Inclusive Businesses in Developing Economies: Converging People, Profit, and Corporate Citizenship (Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth) 303112216X, 9783031122163

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PALGRAVE STUDIES IN DEMOCRACY, INNOVATION, AND ENTREPRENEURSHIP FOR GROWTH SERIES EDITOR: ELIAS G. CARAYANNIS

Inclusive Businesses in Developing Economies Converging People, Profit, and Corporate Citizenship Edited by Rajagopal · Ramesh Behl

Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth

Series Editor Elias G. Carayannis, The George Washington University, Washington, DC, USA

The central theme of this series is to explore why some areas grow and others stagnate, and to measure the effects and implications in a trans-disciplinary context that takes both historical evolution and geographical location into account. In other words, when, how and why does the nature and dynamics of a political regime inform and shape the drivers of growth and especially innovation and entrepreneurship? In this socio-economic and socio-technical context, how could we best achieve growth, financially and environmentally? This series aims to address such issues as: • How does technological advance occur, and what are the strategic processes and institutions involved? • How are new businesses created? To what extent is intellectual property protected? • Which cultural characteristics serve to promote or impede innovation? In what ways is wealth distributed or concentrated? These are among the key questions framing policy and strategic decisionmaking at firm, industry, national, and regional levels. A primary feature of the series is to consider the dynamics of innovation and entrepreneurship in the context of globalization, with particular respect to emerging markets, such as China, India, Russia, and Latin America. (For example, what are the implications of China’s rapid transition from providing low-cost manufacturing and services to becoming an innovation powerhouse? How do the perspectives of history and geography explain this phenomenon?) Contributions from researchers in a wide variety of fields will connect and relate the relationships and inter-dependencies among (1) Innovation, (2) Political Regime, and (3) Economic and Social Development. We will consider whether innovation is demonstrated differently across sectors (e.g., health, education, technology) and disciplines (e.g., social sciences, physical sciences), with an emphasis on discovering emerging patterns, factors, triggers, catalysts, and accelerators to innovation, and their impact on future research, practice, and policy. This series will delve into what are the sustainable and sufficient growth mechanisms for the foreseeable future for developed, knowledge-based economies and societies (such as the EU and the US) in the context of multiple, concurrent and inter-connected “tipping-point” effects with short (MENA) as well as long (China, India) term effects from a geo-strategic, geo-economic, geo-political and geo-technological set of perspectives. This conceptualization lies at the heart of the series, and offers to explore the correlation between democracy, innovation and growth.

Rajagopal · Ramesh Behl Editors

Inclusive Businesses in Developing Economies Converging People, Profit, and Corporate Citizenship

Editors Rajagopal Tecnologico de Monterrey EGADE Business School Mexico, Mexico

Ramesh Behl International Management Institute Bhubaneswar, Odisha, India

ISSN 2662-3641 ISSN 2662-365X (electronic) Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth ISBN 978-3-031-12216-3 ISBN 978-3-031-12217-0 (eBook) https://doi.org/10.1007/978-3-031-12217-0 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

There has been a chain effect on income inequality intertwining the economic resources and businesses operations between countries. This situation is caused due to the divergence of profitable businesses in geo-demographic segments, benefiting a selected stratum of the society. The business divergence with a combination of technological change, global disintegration, domestic regulation, and immigration laws has been driving major changes in business and economy across the countries, resulting in pressure of widespread economic insecurity. Policymakers, industrialists, and researchers have overlooked this issue significantly since the mid-twentieth century, as the economic focus was profusely toward the industrialization. The economies of most of the developing nations have reached today the era of Industry 4.0. However, integration of people, profit-with-purpose, and corporate citizenship still appear to be a far cry.1 The fragmented links between the society and business today call for an inclusive growth agenda in business by converging human capital and corporate social responsibilities. The right perspective of an inclusive growth in business can be visualized through a business design cube comprising design-to-market, design-to-society, and design-to-value philosophy. The business planning in multinational companies, such as

1 Lasi, H., Fettke, P., Kemper, H.G., Feld, T., & Hoffmann, M. (2014). Industry 4.0.

Business & Information Systems Engineering , 6(4), 239–242.

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Unilever, Pfizer, and Apple, are focusing on human attributes in business by converging diverse personalities, languages, cultures, ethnicities, and physical abilities, and paving path to achieve sustainability goals. Such trend in businesses has evolved over temporal and spatial dimensions to reinforce the desired concern for developing corporate citizenship behavior today.2 Despite global concerns, diplomacy, and economic cooperation, a large population in the developing countries is staying outside the formal economy. Various schools of thought during the classical, neoclassical, and modern eras have contributed theories in support of learning organizations. Blending theories of social learning and of decision sciences is a relatively new knowledge pool as compared to the schools of thought of twentieth century.3 Many forces drive local enterprises to globalize by expanding their brand reach and participating in foreign markets through various modes of entry. In developed countries, domestic markets have turned mature and are seeking international markets. Regional enterprises in big emerging markets are mainly the domain of large, well-resourced national enterprises. These enterprises are now open to global trade and are supported by multinational companies and business diplomacy of the countries with trade power. Global economy faces significant challenges as it continues to integrate high levels of public debt in Europe and North America that are causing the fear of a negative impact on GDP growth. Emerging markets with young and growing populations are increasingly becoming the focus of rising consumption and production and the major providers of capital, talent, and innovation. Traditional corporate social programs are facing incremental challenges toward driving the transformative changes by integrating people, profit, and corporate social responsibilities. Broadly, corporations need to redefine the regional ecosystems, in which they participate and search for systemic, multisector opportunities to mobilize local partners and scale-up the business outreach to the society and economy. Inclusive businesses focus on aligning strategy development and business operations with stakeholders and co-creating people-led business models to deliver 2 Likoko, E. & Kini, J. (2017). Inclusive business-a business approach to development. Current Opinion in Environmental Sustainability, 24(1), 84–88. 3 Liu, W., Kwong, C. Y., Kim, Y. A., & Liu, H. (2021). The more the better vs. less

is more: Strategic alliances, bricolage and social performance in social enterprises. Journal of Business Research, 137 , 128–142.

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social values. The concept of inclusive business helps in driving collective performance and socio-ethical values. Enterprises adapting to inclusive business practices invoke social value or virtue in managing people-led business strategies.4 Such business models evolve with the people at the grassroots to incite the economic and moral aspects of business performance. The paucity of public development finance in many developing countries, investment in public infrastructure, and social development have been scaled down the prospects of inclusive businesses. However, with the increasing response to free market reforms, active contributions of self-help groups, and community efforts in new social and business enterprises, the private sector has been motivated to coevolve with the enterprises of semi-urban and rural areas by establishing strategic alliances. The foundations laid by sustainable business initiatives, investment promotion in social development, and market-based entrepreneurial push have served as powerful enablers of inclusive businesses. Consequently, inclusivity in business has emerged as a design-to-society business model to enhance the compatibility between small, medium, and large enterprises.5 The underlying philosophy of inclusive business has been actively supported by governments, NGOs, and leading agri-food and customer-centric companies such as Nestlé (enabling technology and training to the coffee growers), Unilever (empowering women in developing countries), Google (information outreach to remote areas), Levy Strauss & Co. (diverse and inclusive workplace), and Starbucks (coffee and farmers equity). Such business models have been benefitting the stakeholders and people by integrating them into business value chains (in the farm and non-farm sector) in developing economies. The concepts of bottom-of-the-pyramid and inclusive business are intertwined. The inclusive business has emerged as a new enterprisebased approach to conduct business with people and alleviate poverty by empowering them to access global brands6 . Over time, this management philosophy has integrated the concepts of inclusive business, subsistence 4 German, L. A., Bonanno, A. M., Foster, L. C., & Cotula, L. (2020). “Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains. World Development , 134, (in Press). https://doi.org/10.1016/j.worlddev.2020.105018 5 Chamberlain, W. & Anseeuw, W. (2019). Inclusiveness revisited: Assessing inclusive businesses in South African agriculture. Development Southern Africa, 36(5), 600–615. 6 Prahalad, C. K. & Hammond, A. (2002). Serving the World’s Poor, Profitably. Harvard Business Review, 80(9), 48–57.

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marketplaces, frugal innovation, and impact investment. Some companies such as Nestlé, Kellogg’s, and AMUL (India) have incorporated the above concepts into their business model to coevolve with people and the corporate distinctive identity. However, relevant epistemologies and business research have not advanced at the same pace with the inclusive business revolution. Consequently, knowledge about parameters for successfully integrating business and working on inclusive business models remains ambiguous7 . This edited volume attempts at the grassroots to critically examine the inclusiveness embedded in the businesses and unveil the strategies for marketing at the bottom-of-the-pyramid segment. Attributes of the inclusive businesses in building effective business models are listed below: • Linking business with societal modes to reduce whiplashes with the conventional innovation-marketing matrix, • Developing inclusive business into consumer-centric perspectives to strengthen social foundation, • Developing firms as the first movers and reaping competitive advantage by developing collective business strategies and building “valuedefensive” models, • Understanding cognitive ergonomics of consumers to develop valueled business performance, and • Developing collective engagement in business settings. Though inclusive business is a collective concept, it is often viewed as a social growth of firms. The inclusive value proposition is described as the synergy between society and business in this book, which asserts that people-led business models reap strategic benefits. Building and maintaining synergy in inclusive businesses is an ongoing process through cooperative and collaborative activities and programs to create and enhance mutual economic value8 . This perspective is emphasized in this book in the context of for-profit and not-for-profit organizations. The

7 Hart, S., Sharma, S., & Halme, M. (2016). Poverty, business strategy, and sustainable development. Organization & Environment , 29(4), 401–415. 8 Luu, N., Ngo, L. V., & Cadeaux, J. (2016). Value synergy and value asymmetry in relationship marketing programs. Industrial Marketing Management , 68, 165–176.

