavily rely on easy to access resources of learning.

•

Among the students, female students are ahead of their male counterparts in context to studying through text books, preference to study from text books and referring more text books. Similarly, they have an edge over male students towards self-prepared study material whereas male students prefer studying from internet as they

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consider internet as an important tool of learning. â&#x20AC;˘

Students with work experience either in the same fields or in some other field also prefer to study through internet. They find it easier to understand things from internet and they also take material which is available on internet as an authentic study material

CONCLUSIONS AND RECOMMENDATIONS Students who belong to different courses have different set standard of learning. Different course demands a complete new way of organizing and planning the learning approach. Now-a-days students are more time savvy. A different approach towards their studies can help them to learn basic concepts with ease and apply the same in real life. But since management students come prepared for the challenges so they see things with a critical approach. Perhaps this is the reason that they rely more on internet. The learning approach of students with work experience is very much different from the one who do not possess any prior work experience. Understanding of the concepts is also better among the female students and experienced students. Internet, no doubt has acquired a better position. Classroom discussion still plays an important role. Academicians have to take care of material that they are uploading on internet as students take them as a ready source of studying. Moreover, designing of the book needs a transformation. It should be based on the instructional design technique. Concepts like Blooms Taxonomy should be used for the designing. Language of the books should be easy for the better understanding of the concept. Learning facilitatorsâ&#x20AC;&#x2122; should encourage students to learn from books as it is more authenticated and tested knowledge. Research papers should become an integral part of the management education for the betterment of management education as a whole. The next step is to study the learning patterns of students and learners in the distance education mode. This paper does not fulfill the understanding of the study patterns in the distance and online mode which has a further scope of research. Management & Change, Volume 18, Number 2 (2014)

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REFERENCES: Alexander, S. (1995). Teaching and learning on the World Wide Web. Available: http://www.scu.edu.au/ausweb95/ papers/education2/ alexander/. Annis, L. F. (1979). Effect of cognitive style and learning passage organization on study technique effectiveness. Journal of Educational Psychology, 71, pp 620-626. Biggs, J. B. (1987). Students approaches to learning and studying. Australian council of management and research. Charles C. Schroeder. (1993). New Studentsâ&#x20AC;&#x201D;New Learning Styles, Change: The Magazine of Higher Learning, pp 21-26. Cross, R. C., & Steadman, M. H. (1996). Classroom research: Implementing the scholarship of teaching. San Francisco, CA: JosseyBass Publishers. Day, T. M., Raven, M., & Newman, M. E. (1997). The effects of World Wide Web instruction and traditional instruction and learning styles on achievement and changes in student attitude in a technical writing in agri communication course. Proceedings of National Agricultural Education Research Meeting, Las Vegas, Nevada, 24, pp167-176. E. Geisler-Brenstein, et al., (January 1996). An individual difference perspective on student diversity. Higher Education . 31 (I), pp 7396. Entwistle, N. J. & Tait, H. (1990). Approaches to learning,evaluations of teaching, and preferences for contrasting academic environments. Higher education. 19, pp169 - 194. Fabry .G. (2012). Novice medical students: Individual patterns in the use of learning strategies and how they change during the first academic year , GMS Zeitschrift fĂźr Medizinische Ausbildung. Garger, S., & Guild, P. (1984). Learning styles: The crucial differences. Curriculum Review, 23(1), pp 9-12. Management & Change, Volume 18, Number 2 (2014)

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Liu, M., & Reed, W. M. (1994). The relationship between the learning strategies and learning styles in a hypermedia environment. Computers in Human Behavior, 10(4), pp 419-434. Marton, F;Saljo , R. (1984). Approaches to learning. scottish academic press. I (3), pp 36-55. Miller, G. (1997a). Are distance education programs more acceptable to field-independent learners? (ERIC Document Reproduction Service No. 409854). Moore, D. M., & Dwyer, F. M. (1992). Effects of color coding on cognitive styles. Proceedings of the Annual Meeting of the Eastern Education Research Meeting, Hilton Head, SC. Park, C. C. (2000). Learning style preferences of South-East Asian students. Urban Education, 35, pp 245-268. Parson, R. (1998). An investigation into instruction available on the World Wide Web. Available: http://www.oise.utoronto .ca/~rparson/ abstract.html. Pintrich, P. R., & Johnson, G. R. (1990). Assessing and improving studentsâ&#x20AC;&#x2122; learning strategies. The changing face of college teaching: New directions for teaching and learning, (No. 42, pp 83-92). San Francisco, CA: Jossey-Bass Publishers Ramburuth, P. & Mc Cormick, J. 2001. Learning diversity in higher education: A comparative study of Asian international and Australian students. Higher Education 4: pp333-350. Raven, M. R., Cano, J., Garton, B. L., & Shellhamer, V. (1993). A comparison of learning styles, teaching styles, and personality styles of preservice Montana and Ohio agricultural teachers. Journal of Agricultural Education, 31(1), pp 40-50. Ronning, R. R., Mc Curdy, D., & Ballinger, R. (1984). Individual differences: A third component in problem-solving instruction. Journal of Research in Science Teaching, 21(1), pp 71-82. Management & Change, Volume 18, Number 2 (2014)

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Russell, T. L. (1998). The â&#x20AC;&#x153;no significant differenceâ&#x20AC;? phenomenon (4th ed.). Available: http://tenb.mta.ca/ phenom/ phenom.html. Witkin, H. A., Oltman, P. K., Raskin, E., & Karp, S. A. (1971). Group Embedded Figures Test manual. Palo Alto, CA: Consulting Psychologists Press.ce Montana and Ohio agricultural teachers. Journal of Agricultural Education, 31(1), pp 40-50. Witkin, H. A., Moore, C. A., Goodenough, D. R., & Cox, P. W. (1977). Field-dependent and field-independent cognitive styles and their educational implications. Review of Educational Research, 47(1), pp 1-64. Weinstein, C. E., & Meyer, D. K. (1991). Cognitive learning strategies and college teaching. In R. J. Menges and M. D. Svinicki (Eds.), College teaching: from theory to practice, New directions for teaching and learning, (No 45, pp.15-26) San Francisco, CA: Jossey-Bass Publishers. Dryden, G. & Vos, J. (1999). The Learning Revolution: To Change the Way the World Learns. Torrance, California: The Learning Web. Stutes, A. B. (1995). Connected teaching: integrated learning styles with developmental stages in freshman music theory classroom, Thesis (PhD), Texas University.

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ADELAIDE KING'S DISENTANGLING INTERFIRM AND INTRAFIRM CAUSAL AMBIGUITY: A CRITICAL REVIEW Jashim Uddin Ahmed1

Mohammad Jasim Uddin 2

This paper has reviewed King (2007) that focuses on causal ambiguity. King (2007) mainly argues that higher levels of intrafirm causal ambiguity are less likely to sustain competitive advantage and higher levels of interfirm causal ambiguity sustain competitive advantage. We critically examine these arguments by explaining implications of causal ambiguity and argue that higher levels of intrafirm causal ambiguity may lead to sustainable competitive advantage and interfirm causal ambiguity may be barriers for sustainable competitive advantage. We also argue that firms also can achieve competitive advantage in the absence of interfirm causal ambiguity. Keywords: Adelaide King, Interfirm, Intrafirm, Sustainable Competitive Advantage INTRODUCTION King (2007) offers different perspectives on causal ambiguity. Causal ambiguity is an important issue in resource-based view (Barney, 1991; Armstrong & Shimizu, 2007; Lockett, Thompson & Morgenstern, 2009). However King begins her discussion indicating that managers engage in strategic decisions ‘based on insufficient, unclear or conflicting inputs’ (p.156) that infers that manager’s decisions are generally perceived as irrational. King explains causal ambiguity from ‘competency’ based perspectives of strategic management. Particularly a causal ambiguity model developed by King mainly indicates that higher levels of intrafirm causal ambiguity are less likely to sustain competitive advantage and higher 1

Associate Professor & Chair, Department Of Management School Of Business, North South University, Bashundhara R/A, Dhaka-1229, Bangladesh. E-mail: jashim@northsouth.edu 2 Lecturer, School Of Business, North South University, Bashundhara R/A, Dhaka-1229, Bangladesh. E-mail: juddin@northsouth.edu

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levels of interfirm causal ambiguity sustain competitive advantage. The focal point of her argument is that strong and diverse cognitive abilities of managers that are highly ambiguous within the organizations are less likely to sustain competitive advantage. On the other hand, causal ambiguity existed between the focal firm and a single competitor leads to sustainable competitive advantage. We critically evaluate the above arguments. These arguments are important because they are strongly associated with the sustainable competitive advantage, which is a critical issue in strategic management. However, we argue that decisions are not only irrational; they can be rational as well. We argue that explaining causal ambiguity from competency perspectives is a narrow perspective because causal ambiguity is linked with a number of sources (Barney, 1991). We also argue that the higher levels of intrafirm causal ambiguity may lead to sustainable competitive advantage and higher levels of interfirm causal ambiguity may be barriers to sustainable competitive advantage. Firms can achieve sustainable competitive advantage in the absence of causal ambiguity, and, causal ambiguity is not a required element for sustainable competitive advantage. SUSTAINABLE COMPETITIVE ADVANTAGE AND CAUSAL AMBIGUITY There has been a continuous debate on what constitutes sustainable competitive advantage in strategic management. Porter (1980; 1985) and Porter & Miller (1985) argue that competitive strategy emerges from sophisticated understanding of the notions and rules of the competition that determine the industry attractiveness. The ultimate goal of competitive advantage is to cope and change those rules in the favour of the organizations. The rules of competition are embedded in five competitive forces: the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among the existing competitors (Porter, 1985). According to generic model of Porter (1980; 1985), in order to achieve competitive advantage, firms must make a choice about the type of competitive advantage (i.e. cost leadership, differentiation, and differentiation costs) they seek to attain. Firms can also gain competitive advantage through optimizing or neutralizing external factors i.e. opportunities, threats, and industry competition (Porter, 1985) Management & Change, Volume 18, Number 2 (2014)

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and effective and competitive value chain system (Porter & Miller, 1985). Hall (1992; 1993) proposes intangible resources such as employee knowhow, reputation and capacity to manage change as sources of sustainable competitive advantage. Resource-based view (Wernerfelt, 1984; Barney, 1986; Armstrong & Shimizu, 2007; Ambrosini & Bowman, 2009; Lockett, Thompson & Morgenstern, 2009; Johnson, Whittington & Scholes, 2011) is another theory of competitive advantage. According to resource-based view, in order to achieve sustainable competitive advantage, the firm’s resources must have to be valuable, rare, imperfectly imitable and substitutable (Barney, 1991). Causal ambiguity is an important aspect of inimitability. Causal ambiguity has received significant attention in strategic management. It implies that the links between firm’s resources and firm’s sustainable competitive advantage are poorly understood by the strategists (Lippman & Rumelt, 1982; Reed & DeFillipi, 1990; Barney, 1991). Causal ambiguity is the condition under which neither the firm nor its rivals can determine the causes and effects of firm performance (Powell, Lovallo & Caringal, 2006). King & Zeithaml (2001) and Reed & DeFillippi (1990) argue that causal ambiguity is the result of complexity and tacitness of competencies and, as a result, it is difficult to specify sources of performance. The central issue of causal ambiguity is that it deters imitation of resources and enables sustainable competitive advantage. However, interfirm causal ambiguity refers to the condition when a competitor fails ‘to identify or understand how a focal firm uses a key competency severely limits the competitor’s options for closing the gap with regard to that competency’ (King, 2007, p. 167) and intrafirm causal ambiguity indicates a condition when managers fail to understand the links between firm performance and its competencies (King, 2007). STRATEGIC DECISION MAKING: CAUSALLY AMBIGUOUS? King begins her paper insisting that strategic issues are intrinsically messy and based on insufficient and unclear information; this simply implies that strategic decisions are causally ambiguous. While this view is not utterly rejected, it is not even fully accepted. However, starting a paper with such view is an indication of rejecting other perspectives of decision making process. Strategic decision making has been a long debate in Management & Change, Volume 18, Number 2 (2014)

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strategic management and it has been well argued that strategic decisions are based on rational judgement. Rational decision making is related to organizational goals and thereby associated with performance (Goll & Rasheed, 1997). Simon (1993) points out that rational behavior is well adapted to its goals. On the other hand, Mintzberg, Ahlstrand & Lampel (1998) argue that strategy process has to be integrated with the mental and social aspects, environmental demands and organizational forces. The scarcity of resources leads organizations to avoid excessive risks and take rational decisions (Goll & Rasheed, 1997). Therefore strategic decisions are made based on situational contexts (Papadakis, Lloukas & Chambers, 1998) and understanding the complexity of the organizations explores best alternative options (Simon, 1979). It is argued that King’s arguments on strategic issues have limited perspectives and have ignored rational decisions based on in-depth inquiry of internal resources and external opportunities. IS COMPETENCY ONLY A SOURCE OF CAUSAL AMBIGUITY LEADING TO SUSTAINABLE COMPETITIVE ADVANTAGE? King uses competence-based perspectives to explain manager’s competence to deal with resources, knowledge and capabilities that differentiate a firm in such a way that lead to sustainable competitive advantage. She argues that competence is an important source of causal ambiguity. Barney (1991) indicates that causal ambiguity can be associated with resources such as employees’ competence, interpersonal relationship, reputation, customers, complex information system and complex social resources etc. except any resources that cannot be perfectly imitable. However, Barney also argues that under conditions of causal ambiguity, it is not clear whether the resources generate a sustainable competitive advantage, or whether the advantage reflects some other non-described firm resource. According to Barney, it appears that King’s explanation of causal ambiguity is narrowly defined because she has not considered different perspectives of causal ambiguity and their implications towards sustainable competitive advantage. IMPLICATIONS OF CAUSAL AMBIGUITY King argues that characteristics and competency-outcome relationship directly affect both intrafirm and interfirm causal ambiguity. Management & Change, Volume 18, Number 2 (2014)

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However, higher levels of interfirm causal ambiguity are likely to sustain competitive advantage, and, on the other hand, higher levels of intrafirm causal ambiguity are less likely to sustain competitive advantage. We do agree that such arguments may be appropriate to specific contexts but it requires further examination. We argue that sustainable competitive advantage can be achieved under different contexts such as: (a) a certain level of intrafirm causal ambiguity existed within the organizations may lead to sustainable competitive advantage, (b) sustainable competitive advantage may be achieved even without considering causal ambiguity (or in the absence of causal ambiguity), (c) interfirm causal ambiguity may be barrier to sustainable competitive advantage, and (d) limitations of causal ambiguity is not addressed by King. Each of our arguments is explained as follows: (a) Intrafirm causal ambiguity and sustainable competitive advantage: King argues that higher levels of intrafirm causal ambiguity are less likely to sustain competitive advantage. However, we argue that there are some missing links between intrafirm causal ambiguity and sustainable competitive advantage that are not addressed by King. Organizations may achieve sustainable competitive advantage even when higher level of intrafirm causal ambiguity existed in managerâ&#x20AC;&#x2122;s competencies. As Barney (1991) indicates, causal ambiguity can be one of the important aspects of the inimitability criteria to meet the condition of sustainable competitive advantage. However, it appears that it is often difficult to explicitly explain different leadership characteristics and styles especially when visionary managers apply different dynamic styles based on the situational contexts (Helfat et al., 2007). But strategic vision of managers is inherently tacit and complex. Such tacit skills and knowledge may not be potentially replicable and transferrable. Therefore, strategic vision offers a cognitive map that deals with a set of logic for deploying the organization resources and strategic business units. Westley & Mintzberg (1989) argue that visionary styles are so complex taking on a variety of different forms and linking to different strategic contexts such as products, market, issue, process, and organizationâ&#x20AC;&#x2122;s unique history and culture that cannot be easily understood by all levels in the organizations. Visionary leadership Management & Change, Volume 18, Number 2 (2014)

