Normal view MARC view ISBD view

Community influences on strategy-as-practice in family businesses (CD)

By: Singh, Samar.
Material type: materialTypeLabelBookDescription: 339 p.Subject(s): Family business - StrategyDDC classification: TH 2016-09 Summary: Abstract The strategy-as-practice perspective concerns ways of doing that fall into specific routines and works patterns, which may vary from firm to firm in an industry, and between different types of firms, while at the same time being influenced by more institutionalized patterns. Strategy-as-practice enables understanding of the manner in which emergent strategy – one of the two legs, the other being deliberate strategy (Mintzberg and Waters, 1985) - takes place through actions of organizational role holders immersed in their environment. Communities enact identities in social and family life, drawing upon idioms of inter-generationally received recipes in kinship and sentient boundaries. Family dominance in business manifests itself through joint family and extended community ties that reinforce values, norms, beliefs and attitudes. The central question taken up for the study is: Do community influences affect strategy-as-practice in family businesses? Organizations are a social arena within which the underpinnings of emotional inheritance and its rational connections are enacted and continuously shaped by past and present experiences. As human organizations are best understood by involving members of the system as co-inquirers, this study invoked action research as its methodology. Firms, whose founders hailed from Marwari, Kshatriya, Sindhi, Parsee, Muslim, and Jain communities and one Public Sector Unit under Government of India participated in the study. The study findings indicate that strategy-as-practice in Indian family business is strongly influenced by the founder-promoter of the business at the time the business was instituted as a closely held family business. Subsequent changes in the size of the business, even when the entity raises money from capital markets and gets its shares listed on the stock exchange, thereby having to comply with statutory norms, do not change the essential nature of original practices. The findings indicate that these practices continue to influence – constrain or enable – the implementation of various courses of strategic actions derived through deliberate planning route. This study also finds that practices can vary to a large extent within an organization and its sub units if the sub units are spaced out in time and space and the team responsible for the new sub unit creation are different. Thesis Advisory Committee (Prof Ajeet N Mathur) [Chairperson] (Prof Dwijendra Tripathi) [Member] (Prof Sunil Sharma) [Member] (Prof Navdeep Mathur) [Member]
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Table of Contents

Abstract ..................................................................................................................................... i
Acknowledgments.................................................................................................................. iii
List of Abbreviations Used ....................................................................................................... iv
Table of Contents ..................................................................................................................... vii
Chapter 1 Introduction ........................................................................................................ 11
1.1 Purpose of this study ................................................................................................. 11
1.2 Sequence of presentation ........................................................................................... 12
1.3 Strategy-as-Practice ................................................................................................... 13
1.4 Community influences on strategy-as-practice ......................................................... 14
1.4.1 Role of family businesses .................................................................................. 14
1.4.2 Business Communities in India – A Historical Context .................................... 15
1.5 Significance of Research Study................................................................................. 17
1.5.1 Implication for scholars ..................................................................................... 17
1.5.2 Implication for practitioners .............................................................................. 18
1.5.3 Implications for policy makers .......................................................................... 18
Chapter 2 Literature Review............................................................................................... 20
2.1 Strategy-as-practice in family businesses ................................................................. 20
2.2 Theories of practice ................................................................................................... 23
2.3 Salient features of Strategy- as-Practice.................................................................... 25
2.4 Relation between Strategy-as-Practice and other perspectives in strategy research. 28
2.5 Strategy-as-Practice in the Context of Family Business Organizations .................... 29
2.6 Research Gap............................................................................................................. 31
2.7 Research Questions ................................................................................................... 32
2.8 Expectation from this Study ...................................................................................... 32
Chapter 3 Research Design and Methodology ................................................................... 34
3.1 Introduction ............................................................................................................... 34
3.2 Choices of methodologies for study of ‘Community influences on Strategy-as-Practice’ ............................................................................................................................... 36
3.3 Rationale for selecting action research methodology to study community influences on strategy-as-practice.......................................................................................................... 38
3.4 Description of Proposed Action Research Methodology .......................................... 41
3.5 Sample Selection Criteria .......................................................................................... 47
3.5.1 Category of Firm – Listed v/s Unlisted.............................................................. 48
3.5.2 Geographical Location of Firm .......................................................................... 49
viii