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book argues that companies need to consider a broader social perspective to enhance the effectiveness of business models by implementing applied marketing decisions and putting the consumer first in the business management process. This book connects the social perspectives of companies in emerging markets with business performance-matrix across geo-demographic segments. Inclusivity and diversity in business explore the relationship between business models, value chains, and business ecosystems affecting the business growth and performance. It explores new information-intensive business system in the production and services segments. The thematic discussion also focuses on the connection between technology and governance, often enabling the latter in context to the former, or the latter offering prospects for the innovative entrepreneurs and investors to develop new business models9 . The people’s involvement of in business has significantly encouraged crowd participation in design thinking, developing print and digital commercials for products and services, and value co-creation programs. Engaging people in production and business operations has updated the real-time knowledge on market and consumption needs among stakeholders and consumers10 . Most organizations prefer to stay in business as learning organizations, which helps them grow competitively and consistently in the marketplace. Design thinking in business has been conceived as an essential tool for simplifying the business operation by interlinking organization, society, and stakeholders, and more comprehensively humanizing the business. The extended principles of design thinking in businesses converge with the market attributes (market players, ethics, and business growth), social responsiveness (marketing with purpose), and value propositions of customers. The philosophy of inclusive business advocates the people-led win–win business model to lead the market. Customer-centric11 companies, therefore, tend to build simpler products conceived through the collective intelligence involving people and engaging customers and stakeholders in production and business operations. Inclusive businesses operate with diverse workforce and 9 Manouchehrabadi, B., Letizia, P., & Hendrikse, G. (2021). Governance of collective

entrepreneurship. Journal of Economic Behavior & Organization, 185, 370–389. 10 Kietzmann, J. H. (2017). Crowdsourcing: A revised definition and an introduction to new research. Business Horizons , 60(2), 151–153. 11 Desai, H. P. (2014). Business Models for Inclusiveness. Procedia—Social and Behavioral Sciences , 157 , 353–362.

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gain abilities in converging divergent business perspectives to develop a social vision for carrying out business with people. People-led firms largely adapt to collective decisions, shared ideas, and social emotions in managing business. Such companies develop abilities to distinctively manage both conscious and unconscious biases, as they coevolve with people and society12 . Consumers today are increasingly looking for social brands over the functional and competitive benefits. As a result, most companies are taking social stand in highly visible ways. An effective, convergent business strategy creates social and customer values by coevolving the brand in the society. The network of society, people, and business stimulates co-creation and collective business designing. This book argues that the convergence of society and business can be better understood through continuous learning about the consumer behavior, operational processes, employee contributions, and competitive growth perspectives13 . The concept of classic disruption entails a small enterprise targeting overlooked customers with an innovative and modest offering and by gradually moving upstream the market challenge. Different types of disruptions have different degrees of impact, which affects how companies prioritize risk management efforts. As disruptions occur with different frequencies or likelihoods, they are difficult to identify in the initial stages of intervention14 . The impact of multi-level entrepreneurial governance, role of knowledge networks, and shifts in the consumerism are critically examined in the articles of this thematic section. As the adequate knowledge transfer programs do not support most innovation of small and medium enterprises, the knowledge diffusion strategies and the success of co-creation in small and medium enterprises have always been a major challenge. Inclusive businesses that are supported by the public policies and private partnerships have extensively used social media channels to 12 Yamkovenko, B. & Tavares, S. (2017). To Understand Whether Your Company Is

Inclusive, Map How Your Employees Interact. Harvard Business Review Digital Article, Harvard Business School Press. 13 Rajagopal (2021). The Business Design Cube: Converging Markets, Society, and Customer Values to Grow Competitive in Business. New York: Business Expert Press. 14 Sosna, M., Trevinyo-Rodríguez, R.N., and Velamuri, S.R. (2010). Business model

innovation through trial-and-error learning: the Naturhouse case. Long Range Planning, 43, 383–407.

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encourage ideation, involvement, innovation, integration, information diffusion, and implementation (6-Is) as collective enterprise management strategy. Global brands such as Nike and Dove have managed to leverage their strong brand platforms to communicate messages about diversity, inclusion, and gender equality, thereby gaining an activist voice in pushing forward topical movements such as Black Lives Matter and #MeToo15 . The corporate citizenship is based on people’s involvement in social and economic development projects. The corporate focus in collaborating or managing social business shifts the management perspectives from addressing profit-only goals to profit-with-purpose objectives by involving consumers and stakeholders. The involvement of crowd also shifts attention of the corporations toward people-led business administration and collective growth. In this process, the interest in stakeholder relations is paired with sharing of information and collective intelligence, which helps corporations gain recognition as socially responsible agencies for integrated growth with the society16 . People’s involvement in business also benefits the multi-stake business model and strengthens multi-stakeholder mechanism in business governance by co-designing the organizational structures, processes, and principles17 . Inclusiveness in businesses has also supported gender equity at workplaces, as women employees have been empowered socially and economically, which has built social synergy in business organizations. Inclusivity at the bottom-of-the-pyramid has emerged as a new enterprise-based approach to conduct business with people and alleviate poverty by empowering them to access global brands. The network among society, people, and business stimulates co-creation and collective business designing18 . Successful companies like Nestle, Wholefoods, and Apple bring business and society back together by creating shared and economic values. 15 Andersen, S. E. & Johansen, T. S. (2021). Corporate citizenship: Challenging the corporate centricity in corporate marketing. Journal of Business Research, 131, 686–699. 16 Illia, L. & Balmer, J. M. T. (2012). Corporate communication and corporate

marketing. Their nature, histories, differences, and similarities. Corporate Communications: An International Journal , 17 (4), 415–433. 17 Shi, H. (2021). The application of social psychology and collective Internet governance, Aggression and Violent Behavior. (in Press ) https://doi.org/10.1016/j.avb.2021. 101588 18 Mangnus, E. (2019). How inclusive businesses can contribute to local food security. Current Opinion in Environmental Sustainability, 41, 69–73.

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In addition, crowdsourcing, crowdfunding, social marketing, and sharing economy platforms have been rapidly transforming the production and consumption systems in the developing economies. These platforms connect businesses with economic, social, and environmental factors across geo-demographic segments. People’s participation and social governance have grown over time in promising forms of sharing and leveraging its benefits, while circumventing its pitfalls is becoming increasingly important in economic recoveries caused due to the current pandemic19 . Competitive advantage is built by the companies in an increasingly interconnected global economy. International firms collaborating with local enterprises often innovate their business models. Firms tend to develop design-to-market and collaborative business models (with stakeholders) for implementation through a set of activities to transform existing businesses based on a socio-economic model20 . The inclusive business model emphasizes various ways of practicing corporate social responsibility (CSR). The papers logically argue that company can “do well by doing good” to make profit and co-create value in the society at the same time. CSR is regarded as a voluntary corporate commitment engaging people and stakeholders to exceed the explicit and implicit obligations imposed on a company by society’s expectations of conventional corporate behavior21 . CSR is a way of promoting beneficial social trends to support inclusive business operations, which consist of obligations that cover both the legal framework and social conventions. The philosophy of inclusive business advocates the people-led win–win business model to lead the market. Inclusive businesses operate with diverse workforce and gain abilities in converging divergent business perspectives to develop a social vision for carrying out business with people. People-led firms largely support decision making, idea sharing, and emotions in managing business. People-led governance in businesses explains how the social vigilance

19 Mont, O, Palgan, Y. V., Bradley, K., & Zvolska, L. (2021). A decade of the sharing

economy: Concepts, users, business and governance perspectives. Journal of Cleaner Production, 269 (in Press). https://doi.org/10.1016/j.jclepro.2020.122215 20 Täuscher, K. (2017). Leveraging collective intelligence: How to design and manage crowd-based business models, Business Horizons , 60(2), 237–245. 21 Gupta, K. and Krishnamurti, C. (2021). Corporate social responsibility, competition,

and firm value, Pacific-Basin Finance Journal, 68 https://doi.org/10.1016/j.pacfin.2021. 101622

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in business organizations helps in controlling unethical moves of the firms for profit at the cost of customers and stakeholders22 . Most companies have shortage of deep, experienced management experiences toward inclusive business modeling. It is a continuous learning process yielding bidirectional benefits to the society and businesses. Nonetheless, how conscious the businesses today to adapt to inclusive strategies and integrate people, profit, and corporate citizenship behavior is a pertinent question. This edited volume intends to document experience of firms, management process, and business systems that have co-evolved with the inclusive business philosophy and delivered value to society, and people at large. Deliberation in the conference aims at discussing the causes and effects, and the challenge associated with the management of inclusive businesses. Portraying the varied corporate experiences in inclusive business designs and customer value propositions across the industries, this conference focusses on critically examining the problems, challenges, probable solutions, and policy frameworks for integrating business as a resource to alleviate poverty, and social and economic inequality. Business analytics demands an increased collaboration across organizations on issues relating to information selection and screening the datasets, and to warn managers about the data intricacies and risks, and teams about the information oversights. The software tools that a firm considers as a part of business analytics span across various areas, including analytics, data integration, querying and reporting, and managing information technology projects. Manufacturing and operations systems including marketing, logistics, and inventory systems are discussed in the articles in this theme. Over the years of government patronage in developing countries, the small and medium enterprises have spread their business across various economic sectors. These enterprises have built their sector-specific portfolios in customer-centric industries and business-to-business industries. The sectoral industries span across agribusiness, health care, education, and housing in the developing countries. The government policies and public infrastructure have set new trends in services in the emerging markets. This book discusses the socialization of business as a corporate philosophy to understand people in general, and customers and stakeholders 22 Munksgaard, K. B. & Medlin, C. J. (2014). Self- and collective interests: Using

formal network activities for developing firms’ business, Industrial Marketing Management , 43(4), 613–621.