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can be requisite leadership type for achieving sustainable competitive advantage through quality-led strategic change (Nwankwo & Richardson, 1996). Tactics applied by managers are causally ambiguous and regarded as key competencies that are associated with higher firm performance (Porter, 1980; Lippman & Rumelt 1982; Barney, 1991) and sustainable competitive advantage. This also indicates that such tactics or unexplained characteristics will protect competencies from imitation or subject to ‘isolating mechanism’ or ‘mobility barriers’ as revealed by Rumelt (1987). Therefore King’s argument in the context of high levels of intrafirm causal ambiguity also contradicts with Barney (1991) who argues that causal ambiguity persists within the organization that leads to sustained competitive advantage. Therefore, the argument here is based on the ground that higher levels of intrafirm causal ambiguity, especially within top management, are likely to result in sustainable competitive advantage or at least not impede competitive advantage. If lower levels of causal ambiguity exist within organizations, they are less likely to sustain competitive advantage because such competencies can be easily imitated by competitors. (b) Sustainable competitive advantage in the absence of interfirm causal ambiguity: King’s causality ambiguity model indicates that higher levels of interfirm causal ambiguity sustain competitive advantage (Barney, 1991). However, to gain a better understanding of how managers may be able to exploit market imperfections, in both resource and product markets, to advance firm performance. Not merely does it cede a substantial role to managers, but it also links the internal and external environments in which they operate. In this way, it also distinguishes the academic study of strategic management from that of industrial organization economics. The latter has made considerable progress in analyzing the firm’s optimal response to its external environment, including the behaviour of its rivals, but it tends to retain its traditional characterization of the firm’s internal workings as a ‘black box’ beyond scrutiny (Lockett, Thompson & Morgenstern, 2009). But we argue that sustainable competitive advantage can be achieved in the absence of causal ambiguity and that human resource Management & Change, Volume 18, Number 2 (2014)

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management system can play significant role in achieving sustainable competitive advantage without considering causal ambiguity as an important element of competitive sources. Therefore, interfirm causal ambiguity cannot be a necessary condition for sustainable competitive advantage. This is explicitly pointed out by Barney (1991) that there are four essential indicators of sustainable competitive advantage that the resources need to be valuable, rare, imperfectly imitable and non-substitutable. Explaining the prerequisite conditions of ‘imperfectly imitable resource’, Barney (1991, p. 107) clarifies that ‘firm resources can be imperfectly imitable for one or a combination of three reasons: (a) the ability of the firm to obtain a resource is dependent upon unique historical conditions, (b) the link between the resources possessed by a firm and a firm’s sustainable competitive advantage is causally ambiguous, or (c) the resource generating a firm’s advantage is socially complex. This is does not necessarily imply that the firm’s resources need to be causally ambiguous in order to meet the conditions for sustainable competitive advantage rather Barney emphasizes that inimitability or imperfect imitability is the necessary condition for sustainable competitive advantage. On the other hand, the relationship between management competency and sustainable competitive advantage has been a long debate mainly in strategic human resource management. Human resource system can be a unique source of sustainable competitive advantage through deploying its human resources and internal and external fit (Schuler & MacMillan, 1984; Baird & Meshoulam, 1988). Since organizations face enormous challenges due to inter-organizational and environmental changes, if employees are able to deal and adapt with these changes it would lead to sustainable competitive advantage. According to resource-based view, organizations can develop competencies that are valuable, rare and difficult for competitors to imitate (Becker & Gerhart, 1996). Therefore organizations can adopt various human resource practices that can have an economically significant effect on organization performance and gain sustainable competitive advantage (Delaney & Huselid, 1996). Similarly, Koch & McGrath (1996) support that organizations can achieve competitive advantage by using labour productivity along with sophisticated human resources practices i.e. recruitment system, Management & Change, Volume 18, Number 2 (2014)

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training and development, performance management and reward system. Wright, Dunford & Snell (2001) argue that human resources can be strategically important. In particular, they emphasize that human resource practices can provide sustainable competitive advantage over time. On similar lines, Boxall (1998) adds that firms can secure competitive advantage in the industry through superior human capital and organizational resources. Superiority of such resources depends on the quality of employee development compared with industry competitors. A practical example is provided here for better understanding of this argument. Grameen Bank, pioneer of microfinance in Bangladesh, has been operating in the disadvantaged geographical areas of the country. It has developed very strong human forces that help the institution to sustain competitive advantage. The unique operational approaches and characteristics of the style of management and workforces of Grameen Bank are no longer secret to around 580 microfinance institutions in Bangladesh. Yet no institution has been successful in imitating the unique human resource system and practices of Grameen Bank. The question therefore arises that why imitation has not been successful in case of this specific example. The argument presented by Barney (1991) is justifiable in this context, because it is almost impossible to replicate manager’s competencies as they are rooted in organizational history, culture, and unique management styles. In the same point of view, Hall (1992) indicates that organizational cultural differences are associated with the organization’s habits, attitudes, and values. Grameen bank has developed some effective human resource practices that are well fitted with the organization’s specific culture in such a way that competitors cannot imitate such practices, although causal ambiguity is absent here. Organizational unique human resource practices can be subject to ‘isolating mechanism’ (Rumelt, 1987) and organizational unique culture can be subject to ‘path dependency’ (Reed & De Fillipi, 1990). (c) Interfirm causal ambiguity as a potential barrier to sustainable competitive advantage: King argues that inter-firm causal ambiguity sustains competitive advantage. Although this argument may be accepted, however in certain contexts it may be a potential barrier for sustainable competitive advantage. For example, in terms of Management & Change, Volume 18, Number 2 (2014)

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mergers and acquisitions, it may be difficult to accommodate interfirm differences especially when there exist substantial causal ambiguities between acquiring and acquired firms. The potential problem is existence of any high level of differential values inherited within the organizational cultures, values and norms. While some aspects of management culture are, of course, shared across organizations, crucial but subtle facets are indigenous to particular organizations. Research indicates that cultural differences between organizations in the same industry can be just as much as cultural differences across industries (Buckley & Ghauri, 2002). Therefore, higher levels of interfirm differences may also impede knowledge sharing through developing acquisition strategies and core intellectual capital, which have to be at the root of high value synergies (Gupta & Roos, 2001). Pablo (1994) argues that the level of integration is an important concept in acquisition management that combines all types of resources. Substantial differences in cultural diversity and politics may negatively affect the value from integration of synergies. It is argued that if higher level of interfirm causal ambiguity is involved in the acquisition process, the values of synergies may negatively affect organizational outcomes. Researchers have also proposed alternative views to protect organizations from imitations. Mc Evily, Das and Mccabe (2004) indicate that causal ambiguity may stimulate competitors to forego imitation and may promote innovations that render the firmâ&#x20AC;&#x2122;s competencies ineffectual or obsolete. Firms can build barriers through continuous improvement of management practices (i.e. the ways of organizing and coordinating activities), technology (i.e. product or process design parameters) and business models (i.e. set of activities used to serve a market segment). This indicates that if there is potential interfirm causal ambiguity, it may compel the competitors to continuously engage in innovations and as a result such innovations may discourage a firm to benefit from interfirm causal ambiguity. (d) Limitations of causal ambiguity: Researchers are also concerned about the problem of unobservables and epistemological positions in causal ambiguity (Godfrey & Hill 1995; Priem & Butler 2001; Powell 2001). In terms of unobservables, philosophical thought are diverging. For example, logical positivists argue that theories that Management & Change, Volume 18, Number 2 (2014)

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contain unobservables should not be judged on the basis of their correspondence to reality. On the other hand, realists argue that when a theory that contains unobservables is well corroborated by scientific evidence, there are good reasons to believe that those unobservable entities have a correspondence in reality. Thus it may be inferred that positivists view unobservables not as good predictions for strategic decision making whereas realists view unobservables as good predictive value for strategic decision making. The resource-based theory, however, uses unobservables to explain performance persistence over time and provide barriers to imitation. If there are no unobservable resources, the resource-based view loses its substantial explanatory power (Godfrey & Hill, 1995). According to this perspective, proponents of logical positivism philosophy rarely rely on unobservable phenomenon of firm’s resources. On the other hand, Lockett and Thompson (2001) argue that the problem of unobservables or causal ambiguity is well recognised in economics. They insist that there is a ‘degree of freedom’ problem associated with causal ambiguity and resources may be difficult to conceptualise. The causal ambiguity problem is compounded where more intangible resources are concerned and, therefore, there are obvious difficulties in obtaining unambiguous measure of quantitative work. Similarly Lippman & Rumelt (1982) argue that management is far from exact science and ambiguity surrounding the linkage between action and performance in large firm virtually guarantees the existence of substantial uncertain ambiguity. CONCLUSION Causal ambiguity is crucial in strategic management. However implications of causal ambiguity need to be carefully examined in order to understand its impact on sustainable competitive advantage. The discussion above provides a number of implications. King’s claims on intrafirm and interfirm causal ambiguity may not be appropriate widely. We argue that intrafirm causal ambiguity is likely to sustain competitive advantage because causal ambiguity in manager’s competencies may impede imitability. On the other hand, interfirm causal ambiguity may be barriers to sustainable competitive advantage. We also argue that organizations can achieve competitive advantage even in the absence of causal ambiguity. Causal Management & Change, Volume 18, Number 2 (2014)

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ambiguity is not an essential element for competitive advantage but it may be a desirable element. We are not rejecting the arguments of King (2007), but we argue that her arguments on causal ambiguity based on sustainable competitive advantage cannot be taken as granted. The central debate in the literature is how to gain sustainable competitive advantage. Kingâ&#x20AC;&#x2122;s focus on sustainable competitive advantage through interfirm causal ambiguity is complementary but it exposes potential risks. King has potentially overlooked the implications of causal ambiguity. Researchers (Porter, 1985; Barney, 1991; Hall, 1992) provide wider perspectives on competitive advantage and indicate implications of resources possessed by organizations. We strongly agree that the effects of causal ambiguity may potentially lead to sustainable competitive advantage, but they need to be carefully examined to evaluate which effects lead to competitive advantage and to what extent. Along with causal ambiguity, other options need to be examined that may persistently also lead to sustainable competitive advantage. The major limitation of our argument is that we examine King based on some specific arguments. We emphasise that further research on the other issues of King will provide more critical understanding of Kingâ&#x20AC;&#x2122;s arguments. REFERENCES: Ambrosini, V. & Bowman, C. (2009).What are dynamic capabilities and are they a useful construct in strategic management?. International Journal of Management Reviews. 11, pp 29-49. Armstrong, C. E. & Shimizu K. (2007).A review of approaches to empirical research on the resource-based view of the firm. Journal of Management. 33, pp 959â&#x20AC;&#x201C;986. Baird, L. & Meshoulam, I. (1988).Maintaining two fits of strategic human resource management. Academy of Management Review. 13, pp 116-128. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management. 17, pp 99-120.

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Barney, J. B. (1986).Strategic factor markets: expectations, luck and business strategy. Management Science. 32, pp 1231-1241. Becker, B. & Gerhart, B. (1996). The impact of human resource management on organisational performance: progress and prospects. Academy of Management Journal. 39, pp 779-801. Boxall, P. (1998). Achieving competitive advantage through human resource strategy: Towards a theory of industry dynamics. Human Resource Management Review. 8, pp 265-288. Buckley, P. J. & Ghauri, P. N. (2002). International merger and acquisition: a reader. London: Thomson. Delaney, J. T. & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal. 39, pp 949-969. Godfrey, P. C. & Hill, C. W. L. (1995). The problem of unobservables in strategic management research. Strategic Management Journal. 16, pp 519-533. Goll, I. & Rasheed, A. M. A. (1997).Rational decision-making and firm performance: the moderating role of environment. Strategic Management Journal. 18, pp 583-591. Gupta, O. & Roos, G. (2001). Mergers and acquisitions through an intellectual capital perspective. Journal of Intellectual Capital. 2, pp 297-309. Hall, R. (1993). A framework linking intangible resources and capabilities to sustainable competitive Advantage. Strategic Management Journal. 14, pp 607-618. Hall, R. (1992). The strategic analysis of intangible resources. Strategic Management Journal. 13, pp 135-144. Helfat, C., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D. & Winter, S. (2007). Dynamic Capabilities: Understanding Strategic Change in Organizations. Malden, MA: Blackwell. Management & Change, Volume 18, Number 2 (2014)

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Johnson, G., Whittington, R., & Scholes, K. (2011). Exploring Strategy. Financial Times Press. Lippman, S. & Rumelt, R. (1982). Uncertain imitability: An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics. 13, pp 418-438. Lockett, A., Thompson, S., & Morgenstern, U. (2009). The development of the resource-based view of the firm: A critical appraisal. International Journal of Management Reviews. 11, pp 9-28. Lockett, A. & Thompson, S. (2001). The resource-based view and economics. Journal of Management. 6, pp 723â&#x20AC;&#x201C;754. Mcevily, S. K., Das, S., & Mccabe, K. (2000). Avoiding competitive substitution through knowledge sharing. Academy of Management Review. 25, pp 294-311. Mintzberg, H., Ahlstrand, B. & Lampel, J. (1998). Strategy safari: a guided tour through the wilds of strategic management. New York: Free Press. Nwankwo, S. & Richardson, B. (1996). Quality management through visionary leadership. Managing Service Quality. 6, pp 44-47. King, A. W. (2007). Disentangling interfirm and intrafirm causal ambiguity: a conceptual model of causal ambiguity and sustainable competitive advantage. Academy of Management Review. 32, pp 156-178. King, A. W. & Zeithaml, C. (2001). Competencies and firm performance: Examining the causal ambiguity paradox. Strategic Management Journal. 22, pp 75â&#x20AC;&#x201C;99. Koch, M. J. & Mc Grath, R.G. (1996). Improving labour productivity: human resource management policies do matter. Strategic Management Journal. 17, pp 335-354. Papadakis, V. M., LIoukas, S. & Chambers, D. (1998). Strategic decision-making process: The role of management and context. Strategic Management Journal. 9, pp 115-147. Management & Change, Volume 18, Number 2 (2014)

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Pablo, A. L. (1994). Determinants of acquisition of integration level: a decision making perspective. Academy of Management Journal. 37, pp 803-836. Powell, T. C. (2001).Competitive advantage: Logical and philosophical considerations. Strategic Management Journal. 22, pp 875– 888. Porter, M. E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York: Free Press. Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Press. Porter, M. E. & Miller, V. E. (1985). How information gives you competitive advantage. Harvard Business Review. 63, pp 49-60. Powell, T. C., Lovallo, D. & Caringal, C. (2006). Causal ambiguity, management perception, and firm performance. Academy of Management Review. 31, pp 175-196. Priem, R. & Butler, J. (2001). Is the resource-based “view” a useful perspective for strategic management research?. Academy of Management Review. 26, pp 22–40. Reed, R. & De Fillipi, R. (1990). Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of Management Review. 15, pp 88-120. Rumelt, R. P. (1987).Theory, strategy and entrepreneurship, In Teece, D.J. (ed), The Competitive Challenge: Strategies for Industrial Innovation and Renewal. Cambridge, MA: Ballinger. Schuler, R. S. & MacMillan, I. C. (1984). Gaining competitive advantage through human resource management practices. Human Resource Management. 23, pp 241-255. Simon, H. A. (1993). Decision making: rational, nonrational, and irrational. Educational Administration Quarterly. 29, pp 392-411. Management & Change, Volume 18, Number 2 (2014)

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Westley, F. & Mintzberg, H. (1989). Visionary Leadership and Strategic Management. Strategic Management Journal. 10, pp 17-32. Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal. 5, pp 171-180. Wright, P., Dunford, B. & Snell, S. (2001). Human resources and the resource-based view of the firm. Journal of Management. 6, pp 701â&#x20AC;&#x201C;721.