3.5.3 Selection of Industry Sector ............................................................................... 49
3.5.4 Selection of Community .................................................................................... 50
3.6 Procedure Adopted for Formulation of Sample Universe ......................................... 50
3.7 Securing Access to Firms .......................................................................................... 55
3.7.1 The Institutional Experience .................................................................................. 55
3.7.2 The Direct Approach ............................................................................................. 57
3.8 Procedure for Conduct of Research .......................................................................... 62
Chapter 4 Conduct of Action Research Study, Learnings and Discussion ........................ 65
4.1 Deepak Nitrite Limited (DNL) .................................................................................. 65
4.1.1 Background Information and Preparatory Work ................................................... 65
4.1.2 Notes of first interaction with VC & MD, DNL .................................................... 71
4.1.3 Notes of interactions at DNL plant at Dahej ......................................................... 78
4.1.4 Notes of interactions at DNL plant at Nandesari ................................................... 88
4.1.5 Notes of meetings at HQ DNL .............................................................................. 95
4.1.6 Notes of interaction with top management team at DNL .................................... 118
4.1.7 Learnings from DNL ........................................................................................... 123
4.2 National Peroxide Limited (NPL) ........................................................................... 128
4.2.1 Background Information / Preparatory Work ...................................................... 128
4.2.2 Notes of first interaction with Managing Director, NPL ..................................... 132
4.2.3 Notes of interactions at NPL plant at Kalyan ...................................................... 137
4.2.4 Notes of interaction with top management team at NPL ..................................... 150
4.2.5 Learnings from NPL ............................................................................................ 157
4.3 Finolex India Limited (FIL) .................................................................................... 160
4.3.1 Background Information / Preparatory Work ...................................................... 160
4.3.2 Notes of first interaction with Executive Chairman (EC), FIL ........................... 165
4.3.3 Notes of interactions at FIL plant at Masar (Vadodara) ...................................... 168
4.3.4 Notes of interactions at FIL plant at Urse, Maharashtra. ..................................... 172
4.3.5 Notes of interactions at FIL plant at Ratnagiri, Maharashtra .............................. 174
4.3.6 Notes of interaction with top management team at HQ, FIL .............................. 178
4.3.7 Learnings from FIL ............................................................................................. 186
4.4 Claris Lifesciences Limited (Claris) ....................................................................... 190
4.4.1 Background Information / Preparatory Work ...................................................... 190
4.4.2 Notes of first interactions with CMD Claris. ....................................................... 194
4.4.3 Notes of interactions at Claris injectable (CIL) plant .......................................... 197
4.4.4 Notes of interaction with top management team at Claris ................................... 199
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4.4.5 Learnings from Claris .......................................................................................... 210
4.5 Peacock India Limited (PIL) ................................................................................... 213
4.5.1 Background Information / Preparatory Work ...................................................... 213
4.5.2 Notes of first interaction with MD, PIL .............................................................. 215
4.5.3 Notes of visit to PIL plant at Udaipur.................................................................. 218
4.5.4 Learnings from PIL ............................................................................................. 223
4.6 Supreme Industries Limited (SIL)........................................................................... 225
4.6.1 Background Information / Preparatory Work ...................................................... 225
4.6.2 Notes of first interaction with CMD, SIL ............................................................ 230
4.6.3 Notes of interaction with CFO, SIL..................................................................... 236
4.6.4 Learnings from SIL ............................................................................................. 239
4.7 Wockhardt Ltd......................................................................................................... 241
4.7.1 Background Information / Preparatory Work ...................................................... 241
4.7.2 Notes of first interaction with Chairman, Wockhardt ......................................... 246
4.7.3 Notes of meeting with Mr Shomil Pant at HQ Wockhardt .................................. 250
4.7.4 Learnings from Wockhardt .................................................................................. 251
4.8 Rashtriya Chemicals and Fertilizers Ltd (RCF) ...................................................... 253
4.8.1 Background Information / Preparatory Work ...................................................... 253
4.8.2 Notes of first interaction with Chairman and Managing Director (CMD), RCF 256
4.8.3 Notes of interactions at RCF plant at Trombay ................................................... 259
4.8.4 Notes of interactions at RCF plant at Thal .......................................................... 267
4.8.5 Notes of interactions with top management at RCF ............................................ 269
4.8.6 Learnings from RCF ............................................................................................ 281
Chapter 5 Findings, Discussion and Conclusion ............................................................. 285
5.1 Introduction ............................................................................................................. 285
5.2 Challenges encountered........................................................................................... 285
5.2.1 Gaining Access to Firms...................................................................................... 285
5.2.2 Communication with co-inquirers ....................................................................... 286
5.3 Research Study Findings ......................................................................................... 288
5.4 Transformations arising from this study ................................................................. 305
5.5 Conclusions ............................................................................................................. 306
5.6 Limitations of the study........................................................................................... 307
List of Tables
Table 1 Sample Universe – Listed firms in Chemical and Chemical Product sub group ... 52
Table 2: Cross-references for findings ............................................................................... 288
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Table 3: Industry-wise distribution of number of firms for 7 states* ................................ 309
Table 4: CMIE industry classification scheme (Up to 4th level sub-classification) .......... 310
Table 5: Listing details of firms in manufacturing sector – CMIE database ..................... 312
Table 6 : List of persons approached for securing introduction to shortlisted firms ............. 313
Annexures ............................................................................................................................. 315
Annexure A : Gaining Access - Excerpts of correspondences ............................................ 315
A.1 – Correspondence with IIMA alumni cell ................................................................... 315
A.2 – Correspondence with Executive education (MDP) cell ........................................... 317
A.3 – Correspondence with CIPLA ................................................................................... 318
A.4 – Correspondence with Godrej Industries (Chemical Division) ................................. 319
A.5 – Correspondence with Godrej Industries (Corporate HQ)......................................... 321
A.6 – Correspondence with Gujarat State Fertilizers and Chemicals Ltd (GSFC) ............ 322
References ............................................................................................................................. 323