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in particular to motivate the co-creation of value-based business performance. Reviewing a wide range of literature from empirical research studies to best practices followed by the companies, this book analyzes the emerging theories of inclusiveness in business, corporate social responsibility, social learning, and value co-creation. The concepts and models developed in the book are central to people’s involvement and their engagement in business with the increase in social-responsive behavior of companies to support coevolution of business with customers and stakeholders. Thematically, the discussion on these perspectives is interpreted as an inclusive business process with multi-layered marketing strategies across various geo-demographic segments. The focus of the discussion on inclusive business is precisely on using collective intelligence and collective performance through social networks, leadership, and crowd consciousness. This book deliberates upon critical success factors of firms, which include diversity and cross-functionality by managing the triple and quadruple bottom-line. It is argued in the book that timely deployment of streamlined crowd-based marketing strategies in chaotic markets could enhance the effects of social innovation, increase the value spread among consumers, and reduce the growing complexities in the global and regional markets. Collective intelligence creates intrinsic and extrinsic motivation with distinctive effects on prosocial behavior, which helps firms to understand the effects of crowd behavior23 . This book presents new insights on developing inclusive business models using both aggressive (crowd-driven) and defensive (competitive) marketing strategies in the inclusive business models. The book guides managers on both marketing tactics and strategies using the 5Ts concepts for managing time (first mover advantage), territory (new market segments), target (potential consumers), thrust (competitive), and tasks (co-creation). This edited volume aims at delivering an anthology of articles on inclusive businesses in developing economies with focus on converging people, planet, and profit. The selected articles have global–local business imperatives. This volume critically analyzes inclusive business practices, public policies, social ideologies, and stakeholder values from the perspectives of changing business philosophy. The anthology of selected papers in this

23 Festré, A. and Garrouste, P. (2015). Theory and evidence in psychology and

economics about motivation crowding out: A possible convergence? Journal of Economic Survey, 29(2), 339–356.

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volume enriches the knowledge and skills on contemporary entrepreneurship models and convergence stakeholder-centric business strategies. This book contemplates on developing inclusive business models to match with the changing priorities of regional economic development in the developing countries. This edited volume is divided into six sections consisting of corporate responsiveness, financial management perspectives, human resources management, inclusivity and entrepreneurship, marketing, and case studies. These sections comprise conceptual and empirical research articles and case studies across the geo-demographic segments of emerging markets. In all, twenty-one chapters covering India, Mexico, and Africa are included in this volume. The principal audience of this book are managers, researchers, and students of business economics, business strategy, product development, innovation management, and international trade. Thematically, this book covers varied studies on inclusive business models with focus on peopleled enterprises. This anthology would serve as a guide and think tank for the researchers, management students, entrepreneurs, policymakers, and corporate managers. Mexico City, Mexico Bhubaneswar, India June 2022

Rajagopal Ramesh Behl

Praise for Inclusive Businesses in Developing Economies

“Diversity and inclusivity are the critical steps for firms to create value and integrate social responsiveness. Though challenging, it is an art of thinking independently for collective business growth. The research articles in this anthology explore the crux of the matter and provide meaningful discussions… A good read for all…” —Claudia Quintanilla, EGADE Business School, Mexico

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Contents

1

Evidencing Inclusivity in Business: A Step Beyond the Bottom Line Rajagopal

1

Part I Corporate Responsiveness 2

3

“Check Your Cognitive Dissonance at the Door”: Corporate Social Responsibility Driving Anti-Ism Policies for Inclusive Growth Andrée Marie López-Fernández A Meta-Analytic Study of Socially Desirable Responding (SDR) Across Indian and Chinese Cultures Manit Mishra, Tanusree Chakraborty, and Nargis Begum

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Part II Financial Perspectives 4

How China Strategically Invests in Africa? The Case of Zambia Satyendra Singh and Jive Lubbungu

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Antecedents of Consumer Satisfaction in Online Banking: A Systematic Review with the Text Mining Approach Ajay Kumar Ganguly, Rohit Vishal Kumar, Subhajit Bhattacharya, and Subrata Chattopadhyay

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Part III Human Resources Management 6

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Impact of University’s Human Resources Practices on Professors’ Occupational Performance: Empirical Evidence from India’s Higher Education Sector Ashraf Alam

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Paradigm Shift to Virtual Learning: A Blessing in Disguise Sourabh Sharma and Megha Sharma

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A Study on the Impact of Demographic Factors on Work-Family Conflict Shalini Garg and Punam Agrawal

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Does Positive Social Exchange Relationship Always Motivate Ethical Acts? Bindu Chhabra

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Contextualization of Employee Recruitment and Retention in Technology Start-Ups Sanjib Dash, Supriti Mishra, and Santhosh Kumar Tripathy

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Antecedents and Consequences of Social Media Usage Behavior in Job Search: A Qualitative Study Toward a Conceptual Framework N. V. Subbarao, Bindu Chhabra, and Manit Mishra

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Part IV Inclusivity and Entrepreneurship 12

Driving Inclusive Leadership to Stimulate Innovation at Grassroots: Restructuring Business Skills Within Entrepreneurial Ecosystem Ananya Rajagopal

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14

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Entrepreneurial Orientation, Human Capital, and Family Business Internationalization: An Empirical Study Akansha Gupta and Amit Kumar Dwivedi Entrepreneurship Development of Rural Women Through Digital Inclusion: Examining the Contributions of Public Programs Hema Yadav, Manisha Paliwal, and Nishita Chatradhi

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Industry 4.0 Technologies Transforming the Future of Work in Post Pandemic World Swayam Sampurna Panigrahi and Deepti Chandra

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Women’s Self-Help Groups and COVID-19 Pandemic: Resilience and Sustenance Tanushree Mahato and Manish Kumar Jha

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Exploring the Institutionalization Process: A Qualitative Analysis in a High Impact Community Alberto Borbolla Albores

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Part V Marketing 18

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To Study the Influence of Antecedents, Consumer Lifestyles and Consumer Involvement: Determining the Mediating Role of Visual Merchandising Sourabh Sharma, Rajesh P. Jawajala, Amruta Rajesh Jawajala, and Megha Sharma

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Dynamic Capabilities and Performance of the Firm: The Mediating Role of VRIN Resources Ritu Singh

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Part VI

Case Studies

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Swasthika: Reworking on Marketing-Mix Ranjani Kumari, Nitish Nigam, and Rajeev Verma

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21

Bash on Regardless: A Case of a Hardy Leader Pallabi Mund

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Index

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Editors and Contributors

About the Editors Dr. Rajagopal is Professor of Marketing at EGADE Business School of Monterrey Institute of Technology and Higher Education (ITESM), Mexico City Campus, and Fellow of the Royal Society for Encouragement of Arts, Manufacture and Commerce, London. He is also Fellow of the Chartered Management Institute and Fellow of Institute of Operations Management, United Kingdom. He is serving as Visiting Professor at Boston University, Boston, Massachusetts, since 2013 and is also engaged in teaching courses at the UFV India Global Education of the University of the Fraser Valley, Canada. He holds post-graduate and doctoral degrees in Economics and Marketing respectively from Ravishankar University in India. His specialization is in the fields of marketing management. He has to his credit 68 books on marketing management and rural development themes and over 400 research contributions that include published research papers in national and international refereed journals. He is Editor-in-Chief of International Journal of Leisure and Tourism Marketing and International Journal of Business Competition and Growth. He is on the editorial board of various journals of international repute. His research contributions have been recognized by the National Council of Science and Technology (CONACyT), Government of Mexico by awarding him the highest level of National ResearcherSNI Level- III in 2013. He received the recognition of Distinguished

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Professor of EGADE Business School, Tecnologico de Monterrey, in December 2020. Prof. Ramesh Behl is the Director and Professor at International Management Institute, Bhubaneswar, and a Full Professor at IMI Delhi. He is credited with building and transforming IMI Bhubaneswar to an institution of National importance. He is a United Nations Fellow on Information Systems and International Operations and a SAP Certified International Consultant. His teaching expertise includes business analytics, enterprise systems, and emerging technologies. In addition to teaching, he is an active researcher in the area of e-Business and Business Analytics. He has also designed and developed several software for various industry applications. He has over thirty-five years of teaching, research, and consulting experience; and has worked with premier institutions like Indian Institute of Foreign Trade (IIFT), New Delhi, Indian Institute of Management (IIM), Lucknow, and Statesman, New Delhi. He has done number of research and consulting assignments for government and private organizations in the areas of information systems and international trade. He has authored twenty-three books, seventeen case studies, and number of research papers. He is an International Accredited Professor of International Accreditation Organization, USA. He sits on the Board of leading Business Schools and Technology Companies. He has conducted corporate trainings and trained over 8000 mid- and senior-level executives. He has also conducted training workshops for the faculties and students at various international universities in Singapore, Indonesia, Thailand, Hong Kong, Australia, China, Germany, and Korea. He has received accolades and significant recognition as a demonstration of his leadership qualities and innovations such as “Outstanding Academic Award 2010” from SAP Inc. and “Best Professor in Information Technology” as part of Asia’s Best B-School Awards presented by CMO Asia at Singapore in July 2011. He has been conferred also with the awards of “Best Professor in Information Technology Management” as part of 21st Dewang Mehta Business School Awards on October 23, 2013, Rashtriya Jewels Award,” and “Shining Achievers Award” in January 2015.