Management & Change, Volume 18, Number 2 (2014)

ENVIRONMENTALISM AND GREEN CONSUMER BEHAVIOR: AN EMPIRICAL STUDY ON INDIAN STUDENTS Adnan Ali

Mohd. Adil 2

The human race today is facing a plethora of problems related to environment which has lead us to question our future as a race. It has therefore become imperative to know the human environmental psychology, behaviour and attitude. For the present study, structured questionnaire was administered and data was collected from 170 young students enrolled in management course in reputed Universities in New Delhi. Test of dimensionality was carried out through Exploratory Factor Analysis (EFA) as well as through Confirmatory Factor Analysis (CFA).Other statistical analyses such as scale reliability and correlation were also used in this study. Thus, findings establish the fact that the scale is multi-dimensional in nature and three dimensionsâ&#x20AC;&#x201D; environmental behavior, guilt and consumer attitude, were found to be critical determinants of green consumer behavior in Indian context. Further, it was also found that 3 dimensional 21 items EF model failed to converge when tested against CFA. Only when two items with poor standard loadings were deleted, model achieved goodness of fit. Thus, the model was reduced to 3 dimensions and 19 items. Keywords: Environment, Earth Friendly, Green,Students, Consumers, CFA Model INTRODUCTION Marketers once felt that green products were a trend and simply 1

Associate (Sales), Pearson India Education Services Pvt. Ltd (PIESPL), Master Of Business Administration (Marketing), Department Of Business Administration, Aligarh Muslim University, Aligarh, 202002, Uttar Pradesh, India. E-mail: adnanali014@gmail.com 2 Assistant Professor, Department Of Business Administration, Aligarh Muslim University, Malappuram Centre , Kerala-679340, India. E-mail: adilcms07@gmail.com

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attempted to exploit the potential opportunity of the moment (Banerjee, Gulas & Iyer, 1995). However, what once was a fad is now social responsibility. Although, earth-friendly awareness campaign of 1960s brought various movements to the United States, the formal introduction of the idea of green consumers segments did not come to academic literature until the 1990s with the publication of the Roper Organizationâ&#x20AC;&#x2122;s Green Gauge Study in the year 1993 (Stisser, 1994). At that time, it was clear that consumers had become more educated about the environment and were beginning to make their purchases based on their growing green consciousness (Stisser, 1994). There are also more laws being made which are forcing companies and to some extent consumers to be more aware of the environment. Green consumerism has witnessed many ups and downs since past half century or more. What is more surprising is the claim that green marketing is recession proof. In 2009 alone, studies show that 458 sustainable, environmentally-friendly products were launched (Neff, 2009). Despite being the high cost of these products, consumers are still buying. For example, Nielsen Co. claimed a 5.6% increase in sales in the organic food industry. Review of the past several decades indicates that every green movement failed due to recessions; however, Neff (2009) showed in his study that people are still buying eco-friendly regardless of the failing economy, indicating that consumers are changing their behaviors for extraneous reasons besides financial impact. Thus, Regardless of economic conditions, consumers are becoming more educated with regard to environmental issues, and hence, requiring responsible companies to produce affordable, environmentally-friendly products (Silverman, 2009). LITERATURE REVIEW The Different Shades of Green Consumers Regardless of the different levels of motivation, going green decisions still encompass various levels of greenness. These choices force consumers to assess the environmental impact of their purchase choices while simultaneously requiring them to alter their behavioral patterns when purchasing, consuming and disposing of products. Management & Change, Volume 18, Number 2 (2014)

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Although many advertisements today include green claims, very few clearly articulate the true benefit of the product or state the specific environmental action taken by the company to make their product ecofriendly (Banerjee et al., 1995). As a matter of fact, many advertisements make vague, general claims, and many appear to blatantly mislead consumers. This causes skepticism among green consumer groups and can lead to cynicism if marketers continue this grey path. According to a report of 2011, a skeptic is a person who is inclined to question the truth of facts, inferences, and so on. Skepticism is more situational and shortterm, which indicates the ability to sway individuals who may appear skeptical at times. However, cynicism is characterized by a more enduring, long-term disbelief in the claims of others (Bronn &Vrioni, 2001). Environmental awareness is the first step for green purchasing and the slow incline of green market share may suggest that the true green consumer segment is not growing (Meyer, 2001). The modesty of the green market could be explained by the limited amount of green product groups. Many product groups lack green alternatives; therefore, it cannot be anticipated large increases in market share while this segment of consumer remains limited(Rex & Baumann, 2006).Marketers should be tasked with finding green consumers and educating them about the environmental values and processes the product shares with their beliefs (Rex & Baumann,2006). Definition-Green Consumer The American Marketing Associationâ&#x20AC;&#x2122;s definition of Marketing speaks to marketingâ&#x20AC;&#x2122;s role in the creation of goods and services that have value for both the consumer and society at large. Environmental responsibility has become an increasingly important component for both groups. Thus, as businesses attempt to incorporate more pro-environmental behaviour and performance into their marketing practices, much of their focus has been on the identification and understanding of the green or environmentally conscious consumer. Some of the prominent definitions proposed in the past are given in a tabulated form (see Table 1).

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Table 1: Selected Definitions of Green Consumer S.no. Author

Year

Macdonald 2006 et al.,

Peattie

1995

Elkington

1994

Ottman

1993

Kardash

1974

Definition “All consumers are potentially green consumer. When a consumer has choice to buy from two identical products, the consumer will tend to buy environmentally friendly product”. “A green consumer is an individual that wants and knows how to satisfy his or her needs in the everyday life causing as little as possible impact on the environment” “A green consumer can be identified to be one who avoids any product which may harm damage to any living organism, cause deterioration of the environment during process of manufacturing or during process of usage, consume a large amount of non-renewable energy , involves unethical testing on animals or human subjects” “Green consumers actively seek & support the products which satisfy their needs & have less impact on environment” “All consumers (barring a few wh o enjoy contrariness for its own sake) are ‘green consumers’ in that, faced with a choice between two products that are identical in all respects except that one is superior in terms of its eco -performance, they would differentiate in terms of the environmentally superior product”

Corporate Social Responsibility Corporate social responsibility (CSR) can be traced back to the 1800s in the form of philanthropy and charitable donations. CSR, as we know it today, began its development in the 1960s when corporations began extending their responsibilities beyond their legal obligations (Bronn &Vrioni, 2001). There are many definitions of CSR, the broadest being, “corporate social actions whose purpose is to satisfy social needs” (Angelidis & Ibrahim, 1993). Another review of literature suggest that CSR is defined by, “The extent to which organizational outcomes are consistent with societal values and expectations” (Lerner & Fryxell, 1988). The most recent definition of CSR is described as, “the policy and practice of a corporation’s social involvement over and beyond its legal obligations for the benefit of the society at large” (Enderly &Tavis, 1998). RESEARCH METHODOLOGY Research Objectives The primary objectives of the study is to explore factors that determines Indian consumers’ green buying behavior and test the fitness of the hypothesized measurement model. Management & Change, Volume 18, Number 2 (2014)

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Instrument Design A lot of researchers have observed that to measure consumers’ attitude towards green products, factors like— Environmental Behaviour, Guilt, and Attitude have widely been used in the literature. Accordingly, 13 items related to ‘environmental behaviour’, 02 items and 06 items related to ‘guilt’ and ‘attitude’ respectively were adopted from the work of Mintz (2011). Thus, the research instrument consisted of structured questionnaire, divided into two major sections—Section I and II. Section I consisted of thirty questions on Likert scale covering different dimensions such as environmental behaviour, guilt and attitude of respondents towards green products buying behaviour. The respondents were required to indicate their level of agreement with the help of fivepoint Likert scale where 1= strongly agree; 2= mildly agree; 3=neutral; 4= mildly disagree and 5= strongly agree (eg. Ali & Adil, 2014). Section II consisted of demographic variables such as age, gender, religion, education, occupation and income. Sampling Plan and Data Collection Considering varied constraints/limitations of the researchers in the present study and also taking clue from similar researches (eg. Ali & Adil, 2014; Adil et al., 2015), it was decided to select young consumers(viz. students)from universities located in New Delhi (Capital of India).Every possible care was taken while administering the questionnaire to prevent bias from the point of view of a particular demographic group as also a particular product/company. With prior permissions from the authorities, the respondents were approach edduring their classes. As it was not practically feasible or theoretically sensible to undertake probability sampling without a reliable sample frame, researchers, in this study, adopted non-probability based purposive sampling procedure (Patsiotis et al., 2012; Adil, 2013a; Adil, 2013b; Adil et al., 2013; Adil et al., 2015).

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Table 2: Respondent’s Profile

Monthly Family Income (INR)

Religion

Age (yrs.)

Gend er

Variable Male Female Total 20-25 26-30 31-39 Total Islam Hinduism Christianity Sikhism Buddhism Total Below 10000 10000-25000 25000-50000 Above 50000 Total

N 92 78 170 84 78 8 170 66 77 15 13 4 170 15 47 62 46 170

% 54.1 45. 100 49.4 45.9 4.7 100 38.8 45.3 8.8 7.7 2.4 100 8.8 27.6 36.5 27.1 100

For three weeks of August 2013, the researchers collected the required information from respondents who voluntarily expressed their willingness to be a part of this survey. The English version of the questionnaire was personally administered on roughly 200management students from three universities located in New Delhi (namely, Jamia Millia Islamia, Delhi University and Jamia Hamdard).Researchers made it a point to brief the respondents about the subject, contents of the questionnaire and study purpose followed by administration of the questionnaire. In all, 176 completed questionnaires were returned; of these 170 responses were found suitable for further analysis. The rest six questionnaires had to be discarded as they were incomplete. ANALYSIS AND INTERPRETATION Data generated from 170 respondents was analyzed using SPSS 20.0. In accordance with the objectives considered for the present study, following analyses were carried out –Exploratory Factor Analysis (EFA), scale’s reliability test, correlation and Confirmatory Factor Analysis (CFA).

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Exploratory Factor Analysis In social sciences, a researcher often tries to measure things that cannot directly be measured and in turn complicate the study. This brings into picture the relevance of exploratory factor analysis (EFA)-a technique for identifying groups or cluster of variables (Khan & Adil, 2013). Therefore, for such kinds of situations, EFA is employed that attempts to bring inter correlated variables together under more general, underlying variables. According to Malhotra (2003), factor analysis refers to a class of procedures primarily needed for data reduction and summarization, while, Hair et al., (2006) explain factor analysis as an interdependence technique whose primary purpose is to define the underlying structure among the variables in the analysis. More specifically, the goal of factor analysis is to reduce “the dimensionality of the original space and to give an interpretation to the new space, spanned by a reduced number of new dimensions which are supposed to underlie the old ones” (Rietveld & Van Hout, 1993), or “to explain the variance in the observed variables in terms of underlying latent factors” (Habing, 2003). Thus, factor analysis offers not only the possibility of gaining a clear view of the data, but also the possibility of using the output in subsequent analyses (Field, 2000). Table 3: KMO and Bartlett’s Test-BEHAVIOUR Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity Df Sig.

.885 672.591 78.000 .000

As shown in Table 3, pre-analysis testing for the suitability of the entire sample for factor analysis was computed as recommended by Kratepe et al., (2005); Khan & Adil (2013); Adil et al., (2015).The Kaiser-Meyer-Olkin measure of sampling adequacy for the dimension ‘Behaviour’ was 0.885 that was found to be well above the threshold level and the Bartlett’s test of sphericity was significant at p=0.001. Researchers consider ‘Principal Component Analysis’ (PCA) with varimax rotation to derive factors that contain small proportion of unique

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variance and in some instances, error variance (Khan & Adil, 2013). Consequently, EFA was conducted on 13 items related to ‘Behaviour’ dimension using PCA method withvarimax rotation (see Table 4). All the items were cleanly loaded on latent factor viz. ‘Behaviour’. Table 4: Component Matrixa-BEHAVIOUR Behaviour

Component 1

I feel enthusiastic about making environmental friendly decision I often talk to my family, friends, and acquaintances about various environmentally friendly products or activities I pay attention to advertisements featuring products which are safe for the environment When there is a choice I choose the product that causes the least amount of environmental pollution I am willing to change my buying habits to have a positive impact on the environment I would consider joining a group or club which is concerned with the environment In the past, I have switched brands for environmental reasons I am interested in learning more about environmental issues and solutions I feel obligated to buy environmentally friendly products for my home I usually notice advertisements about environmentally friendly products I am willing to make personal sacrifices for the sake of safety of environment I buy products to do something good for the planet I feel moral obligation to read and compare package labels for environmentally safe ingredients when I shop

.711 .662 .648 .637 .627 .624 .624 .622 .617 .601 .591 .588 .577

For the second dimension viz. Guilt, pre-analysis testing for the suitability of the entire sample for factor analysis was computed (see Table 5).The Kaiser-Meyer-Olkin measure of sampling adequacy for this dimension was 0.5 matching the cutoff value of 0.500and the Bartlett’s test of sphericity was found to be significant at p=0.001. Table 5: KMO and Bartlett’s Test-GUILT Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity Df Sig.

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.500 64.132 1.000 .000

Adnan Ali, Mohd. Adil 115

Moreover, EFA was conducted on 2 items‘Guilt’ scale using PCA method withvarimax rotation (see Table 6). Both the items cleanly loaded on its latent factor with standardized loadings of 0.884 for each item. Table 6: Component Matrixa-GUILT Compon ent 1 I feel guilty that I do not .884 I feel ashamed that I do not try .884 harder

For the last dimension viz. Attitude, again a pre-analysis testing for the suitability of the entire sample for factor analysis was computed (see Table 7).The Kaiser-Meyer-Olkin measure of sampling adequacy for this dimension was 0.756 more than the cutoff value and the Bartlett’s test of sphericity was found to be significant at p=0.001. Table 7: KMO and Bartlett’s Test- ATTITUDE Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .756 Bartlett's Test of Approx. Chi-Square 225.629 Sphericity Df 15.000 Sig. .000

Table 8: Component Matrixa- ATTITUDE Compone nt 1 I am scared for future generations because of environmental deterioration .816 Schools should take a course dealing with environmental and conservation .713 problems Environmental problems are increasing at alarming rate .679 The government should enforce a surcharge for products which pollute the .637 environment Natural resources must be preserved even if people have to stop using some .585 products I would stop buying products from companies polluting the environment .564 despite inconvenience for me Extraction Method: Principal Component Analysis. a. 1 component extracted. Management & Change, Volume 18, Number 2 (2014)

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Thereafter, EFA was conducted on 06 items related to ‘Attitude’ dimension using PCA with varimax rotation (refer to Table 8). All the items were cleanly loaded on latent factor viz. ‘Attitude’. Measurement Model To overcome the inherent limitations of the EFA i.e. interpretation of results is limited by the subjectivity in which factor loadings, cross-factor loadings, and factor independence are assessed, the confirmatory factor analysis (CFA) is recommended (Lee, 2008; Adil, 2013a; Adilet al., 2013; Khan and Adil, 2013; Adil et al., 2015). In this study, methodology suggested by Gerbing and Anderson (1988) has been used to assess the measurement model. In this procedure CFA was used on the number of following factors i.e. – Behavior, Guilt and Attitude and the items loading to each factor were specified, followed by fitness of model.CFA was run on the hypothesized model with 3 dimensions and 21 items. Model could not fit as it failed to identify and minimize the model. Hence two items (st12 and st24) that were creating problems were deleted and model was re-tested for goodness of fit.