List of Abbreviations Used
Abbreviation Full Form
Annx Annexure
Appx Appendix
AGM Assistant General Manager
ANDA Abbreviated New Drug Application
Annex Annexure
ba(D) Basic Assumption Dependency
ba(F/Fl) Basic Assumption Fight/Flight
ba(P) Basic Assumption Pairing
ba(M) Basic Assumption Me(ness)
ba(O) Basic Assumption One(ness)
BCC Bulk Chemicals and Commodities
CA Chartered Accountant
CEO Chief Executive Officer
CFO Chief Financial Officer
CGM Chief General Manager
CIL Claris Injectables Limited
Claris Claris Lifesciences Limited
CMD Chairperson and Managing Director
CMIE Centre for Monitoring Indian Economy Private Limited
COL Claris Otsuka Limited
CRM Customer Relationship Management
DGM Deputy General Manager

v


DNL Deepak Nitrite Limited
EC Executive Chairman
ED Executive Director
FDA Foods and Drugs Authority (of US)
FIL Finolex Industries Limited
Fin Financial
FSC Fine and Speciality Chemicals
FWA Fluorescent Whitening Agent
GM General Manager
GMP General Manufacturing Practices
GOI Government of India
GSFC Ltd Gujarat State Fertilizers and Chemicals Limited
HID Forum Human and Institutional Development Forum
HQ Headquarters
HR Human Resources
HSE Health Safety and Environment
IIM Indian Institute of Management
IPCA Ltd India Pharmaceutical Combine Association Limited
IV Intravenous
KRA Key Result Area
MD Managing Director
MSW Master of Social Work
Mtg Meeting
NPL National Peroxides Limited

vi


NPPA National Pharmaceuticals Pricing Authority (of India)
OBA Optical Brightening Agent
Offg Officiating
OPQ Office of Pharmaceutical Quality
PIL Peacock Industries Limited
PIN Postal Index Number
POR Politics of Relatedness
QA/QC Quality Assurance/Quality Control
RCF Rashtriya Chemicals and Fertilizers Ltd
Secy Secretary
SIL Supreme Industries Limited
TMT Top Management Team
VC&MD Vice Chairman and Managing Director
Wockhardt Wockhardt Limited
%w/w Percentage weight (of ingredient) by (total) weight (of product)

Abstract
The strategy-as-practice perspective concerns ways of doing that fall into specific routines and works patterns, which may vary from firm to firm in an industry, and between different types of firms, while at the same time being influenced by more institutionalized patterns. Strategy-as-practice enables understanding of the manner in which emergent strategy – one of the two legs, the other being deliberate strategy (Mintzberg and Waters, 1985) - takes place through actions of organizational role holders immersed in their environment.
Communities enact identities in social and family life, drawing upon idioms of inter-generationally received recipes in kinship and sentient boundaries. Family dominance in business manifests itself through joint family and extended community ties that reinforce values, norms, beliefs and attitudes.
The central question taken up for the study is: Do community influences affect strategy-as-practice in family businesses?
Organizations are a social arena within which the underpinnings of emotional inheritance and its rational connections are enacted and continuously shaped by past and present experiences. As human organizations are best understood by involving members of the system as co-inquirers, this study invoked action research as its methodology.
Firms, whose founders hailed from Marwari, Kshatriya, Sindhi, Parsee, Muslim, and Jain communities and one Public Sector Unit under Government of India participated in the study. The study findings indicate that strategy-as-practice in Indian family business is strongly influenced by the founder-promoter of the business at the time the business was instituted as a closely held family business. Subsequent changes in the size of the business, even when the entity raises money from capital markets and gets its shares listed on the stock exchange, thereby having to comply with statutory norms, do not change the essential nature of original practices. The findings indicate that these practices continue to influence – constrain or enable – the implementation of various courses of strategic actions derived through deliberate planning route. This study also finds that practices can vary to a large extent within an organization and its sub units if the sub units are spaced out in time and space and the team responsible for the new sub unit creation are different.

Thesis Advisory Committee

(Prof Ajeet N Mathur) [Chairperson]
(Prof Dwijendra Tripathi) [Member]
(Prof Sunil Sharma) [Member]
(Prof Navdeep Mathur) [Member]

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