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Contributors Agrawal Punam has over ten years of teaching experience in the field of human resource management. She is currently working as Assistant Professor at Tecnia Institute of Advanced Studies, India. She is also perusing her doctoral studies. Alam Ashraf is currently researching the different facets of “Happiness Curriculum” at the Rekhi Centre of Excellence for the Science of Happiness at Indian Institute of Technology, Kharagpur. Ashraf is also actively involved in research and publication activities and as on date he has more than 50 publications to his credit, most of which are published by Elsevier, IEEE, and Springer, of which all indexed in SCOPUS and/or Web of Science. Albores Alberto Borbolla obtained his Ph.D. from the Universidad Iberoamericana, Mexico. He is a professor and researcher at the Anahuac University, Mexico City. He is part of the faculty of the Department of Entrepreneurship of the Business School. He has written on various topics of entrepreneurship, innovation, and marketing. Begum Nargis, Ph.D. is Associate Professor in Organizational Behavior and Human Resources. She is currently working at Trident Academy of Creative Technology (TACT), Bhubaneswar, India. She has more than 15 years of teaching experience. She has authored a book on Social Accountability published by Research Forum, India. She has conducted workshops sponsored by AICTE. She has got publications in Scopus indexed and various national and international journals. She has also actively presented papers in national and international seminars. Bhattacharya Subhajit is now serving as Associate Professor, Marketing Area at XIM University Bhubaneswar (previously known as Xavier University Bhubaneswar). He has a Ph.D. in Business Administration from the University of Burdwan. He has more than 14 years of experience in academics and teaches different courses in the marketing domain. His areas of experience and expertise include teaching brand management, consumer behavior, sales and distribution management, and customer relation management. Chatradhi Nishita is a Bachelor of Social Work and Master in Human Development and Education from the University of Waikato, New

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Zealand. She is currently a Research Officer at Vaikunth Mehta National Institute of cooperative management. She has worked with women and children with disability for four years. Her work experiences are in the areas of academics and the non-profit sector with a primary research focus on cooperative development and empowerment of women collectives. The thematic areas of her research are management of collectives, social entrepreneurship, leadership, women empowerment, and livelihood development. Chandra Deepti is Assistant Professor at the Institute of Public Enterprise. She has completed her Ph.D. from Central University of Allahabad, India, and Masters in Commerce & Human Resource Development. She has also been a UGC-Senior Research Fellow. She is a trainer in Human Resource & Industrial Relations. She is also a member of the Centre for CSR and has experience of organizing and has been a program director for many management development programs, trainings, conferences, and seminars. Chakraborty Tanusree, Ph.D. is a psychologist and has profound interested in understanding human behavior. She has been associated with the academia for past 18 years. Presently, she is working at the Administrative Staff College of India (ASCI), Hyderabad, as a Faculty in the Centre of Management Studies. She has several publications in leading national and international journals. She has presented around 70 research papers in national and international conferences of repute. Chattopadhyay Subrata has obtained Ph.D. from Indian Institute of Technology, Dhanbad, and currently serving as professor at University of Engineering & Management, Kolkata. He has contributed to more than 40 international journals and published more than 23 papers in conferences. Besides, he has authored 3 books on Computations in Estate Management, Transport Management and Values and Ethics for Engineers and Managers. He has conferred the prestigious MTC Global Top Thinkers award in 2015. In 2019, he was awarded Mentor of the Year by the Ministry of Human Resources, Government of India. Chhabra Bindu is Professor of Organizational Behavior and Human Resource Management and Dean (Academic Programs & International Relations) at International Management Institute, Bhubaneswar. She holds a Ph.D. in Psychology in Stress Management. She has over 22 years of teaching, research, and industry experience. Her areas of research

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interest include leadership, emotional intelligence, stress management, personality, and work attitudes. She has published various research papers in national and international journals and has presented papers in conferences in India and abroad. She is the recipient of National Education Leadership Award for Best Teacher in Human Resource Management. Her paper titled “Emotional Intelligence and Occupational Stress: A Study of Indian Border Security Force Personnel” was published in a reputed journal and won the Best Paper Award. Dash Sanjib is the Founder and CEO of InnoMethods Corporation, an Information Technology Services company focused on Cloud and Analytics domain. His experience spans over 30 years in industry specifically in Information Technology and Engineering primarily in management and operation. Prior to starting InnoMethods, he was working for various companies including a Fortune 500 British corporation. He is currently pursuing his Ph.D. in the Department of Personnel Management & Industrial Relations, Utkal University, India, and holds an M.B.A. and MS in Production Engineering & Management. Dwivedi Amit Kumar, Ph.D. has over 16 years of teaching and research experience. He is a National Team Member of Global Entrepreneurship Monitor (GEM) India. He is also one of the co-authors of Global Entrepreneurship Monitor, India Report since 2014. He has presented his research in conferences in China and Malaysia. Currently, he is Associate Professor at EDII-Ahmedabad. Ganguly Ajay Kumar is working as a Core Senior Faculty Member of the Commerce Department of Syamaprasad College affiliated to University of Calcutta since November 2003. He is now working as Head of the Department of Commerce Department. His research focuses on the field of service marketing, specifically in the financial banking sector, and he has authored a number of articles in national and international journals. Garg Shalini holds Ph.D. and has over 21 years of academic experience in Human Resource (HR) Management, Organization Behavior, and Organization Development. She is currently serving as Professor in University School of Management Studies, Guru Gobind Singh Indraprastha University, Delhi, India. Her teaching and research focus on inclusion and accessibility and integration of HR technology in the context of social systems.

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EDITORS AND CONTRIBUTORS

Gupta Akansha is currently a doctoral scholar pursuing Fellow Programme in Management (FPM) at Entrepreneurship Development Institute of India (EDII), Gandhinagar. Her research interest lies in family business internationalization. She has obtained Masters in Technology (M. Tech) degree from Amity University, India, and worked as an assistant professor for two years. Jawajala Amruta Rajesh, Ph.D. has an aggregate work experience of over nine years in the corporate and academic sectors. Prior to joining academics, she worked for multinational pharmaceutical company GlaxoSmithKline Laboratories Ltd. She is on a sabbatical and currently pursuing a fulltime program in Data Science. She has taught in several leading BSchools in Pune in Marketing/HR area. She has filed for a patent and has published a book chapter and presented papers in leading international conference. Jawajala Rajesh P., Ph.D. is presently working as an associate professor (International Business & Strategic Marketing) at MIT World Peace University (WPU) in the School of Management (SOM-PG). He has an aggregate work experience of over 24years in both the corporate and academic sectors. He worked for India’s leading pharmaceutical company Ranbaxy Laboratories Ltd in domestic and international markets in Asia. He was also engaged as a consultant faculty with Victoria University (VU), Australia, for its Executive M.B.A. Program (VU Online), in Strategic Marketing, Innovation & Entrepreneurship area, and got the highest faculty approval ratings from working executives in the program. Jha Manish Kumar obtained his Doctorate in Management from Indian Institute of Technology, Dhanbad. He has total experience of more than ten years as faculty, trainer, and corporate employee. His research work has been published in many reputed referred journals. He has also authored many books from reputed international and national publisher. His area of research and interest is micro-finance, development studies, MSME, rural development, social inclusion, financial inclusion, ethics, and spirituality. Kumar Rohit Vishal has obtained doctoral degree in business management from University of Calcutta on his work in psychographic segmentation. He worked with ORG-MARG, New Delhi, and TNS-MODE, Kolkata, and joined academics in 2001 as lecturer. He is currently serving

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as faculty at International Management Institute, Bhubaneswar, India. He has several publications in international journals of repute. Kumari Ranjani is FPM Scholar in marketing area at Chandragupt Institute of Management, India. Her areas of interest include green marketing, sustainability, mindful consumption, minimalism, and consumer behavior. López-Fernández Andrée Marie is a business professor and researcher at the Universidad Panamericana, Mexico City. Her research areas of interest include corporate social responsibility, marketing strategy, and consumer behavior. She holds a Doctoral Degree in Administrative Sciences from the EGADE Business School and is a Level-I member of the Mexican National System of Researchers by CONACYT. Lubbungu Jive, Ph.D. is a lecturer in the School of Humanities and Social Sciences at the Kwame Nkrumah University, Zambia. His research interests lie in comparative literature, gender, and contemporary issues. He has published books as well as articles in international referred journals. He has a strong passion for writing. He has worked with various stakeholders in his civic duties and in academics. He was a member of the senate of Africa Research University and currently serves as a member on the Zambia Network for Environmental Educators and Practitioners Kabwe Chapter, Zambia Textbook, Academic and Non-fiction Authors Association, and the Authorship and Career Network, Zambia, among others. Mahato Tanushree is a doctoral research scholar in the Department of Humanities Social Sciences and Management, at National Institute of Technology, Jamshedpur, India. Her area of research is micro-finance, financial inclusion, and women empowerment. Mishra Manit is an associate professor and Dean (Research & Strategic Initiatives) at International Management Institute, Bhubaneswar. He has completed his Ph.D. in Business Administration from Utkal University, Bhubaneswar, India. His teaching expertise includes marketing analytics, marketing research, and consumer behavior. His areas of research interest are behavioral modeling and methodological research. He has published research papers in Psychology & Marketing; Journal of Retailing and Consumer Services; Journal of Purchasing and Supply Management; International Journal of Retail & Distribution Management; and Journal of Marketing Analytics, besides other publications. Overall, he has four

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“A” category research publications (Scopus/ABDC). He is Associate Editor of the journal Global Business Review and has received funding for research projects from organizations such as All India Council of Technical Education and Indian Council of Social Science Research. Mishra Supriti, Ph.D. has experience that spans over 30 years with a mixed bag of experience from academic, industry, and non-profit sectors. She works in IMI Bhubaneswar in the areas of strategy and CSR. She has widely published in the areas of CSR, sustainability, and corporate governance in reputed refereed journals including FT50 indexed journals. She was a Visiting Fulbright Scholar at Leonard N. Stern School of Business of New York University in the year 2009–2010. She serves in the editorial board/team of various journals including Journal of Public Affairs, Wiley. Mund Pallabi is currently working as Assistant Professor in D. A. V. School of Business Management, Bhubaneswar, India. She has obtained Ph.D. in Business Studies and Management and two postgraduate degrees in Clinical and Counselling Psychology from Centre of Advanced Study, Utkal University, and M.B.A. in HR and Marketing from Bangalore University. Her areas of specialization include human resource management and organizational behavior, and her research interests include stress management and personality hardiness. She has also published articles in various journals of national and international repute and is the author of the book—“Culture and Resilience at Work: A Study of Stress and Hardiness among Indian Corporate Professionals” published by Routledge/Taylor and Francis, New York. Nigam Nitish is a Doctoral (Ph.D.) scholar in the area of Economics at Chandragupt Institute of Management Patna. Possess a strong foundation in Economics, Econometrics, Statistics, and Statistical Programming, he is adept in R, STATA, EViews, and SPSS statistical software. Paliwal Manisha has obtained Ph.D., M.Phil, and M.I.B. degrees with top honors and gold medal. She is serving as IFFCO Chair Professor at Vaikunth Mehta National Institute of Cooperative Management, an organization of Government of India. She organizes and conducts various MDPs and provides consultancy in strategy, marketing, ethics, and governance. She is in-charge of National Level Research Projects and training programs in collaboration with various ministries. She is an accomplished scholar with about 18 years of experience in teaching and research and