Figure 1: Confirmatory Factor Model Management & Change, Volume 18, Number 2 (2014)

Adnan Ali, Mohd. Adil 117

Table 9 contains an overall summary of the key fit statistics for the 19-item model. The GFI and AGFI values are more than the desired minimum of 0.9 and range from 0.939 to 0.972. The CFI value is higher than 0.9, CMIN/df 1.859, RMSEA 0.040. Chi-square values are significant 2.242 and are acceptable. Hence, the overall model fit indices show that all the goodness-of-fit measures were within acceptable levels. Table 9: Fit Indices for Confirmatory Factor Analysis Fit Indicators CMIN/df GFI AGFI CFI RMSEA Chi-square/df

Observed Value 1.859 0.972 0.939 0.944 0.040 1.859

Typically, a series of attempts were made in order to construct a more parsimonious and a stronger fitting model keeping the key fit indicators in mind. It is found that measuring up of a scale in all areas is rarely done. The areas of greater focus were typically CMIN/df, GFI, AGFI, CFI, RMSEA, Chi-square/df and finally, coefficient alpha. Hence, the more robust model with 3 dimensions and 19 items was found to be best possible fit in Indian context. Reliability Though respective scales related to all the above three dimensions are standard measure, but keeping in mind the changed cultural context (viz. India- an emerging economy), researchers decided to further check for reliability of the measurement instrument. Reliability is operationalized as internal consistency, which is degree of inter correlations among the items that constitute the scale (Nunnally, 1978). Among other measures, internal consistency can be estimated using reliability coefficient Cronbachâ&#x20AC;&#x2122;s alpha (Cronbach, 1951). Internal consistency refers to the ability of a scale item to correlate with other items in the scale that are intended to measure the same construct. If a scale used to measure a construct has an alpha value greater than 0.70, the scale is considered reliable in measuring the construct (Hair et al., 1998; Nunnally, 1978; Leedy, 1997; Adil et al., 2015). Management & Change, Volume 18, Number 2 (2014)

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Table 10: Reliability Statistics Dimensions

EFA Factors

CFA Factors

N of Items Cronbach's Îą N of Items

AVE

Behaviour

.869

.878

.515

Guilt

.719

.701

.782

Attitude

.747

.763

.581

Once the hypothesized overall model was accepted, each of the construct was evaluated separately by examining the indicator loadings for statistical significance. Each dimension was evaluated for composite reliability (CR) and variance extracted (Liao et al., 2011; Adil et al., 2015). Hair et al., (1998) suggested that CR should be over 0.7, and AVE should be over 0.5. The observed values are shown in Table 10. As is evident, across the dimensions, CR values were found to be well above the minimum desired level of 0.7 (Hair et al., 2006) and ranged between 0.701 and 0.878.Similarly, the AVE values were also more than the established benchmark of 0.50 (Hair et al., 2006). The last fit indicator reported is that of coefficient alpha. During scale development, values ranging from 0.6 (Hair et al., 2006) to 0.7 (Nunnally, 1978) are acceptable. In the present study, alpha values ranged between 0.719 and 0.869, suggesting strong internal consistency. Correlation Analysis The correlation coefficient is a measures only the degree of linear association between two variables indicating only how or to what extent variables are associated with each other (Adil, 2013a; Adil, 2013b; Khan and Adil, 2013; Adil et al., 2015). Values of the correlation coefficient are always between -1 and +1. A correlation coefficient of +1 indicates that two variables are perfectly related in a positive linear sense while a correlation coefficient of -1 indicates that two variables are perfectly related in a negative linear sense, and a correlation coefficient of 0 indicates that there is no linear relationship between the two variables. Correlation analyses can be interpreted as establishing cause-and-effect relationships. Pearson correlation has been employed in the present study (see Table 11& Figure 2). All the three dimensions are positively associated to each other at 0.01 significance level. Management & Change, Volume 18, Number 2 (2014)

Adnan Ali, Mohd. Adil 119

Table 11: Results of Correlations Behaviour Behaviour Pearson Correlation

1.000

Sig. (2-tailed)

Guilt **

.418

.009

N 170 170 ** Pearson Correlation .418 1.000 Guilt Sig. (2-tailed) .009 N 170 170 ** .547 .444** Attitude Pearson Correlation Sig. (2-tailed) .000 .000 N 170 170 **. Correlation is significant at the 0.01 level (2-tailed)

Attitude .547** .000 170 .444** .000 170 1.000 170

Figure 2: Correlations Figure

FINDINGS, CONCLUSIONS AND IMPLICATIONS The subject green consumer behavior has attracted a lot of attention of researchers-- in the Western world, while very few empirical studies in Management & Change, Volume 18, Number 2 (2014)

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Indian context appeared in the refereed journal. Thus, the present study set out to explore the relevant factors of green consumer behavior from the perspective of a developing economy viz. India. Exploratory factor analysis (EFA) revealed that the variables considered in the present study are uni-dimensional in nature as all the items cleanly loaded on to their respective latent factors. Further, these three dimensional scalepossess better psychometric properties with high internal consistency reliability and met rigorous conceptual and empirical criteria for construct validity. The three dimensions were self-explanatory and helps in predicting, conceptualizing and measuring green consumer behavior in Indian context. At a time when government, social scientists, political leaders, consumers and marketers alike stress upon the issue, present study may provide managers, academicians and researchers with a much needed three dimensional scale to predict green consumer behavior. Also, this study points to potential problems while replicating the exact wording of scaling items in a cross-cultural research. Simplifying scaling items from one language (original study) to another creates general problem of crossnational measurement invariance. Thus, the present three dimensional green consumer behavior scale with some rephrasing found to have better psychometric properties in India than the language of the original study. At last, this study attempts to fill the void in the literature and gives direction for future research. To achieve a greener world through mass green purchases and consumption patterns, marketers must address a broader range of consumers rather than focusing on those already green segments. Activities such as analyzing consumer needs and wants, and developing better promotions should assist in broadening the scope of green marketing and exploring new marketing opportunities. Marketers may also promote and advertise in order to change consumer attitude and behavior toward environmentally friendly products. Marketers also need to focus on new generation taking into consideration the fact that large chunk of Indian population is young. LIMITATIONS AND FUTURE RESEARCH DIRECTION Like any other study on the subject this study also lacks on certain fronts which have been listed here: First, the research was carried out in Management & Change, Volume 18, Number 2 (2014)

Adnan Ali, Mohd. Adil 121

a specific geographical area with certain peculiar extraneous environmental factors attached to it, hence, the findings of the study cannot be generalized. Secondly, in comparison to the population of the research, the sample size considered for the study was too small. Therefore replication of this study may be carried out by future researchers by administering the research instrument to the common public of India to generalize the results. Thirdly, the questionnaire had limited number of variables. Therefore, it would be advantageous for future researchers to include questions related to green product seal and labels which may help in determining the level of awareness about green product. Fourthly, few more scale may also have been incorporated such as market deception scale, perceived value scale in order to determine the perception of the consumers. Fifth, in this study non-probability based sampling technique (viz. Convenient Sampling) was employed, so future researchers may opt for probability based sampling technique for a true representation and generalization of the findings. Lastly, it would also be interesting to segment the consumers by future researchers on the basis of the following categories: i.e. True Greens, “I am an environmental activist who cares deeply about reducing my carbon footprint and am adjusting my behavior to be environmental friendly”; Donor Greens, “I am concerned about the environment to the extent I support environmental causes financially; however, I have not really changed my behavior due to environmental concerns and still buy products that are not necessarily friendly”; Learning Greens, “I am learning about environmental concerns and starting to make some changes in my behavior and/or purchasing habits”; Non-Greens, “I have not adjusted my behavior or purchase patterns for environmental reasons, even though I acknowledge that there may be environmental problems”; and Anti-Greens, “I do not really care if there are environmental problems.” REFERENCES Adil, M., Akhtar, A. & Khan, M. N. (2013). Refinement of internet banking service quality scale: a confirmatory factor analysis approach. International Journal of Services and Operations Management, 14(3), pp 336-354. Adil, M. (2013a). Efficacy of SERVPERF in measuring perceived service quality at rural retail banks: empirical evidences from India. Management & Change, Volume 18, Number 2 (2014)

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International Journal of Business Insights and Transformation, 6(1), pp 52-63. Adil, M. (2013b). Modelling effect of perceived service quality dimensions on customer satisfaction in Indian bank settings. International Journal of Services and Operations Management, 15(3), pp 358373. Adil, M., Khan, M. N. & Ansari, S. A. (2015). Customers’ Perception towards Bank Service Quality: A Comparative Study of Indian and Turkish Customers. Full paper published in proceedings of 6th IIMA Conference on Marketing in Emerging Economies, Indian Institute of Management- Ahmedabad-(IIM-A), India. pp 266-275. Ali, A. & Adil, M. (2014). Determining the Predictors of Green Consumer Behavior in India: An Empirical Study. Journal of Marketing & Communication. 9(3): pp 11-17. Angelidis, J. P., & Ibrahim, N. A. (1993). Social demand and corporate strategy: a corporate social responsibility model. Review of Business, 15(1), pp 4. Banerjee, S., Gulas, C. S. & Iyer, E. (1995). Shades of green: A multidimensional analysis of environmental advertising. Journal of Advertising, 24(2), pp 21-31. Bronn, P. S., & Vrioni, A. B. (2001). Corporate social responsibility and cause-related marketing: An overview. International Journal of Advertising, 20, 15. Bruner, G. C., & Hensel, P. J. (1998). Marketing scales handbook (Vol. II). Chicago: American Marketing Association. Connell, S., Fien, J., Lee, J., Sykes, H., &Yencken, D. (1999). If it doesn’t directly affect you, you don’t think about it: A qualitative study of young people’s environmental attitudes in two Australian cities. Environmental Education Research, 5(1), 18.

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Enderly, G., & Tavis, A. L. (1998). A balanced concept of the firm and the measurement ofits long-term planning and performance. Journal of Business Ethics, 17(11), 15. Field, A. (2000). Discovering Statistics using SPSS for Windows. London – Thousand Oaks– New Delhi: Sage publications. Habing, B. (2003). Exploratory Factor Analysis. http://www.stat.sc.edu/ ~habing/courses/530EFA.pdf (accessed 10 May 2012). Hair, J. F., Anderson, R. E., Tatham, R.L. & Black, W. C. (1998). Multivariate Data Analysis, 5th ed., Prentice-Hall, Upper Saddle River, N J. Hair, J. F., William, C. B., Babin, B. J., Anderson, R. E. & Tatham, R. L. (2006). Multivariate Data Analysis, Pearson University Press, New Jersey. Iyer, E., & Banerjee, B. (1993). Anatomy of green advertising. Advances in Consumer Research, 20, 7. Karatepe, O.M., Yavas, U. & Babakus, E. (2005). Measuring service quality of banks: scale development and validation. Journal of Retailing and Consumer Services, 12, 373-383, doi:10.1016/ j.jretconser.2005.01.001. Khan, M.N. & Adil, M. (2013). Data analysis techniques in service quality literature: Essentials and advances. Serbian Journal of Management, 8(1): 95-112, www.sjm06.com . Leedy, P. D. (1997), Practical Research: Planning and Design (6th ed.). ‘Upper Saddle River, NJ: Prentice Hall. Lerner, D. L., & Fryxell, E. G. (1988). An empirical study of the predictors of corporate social performance: a multi-dimensional analysis. Journal of Business Ethics, 7, 9. Liao, C., To, P. L., Liu, C. C., Kuo, P. Y. & Chuang, S. H. (2011) ‘Factors influencing the intended use of web portals’, Online Information Review, 35(2): pp 237–254. Management & Change, Volume 18, Number 2 (2014)

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Malhotra, N. K. (2003). Marketing Research- An Applied Orientation, (3rd ed). New Delhi: Pearson Education. Meyer, A. (2001). What’s in it for the customers? Successfully marketing green clothes. Business Strategy and the Environment, 10, 13. Mintz, T. M. (2011). Profiling Green Consumers: A Descriptive study. Thesis submitted to Graduate School, Appalachian State University. Mullen, J. (1997). Performance-based corporate philanthropy: How ‘giving smart’ can further corporate goals. Public Relations Quarterly, 42(2), 6. Neff, J. (2009, April 20, 2009). Green-marketing revolution defies economic downturn, Periodical/Cover Story, Advertising Age, p. 2. Retrieved from http://0proquest.umi.com/wncln.wncln.org/ pqdweb?did=1688736691&sid=5&Fmt=3&clientId15105&RQT=309&VName=RQD Nunnally, J. C. (1978). Psychometric Theory, 2nd ed., McGraw-Hill, New York. Oxford University Press. (2011). Oxford dictionary. Oxford: Author: Oxford University Press. Patsiotis, A. G., Hughes, T. & Webber, D. J. (2012). Adopters and nonadopters of internet banking: A segmentation study. International Journal of Bank Marketing, 30(1), pp 20–42. Consumers Swayed by Good Causes. (1997). Marketing News Report(February 17). Rex, E., & Baumann, H. (2006). Beyond Ecolabels: What green marketing can learn from conventional marketing.Journal of Cleaner Products, 15, 9. Rietveld, T. & Van Hout, R. (1993). Statistical Techniques for the Study of Language and Language Behaviour. Berlin – New York

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Schlossberg, H. (1991). Innovation seems to elude â&#x20AC;&#x2DC;green marketersâ&#x20AC;&#x2122;. Marketing News, 25(April 15), 4. Shrum, L. J., McCarty, J. A., &Lowrey, T. M. (1995). Buyer characteristics of the greenconsumer and their Implications for advertising strategy. Journal of Advertising, 24(2), 12. Silverman, D. (2009). Going green: Challenges and opportunities. WWD, 198(15), 8. Smith, G., & Stodghill, R., III. (1994). Are good causes good marketing? Business Week,March 22, 64, 66. Stisser, P. (1994). A deeper shade of green. American Demographics, 6. Straughan, R. D., & Roberts, J. A. (1999). Environmental segmentation alternative: A look at green consumer behavior in the new millennium. Journal of Consumer Marketing, 16(6), 17. The Coca-Cola Company. (2010), Retrieved from http:// polarbears.thecocacolacompany.com/polarbearsupportfund/wwf/

