Technological Strategies and Firm Characteristics: A Study of Indian Basic Chemical Industry

  • Savita Bhat
  • K. Narayanan
Part of the International Studies in Entrepreneurship book series (ISEN, volume 19)

11.1 Introduction

Globalization, a term describing the phenomenon of business units originating in one country but becoming an essential participant in markets worldwide, has become an intrinsic characteristic of most of the contemporary economies. These global businesses or multinational companies (MNCs) have successfully entered into many sectors including agriculture, industry and service. Frequently their presence in the sector has lead to transformation in the behavior of the passive indigenous units compelling them to adopt different, generally more efficient and productive technological and managerial practices, thus ultimately leading to the growth of the sector. With the advent of globalization, the firms all over the world operating in industries that are sensitive to business cycles of other industries to which they are suppliers, like the Basic Chemicals segment, have been able to successfully hedge the impact of country specific business cycles. In other words,...


Market Share Profit Margin Vertical Integration Technological Strategy Capital Good 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Basant, R. (1997). Technology strategies of large enterprises in Indian industry: Some explorations. World Development, 25(10):1683–1700.CrossRefGoogle Scholar
  2. Bell, M. and Scott-Kemmis, D. (1985). Technological dynamism and technological content of collaboration: Are Indian firms missing opportunities? Economic and Political Weekly, 20:1991–2004.Google Scholar
  3. Braga, H. and Willmore, L. (1991). Technological imports and technological effort: An analysis of their determinants in Brazilian firms. The Journal of Industrial Economics, 39(4):421–432.CrossRefGoogle Scholar
  4. Brocas, I. (2003). Vertical integration and incentives to innovate. International Journal of Industrial Organization, 21(4):457–488.CrossRefGoogle Scholar
  5. Brozen, Y. (1951). Invention, innovation, and imitation. The American Economic Review, 41(2):239–257.Google Scholar
  6. Cohen, W. M. and Levin, R. C. (1989). Empirical studies of innovation and market structure. In Schmalensee, R. and Willig, R. D., editors, Handbook of Industrial Organization Volume II, pages 1059–1107. Amsterdam: North-Holland.Google Scholar
  7. Desai, A. (1985). Market structure and technology: Their interdependence in Indian industry. Research Policy, 14(3):161–170.CrossRefGoogle Scholar
  8. Hay, D. and Morris, D. (1991). Industrial Economics and Organization: Theory and Evidence. Oxford: Oxford University Press.Google Scholar
  9. Kamien, M. (1989). Market structure and innovation revisited. Japan and the World Economy, 1:331–339.CrossRefGoogle Scholar
  10. Kamien, M. and Schwartz, N. (1975). Market structure and innovation: A survey. Journal of Economic Literature, 13(1):1–37.Google Scholar
  11. Kamien, M. I. and Schwartz, N. L. (1982). Market Structure and Innovation. Cambridge: Cambridge University Press.Google Scholar
  12. Katrak, H. (1989). Imported technologies and R&D in a newly industrializing country: The experience of Indian enterprises. Journal of Development Economics, 31(1):123–139.CrossRefGoogle Scholar
  13. KPMG India-CHEMTECH Foundation (2003). The Indian Chemical Industry: New directions, new hope. Retrieved on January 2, 2006 from 030117_KPMG_Chemtech_Report_en.pdf.Google Scholar
  14. Kumar, N. and Saqib, M. (1996). Firm size, opportunities for adaptation and in-house R&D activity in developing countries: The case of Indian manufacturing. Research Policy, 25:713–722.CrossRefGoogle Scholar
  15. Lall, S. (2001). Competitiveness, Technology and Skills. Edward Elgar Publishing.Google Scholar
  16. Mansfield, E. (1963). Size of firm, market structure, and innovation. The Journal of Political Economy, 71(6):556–576.CrossRefGoogle Scholar
  17. Mansfield, E. (1964). Industrial research and development expenditures: Determinants, prospects, and relation to size of firm and inventive output. The Journal of Political Economy, 72(4): 319–340.CrossRefGoogle Scholar
  18. Narayanan, K. (1998). Technology acquisition, de-regulation and competitiveness: A study of Indian automobile industry. Research Policy, 27(2):215–228.CrossRefGoogle Scholar
  19. Narayanan, K. (2004). Technology acquisition and growth of firms: Indian automobile sector under changing policy regimes. Economic and Political Weekly, 39(5):461–470.Google Scholar
  20. Narayanan, K. and Banerjee, N. (2004). Technological efforts, firm size and profit margins in Indian industries. The ICFAI Journal of Industrial Economics, 1(2):7–20.Google Scholar
  21. Nelson, R. and Winter, S. (1977). In search of a useful theory of innovation. Research Policy, 6(1):36–76.CrossRefGoogle Scholar
  22. Romijn, H. (1996). Acquisition of technological capability in small firms in developing countries. PhD thesis, Tilburg: Center for Economic Research.Google Scholar
  23. Scherer, F. (1965). Firm size, market structure, opportunity, and the output of patented inventions. The American Economic Review, 55(5):1097–1125.Google Scholar
  24. Schumpeter, J. A. (1943). Capitalism, Socialism and Democracy. London: George Allen & Unwin (Publishers) Ltd.Google Scholar
  25. Siddharthan, N. (1992). Transaction costs, technology transfer, and in-house R&D: A study of the Indian private corporate sector. Journal of Economic Behavior and Organization, 18(2): 265–271.CrossRefGoogle Scholar
  26. Siddharthan, N. and Safarian, A. (1997). Transnational corporations, technology transfer and imports of capital goods: the recent indian experience. Transnational Corporations, 6(1): 31–49.Google Scholar
  27. Siddharthan, N. S. and Rajan, Y. S. (2002). Global Business, Technology and Knowledge Sharing: Lessons for Developing Country Enterprises. Delhi: Macmillan India Ltd.Google Scholar
  28. Sujit, K. S. (2004). R&D in Indian manufacturing sector and its determinants. The ICFAI Journal of Industrial Economics, 1(1):31–39.Google Scholar
  29. Symeonidis, G. (1996). Innovation, firm size and market structure: Schumpeterian hypotheses and some new themes. Technical report, Organization For Economic Cooperation And Development, OECD/GD.Google Scholar

Copyright information

© Springer Science + Business Media, LLC 2009

Authors and Affiliations

  • Savita Bhat
    • 1
  • K. Narayanan
    • 1
  1. 1.Department of Humanities and Social SciencesIndian Institute of TechnologyBombayIndia

Personalised recommendations