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has authored 15 books and over 80 research papers in international and national journals including emerald, springer, etc. Panigrahi Swayam Sampurna, Ph.D. is currently serving as Area Chair & Assistant Professor and Area Chair, Operations Management and Quantitative Techniques at International Management Institute, Bhubaneswar. Prior to this, she worked as Assistant Professor, Operations Management at Institute of Public Enterprise (IPE), Hyderabad, under the aegis of Indian Council of Social Science Research (ICSSR), MHRD, Government of India, for two years. She has five international publications and two international book chapters with reputed journals. She won two consecutive Emerald Literati Awards for Highly Commendable Paper and Outstanding Paper by Emerald Publishing House, Bingley, UK. Rajagopal Ananya holds a Ph.D. in Administration with focus on Entrepreneurship and Marketing Strategies from EGADE Business School, Tecnológico de Monterrey. She also holds a B.S. degree in Industrial and Systems Engineering, a B.S. degree in International Business Administration, and M.B.A. with specialization in Strategic Management. She currently holds the position of Research Professor at Universidad Anahuac Mexico, Mexico City. She has ample experience in the financial industry in Mexico City since 2006. She has published many papers in international refereed journals of repute and chapters in edited books. She has contributed to research works in various international conferences of high standing. She is also an author of three books on entrepreneurship. Singh Ritu is a faculty in Operations Management & Quantitative Techniques at IMI Bhubaneswar. She has received her Ph.D. from Indian Institute of Management Raipur and Masters in Mathematics from Banaras Hindu University, India. Her area of research includes operation strategy, sustainability, and hospitality management. She has published research papers in international and national journals of repute such as Journal of Management and Organization, Knowledge Management Research & Practice, Current issues in tourism, DECISION, and International Journal of Hospitality & Tourism. Singh Satyendra, Ph.D. is Professor of Marketing & International Business in the department of Business at the University of Winnipeg, Canada, and Editor-in-chief of the Journal of the Academy of Business and Emerging Markets, Canada. His research interests lie in developing countries and emerging markets with particular emphasis on Africa and Asia

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on issues relating to the impact of transitional governments’ economic policies on business performance. He has published/presented widely in reputed international journals and conferences. He is the author of the book—Luxury and Fashion Marketing (2021), Routledge, USA. He is also recipient of the Canadian Social Sciences Humanities and Research Council (SSHRC) Explore Grant. He is a frequent keynote speaker and has traveled over 90 countries to teach, train, or consult. Sharma Megha, Ph.D. is an associate professor for Organizational Behavior and Human Resource Management (OB and HRM) at NIIS Group of Institutions, Bhubaneswar, India. She has been associated with management education for over a decade now. She has expertise in the areas of organizational behavior, human resource management, organizational change and development, leadership and team building, and psychology for management and talent management. Sharma Sourabh is an associate professor for Information Systems at International Management Institute (IMI), Bhubaneshwar, India. He is an eminent Management Consultant, outstanding Professional Practitioner, Trainer, Academician and Educationist Counselor in Management and has been associated with Management Education and Industrial practitioner for over two decades now. He has organized five international conferences as a convener at International Management Institute, Bhubaneswar, and jointly organized with EGADE Business School, Mexico. He also has the international participation in the conferences organized at SASS, Chengdu, China, in 2017 and B&ESI, Vienna, Austria, in 2019. He has expertise in the areas of management information system, enterprise resource planning, database management system, digital marketing, software project management, data warehousing and mining, and many different programming languages. Subbarao N. V. is a research scholar pursuing the FPM program at International Management Institute, Bhubaneswar. His research area is concerned with the understanding of social media usage behavior in job search and its wider implications to the employment ecosystem. He has over 25 years of work experience via marketing, sales, and business leadership (CXO) roles from leading global companies, including P&G, Conagra Foods, Bharti Airtel, Tata Docomo, Tanla Platforms, and as an entrepreneur. He is presently working as an Entrepreneur in Residence (EIR) with a private equity firm and is associated with several angel

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networks. His research interests include social media, entrepreneurship, social cybernetics, and understanding consumer technology interactions in the evolving social media and platform space. Tripathy Santhosh Kumar is currently working as the Vice Chancellor in Fakir Mohan University, Odisha. Prior to his current role, he was a professor in Organizational Behavior (OB) & Human Resources (HR) in the Department of Personnel Management & Industrial Relations at Utkal University, India. He has more than 30 years of teaching experience and has published widely in the areas of OB & HR in refereed journals. He has published several books in these areas. Verma Rajeev is currently serving as an assistant professor at Chandragupt Institute of Management Patna (CIMP). He did Fellow program from the Indian institute of Management (IIM) Indore, India. He has been instrumental in conducting leading significant research consultancy projects sponsored by Government of Bihar, Indian Railways, UK Global Research Fund, and ITTO Japan. Yadav Hema holds academic Ph.D., M.B.A., M.I.B., and Diploma in Agricultural Marketing. She is currently serving as Director of Vaikunth Mehta National Institute of Cooperative Management, an organization of Government of India. She is engaged in building capabilities and competencies of cooperative banks, cooperative societies, and farmer-producer organizations for good governance, compliances, and project planning. As a Director of Centre for International Co-operation and Training in Agriculture Banking, she is promoting international cooperation for training in agriculture banking and facilitating collaboration with the member countries. She has contributed in the area of implementation of Schemes of Ministry of Agriculture and Farmers welfare by preparing action plans and awareness programs of Centre Sector Schemes of Department of Agricultural Co-operation, Ministry of Agriculture.

List of Figures

Fig. Fig. Fig. Fig.

1.1 2.1 5.1 5.2

Fig. 5.3 Fig. Fig. Fig. Fig.

5.4 6.1 6.2 7.1

Fig. 9.1 Fig. 9.2 Fig. 11.1 Fig. 11.2 Fig. 11.3 Fig. 12.1 Fig. 12.2

Attributes of inclusive business model (Source Author) Conceptual model (Source Author) Inclusion and exclusion of articles (Source The authors) Topologies of systematic literature review process (Source The authors) Distribution of the articles by domain (Source The authors) Conceptual model (Source The authors) Conceptual framework of the study Structural model of study Impact of virtual learning factors on male and female university students Proposed model Two-way interaction of POS and PRB on unethical pro-organization behavior Strategic story of recruiting (Esch & Black, 2019) Technology Acceptance Model (TAM) (Davis & Venkatesh, 1996) Modified TAM with validated constructs from SET and UGT (Source Authors Research) Research Design (Source Author) Impact on Entrepreneurial Growth (Source Author)

6 37 86 87 88 93 115 120 141 176 180 219 220 235 251 256

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List of Tables

Table Table Table Table Table

2.1 3.1 3.2 3.3 4.1

Table 5.1 Table 6.1 Table 6.2 Table 6.3 Table 6.4 Table Table Table Table

6.5 6.6 7.1 7.2

Table 7.3

Table 8.1 Table 8.2 Table 8.3

Definitions of Isms Culture comparison Study level coding Comparison of effect size and confidence intervals Zambia’s Top 5 Major Export and Import Source Markets- 2008 to 2017 Various steps of systematic literature review Factor loadings, composite reliability, and average variance extracted AVE and squared inter construct correlations Model fit statistics The direct effect of HR practices on employee job performance Output of job satisfaction as a mediator Summary of the findings of hypotheses KMO and Bartlett’s test A summary of exploratory factor analysis and Cronbach’s alpha for the virtual learning scale One-way ANOVA results examining the impact of virtual learning among male and female university students Group statistics of gender and work-to-family conflict Gender and work to family independent sample T -test Group statistics of gender and family-to-work conflict

35 51 53 54 67 84 118 119 121 122 122 123 138 139

142 156 157 158

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LIST OF TABLES

Table 8.4 Table 8.5 Table 8.6 Table 8.7 Table 8.8 Table 8.9 Table 8.10 Table 8.11 Table 8.12 Table Table Table Table Table Table

8.13 8.14 9.1 9.2 9.3 10.1

Table 10.2 Table Table Table Table

11.1 11.2 11.3 11.4

Table 11.5 Table 12.1 Table 12.2 Table 12.3 Table Table Table Table

13.1 13.2 13.3 13.4

Independent sample T -test of gender and family-to-work conflict Marital status and work-to-family conflict Independent sample T -test of marital status and work-to-family conflict Group statistics of marital status and family-to-work conflict Independent sample T -test of marital status and family-to-work conflict Parental status and work-to-family conflict group statistics Parental status and work-to-family conflict independent sample T -test Parental status and family-to-work conflict Parental status and family-to-work conflict independent sample T -test Age and work-to-family conflict—ANOVA Age and family-to-work conflict—ANOVA Demographic details Descriptive statistics and correlations for focal variables Hierarchical multiple regression analysis on UPB An overview of studies that explain theoretical perspective-based recruitment and retention practices Summary of studies focusing on employee recruitment and retention Overview of participants Construct validity—Social exchange theory Construct validity—Uses and gratifications theory Construct validity (Technology acceptance model—TAM) Modified Technology Acceptance Model (TAM)—Construct validity summary Resources for bibliometric analysis Bibliometric analysis for thematic contribution on leadership and entrepreneurship Cross thematic discussion ratio analysis of bibliometric dataset List of Independent and dependent variables Descriptive statistics of the variables Correlation Analysis Multiple Regression Analysis

159 160 161 162 163 164 165 166 167 168 168 177 179 179 194 198 224 226 229 232 234 253 255 258 272 274 275 278

LIST OF TABLES

Table 16.1 Table 16.2 Table Table Table Table

17.1 19.1 19.2 19.3

Table 19.4

Production by Self-Help Groups under NRLM during COVID-19 crisis in India Services rendered by Self-Help Groups under NRLM during. COVID-19 crisis in India Profiles of interviewees Characteristics of the study sample Measurement items and factor loadings Descriptive Statistics, Cronbach’s α, CR, and AVE values N = 218 Summary of mediation results

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335 336 348 387 389 390 392

CHAPTER 1

Evidencing Inclusivity in Business: A Step Beyond the Bottom Line Rajagopal

Inclusivity and diversity in the organizational culture are within the broad philosophy of ‘inclusion–exclusion’-related workplace ambience, employee engagement, job satisfaction, organizational commitment, stakeholder voice and well-being, and efficiency in task-performance. Emphasizing inclusive business model perspective of social institutes and corporate organizations, the stakeholder participation, collective intelligence, and crowd behavior determine the process of inclusion and diversity. Inclusion may also be defined as a practice of equality, justice, and non-discriminant participation at both the group and individual levels, so that members of diverse groups not only have equal access to opportunities, decision-making, and positions of power, but have ability to explore opportunities collectively (Holvino et al., 2004).