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MANAGING GOVERNANCE MODE SHIFT IN CONTRACT R&D

Anjan Roy1

Firms resort to external agencies for conducting research and development (R&D) to overcome technological barriers for entering into new business lines. Contract R&D allows a firm to access specialized knowledge and research capabilities leading to faster development of innovation. There are, however, several uncertainties and situations that threaten the achievement of desired outcome from external R&D and sponsor firms may need to shift the governance mode towards internal R&D while managing the risk of derailing the project. How can firms make such shift in governance mode is the question that this paper addresses. Through the case description of a contract R&D project, analyzed using a known framework of simultaneous make-buy decision making, the execution of shift in governance mode is studied. The study points out that contract R&D must not be viewed merely as an external sourcing of knowledge but as a plural sourcing decision wherein sponsor firms must demonstrate greater commitment to learning by simultaneously pursuing in-house learning modes. Successful shift in governance mode requires structuring the contract with options for mid-course changes that can be made in such a manner to ensure the continued engagement of the parties involved by attending to the knowledge and incentive complementarities between them. Keywords: Contract Research, Governance Modes, Plural Sourcing, Knowledge Complementarities, Incentive Complementarities

Associate Professor, National Institute Of Bank Management, Kondhwa Khurd, Pune 411048, Maharashtra, India. E-mail: aroy@nibmindia.org

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INTRODUCTION External sourcing of research and development (R&D) becomes necessary when a firm is confronted with the urgent need to circumvent technology barriers to new business entry. Several modes of sourcing technology are available, such as purchase or license of patented technology, contract research and development, participation in joint research with laboratories and universities and acquisition of research firms. Contract R&D, defined as a â&#x20AC;&#x153;work of an innovatory nature undertaken by one party on behalf of another under conditions laid out in a contract agreed formally beforehandâ&#x20AC;? (Ringe, 1992 & Howells, 1999), is one mode of external R&D which is usually undertaken when core technologies are advanced and embodied, allowing the development of applications within a short time. Firms deploy this mode to tailor a new technology to local condition of operations including demand and factor markets. This mode enables access to specialized knowledge, research capabilities and scale in one location leading to faster development of innovation. Technology development may be contracted out in order to benefit from low cost innovation. Contract R&D projects are fraught with relational and performance risks (Uppvall, 2011) and uncertainties that bear upon the tactical management of the project. Several unforeseen events may happen during the course of execution of the contract, which need to be addressed and resolved as and when they occur (Nelson and Winter, 1977). Situations of slackening commitment and opportunistic behavior may arise to threaten the relationship between the parties in contract, and require adept managerial intervention for reclamation of mutuality. Sponsors of contract research, after having invested heavily may have little option for withdrawal and lacking information to ascertain progress, face the possibility of losing control. Also, transfer of knowledge from the supplier to the sponsor firm may emerge as a critical issue. Because knowledge is sticky (Szulanski, 2003), a good part of technological know-how created during the development remains embedded at the site of the research activity. These cannot be completely captured in research reports, and are potential losses that the sponsor must recover through alternative means. Management & Change, Volume 18, Number 2 (2014)

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For the above reasons, successful execution of the contract R&D, though heavily dependent on the contract agreement also requires execution skills. Existing literature is limited to explaining the choice of the contract mode of research and does not delve much into the issues related to successful conduct of such research. Notable amongst such studies are those of Blomqvist, Hurmelinna and Seppanen (2005) and Van de Vrande, Lemmens and Vanhaverbeke (2006). The former work points out that contract as such cannot lead to successful collaboration between parties. However, the contracting process can be used purposefully to increase mutual understanding and learning. The latter has profiled the changing governance modes of external technology sourcing during new business development and points out that, in early stages, uncertainties are high because future potential of the technology is unknown, as well as because relationship between technology partners are tentative. Under such conditions market based technology sourcing modes that are reversible and have low level of commitment are more preferred. With progress of the venture and reduced technological distance between contracting parties, governance modes may shift to more hierarchical arrangements. How do firms manage such shift in governance mode during the conduct of contract R&D is an interesting problem in management of such projects. While making such transition may become necessary for progress, restructuring a technology supply relationship midway may imply serious disturbance that sponsor firms can ill afford. A study incorporating both theoretical views and empirical observations of decisions and actions surrounding the execution of a shift in terms of a contract R&D can be useful to inform firms on how to anticipate and prepare itself for any such contingency. This paper illustrates such a situation requiring shift in governance mode in a contract R&D. In section 2 a theoretical discussion of governance modes in external R&D projects is provided emphasizing the need for viewing the process of executing a shift in governance mode in detail. The research question is framed from the discussion. The methodology adopted for the study and choice of theoretical framework used for analysis are described in section 3. In section 4, the case of a contract R&D project executed in a firm is narrated. Analysis of critical events during the conduct of the project is done in section 5 after which in section 6 the strategies enabling the sponsor Management & Change, Volume 18, Number 2 (2014)

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to make the transition successful are discussed. Conclusions follow in the last section 7. SHIFTING GOVERNANCE MODE IN CONTRACT R&D R&D activity necessitates making project specific investments that are often sunk in nature. Under conditions when technological uncertainty or appropriability concerns (Pisano, 1990) exist, transaction cost of R&D force firms to adjust their commitment and choose between various modes of conducting research. Market or contractual mode and in-house or hierarchical mode of R&D are two different options available to firms for conducting R&D. Thus, R&D decisions have been viewed as make or buy decisions (Pisano, 1990; Kurokawa, 1997). Certain hybrid or joint modes of control such as alliance and partnerships have been further added to the existing governance structures (Robertson and Gatignon, 1998). The focus of most studies dealing with the form of R&D implementation (Nordberg, Campbell and Verbeke; Ulset, 1996; Croisier, 1998; Howells, James and Malik, 2004; Fey and Birkinshaw, 2005; Miyamoto, 2007) and related to making of choice of governance modes. Governance mode decisions, however, are mostly limited to making the choice of one mode over another. In reality, however, R&D sponsors face a dynamic nature of demand for governance and may need to change their choice decision mid-course during a R&D project. Governance mode changes might be required with progress of the project as new facts become revealed and newer opportunities and threats unfold changing the context of inter-firm relationship. Given the time and material uncertainties in the generation of R&D output, contract agreements cannot ex-ante foresee all contingencies while drawing the terms and conditions and, therefore, in spite of all effort and care, most contracts remain incomplete. Literature on incomplete contracts (Hart, 1995, Tirole, 1999) point out to factors such as observability and verifiability of actions, which may induce the contracting parties to seek strategies for eliciting the expected behavior from each other. R&D contracts, therefore, need to be structured such as to enable the required shift in governance mode whenever needed. Pisano (1990) insisted that contract research must have scope for renegotiations during Management & Change, Volume 18, Number 2 (2014)

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the project life time to address the achievement of milestones, review decision regarding alternatives paths to be pursued depending upon the findings of research, etc., rather than being executed as a one shot exchange. In such regards, Van de Vrande, Lemmens and Vanhaverbeke (2006) viewed the design of R&D contracts as creating and exercising real option such as â&#x20AC;&#x153;a right, but not an obligation, to take an action in the futureâ&#x20AC;?. An investor employing an option can structure the course of a project by identifying suitable milestones to be achieved and then setting of payments contingent to their achievement. By doing so, they are able to defer their investment commitment until more information is revealed. R&D contracts thus structured can incorporate the required flexibility to tackle the emerging uncertainties. Most R&D contracts include termination clauses as options to induce an amount of threat against non-performance. Though, such threat may form good enforcement action, they may not be sufficient to guarantee the desired behavior and achievement of the desired output. Instead they may inflict greater losses. Therefore, as Lerner and Malmendier (2010) found in a study of biotechnology research agreements, sponsor firms not only reserve the right to terminate the project in anticipation of undesirable behavior, such as contract R&D firmsâ&#x20AC;&#x2122; use the funds to substitute one project for another in a non-verifiable manner, they also secure claim to property rights of the terminated project. Termination ensures that the R&D project must be pursued through alternative modes without delay. There are also transition costs in shifting to other modes which need to be provided. Shift in governance modes must address the impact on learning (Sobrero and Schrader, 1998) and innovation (Hagedoorn, 1990). Contract R&D, unlike other modes of external technology sourcing such as alliances, are short-term with limited commitment of the parties to the contract. Inter-firm learning process may not become sufficiently evolved and could be unilateral with each firm following its own individual style with little mutuality amongst them (Karthik, 2002). Knowledge sharing issues exist as principal agent problems (Kultti and Takalo, 2000) and as Nooteboom (2001) points out, there may be problems of hold-up, in that the innovator firm may not fully share the generated data and information with the sponsor; and of spill over, wherein the innovator can appropriate Management & Change, Volume 18, Number 2 (2014)

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the generated knowledge and use the same elsewhere. Building learning opportunities in contract relationships can be difficult and R&D sponsors are likely to have much lower access to the critical tacit knowledge generated in the course of the project. Faems, Janssens and Van Looy (2007) have identified the use of legal knowledge transfer clauses as necessary to ensure knowledge transfer. Therefore, contract termination and shift of governance mode, if not executed well may pose the risk of loss of knowledge. Literature of inter-firm relationships inform of other constraints to change in governance mode. Dyer and Singh (1998) have discussed the nature of inter-firm relationships as depending upon relationship specific assets, knowledge sharing routines, complementary resources and capabilities and effective governance. Argyres and Liebeskind (1999) have pointed out that the historical choice of governance mode can constrain the future choices given the contractual commitments and bargaining powers of the firms. The moderating effect of bargaining power on the ability of a firm to enforce governance and contractually safeguard its specific asset has further been elaborated by Buvik and Reve (2002). Poppo and Zenger (2002) advocate the use of relational governance mechanisms as complemented by formal contracts in order to achieve the desired exchange performance. It follows that shifting the mode of governance in contract R&D can be fraught with great difficulties and sponsor firms need to adopt strategies to successfully execute such shift. What these strategies could be is the subject of research here. The research question emerging from the discussion is therefore, â&#x20AC;&#x153;How can a sponsor manage a shift in governance mode during the contract R&D project while ensuring its successful completion?â&#x20AC;? METHODOLOGY Addressing the above research question requires in-depth study of institutional action involved in the conduct of contract R&D. It needs project data, such as the specifications of a R&D contract as well as report of events that have occurred during its execution. The case method is suitable for reporting such research, examining a phenomenon in its real life context (Yin, 1989). The case of a contract R&D project, therefore, is the subject Management & Change, Volume 18, Number 2 (2014)

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of study in this paper. It is based on narration of institutional actions and events from such a project in a company called ALCLAY. The primary data is constructed with certain relevant description of companies, the nature of technology under development, the decision situations, the structure of the contract, and the events related to the project. Contract documents and records of official communications are the main source of primary data. Formal and informal interactions with the various members of the project team, the business and corporate staff, the contract R&D vendor, other consultants, etc. have provided the insights to build the case narrative. The body of the case and the information provided has been formally vetted and approved by the management of the company. Name of the company and other data related to the project, however, have been disguised. The case narrative is designed as an unfolding plot of transition in governance mode in contract R&D. The same has been analyzed using event analysis (Erickson, 1992), also referred as critical incident technique (Flanagan, 1954). Significant events and incidents in organizations mark the development and change (Dieleman and Roome, 2001) and serve as milestones to understand underlying processes. Therefore, identifying events and incidents and examining the way they have been managed thereby leading to the observed outcomes, can facilitate investigation into their cognitive, affective and behavioral elements (Chell, 1998). Identification of critical incidents in this study has been referenced upon the theoretical framework suggested by Gulati, Puranam and Bhattacharya (2013). In this framework firms are viewed as pursuing both make as well as buy strategies simultaneously for obtaining the same object. The net decision of sourcing mix depends upon forces of (1) complementarities from sourcing through the different modes, and, (2) constraints to pursuing either of the modes individually. The framework identifies incentive and knowledge complementarities that pull the sourcing decisions towards a mixed format. It also recognizes constraints such as limits to scale and barrier to exit, which push outsourcing decisions to pure make or buy form. Knowledge complementarities between internal and external R&D are recognized (Lokshin, Belderbos and Carree, 2008). There are also Management & Change, Volume 18, Number 2 (2014)

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incentive complementarities between various modes of generation and dissemination of knowledge (Antonelli, 2008). Further, R&D costs are also influenced by scale issues (Love and Roper, 2002) while there are issues of sunk cost and barrier to exit in R&D investment decisions (Peters, 2009). For the above reasons, using event analysis to examine the decision points at which the strength of the forces of complementarities and constraints undergo significant change can reveal and explain the shift of governance in a contract R&D project. As based on a single case, it is recognized that this study may not be representative of the extant practices in the field. Data from multiple cases can potentially alter the findings. However, it reveals certain interesting observations regarding the background and conduct of contract R&D projects and, thereby, provides practical information about their execution which may add to the known body of knowledge on the subject. THE ALCLAY PROJECT 1.

Background

ALCLAY Limited, a company engaged in manufacturing of aluminum and other related products in India, is reputed for its quality products. Its laboratories are equipped with sophisticated equipment for conduct of product development. It has bauxite mines for supply of raw material for manufacture of aluminum. In one of its mines, a huge deposit of Kaolin, popularly known as china clay, a mineral mostly known for its usage in making ceramic ware, was discovered. Kaolin also finds use in industrial applications such as paper coating and paint making. This discovery opened up a potential new business opportunity for ALCLAY. Kaolin clays are widely sought for two specific properties - brightness and average particle size. The best grades have brightness, measured with reference to a standard, more than 90% and particle size, measured as percent less than 2 microns size, at 93%. Such clays, apart from their geological origin, are also subject to intensive processing to remove impurities. Most of such facilities are available in countries such as United Kingdom, Brazil and United States. Clay production in Asia is less then 10% of world production. Demand of clay has been increasing in this region requiring import from western producers. Management & Change, Volume 18, Number 2 (2014)

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Kaolin is processed by making a suspension of the mined ore in water. The suspension is passed through different stages of separation to remove the coloring impurities and then classified as per particle size specifications. A number of equipment technologies are deployed for refining. The state of the art is such that while component technologies are specialized and distinctive (some processes are based on high speed centrifugal force separation while others involve high intensity magnetic separation), and very sophisticated, a process flow sheet needs to be developed for any new raw material feed. The output quality and quantity depends upon the ore, operating conditions, and process performance at every stage of refining. Significant variation in recoveries and quality can occur due to small changes in these factors, and, hence a very reliable process must be established for commercial production. ALCLAY conducted several in-house studies to evaluate the processability and commercial potential of the ore. It set up a basic plant at the mine site which produced an output with product brightness of around 70% and particle size at around 60%. Studies in various other external laboratories produced similar results. None of these studies were sufficiently advanced to lead to an acceptable level of product quality. Availability of sophisticated processing and testing equipment was considered to be the major constraint. It was felt that assigning the studies to experts having significant experience in kaolin processing would be required to set up a commercial venture in short time. A global tender was floated for a consultant to provide process technology which could be duly scaled for setting up a commercially viable process plant. Three companies representing consortiums of different technology suppliers evinced interest. Through a competitive bidding process followed by extensive negotiations, a consortium led by Careiz, an U.S. based supplier of one of the most critical equipment was selected to be the consortium leader and process consultant. 2.

