Abstract |
This paper looks at some aspects of management, organization and innovation at the firm level for the Indian manufacturing sector. Using enterprise survey data for the year 2009 we find that in the period after liberalization began in 1991 a large majority of firms do not undertake any form of conventional technological innovation, i.e., in-house R&D. Some sectors rely more on alternative sources of technological innovation than on intra-mural R&D in terms of introducing new products, hiring external consultants and outsourcing production to other firms. Thus firms have partially moved from the narrow to the broader definition of innovation which shows that firms have realized the importance of innovation to be competitive in both the domestic and in the international markets. However innovation has extended to incorporate ‘management innovation’ only very marginally. Management practices remain conservative. Ownership and top management continues to be in the hand of the same family. Inability to find trustworthy employees is generally cited as the most important reason for adopting this method of management. Workers’ role in product or process innovation and decision making, especially decisions with financial implications is minimal. Decentralization by establishment and by hierarchy is low. ‘Peoples’ management’ is still low in priority irrespective of firm size. We further complement the analysis with the surveys of 2005 and 2010. |