Rajagopal (B) EGADE Business School, Tecnologico de Monterrey, Mexico City, Mexico e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_1

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RAJAGOPAL

An inclusive business model seeks to create value for low-income communities through social or profit-based business projects and to integrate the business activities into the value chain of a company. The inclusive businesses build strategic relationship with the stakeholders and key partners, and involve them in business planning, strategy development, implementation, and performance evaluation in a sustainable way. Inclusive businesses face challenging circumstances in low-income markets, which may influence the configuration of the business model in the context of the socio-economic attributes of the ecosystem at the bottom-of-the-pyramid. However, the lack of formal market institutions in low-income markets causes uncertain demand, high transaction costs, low purchasing power, and cannibalization by the local brands. Consequently, firm aiming to work with inclusive businesses to serve the customers at bottom-of-the-pyramid needs to look at the alternative ways to lower the transaction costs and empower stakeholders in marketing process. Inclusive work environment in organizations cultivates the work culture of experience sharing and co-creation within organizational diversity. Shared working ambiance involves deep and meaningful relationships at work among diverse cultures, gender, and ethnicity, with the goal of collective advancement in an organization. The inclusivity business policy of a firm converges the shared experience of stakeholders, employees, and key partners to contribute to decision-making through co-creation and coevolution of the firm. However, in the firms with a commitment to diversity and inclusiveness employees, inclusivity contributes emotionally to the growth of the firm despite hidden vulnerability among peers and stakeholders. Companies must understand the concept of inclusivity and address the underlying reasonsto establish true connection between the employees of difference races or ethnicities to succeed with the inclusivity and diversity goals (Livingston & Opie, 2019). Diversity and inclusivity in an organization are symbiotic and have cascading effects in cultivating organizational culture and growth. Diversity of thinking improves organizational decision-making, as stakeholders share both cognitive and demographic experiences during the process. Cognitive diversity refers to the educational and functional experiences that are used to solve problems. In addition, diversity in mental frameworks is helpful in resolving complex problems, and it supports the various organizational activities like ideation, concept development, strategy building and implementation

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using evidence, options, results, people, process, and analyzing associated risk. The basic assets of an enterprise today are beyond the plant, machinery, and business infrastructure. The core assets of an enterprise are embedded in the stakeholders and customers, collective intelligence, wisdom of crowd, collaborative skills, and experience of its employees. Empowering women entrepreneurs will drive both social and economic values to develop a perfect business design cube comprising design-to-market, design-to-society, and design-to-value. Harnessing the capabilities of entrepreneurs and the commitment of entrepreneurial innovations is central to the growing managerial challenge. Corporate policies, ownership structures, governance systems, and incentive programs help in developing inclusivity in business by empowering stakeholders and vulnerable segments to achieve holistic business performance. The Athenian model of organizational democracy offers the scope to develop dignity and trust, reverse accountability, and empowering stakeholders in organizational and business growth. Such system drives individual initiative and social consciousness in the enterprises to contribute collectively in business growth as a social stimulus (Manville & Ober, 2003). Unilever’s social strategy of empowering rural women through the Shakti program (Shakti meaning Power in Hindi language) to create brand awareness, encourage community marketing, and support economic well-being at the household level in India has created enormous customer value and sustainable behavior. Project Shakti enables rural women in villages across India in inculcating an entrepreneurial mindset and become financially independent marketer of Hindustan Unilever Limited (HUL) products. To provide regular income, these women entrepreneurs are trained on basic principles of distribution management and familiarization with the company’s products. In this process, rural sales promoters coach women by familiarizing them with HUL products to manage their businesses better. Imparting such training in women entrepreneurs develops soft skills of negotiation and communication, and prepares them as business associates of the company. This strategy of empowering rural women to expand the market horizon of HUL is consistent with the elements of the design cube. Shakti project was a win–win initiative taken by HUL to conquer the universe of market (premium, upper mass, economic mass, lower mass, and bottom-of-thepyramid). The bottom-of-the-market was aimed to be covered through the Shakti project. The broad task of the project was to promote sales and

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distribution of HUL products through several embedded initiatives. The Shakti initiative of HUL is a perfect blend of performance with purpose by creating social values, corporate values, and market values simultaneously. This experiment was a good fit to the design cube concept as it explains all the three facets of the cube comprising design-to-market, design-to-society, and design-to-value (Rajagopal, 2020).

The Blueprint One way to work with the inclusive business is fully engaging stakeholders, which helps to design the business model in the local context, as often firms encourage internalizing solutions for local market to expand the business and enhance outreach of customers. However, such business models are expensive due to high transaction costs, investment in customer relationship, and voluminous sales promotions. Improving the business ecosystem around inclusive business models can help firms overcome the social market gaps and implement business models with high touch, high cost, and often small scale while positioning the ethnic products in the upstream markets. Such brands or products can be marketed with an inclusive history of the product. For example, organic fashion apparels are being sold at the upstream market for premium consumers by tagging the storyboard of the inclusive manufacturing process. An agile business model can adjust both internal and external needs and respond to the changes in the business ecosystems. However, a robust business model focuses on adjusting to the external fit and improving the organizational capabilities and competencies to achieve win–win goals within the business ecosystem. The robust strategic business model can be created through an effective business model that stands foolproof against the external changes, while the other way is to build a business model by operating in a local business ecosystem that is sheltered in a niche avoiding the impact of external factors (Danse et al., 2020). The corporate dynamics helps firms to engage stakeholders in innovation, governance, policymaking, and co-creation by inculcating collectivism as the organizational philosophy. Such stakeholder inclusiveness would lead firms to experience changes in organizational behavior and encourage practices to comply with the triple bottom-line philosophy and PACT (people, accountability, control, and transformation) approach to coevolve the business. The inclusivity approach in business largely promotes team-based work culture and transformational leadership. The

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social dynamics demands firms to develop businesses by reorienting their philosophy toward design-to-society and design-to-value and develop strategic partnership and corporate alliance with the local bodies to coevolve business. An inclusive business framework with integration of business canvas elements allows designing, describing, categorizing, and analyzing the strategic perspectives such as decision-making, value chain attributes, and proprietary rules and leverages, of the size of the company. Research on the inclusiveness in business model with focus on bottom-ofthe-pyramid indicates that the inclusivity helps companies to take generic decisions in the context of PNS factors comprising problems, needs, and solutions. The business models with inclusiveness encompass the following elements (Morris et al., 2005): ● Customized or standardized value proposition. ● Balancing the internal and external factors in manufacturing and marketing. ● Developing business models in the context of industrial marketing (business-to-business), consumer marketing (business-to-consumer), network marketing (customer-to-customer through social media channels), and hybrid marketing (online-to-offline channel convergence). ● Competitive marketing strategy in the context of quality deployment, marketing cost, innovation leadership, and customer relationship. ● Managing economic factors including key partners, key resources, pricing, and revenue streams. Companies following design-to-society and design-to-value philosophy in business largely adhere to the inclusivity practices in managing business by connecting with the employees and stakeholders. Such corporate behavior leads to employee engagement and stakeholder engagement, which strengthen the corporate management practices of inclusiveness in business (Kennedy & Link, 2019). Inclusivity in business has been planned in a novel way by an Indian hotel company Lemon Tree, which employs large numbers of people with disabilities and other socially marginalized groups including orphans, divorcees, widows, survivors of women atrocities, and members of the transgender community. The company has adopted such charitable endeavor; this unusual human

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resources strategy (Inclusion Program) has evolved and is now an integral part of the business model and a source of competitive advantage (Wernick & Upadhyay, 2021). There are nine elements of inclusive business model, which affect the organizational culture, Leader-Member Exchange (LMX), behavioral effects of employees and stakeholders in an organization, innovation, and competitiveness. These elements are driven in an organization through the transformational leadership. Attributes of these elements associated with the inclusive business modeling are illustrated in Fig. 1.1. Inclusivity in business encourages stakeholder engagement and employee initiatives in a firm. It is a social investment of the firms to align with social and industrial values as illustrated in Fig. 1.1. The gender equality, equity, and cultural integration can be established through inclusivity and diversity in the firm. Engagement of employees and stakeholders, which is also driven by the sociability of the firm, drives commitment and loyalty in the firm encouraging their participation in the business appraisals. Stakeholders help in identifying problems, needs, and solutions for the community and encourage firms to develop social

Fig. 1.1 Attributes of inclusive business model (Source Author)

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responsiveness accordingly. Effective engagement of employees and stakeholders also helps firms in developing consistent leader-member exchange to facilitate transparency, clarity, and non-hierarchical bi-directional workflow. The voice of stakeholders strengthens their commitment in the firm and boosts social synergy in the business. Inclusive businesses encourage collective decision-making to drive innovation and agility in the business operations. The employee-stakeholder network promotes quality in manufacturing, operations, and marketing activities leading to strategic, measurable, analytical, innovative, and timely market interventions. Inclusivity in business helps firms in improving skills and competencies and developing competitive leverage through the collective intelligence. The embedded workplace autonomy in inclusive businesses builds operational agility in the business processes, which drives confidence and loyalty among the employees, investors, and customers. In addition, the inclusive governance system develops reverse accountability, transparency, and responsiveness among the firms. Inclusive business in developing countries is growing increasingly profitable by operating on digital platforms, which has encouraged firms to co-create mainstream innovations. These companies are based on the collective intelligence and social conscious learning that has significantly pushed the inclusive venturing capabilities. Such firms are being leveraged to explore inclusive business strategically and invest more systematically within the ecosystem business models. Inclusive businesses are maturing in the farm- and non-farm sector businesses with the growing support of public policies and supply chain and payments infrastructure. These firms are emerging companies, purpose-built to serve design engaging people at the bottom-of-the-pyramid. Inclusive business relationships demonstrate following attributes: ● Building cooperation between all players in the chain with a common goal. ● Developing new relations to strengthen collective strategies, participatory marketing, and co-created supply value management. ● Co-creating a fair and transparent policy of open communication, fair prices, and risk sharing. ● Ensuring equal access to credit, technology, market information, etc. ● Developing inclusive innovation. ● Encouraging reverse accountability toward implementation, monitoring, and evaluation of marketing and communication strategies.