Cariez and the R&D contract

Careiz was a small but reputed manufacturer of mineral processing and separation equipment. The company had supplied its machines to almost all major clay producers and had considerable experience in processing. It led the consortium which brought together resources and Management & Change, Volume 18, Number 2 (2014)

136 Managing Governance Mode Shift in Contract R&D

expertise in several areas such as clay geology, mining, processing and application testing. After studying the test data and information provided by ALCLAY, and, a preliminary reconnaissance of the deposit, Cariez became willing to undertake the work and also provide performance guarantees in regards of achievement of desired product quality for commercial production. ALCLAY and Cariez entered into an R&D contract to develop a process for refining the kaolin. The contract covered all aspects of study from geological evaluation to processing, product application and market evaluation. It was structured to be conducted in five stages, all of which were to be completed within a year’s time. •

Stage I - Initial Evaluation

This stage laid the foundation of the project based on study of the deposit. It was proposed to be carried out in two parts. The first part consisted of desktop study and geological review of all information and samples collected from mine site. The second part consisted of ‘scoping tests’ that were to be carried out on a ‘representative’ sample to evaluate the most appropriate processing technique as well as conditions for detailed tests to be carried out in the next stage. A few extreme samples were also proposed to be investigated to examine the variability in quality of the deposit. •

Stage II - Detailed Evaluation

This stage was expected to provide the value of the deposit, with information for market studies and assessment of the revenue expected from setting up a commercial sized plant. It consisted of exhaustive studies of sample sets representing the full range of variability in deposit quality. The samples were to be subject to most favorable processing techniques to provide the highest quality products. The stage would also have application tests for select industries. •

Stage III - Flow Sheet Design

Based on the result of the first two stages as well as information about local operating conditions and advice of equipment suppliers, a Management & Change, Volume 18, Number 2 (2014)

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provisional flow sheet was to be designed. The flow sheet would inform preferred equipment types and manufacturers, reagent and consumable requirements, budget costing and economics of the plant. At the end of this stage ALCLAY would have the necessary information to take key commercial decisions with regards to the preferred product mix and their markets. â&#x20AC;˘

Stage IV - Pilot Plant Study

With the data generated from the previous stages, the pilot plant study would be carried out for: a.

validating the test results with actual feed material at the plant scale

producing sufficient product quantities for customer evaluation and application trials

generating operating level data for production plant design decisions.

providing background data for firming up process guarantees.

A bulk sample of the raw material feed was to be sent to Cariez to design and conduct the pilot study at their facility abroad. â&#x20AC;˘

Stage V - Process Package for full-scale production plant specification

The culmination of the process study was in the compilation of a process package for the commercial sized kaolin production plant. The process package would incorporate the data generated from the studies as also local conditions to ensure a reliable and practical plant design. Each stage of work was to commence with authorization by ALCLAY and payment of advance money (for the stage) and was to be completed within certain time line. Size of payments increased progressively with each stage till Stage IV. Submission of a detailed report of the findings and interpretations of the tests conducted was considered to be the conclusion of a stage.

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3. Project execution and output Stage I study resulted in classification of the raw material into categories distinguished by color and impurity content. Lab tests provided limited results on their processability. A small batch test through a laboratory magnetic separator led to a sharp improvement in brightness of sample to over 80%. Data sent by Careiz were studied by ALCLAY after which Stage II studies were approved. In Stage - II, raw material samples was categorized at the mine site and sent to Careiz for assaying into several feed mixes ranging from the best possible quality to the worst. Process flow sheets were drawn comprising the various unit steps across which the samples were passed. Initially, the test results were upsetting as the feed became turbid and colored with achievement of marginal improvement in quality. On scrutinizing it was revealed that the coarse grit and rubble in the raw feed were not removed. The event led to much confusion and, more importantly, loss of time. Further delays occurred in scheduling the tests to be conducted by Careiz at other laboratories. Doubts and concerns arose regarding the reliability of these tests and validity of their results, as inconsistencies began to be noticed in the reports. The reports provided by Careiz were fragmented. Several mixes of raw material were used to obtain the maximum deposit variability and, consequently, a number of process flow sheets were created from which it was difficult to obtain clear conclusions. In the meanwhile, certain crucial members of the Careiz team left the organization and new members were hired. The firm itself was taken over by one of the worldâ&#x20AC;&#x2122;s largest mineral process equipment manufacturer. The development work at Cariez was accompanied by on-site experiments at the ALCLAY during which significant product and process breakthroughs were achieved. The feed preparation process was improvised, new technologies were used to separate finer particles and the chemical processes were standardized. Most importantly, advanced processing trials were conducted leading to jump in brightness, to around 90%. ALCLAY also realized that processing of kaolin would lead to generation of effluents whose treatment and disposal need to be considered. Management & Change, Volume 18, Number 2 (2014)

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Almost a year later, Careiz submitted their report on Stage II. The product obtained from the tests indicated that the clay was amenable for processing to commercial grades but required highly sophisticated techniques for the same. It was at this point of time that an important change was proposed to the course of project. Realizing that there was need to expedite application tests with potential customers, ALCLAY decided that the pilot tests of Stage IV brought ahead before the flow sheet development by Cariez in Stage III. It was viewed that this would provide the details of plant level process behavior as well as operating data for designing a robust process package in Stage V. At the same time, instead of carrying out the pilot study overseas at Cariezâ&#x20AC;&#x2122;s facilities as per the contract, the location of the pilot studies was changed to be at the mine site itself. A small plant was decided to be set up to conduct the pilot tests as well as lead the start-up of a commercial venture. The pilot plant operated by ALCLAY was eventually set up with the help of Cariez, who guided equipment selection and purchase, assisted in drawing the process flow sheets and resolved startup problems, beyond what was conceptualized in Stage IV study. The plant soon generated products with quality matching the products available in the market. EVENT ANALYSIS To draw the managerial implications from ALCLAYâ&#x20AC;&#x2122;s experience of managing a contract R&D, the case information may be viewed around the temporal occurrence of certain key events. The project is marked by two important events, (1) assignment of contract for external R&D and (2) internalization of the project from an external to an in-house activity. Understanding the factors behind the successful shift of governance mode from one event to the next, needs an analysis of decision situations surrounding these events. 1.

Assignment of contract for external R&D

The case informs that before contracting out the development activity, ALCLAY had extensively explored the work in-house and with assistance of external laboratories. However, these efforts lacked the required technological sophistication as well as end-to-end integration, and therefore

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could only lead to a product of insufficient quality. ALCLAY faced serious quality barriers to entry into the kaolin market. Setting up integrated inhouse facilities for advanced development of the product necessitated investments on equipment that were available at certain scale of output, whose purchase could be justified only when other information such as process performance, economic viability and market development were all available. Project failure could lead such investment to become sunk. Therefore, there was the imminent need to carry out development at lower cost through external R&D. Development for the commercial product needed formulation of process design. Several specialized technologies were needed to be put in place and optimized together as process flow sheet. Therefore, apart from accessing knowledge of component technologies, ALCLAY also required the process configuration suited to the raw material in hand. These technologies were not readily available with one single agency and had to be sourced from various suppliers. The decision to contract the R&D for kaolin processing, therefore, was driven by constraints emerging from the risks inherent in addressing the required scale of investments as well as from the quality barriers to entry. The organizational structure of the contract with one supplier representing a consortium of several equipment suppliers, provided both component as well as process knowledge to ALCLAY. The project had incentives for the suppliers in the form of potential opportunity for equipment sales, if the development succeeded. 2.

Internalization of the project

As work in the Stage I became completed and Stage II began, more information about the mineral properties of the ore became known as also some of the processing requirements. It is clear that until the completion of this stage, ALCLAY was able to leverage on the knowledge complementarities satisfactorily. However, as work advanced to Stage II, there were increasing uncertainties regarding timely completion and materialization of the output. Problems in coordinating the tests conducted in different laboratories of various consortium members became visible as it began to take toll on the work quality. Management & Change, Volume 18, Number 2 (2014)

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Apart from slippage in performance, concerns regarding possible loss or hold-up of knowledge may also have arisen. Catching up with the advanced tests and results generated from these became difficult for ALCLAY as its technological distance from the suppliers in respect of the new developments became widened. It became important that the knowledge of process technology be generated in such way to internalize process skills and enhance the technological capability of the organization. As the underlying potential of the ore being transformed into an industrial product began to be revealed, ALCLAY also learnt more about various facets of processing from its in-house plant trials as well as the use potential of the product through market tests. Though limited, the successes in industrial scale production as well as application tests generated confidence to consider the launch of a pilot venture. It was, however, when members of Cariez team began to leave after it was taken over, that the project’s continuation as external R&D finally came under question. Cariez had become a part of a large mineral processing company with possible changes in its corporate outlook and interest in the project. For ALCLAY, whose major dealing was with Cariez, it was the signal that its leverage of any incentive and knowledge complementarities would thereof end. The factors that were once responsible for pulling the project towards external R&D, shifted in a manner pushing it towards in-house R&D. However, in order to leverage upon the knowledge complementarities, the transition had to be made in such manner that Cariez and other technology suppliers still had incentives to support and contribute to the project’s success even in the in-house mode. Indeed, ALCLAY benefited from Cariez’s advice to obtain equipment of right production size for the pilot plant and, thereby, scale down the investment. STRATEGIES ENABLING SUCCESSFUL EXECUTION OF GOVERNANCE MODE SHIFT From the above analysis it would indeed seem that the pathway to successful shift in governance mode in the R&D project has to be based on emphasizing appropriately upon the various factors that constrain or complement the choice decisions. Figure 1 provides a model for Management & Change, Volume 18, Number 2 (2014)

142 Managing Governance Mode Shift in Contract R&D

conceptualizing the strategic actions. As the choice of governance mode depends upon the status of the constraints (limit to scale and barriers to entry) and complementarities (knowledge and incentive) being high or low, executing the shift requires carefully choosing the strategic path such that knowledge and incentive complementarities are leveraged. Constraints of limits to scale and barrier to entry are structural concerns that are reduced in consequence.

Figure 1: Pathway to Executing Successful Shift of Governance Mode in Contract R&D

The execution of the shift was enabled by two set of actions taken by ALCLAY. These relate to the structuring of contract and commitment to learning during the project. It is interesting that the company made necessary planning and preparation for any eventuality of failure of the project as a contract R&D. 1.

Structuring the contract

The case informs of a problem situation where component knowledge for development of process technology was needed to be sourced from several agents simultaneously and integrated together. Discussions about choice of governance mode for technology development have been largely focused around dyadic relationship between firms. There are little known studies of situations involving multiple relationships, where governance issues can be even more challenging. Turning to contract R&D with a consortium of technology suppliers, and one of the suppliers as the leader,

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is an interesting strategy for a firm to adopt. Yet, as the case illustrates, the foundation of such project can be very unstable and there are likely difficulties in garnering incentive as well as knowledge complementarities of second stage suppliers through the mechanism of a formal contract with one of them. Firstly, the loose organization of the consortium, with different members contributing certain proprietary components of the process, without any investment specific to the project, was more of an arm’s length transaction between members of the consortium. While there were definitely certain future gains for the consortium members, the single-party contract was not sufficient to ensure their long term commitment to remain together. Therefore, the contract, per se, was not sufficient enough to encourage joint innovation. Secondly, the structure of relationships in the contract limited the sponsor’s direct access to other suppliers. Its capacity and authority to intervene for any coordination requirement was severely limited. As a result of the fallout, the project’s objective of generating an integrated and optimal flow sheet was difficult to be realized. Besides, there were also issues of ensuring timely completion and production of required information. Such problems appear endemic to situations discussed under the rubric of open innovation (Chesborough, 2003) wherein a firm needs to flexibly coordinate a large number of innovation sources. They must depend upon formal and informal ties in social networks to create joint assets that could align the interests of various parties. Management of network based innovation (Vanhaverbeke, 2006) may be limited in timely producing the required knowledge (Harison and Koski, 2008). Any form of contract R&D, therefore, would seem to be weak in establishing the required mechanisms for governance. ALCLAY’s resorting to a traditional mode of contract R&D with a single-point relationship with a lead member of the consortium, seems to be a simplistic approach to such a complex problem. The contract design and the relationship structure was kept straight forward and made contingent upon performance. Staging of activities provided the performance milestones whose completion was linked to continuation of the project. At the end of each stage the company could review and evaluate its gains and Management & Change, Volume 18, Number 2 (2014)

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decide upon further course of action which included terminating the project. At the same time, it also provided for internalizing certain stages and thus continuing the project keeping the relationships and interest of the parties intact. The contract, therefore, provided options for choosing and shifting seamlessly between alternative modes of governance. 2.

Commitment to learning

Designing a R&D contract with exit points was only a small part of the required strategy. Achievement of the knowledge objectives in contract involves ensuring inter-firm transfer of data information during the course of project. The case clearly indicates this to be a potential limitation in any form of contract. Contracts cannot fully address issues relating to knowledge transfer. Therefore, apart from data furnished by Cariez, ALCLAY would have no access to any other valuable information generated from the tests carried out. Moreover, the cost of monitoring the contract from an overseas destination outweighed the expected gains in knowledge. In light of such limitations, it is interesting that the contract was actually devoid of any legal clause related to transfer of knowledge. Instead, ALCLAY continued local development activities at its own plant. This strategy was consequential in several respects. One, it is a known fact that for well developed technologies, laboratory experimentation can lead to more rapid development (Pisano, 1994). In contrast, technologies characterized as being more of an â&#x20AC;&#x2DC;artâ&#x20AC;&#x2122; than a science, new learning potentials are embedded at the site of application. Here learningby-doing is more appropriate for faster development. Process technology for refining of kaolin was quite advanced at the level of component technologies but was required to be configured and balanced for a new application. This could only be expedited if conducted on-site, where knowledge of raw material was available and logistics of conducting the tests could be managed more easily. Two, in-house studies and the mine site developments made also led to subtle discoveries and knowledge about properties of the ore that complemented the information arriving from Careiz. Such value of internal R&D as a basis for exploiting externally acquired technologies has been reported extensively (Veugelers, 2000; Lokshin, Belderbos and Carree, Management & Change, Volume 18, Number 2 (2014)

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2006). Indeed, firms devoting to in-house R&D develop absorptive capability to expertly interpret knowledge from outside sources (Cohen and Levinthal, 1990). The in-house efforts at ALCLAY seem to have enhanced the learning and absorptive capacity enabling the integration of information from contract R&D with local information. Undertaking internal R&D simultaneously and independently of external sourcing seems to be a major factor contributing to the successful execution of the shift. This finding is important in view of the observation that while firms in joint activity may attempt to mitigate hazards of opportunism through contractual mechanism they often end up undermining their ability to learn from each other (Oxley, 2004). Hence, R&D contract based governance modes are the least effective mode for inter-firm learning. A firm must commit to set up learning mechanisms from internal effort apart from the contract even as they pursue external R&D. CONCLUSION This study provides an illustration as to how the execution of a shift in governance mode in a contract R&D project can be successfully made. Contract R&D projects, particularly those involving several technology suppliers, have incentive problems that cannot be curbed through setting terms and conditions in a contract agreement. Such projects being shortterm and market based may not easily lend to long-term relationship formation for addressing problems of governance and learning. For the above reasons, contract R&D projects can be highly unstable and sponsor firms need to keep themselves prepared for any change the governance mode to internalize the activity. In order to improve project outcomes, instead of viewing contract R&D as a market mode of sourcing knowledge, it must be viewed as a plural sourcing decision involving both external and internal R&D. Therefore, while constraints due to scaling risk and entry barriers may lead to external R&D, the same can be managed better if incentive and knowledge complementarities are well attended to. Staging performance milestones and tracking these forces can provide the necessary signal for any need to change governance mode.

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Successful shift of governance mode requires, firstly, that the sponsor firms must build in sufficient flexibility in the contract and terms for continued engagement. Secondly, in order to support such strategy, the sponsorâ&#x20AC;&#x2122;s commitment to learning must be indicated its own efforts for generating knowledge. Without any such strategy for managing governance mode shift, R&D contracts would otherwise remain as they mostly are incomplete and prone to failure. REFERENCES: Antonelli, C. (2008). The new economics of the university: a knowledge governance approach. The Journal of Technology Transfer. 33 (1), pp 1-22. Argyres, N. S. & Liebeskind, J. P. (1999) .Contractual commitments, bargaining power and governance inseparability: Incorporating history into the transaction cost theory of the firm. Academy of Management Review. 24, pp 49-63. Blomqvist, K., Hurmelinna, P. and Seppanen, R. (2005).Playing the collaboration game right â&#x20AC;&#x201C; balancing trust and contracting. Technovation. 25, pp 497-504. Buvik, A. & Reve, T. (2002). Inter-firm governance and structural power in industrial relationship: the moderating effect of bargaining power on the contractual safeguarding of specific assets. Scandinavian Journal of Management.18 (3), pp 261-284. Chell, E. (1998). Critical incident technique, in Qualitative Methods and Analysis in Organizational Research: A Practical Guide. G. Symon and C. Cassell, eds. London: Sage Publications. Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business School Press. Cambridge. Cohen, W. M. & Levinthal, D. A. (1990).Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly. 35, pp 128-152. Management & Change, Volume 18, Number 2 (2014)

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Croisier, B. (1998). The governance of external research: empirical test of some transaction-cost related factors. R&D Management. 28 (4), pp 289-298. Dieleman, H. & Roome, N. (2001).Narrative and event analysis in organizational learning and change: The case of the Dynamics Project. Paper in Ninth International Conference of Greening of Industry Network. January 21-25. Bangkok. Dyer, J. H. & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review. 23 (4), pp 660-679. Erickson, F. (1992). â&#x20AC;&#x153;Ethnographic microanalysis of interaction,â&#x20AC;? in M. LeCompte, et. al. (Eds). The Handbook of Qualitative Research in Education. San Diego: Academic Press. Faems, D. Janssens, M. & Van Looy, B. (2007). The initiation and evolution of interfirm knowledge transfer in R&D relationships. Organization Studies. 28, pp 1699-1728. Fey, C. F. & Birkinshaw, J. (2005).External sources of knowledge, governance mode and R&D performance. Journal of Management. 31 (4), pp 597-621. Flanagan, J. C. (1954). The critical incident technique. Psychological Bulletin. 5 (4), pp 327-358. Gulati, R., Puranam, P. & Bhattacharya, S. (2013). How much to make and how much to buy? An analysis of plural sourcing strategies. Strategic Management Journal. 34, pp 1145-1161. Hagedoorn, J. (1990).Organizational modes of inter-firm cooperation and technology transfer. Technovation. 10 (1), pp 17-30. Harison, E. & Koski, H. (2008). Does open innovation foster productivity? Evidence from Open Source Software (OSS) firms. Keskusteluaiheita Discussion Paper No 1135, ETLA Helsinki Finland. Management & Change, Volume 18, Number 2 (2014)

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Hart, O. (1995). Firms, Contracts and Financial Structures. Oxford: Oxford University Press. Howells, J. (1999). Research and technology outsourcing and innovation systems: An exploratory analysis. Industry and Innovation. 6 (2), pp 111-129. Howells, J., James, A. D. & Malik, K. (2004). Sourcing external technological knowledge: a decision support framework for firms. International Journal of Technology Management. 27 (2/3), pp 143-155. Karthik, K. N. I. (2002). Learning in strategic alliances: An evolutionary perspective. Academy of Marketing Science Review. 6 (5), pp 114. Kultti, K. & Takalo, T. (2000). Incomplete Contracting in a R&D Project: The Micronas Case. R&D Management, 30, pp 67-77. Kurokawa, S. (1997). Make â&#x20AC;&#x201C; or â&#x20AC;&#x201C; buy decisions in R&D: Small technology based firms in the United States and Japan. IEEE Transactions on Engineering Management. 44 (2), pp 124-134. Lerner, J. & Malmendier, U. (2010). Contractibility and the design of research agreements. American Economic Review. 100 (1), pp 214-246. Lokshin, B., Belderbos, R. & Carree, M. A. (2008). The productivity effects of internal and external R&D: Evidence from a dynamic panel data model. Oxford Bulletin of Economics and Statistics. 70 (3), pp 399-413. Love, J. H. & Roper, S. (2002). Internal versus external R&D: A study of R&D choice with sample selection. International Journal of the Economics of Business. 9 (2), pp 239-255. Miyamoto, D. (2007). Determinants of R&D outsourcing at Japanese firms: Transaction cost and strategic management perspectives. International Journal of Humanities and Social Sciences. 1 (1), pp 46-51. Management & Change, Volume 18, Number 2 (2014)

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Nelson, R. & Winter, S. (1977). In search of useful Theory of Innovation. Research Policy. 6 , pp 36-76. Nooteboom, B. (2001). Problems and Solutions in Knowledge Transfer. ERIM Report Series Research in Management ERS-2001-74ORG. Nordberg, M., Campbell, A. J. & Verbeke, A. (1996).Can market-based contracts substitute for alliances in high technology markets? Journal of International Business Studies. 27 (5), pp 936-980. Oxley, J. (2002). “Learning versus hazard mitigation in inter-firm alliance: A false dichotomy” in Knowledge Flows, Governance and the Multinational Enterprise. V. Mahnke, T. Pedersen, eds. Palgrave Macmillan, New York, pp 108–129. Peters, B. (2009). Persistence of innovation: Stylized facts and panel data evidence. Journal of Technology Transfer. 34 (2), pp 226-243. Pisano, G. P. (1990). The R&D Boundaries of the Firm: An Empirical Analysis. Administrative Science Quarterly. 35, pp 153-176. Pisano, G. P. (1994). Knowledge, integration, and the locus of learning: An empirical analysis of process development. Strategic Management Journal. 15, pp 85-100. Poppo, L. & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes or complements. Strategic Management Journal. 23, pp 707-725. Ringe, M. J. (1992). The contract research business in the United Kingdom: the European dimension. Report to the Directorate General for Telecommunications, information industries and innovation. Commission of the European Communities, Luxembourg. Robertson, T. S. & Gatignon. H. (1998). Technology development mode: A transaction cost conceptualization. Strategic Management Journal.19, pp 515-531.

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Sobrero, M. &Schrader, S. (1998). Structuring inter-firm relationships: a meta-analytic approach. Organization Studies. 19(4), pp 585-615. Szulanski, G. (2003).Sticky knowledge: barriers to knowing in the firm. London: Sage Publications. Tirole, J. (1995). Incomplete contracts: Where do we stand? Econometrica. 67, pp 741-781. Ulset, S. (1996). R&D outsourcing and contractual governance: An empirical study of commercial R&D projects. Journal of Economic Behavior and Organization. 30 (1), pp 63-82. Uppvall, L. (2011). Relational and performance risks in operative work in contract based R&D alliances. International Journal of Innovation, Technology and Management. 8, pp 415-435. Van de Vrande, V., Lemmens, C. & Vanhaverbeke, W. (2006). Choosing governance modes for external technology sourcing. R&D Management. 36 (3), pp 347-363. Vanhaverbeke, W. (2006). The inter-organizational context of open innovation,â&#x20AC;? In Open Innovation: Researching a New Paradigm, Chesbrough, H., Vanhaverbeke, W. and West, J. (eds), Oxford University Press:Oxford. Veugelers, R. (1997). Internal R&D expenditures and external technology sourcing. Research Policy. 26 (3), pp 303 - 315. Yin, R. (1989). Case study research: Design and methods (1st edition). Beverly Hills. CA: Sage Publications.

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S.A.I.L. - DISTRIBUTION STRATEGY FOR NON-URBAN MARKETS: A CASE STUDY

Jones Mathew 1

Rakhi Singh2

Circa 1992. Mr. Ravi Varadarajan, Head of Business Development, Central Marketing Organization, SAIL, pored over the facts and figures in front of him. Deregulation of the steel industry had just been announced. News reports were flooding in of how the news had electrified the business world and SAIL was going to have some stiff competition from hitherto unknown, but serious players. Though S.A.I.L. had almost a monopolistic hold over the Indian market with serious competitive threat coming from just a few companies like the Tata Iron & Steel Company, Jamshedpur (TISCO) and Jindal Steel, S.A.I.L. realized it should start looking for pre-emptive strategies to enter and exploit new markets. With liberalization came a new pack of big players into the market. Ravi envisioned that mere pre-emptive marketing strategies might not work in the face of the floodgates which had been opened. He understood the importance of out-flanking initiatives in keeping S.A.I.L.’s market share intact against the new competitive onslaught. As he studied various options, he was stumped by the stark disparity between India’s urban and rural per capita consumption of steel. He realized that none of the major players, including S.AI.L. had even attempted to make inroads into the rural areas of India. Lack of government policy-direction and the lack of urgency to look at alternative markets to sustain demand for steel were probably the reasons why steel producers never gave it due consideration. At a meagre 4 kg per capita consumption in non-urban areas, compared to 55 kg in urban 1

Professor, Fortune Institute of International Business, Plot -5, Rao Tula Ram Marg, Vasant Vihar, New Delhi – 110057. Email: mathewjmat@rediffmail.com 2 Associate Professor, IILM Institute for Business & Management, 1 Knowledge Centre, Golf Course Road, 71, Sector – 53, Gurgaon 122003. Email: rakhi.singh@iilminstitute.ac.in

152 S.A.I.L. - Distribution Strategy for Non-Urban Markets: A Case Study

areas, it struck Ravi that there was tremendous scope for demand building and opening up a new alternative segment for steel consumption. Till now it was mainly the secondary producers of steel (“re-rollers”, as they were known) who catered to the rather weak demand for steel products in the non-urban areas. In a bid to understand the demand better in these areas, Ravi got authorization to explore the non-urban market in India with the help of institutions such as Punjab Technical University (PTU) and the Institute of Rural Management, Anand (IRMA). As a result, in 1996 S.A.I.L. made some exploratory steps into non-urban marketing by forming an Agriculture Segment Development Cell which was instrumental in getting a higher quality of billets* (see note) developed for making disc harrows (ploughs) for tractors. S.A.I.L also participated in the popularization of steel grain bins under the “Save Grain Campaign” in the states of Gujarat and Madhya Pradesh at competitive rates-the sole objective being to help non-urban consumers and farmers grasp the long-term benefits of using steel for grain storage compared to traditionally used materials such as wood, tin or mud. As Ravi researched available material and the years rolled by, he and others in S.A.I.L.’s think tank became concerned with the intensification of competition in the domestic market and the excess supply of steel over available demand. Seeing an opportunity to highlight the nonurban market as a potential second major market segment, Ravi stressed on the need for exploring this vast untapped market. Charu Sharma, Director of Market Research, was co-opted to explore this potential demand in a more detailed and systematic method and to table her team’s recommendations to the Marketing Group. Charu’s team went in for extensive surveys and interviews with local dealers, grassroots level consumers, NGOs, district officials and the like. It became clear that the signs were not encouraging. It was true that in the rural sector there was a significant increase in agricultural production in India with a gradual shift towards the usage of modern agricultural implements. Rural life had also undergone a significant change due to increased urbanization. However, such developments were not Management & Change, Volume 18, Number 2 (2014)

Jones Mathew, Rakhi Singh 153

accompanied by a concomitant rise in consumption of steel in the nonurban areas as a result of which these vast potential markets remained undeveloped. When the preliminary findings were submitted to the Marketing Team, Ravi saw in the low levels of rural demand a potential opportunity to increase steel consumption in the non-urban segment. Charu had identified the major reasons for low penetration in the rural sector as follows: i.

Perception of steel as a high-cost material in rural sector.

ii.

Problems of procurement and supply in interiors of rural sector.

iii.

Low growth of rural industry and absence of proper skills in rural sector.

iv.

Wide geographic spread and disparate demographic features of the non-urban market segment.

Ravi felt that he had a challenge on his hands now. What different marketing approach would be required to translate this potential demand into actual use? This was the conundrum he had to solve. As a result of the study commissioned by IRMA on S.A.I.L.’s behalf, a couple of options were put forth on what distribution channel strategies S.A.I.L. could follow to access the non-urban market. “District-level dealerships” and “Steel-deficient regional approach” seemed to be two such promising approaches. Ravi analyzed the pros and cons of each in order to arrive at the best possible recommendation to make for the benefit of S.A.I.L. from a long-term perspective. Since the prospective new target segment was widely dispersed geographically and each geographic region had its own economic background and cultural barriers, including language, the district level dealership seemed to have an edge. However, the second approach had the benefit of targeting first those areas which had an existing demand for steel but was serviced poorly by secondary producers. The steel-deficient regional approach was based on the premise that since it was only a supply side problem, focusing on these areas would bring a quicker solution to the problem of stagnant or Management & Change, Volume 18, Number 2 (2014)

154 S.A.I.L. - Distribution Strategy for Non-Urban Markets: A Case Study

slow demand. Besides, it would help overcome the huge expenditure needed to create awareness for steel in general and SAIL steel in particular. He had supporting information to analyze the skewed regional production and consumption patterns of steel in the non-urban areas as outlined in the tables in Annexures III and IV. To guide him in his analysis, Ravi referred to S.A.I.L.’s objectives which had been included as part of the alternative market development strategy note. One of these objectives was: To have at least one dealer in every district of the country i.e. to cover all 602 districts in the country1. Some of the other objectives were: •

To reach materials to the dealers from nearest SAIL stockyard at SAIL’s cost.

•

To provide support to dealers for marketing their product.

Ravi realized that a sound, futuristic retail strategy had become imperative because there was a huge amount of capex upscaling by S.A.I.L., resulting in a major capacity growth. In order to hedge against any downturn in industrial demand, S.A.I.L. should ensure that demand remained largely unaffected in times of industrial slump. Therefore, a robust, alternative retail distribution strategy in the rural areas had become important for safe, long-term growth. As he delved deeper into research done on the subject, Ravi understood that low awareness, high price, high initial investment and poor availability of steel were major stumbling blocks in the popularization of steel as a viable alternative. Traditional construction material held sway in the non-urban areas. Communication too posed a new challenge as the target market had a different demographic and psychographic profile compared to urban consumers of steel. Another issue at hand was the appropriate product mix required for the non-urban market. Obviously it would differ in terms of both, width and depth, as compared to an urban approach. Galvanized Plate (GP),

http://steel.nic.in/flagship.pdf (accessed on 4/8/2011)

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Galvanized Coil (GC) and Thermo Mechanically Treated (TMT)2 steel seemed to be the most appropriate products for this new non-urban market. This product mix was a reflection of the most prevalent demand patterns (grain storage, construction, making of farm implements, etc.) Ravi was facing a dilemma of distribution and marketing strategy. To establish a deep penetration of S.A.I.L’s products into the hinterland, which of the two approaches should Ravi recommend to the Board of Directors? And why? REFERENCES: http://www.sail.co.in/sites/default/files/buyers_notice/ SAIL_DEALERSHIP_SCHEME.pdf accessed on 3/1/2011, 3/1/ 2012 “Details of major programs and initiatives taken since June 2004 by the Ministry of Steel “ http://steel.nic.in/flagship.pdf (Accessed 4/8/2011) SAIL Rural Development Scheme (SAIL-RDS) http://www.sail.co.in/sites/default/files/buyers_notice/ SAIL_RURAL_DEALERSHIP_SCHEME.pdf accessed on– 22/ 2/2012 Production and Consumption of Hr Coils / Sheets in Nineteen Nineties – an analysis, N.M. Rao (April 2002) http://www.steelworld.com/ indapr02.htm accessed on 3/5/2011 Exhibit I: Suggested Incentives for Dealers and Promotional Support a)

Incentive Scheme for Dealers: To encourage dealers who are fulfilling their commitments, the following consistency (cash) incentives have been introduced

a new-generation-high-strength steel having superior properties such as being weldable, strong, ductile and tensile.