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Organizations managing inclusive businesses invest in developing partnerships that have tangible benefits for both firms and stakeholders. These companies continuously explore new ways of reaching people at the bottom-of-the-pyramid. Such win–win partnerships are more likely to help in managing inclusive businesses. The alliance-based inclusive businesses plan for scaling (economy of scale) their business models with focus on financial sustainability and long-term impact. Firms operating with inclusive business philosophy tend to minimize delivery costs and maximize delivery and access to their products and services. These firms outreach customers through technology and lean staffing. Several companies face challenges in searching talent and improving skills by making significant investments in training to improve the productivity, distribution, and marketing operations. The continuous learning on the strategies addressing inclusivity in business and success attained by the companies build knowledge and skills to help people at the bottom-ofthe-pyramid social segment. Such companies are engaged in developing low-cost innovative products and services that can improve the conscious consumption, social value, and lifestyle (IFC, 2016). Bkash,1 a microfinance company of Bangladesh, has built partnerships with multiple mobile network operators rather than a single company to make mobile financial services available to millions of people at the bottom-of-thepyramid in the country. This company leveraged a network of the existing commercial distributors in lieu of building an expensive distribution network. Bkash invests in organizational capacity building by offering training to microentrepreneurs and encourages them to register and support stakeholders. Equipping these entrepreneurs with anti-money laundering, fraud management, and other financial protection knowledge, the company intends to create social value and inclusive services within the microfinance industry. However, the digital financial technologies (Fintech) and digital services do not clearly ensure the financial inclusion in the rural context of Bangladesh (Aziz & Naima, 2021). Broad digitization can also broaden the access to loans and financing through Fintech applications, cryptocurrency, and other innovative forms of alternative finance.

1 Bkash is a private limited company created specifically to provide mobile financial services in Bangladesh. It is part of the BRAC group, a nongovernment organization (NGO) that provides social services within the country.

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The concept of ‘inclusive business’ has become central to resolving social problems, needs, and solutions (PNS), which tend to integrate small and marginal entrepreneurs into partnerships with the large firms. Such collaborations can generate benefits for national economies, private investors, and local livelihoods in the long run (German et al., 2020). There are various factors associated with developing an inclusive business model, which include building value propositions, designing business model, and developing the right balance in strategy. Formulating an inclusive value proposition for the stakeholder at the bottom-of-the-pyramid (BoP) is focused on achieving goals at the triple bottom line (people, planet, and profit) to drive a positive social and environmental impact in addition to the financial return on investment. The designing processes need to be focused on co-creation of strategies to cater to the needs of economically marginalized stakeholders including consumers and to work with partners that can complement resources and capabilities of the firm. It is important to strike the right balance among different scaling strategies to enhance the impact of inclusive development. A balanced strategy also helps firms in building agile business models and strategies. Developing a mission statement for inclusive business and connecting it to the sustainable development goals help firms stay streamlined and manage inclusivity and diversity issues at work. Business socialization and inclusivity create internal linkages and commit resources needed to drive the inclusive business venture. Most developing countries have embraced the agenda of sustainable development in their national development policies with focus on inclusivity in business and aligned their strategies with national development priorities. Though inclusive business is not a total solution for business development and economic growth at the grassroots, entrepreneurs need to be prepared to meet the challenges of the underdeveloped markets, risk, and resource constrains (Schoneveld, 2020). However, in inclusive enterprises at the BoP, the predicted business growth is slow while the risk of investment is high. As firms doing business at the BoP focus on developing niche markets and appeal to a latent demand of potential consumers, inclusive business entrepreneurs need to develop a strategic commitment to work with inclusivity and diversity. Inclusive businesses entrepreneurs are engaged in co-creating innovative solutions to cater to the societal needs. Transformational leadership, therefore, helps in creating a business environment with local talent, technology, and new capabilities and skills. Inclusive businesses

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also require to build organizational skills to work on multiple innovation streams exploiting the available resources.

Inclusion with Purpose Innovation has emerged as a true engine of business growth for the companies after human capital. Innovative differentiation in the marketplace is brought in the markets by ‘start-up or seed companies’ across the world as evidenced by the big emerging markets like China and India in reference to the local growth and business dynamics. To maximize the business performance, companies should ensure that the key enablers of entrepreneurship and innovation including managerial skills, capital, infrastructure, and research and development are applied to drive innovation. The innovation-driven companies should also overcome the challenges associated with asymmetric product demand and the changing consumer preferences. In short, innovation in a company needs to underpin any change faster than the competitors. Boosting the innovation-led business performance largely depends on how quickly the company can move to competitive production that focuses on innovation and technology-driven products. Most companies are continuously engaged in bringing consumer innovations to the market diffusing new insights among the market players to create quick impacts of competitive differentiations among the consumers. Gaining access to and deploying these innovations easily and cost-effectively in the market drive the success of companies today. The new technology trends in twenty-first century affect the innovation process of consumer-centric and businessto-business-oriented companies. Most of the innovations triggered by the start-up enterprises are woven around consumer needs and their preferences toward convenience, sustainable technology, and value-for-money bargain. Such product innovations include technology-driven products for the mass consumers. Robotic technology with easy-to-use baby products, such as a baby seat that bounces and sways like human parents, has emerged as crash performer in the USA, while some innovations are also marketed for meeting social responsibility. For example, an emerging company Boll and Branch in Chatham, NJ, has developed organic, fair-trade, and directto-consumer bedding, and dedicated a portion of the revenue earned from the sales of this project to ‘Not for Sale,’ an anti-human-trafficking

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organization. Another innovation in consumer foods sector is about nongenetically modified food carried out in a non-conventional way. An engineer by training, who spent months perfecting the recipe for coconut chips, which he needed for his mother’s Thai lettuce wraps, worked on innovative coconut chips with five flavors from Salted Caramel to Original. He developed a family business to export his innovative snacks from Thailand. In 2014, his products won ‘The Best Snack Award’ in Fancy Foods show USA, and in 2012, the entrepreneur built a non-GMO certified company known as Dang Foods in Berkley, CA, with the exclusivity of his innovation. Such business projects originate from the start-ups and grow as companies provided the innovations are nurtured properly during the business evolution process. Inclusive business models converge the leverages among the stakeholders, consumers of lower stratum, economic levels, and profits of the firm. Bridging businesses between social segments and consumers’ economic level, inclusive businesses tend to go beyond immediate profits and higher incomes to create social values through the business. Firms following the inclusivity and diversity in the organization can strengthen their market and competitiveness through the following approaches: ● Inclusive businesses tend to explore and nurture new markets by stimulating the demand for innovative products and services. In developing economies and emerging markets, inclusive businesses are growing with a major challenge of innovation, business scaling, and building market competitiveness. Firms struggle to expand their customer base in emerging markets to enable future growth. However, with the saturation of premium and upper mass market segments in rapidly growing urban scape, the inclusive businesses target the niche markets to foster their initial stage of business (Desai, 2014). ● Firms can enhance their niche operations and strengthen their supply chain by including new suppliers into their business operations. The backward and forward linkages of the operations of firm may explore ethnic business streams such as organic and artisanal. Inclusive firms might tactically plan their pricing at the low end to attract customers. Firms may also offer products with traditional design and low price as compared to the routine suppliers. The social impact generated by inclusive businesses helps firms in increasing the social value and

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reputation to reinforce trust among customers, stakeholders, and investors (Zhang et al., 2020). ● Firms need to adapt to local market conditions to improve business performance. The inclusive business firms develop local products, niche operations, and low-cost local business models as low-resource enterprises. These firms explore latent demands and take a different look at conventional operations and stimulate innovation and market competitiveness. ● Inclusive business firms empower both stakeholders and employees, which helps firms in decision-making. Employees expect their employer to be a good corporate citizen and actively contribute to the social progress alongside the business growth. Inclusive business also stimulates in exploring opportunity for corporate volunteering, executive training, and executive exchanges within the people driven firms. Despite strategic benefits of inclusive business models, it is still in an infant stage, as many firms observe the leadership and cultural stigmas. Consequently, the inclusivity and diversity in firms are not the part of their conventional culture and are unusual for many companies. On the one hand, the firms need to make every effort for achieving competitive advantage, simplify operational processes, and develop excellence with business partners, while most firms fail to adapt to the changing market environment, customer preferences, and adjust to the shifts in the business ecosystem, on the other. Social system, public policies, and transformational leadership can help firms overcome these challenges. Inclusive businesses can be engaged in developing business processes by identifying new opportunities and developing the business model accordingly. In addition, these firms also need to develop skills in implementing the business model effectively by analyzing its impact on the market, customers, and stakeholders. Inclusive firms need to develop tools to facilitate collaboration with large firms by developing workplace synergy, congruence in business goals, administrative practices, and managing innovative business projects. In addition, structured leader-member exchange and workplace autonomy in the organizations help nurturing inclusivity and diversity in the firms (Herrera, 2016). These tools can be applied for firms of all sizes, industry contexts, and organizational structures with varied market structure. However, every firm must consider the unique setting within