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156 S.A.I.L. - Distribution Strategy for Non-Urban Markets: A Case Study

Sl. No. 01 02

Incentive Rs/mt 100 50

Criteria Fulfillment of monthly commitment Fulfillment of annual commitment

Promotional Incentive: Dealers who take up promotional steps like Hoarding, Wall-painting, Newspaper/Cable TV advertisement directly will be reimbursed a promotional incentive (restricted to a maximum of Rs. 100/- pmt of actual lifting in the financial year) within the maximum annual limit as under:

•

Each Hoarding – Rs. 25,000/- per annum

•

Each Wall Painting – Rs. 2000/- per annum

•

Each Newspaper/magazine Ad – Rs. 15000/- per insertion

•

Cable TV Ad – Rs. 3000/- per month

•

Bus Panel Ad – Rs. 3000/- per month

•

Other Ads – upto Rs. 8000/- per month

Annual Award for Dealers : Top 15 dealers from each region selected on the basis of factors like fulfillment of annual commitment, improving brand image, consistent availability of product, adding new customers will be felicitated with awards at the Annual Dealers’ Conference.

Initiative for Publicity/Promotion in non-urban areas: 1.

Wall Paintings

Radio Jingles

Product brochures/technical literature to the dealers.

Dealers meet/Mason meets are held from time to time

Promo items (calendars/pens/key chains) distributed among dealers

Advertisements of operative dealers in print media/dealer details also updated on the SAIL web site.

Minimum quantity enhanced from 100 mt to 200 mt per month

Source:http://www.sail.co.in/sites/default/files/buyers_notice/ SAIL_DEALERSHIP_SCHEME.pdf accessed on 3/1/2011 Management & Change, Volume 18, Number 2 (2014)

Jones Mathew, Rakhi Singh 157

Exhibit II: Supply of Material to Dealers Materials are to be made available to dealers at competitive prices. Proposed comparison of pricing for a dealer and for a non-dealer is given below: Door Delivery Additional Rebate Cash Discount Total

Dealers Free of cost – Rs. 150 – 3100 (Depending on the location) Rs. 500 for GP/GC Rs. 300 for TMT Equivalent to 15 days IFC – Rs. 100 Rs. 750 for GP/GC + cost of Rs. 550 for TMT

Non Dealers Cost to be borne by the customer Nil Nil Nil

Source:http://www.sail.co.in/sites/default/files/buyers_notice/ SAIL_DEALERSHIP_SCHEME.pdf accessed on 3/1/2012 Exhibit III: Incentives under the Rural Dealership Scheme Sl. No 1 2 3 4

Incentive No monthly commitment to lift material from SAIL Incentives irrespective of the quantity of material they lift No security deposit for picking up material Extension of appropriate credit facilities

Source: SAIL Rural Development Scheme (SAIL-RDS) http:// w w w. s a i l . c o . i n / s i t e s / d e f a u l t / f i l e s / b u y e r s _ n o t i c e / SAIL_RURAL_DEALERSHIP_SCME.pdf accessed on– 22/2/2012

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158 S.A.I.L. - Distribution Strategy for Non-Urban Markets: A Case Study

Exhibit IV: All India Steel Production and Consumption (1991-2001) Production (P) Imports Secondary Main (I) producers Producers Total 2 1 1991-92 1743 284 2027 297 1992-93 2103 283 2386 480 1993-94 2339 286 2625 434 1994-95 2719 441 3160 924 1995-96 3106 1474 4580 688 1996-97 2959 2139 5098 649 1997-98 2819 2610 5429 683 1998-99 2911 2820 5731 423 1999-00 3944 3684 7628 612 2000-01 4393 4358 8751 596 Note: 1 – SAIL & TISCO 2 – Essar, Jindal, Lloyds, Ispat and others.5 Year

Exports (E)

Apparent Consumption(P+I-E)

6 36 97 186 398 557 693 1467 1726 1988

2319 2860 3023 3987 5082 5349 5555 5461 6773 7621

Source: Production and Consumption of Hr Coils / Sheets in Nineteen Nineties – an analysis, N.M. Rao (April 2002) http://www.steelworld.com/indapr02.htm (accessed 3/5/ 2011)

Exhibit V : State and Region Wise Steel Consumption: (MT) Sl. No.

State / Region

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Andhra Pradesh Karnataka Kerala Tamil Nadu SOUTH Assam Bihar Orissa West Bengal EAST Delhi Haryana Jammu & Kashmir Punjab Uttar Pradesh NORTH Gujarat Madhya Pradesh Maharashtra Rajasthan WEST ALL INDIA

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 192 40 3 250 485 8 80 70 236 394 195 282 6 370 475 1328 193 172 480 11 856 3063

245 48 6 298 597 16 105 95 285 501 268 393 480 640 1781 262 245 781 17 1305 4184

264 73 7 291 635 18 124 133 311 586 294 493 7 565 656 2015 337 260 826 35 1458 4694

310 50 8 358 726 14 120 120 359 613 306 452 10 568 777 2113 311 305 788 18 1422 4874

316 180 7 252 755 16 333 150 445 944 342 499 432 575 1848 325 318 827 21 1491 5038

324 184 8 284 800 24 354 225 540 1143 368 671 707 818 2564 297 313 990 53 1653 6160

348 210 9 310 877 37 422 259 564 1282 440 722 732 1017 2911 359 391 1148 57 1955

Source: Production and Consumption of Hr Coils / Sheets in Nineteen Nineties – an analysis, N.M. Rao (April 2002) http://www.steelworld.com/indapr02.htm (accessed 3/5/ 2011) Management & Change, Volume 18, Number 2 (2014)

Jones Mathew, Rakhi Singh 159

Notes 1.

*Billets : A section of steel used for rolling into bars, rods and sections. It can be a product of the ingot route, or increasingly today produced directly by continuous casting

**GP/GC sheets and coils

***TMT: Thermo mechanically treated (TMT) steel, can be described as a new-generation-high-strength steel having superior properties such as weldability, strength, ductility and tensility.

MT (mt)-metric tonne

Management & Change, Volume 18, Number 2 (2014)

BOOK REVIEW V.S Ramaswamy & S Namakumari, Marketing Management, McGraw-Hill Education (India) Private Limited, P-24 Green Park Extension New Delhi-110016, ISBN: 978-1-25-902641-6, 788 Pages, Fifth Edition, 2013. Marketing is about creating dreams and delivering value to the customers. It is considered to be of prime importance amongst the various functions associated with running a business. Keeping this in mind it becomes essential to have a comprehensive book that addresses in detail marketing and associated concepts which are of great importance to students, the future managers. This book is divided into 9 parts which includes a total of 31 chapters. Part 1 relates to Marketing Needs A Re-Calibration (three chapters), Part 2 mentions about Marketing environment-Global and Indian (three chapters), Part 3 explains the Marketing Strategy and Marketing Plans (five chapters), Part 4 introduces Consumers and Selecting Markets (three chapters), Part 5 talks about Creating Value-Product Management (four chapters), Part 6 contents include Delivering Value-Managing Distribution (four chapters), Part 7 combines Pricing and Promotion (five chapters), Part 8 talks about Supporting & Controlling The Marketing Effort (two chapters), and the last part mentions briefly about special fields of marketing (two chapters). Part 1 of the book (chapters 1-3) introduces the concepts of marketing; addresses topics such as sales concept, production concept, differences between marketing and selling, Customer Value, Corporate Social Responsibility, Green Marketing, Societal Marketing, and, Ethics in Marketing, providing a base for understanding the chapters that follow. Chapter 4 analyses the marketing environment focusing on the factors of PESTEL analysis. Chapter 5 highlights the global perspective and the increasing contribution of emerging economies to global GDP, thereby increasing the competition amongst firms. It also stresses upon the need for the companies to be ‘glocal’ as that’s the success mantra in today’s fiercely competitive environment. Chapter 6 briefly explains the marketing

162 BOOK REVIEW

environment in India and the challenges ahead in particular reference to rural market. According to Sun Tzu “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved”. A strategy without tactics is no strategy at all. The author discusses about the most important aspect for any marketer i.e. developing marketing strategy and plans, in the third section of the book. Five chapters are devoted to levels of planning such as corporate level planning, business level planning, setting marketing objectives, formulating marketing strategy, importance of industry analysis and competition and finally delivering superior value delivery to gain competitive advantage. Analyzing the consumer and market selection (Chapter 12-14) is a captivating section which discusses about consumer, the reason for a company’s existence. Taking the quote of Peter Drucker- The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. The next segment starts with the steps involved in the consumer buying process, consumer behavior, the psychological processes and then details the Indian consumer. Chapter 13 deals with market segmentation and targeting. The chapter following segmentation and targeting makes the reader understand the techniques that can be deployed by the marketer in understanding the customer so well that the product or service suits his needs and sells itself. Part 5, Chapter 15 begins with focusing on the most important element of the marketing mix that is “Product” and goes on to explain the various product levels, the types of products, concept of product life cycle. Subsequently chapter 16 & 17 throws light on product differentiation and positioning. The last chapter of Part 5 contributes on innovation and developing new products conveying a strong message. Part 6 covering Chapters 19-22 emphasizes on the second “P” of marketing i.e. place. The author has introduced the concept of “going to market strategy” encompassing logistics, supply chain management, and, designing and managing marketing channels. Chapter 21, details the concept of

Management & Change, Volume 18, Number 2 (2014)

BOOK REVIEW 163

retailing and merchandising, and also discusses about issues like FDI in retail. The last chapter of this section is an interesting read with topics like e-retailing, SEO and ecommerce scenario in India. Price and Promotion the other two Pâ&#x20AC;&#x2122;s of Marketing are elaborated in Part 7. An organization assumes a leadership position by being able to deliver better value in terms of superior product quality, customer service or low cost. Choosing a appropriate strategy (Penetration, Skimming, Markup etc) is of extreme importance in an environment where luxury product/ service providers are also adopting low cost measures (like low cost airline carriers). Integrated marketing Communication is covered excellently in chapters 24 to 26, highlighting promotion techniques and tools like advertising, personal selling and sales management. Chapter 27 details customer relationship management, taking into cognizance the increasing need for an organization to manage diverse customers based on Customer Lifetime Value. Part 8, comprising two chapters highlights marketing research and its process. The last part of the book is an additional benefit to readers not usually found in most marketing management books giving an overview of Service Marketing and Rural Marketing, which are significant topics of marketing management. The uniqueness of the book is that every chapter begins with a quote and listâ&#x20AC;&#x2122;s down the learning outcome and enhances oneâ&#x20AC;&#x2122;s understanding through a number of examples and scenarios from the corporate world. The design of the book with colourful pictures, tables, headings etc. makes it more reader friendly. Comparing the book with the bible of Marketing, Marketing Management by Kotler, it becomes clear that both are unique in themselves, but this book by Ramaswamy & Namakumari highlights both Indian and global perspective and will prove to be an excellent resource for academicians and MBA students for its simplicity, richness of content and attractive design. The author has succeeded in producing a book of high merit with a plethora of valuable information. However it could have been made more compact. Overall the book is worth reading especially when there are a number of books available that do not give an Indian reader the kind of examples Management & Change, Volume 18, Number 2 (2014)

164 BOOK REVIEW

and insights which they can relate with easily. Sonia Takkar, Assistant Professor, Marketing & Sales, IILM Undergraduate Business School, 3, Lodhi Institutional Area, New Delhi â&#x20AC;&#x201C; 110003. Email: sonia.takkar@iilm.edu Sujit Sengupta, Professor & Area Chair, Marketing & Sales, IILM Institute For Higher Education, Rai School Complex, Lodhi Road, New Delhi â&#x20AC;&#x201C; 110003. Email: sujit.sengupta@iilm.edu

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Guidelines for Contributors 165

Guidelines for Contributors 1.

Manuscripts and all editorial correspondence should be addressed to: The Editor, Management & Change, IILM Institute for Higher Education, 3, Lodhi Institutional Area, Lodhi Road, New Delhi-110003. E-mail: management.change@iilm.edu

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Reference styles: Book Hochschild, A.R. (1983). The Managed heart: Commercialization of human feeling. Berkeley, CA: University of California Press. Article in an edited book Van Maanen, J., & Kunda, G. (1989). Real feelings: Emotional expression and organizational culture. In L.L. Cummings, & B.M. Staw (Eds), Research in Organizational Behavior (pp. 43–103). Greenwich CT: AI Press. Conference Proceedings Akaike, H. (1973). Information theory and an extension of the maximum likelihood principle. Proceedings of the 2nd International Symposium on Information Theory (pp. 267–281). Budapest, Hungary: Akademiai Kiado. Article from the web Hort, L., Barrett, M., & Fullop, L. (2001). Doing hard labor: Gendered emotional labor in academic management. Retrieved from www.mngt.waikato.ac.nz/ejrot/cms conference/2001/Papers/ Gender/Hort Journal Article Harris, L.C. (2002). The emotional labor of barristers: An exploration of emotional labor by status professionals. Journal of Management Studies, 39(4), 553–584. 11. The reference to other works should be provided in the text using citations written in the author-datemethod. Author-date method: Follow the author-date method of in-text citation, e.g., (Morris, 2000). Quotes: When directly quoting from a work, include the page number in the citation. Management & Change, Volume 18, Number 2 (2014)

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Citation Styles: One Work by One Author: (Morris, 2000) One Work by Multiple Authors: (Morris and Feldman, 2000) One Work by Three or More Authors: (Morris et al., 2000) Works with No Author: Cite the first few words of the reference list entry (usually the title) and the year, for example, (‘Study Finds’, 1982). Two or More Works by Different authors in One Citation: (Morris, 1980; Rafaeli, 1988; Sachs and Blackmore, 1998) Two or More Works by the Same Author(s) in One Citation: (Sachs and Blackmore, 1998, 1999) Two or More Works Published in the Same Year by the Same Author(s): (Morris, 1980a, 1980b, 1980c) Authors with the Same Last Name: To prevent confusion, use first initials with the last names: (T.V. Rao, 2001; M.K. Rao, 1998). Work discussed in secondary source: In the text, name the original work, and give a citation for the secondary source. For example, if Seidenberg and McClelland’s work is cited in Coltheart et al. and you did not read the original work, list the Coltheart et al. reference in the References. In the text, use the following citation: In Seidenberg and McClelland’s study (as cited in Coltheart, Curtis, Atkins, and Haller, 1993).... 12. Book reviews must have details like name of author/editor and book reviewed, place of publication and publisher, year of publication, number of pages and price.

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