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the industry and market ecosystems. Such frameworks help to develop organizational work culture and operations in a systematic way. The expansion of ecological innovation has been accompanied by the philosophy of in-home solutions with low-cost technologies and highutilitarian values. Considering the growing global environmental concerns such as green energy and increasing scarcity of resources, the manufacturing industries have shown more interest in sustainable production with the social business models. These models present the low-end econoscape for the consumers and are jointly implemented through the public– private partnership as corporate social responsibility (CSR) initiatives. However, the social awareness and effective implementation of public policies have improved the efficiency of sustainable consumption and growth of the emerging markets. Reduction in the emission of greenhouse gases has been considered as a priority among the governments of developing countries, and many have adopted strategic frameworks. Interestingly, the economic leverage to enterprises engaged in manufacturing green products and providing eco-conservation services developing countries have raised public interest and expectations from the environmental protection programs to achieve sustainable development. In developing countries, the green recovery public policy has attracted public investment in environmental technologies and encouraged the implementation of collaborative sustainability projects. Green recovery projects are targeted toward regenerating ecological conservation that has been affected by the community ignorance in urban–rural geodemographic segments (Rajagopal, 2021). The green recovery concept has geared-up over time as a core part of economic stimulus measures at global–local levels. The foundations laid by business climate initiatives, investment promotion in social development, and market-based entrepreneurial push have served as a powerful enabler of inclusive businesses (German et al., 2020). Consequently, inclusivity in business has emerged as design-to-society business model to enhance the compatibility between local business and corporate expansion. The underlying philosophy of inclusive business has been actively supported by governments, NGOs, and leading agri-food and customer-centric companies such as Nestlé (enabling technology and training to the coffee growers), Unilever (empowering women in developing countries), Google (information outreach to remote areas), Levy Strauss & Co. (diverse and inclusive workplace), and Starbucks (coffee and farmers equity). Besides the social engagement of large companies,

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inclusive business is also promoted among the small and medium enterprises through business alliances with local firms and cooperatives. Such business models have benefitted stakeholders and people by integrating them into business value chains (in the farm and non-farm sector) in developing economies (Chamberlain & Anseeuw, 2019). Inclusive businesses are growing selectively across industries and destinations, despite most companies addressing the customer needs amidst the rising complexities of competition in the market. Darwinism can be well explained in the global business scenarios, as multinational companies are exploring remote markets while the hatched niche markets are seeking a way out to wider congregations. In this business dynamics, success is not guaranteed to the companies irrespective of their size, resources, and power. Reviewing several attributes of business today, a few questions often arise like why businesses fail, and does design matter. SMART (strategic, measurable, accessible, responsive, and trustworthy) and socially connected business designs raise a broad set of new strategic choices converging the attributes of markets, social responsiveness, and customer values, to help companies perform as a corporate citizen (Rajagopal, 2021). Creating social and customer values and securing competitive advantage by acquiring new capabilities to reshape industries are experiencing increasing challenges for companies in emerging markets. Firms exploring inclusive business opportunities largely focus on creating value for people at the bottom-of-the-pyramid. Among many challenging strategies to support inclusivity and diversity, firms effectively work on identifying the PNS factors to create the value chain between stakeholders, key partners, and the firm. However, firms must ensure the integration of following determinants to implement the inclusive business model effectively: ● It is necessary for the inclusive business firms to identify problems, needs, and solutions. Accordingly, the firm may develop stakeholder-driven business strategies to leverage them with the value chain and satisfaction. The stakeholder and employee engagement provides enormous opportunity of increasing human well-being by co-creating ways to improve well-being and fulfill the latent needs of customers and stakeholders. ● Inclusive businesses create collective knowledge and collaborative skills, seek expert opinions, develop innovative products, and manage capital and human resources diligently. However, inclusive business

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firm responds to the needs and offers collective efforts to improve well-being of stakeholders. ● In the micro-, small, and medium enterprises at some stages of the life cycle, more resources are used than are required. Eliminating these inefficiencies to stimulate the productivity of resources is one of the major challenges. Inclusive businesses tend to meet such challenges. However, markets are risk averse, and inefficiencies in organizational and business processes are widespread that affect the performance of the firms in the long run. Sometimes, such challenges lower the productivity of employees and business performance is affected. Consequently, to overcome organizational and operational inefficiencies existing businesses can offer stakeholders incentives and suggest improvements. ● Inclusive firms thrive in co-creation of innovative products and services, which drive business transformation, process improvement, and increase efficiency. In inclusive business practices, innovation and technological advances are the important enablers of market competitiveness and stakeholder value. But innovation does not always rely on technology. Low-tech products, process redesign, and new business models can have similar effects. The concept of the bottom-of-the-pyramid introduced by Prahalad, Garry Hammel, and Hammond in the 1990s, which has motivated several new business initiatives, development institution programs, and innovative investment funds that focused on doing business at the bottom-line market segment. Most multinational companies have moved today to the remotest marketplaces to do business by engaging customers to co-create products and markets. The concept of bottom-of-the-pyramid has emerged as new enterprise-based approach to conduct business with people and alleviate poverty by empowering them to access global brands (Prahalad & Hammond, 2002). Over time, this new lexicon was raised to describe this phenomenon, including phrases like inclusive business, subsistence marketplaces, frugal innovation, and impact investment. Some companies such as Nestlé, Kellogg’s, and AMUL (India) have integrated all the above phrases into their business model and these companies are growing today involving people with distinctive identity. However, relevant epistemologies and business research have not advanced at the

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same pace with the inclusive business revolution. Consequently, knowledge about parameters for successfully integrating business and working on inclusive business models remain ambiguous (Hart et al., 2016). Integrating internal and external stakeholders is one of the major challenges for the companies irrespective of their size of organization and volume of operations. Internal stakeholders encompass customers and investors, while the external stakeholders also include key partners comprising suppliers, service providers, consortium enterprises, innovators, and so on. Integrating people in business in a systematic manner drives inclusivity and leads to inclusive business modeling. Inclusivity has three principal domains that include the corporate focus on social and economic development through business, encouraging transformational leadership in the organization, and improving the stakeholder value. Most companies are engaged in holistic social development by involving people to design and implement strategies on poverty alleviation, housing development, improving public health, and public education conditions. In addition, stakeholder involvement in business also contributes to the economic leverage through skill development, enhancing extension services and improving the work efficiency of key partners. The transformational leadership in business encourages design thinking among in the organization through empowerment and collective decisions by adopting a grassroots approach to social and economic development. Such leadership drive stimulates the stakeholder engagement and knowledge development. The collective intelligence helps in knowledge management through experience sharing and co-creation to improve the quality of life of both internal and external stakeholders. Yuva Mitra2 is a non-governmental organization, which is supporting inclusivity and diversity in agribusiness by promoting Farmer-Producer Organizations (FPO) in the state of Maharashtra in India since 1995. This organization is engaged in shaping the sustainable development through people’s participation and works with many target groups including women, youth, farmers, and children focusing on water resource development and management, agriculture and livelihood development, institution building, and community health by engaging stakeholders. Yuva Mitra India (YMI) focuses on the people-centric approach of development as it ensures creation of stakeholder values such as integrity, discipline,

2 For details see http://yuvamitra.org/.

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transparency, care, quality work, and innovation. Farmers face major challenges including lack of access to quality inputs, water, credit, advisory services, value addition opportunities, and markets. To meet these challenges faced by the farmers, YMI has initiated a strategic management of natural resource management and livelihoods in the region by promoting inclusive project management and strengthening grassroots FPOs. In managing the resources and FPOs activities, the principal driving force was thrust, which helped in augmenting sustainable livelihood opportunities for the farming community in the region. FPOs promoted and nurtured by YMI were involved in developing Supply Chain Operations Reference model, which emphasizes planning, procuring/sourcing, preparing (sorting, grading, packaging, etc.), delivering, and returning. As an NGO, Yuva Mitra is engaged in fulfilling the social objectives and the goals of economic viability to be met. It was difficult for FPOs and community-driven organizations to streamline the forward and backward linkages due to paucity of financial resources to undertake business expansion plans such as value addition of agricultural produce, processing, packaging, and marketing. YMI has promoted Krushak Mitra Agro Services Pvt. Ltd.3 (KMASPL) as a special purpose vehicle to make FPOs a profitable business venture. This company has emerged as a multistakeholder enterprise and marketing entity with the for-profit objectives. It functions as an apex body for marketing the products of all the farmerproducers cooperatives (FPCs) in the region. This company, in association with the YMI, is engaged in creating stakeholder values by providing following services: ● ● ● ● ●

To To To To To

create market linkage for agricultural produce. provide agro-services for farmers through FPCs. make available all inputs at doorstep of FPCs. plan demand-based crop production schedule. support farmers through FPCs for sustainable growth.

KMASPL works with farmers and FPOs to improve the economic viability and technological feasibility of conventional agricultural practices by building competencies and linkages throughout the agribusiness value chain by helping to meet the financial, technical, marketing, and human 3 in English Farmer Friendly Agro-Services Private Limited.

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resource services to various stakeholders, particularly the smallholders in the region (Yadav et al., 2022).

Inclusive Market Development The inclusive business models are intertwined in micro-, meso-, and macro-socio-economic and demographic levels. Consequently, changes on the one level often influence structures on the other levels. Inclusive business concepts work with businesses, support, or act as intermediaries, and engage with policymakers. Inclusive business firms are not confined to the niche (micro) level and participate in the business activities at the meso- and macro-level. These firms call for co-investment into the manufacturing and marketing infrastructure. Inclusive business models can play a role in the development of a stakeholder-centric market system with focus on inclusivity, diversity, and co-creation. Inclusive business models motivate and co-create sustainable consumption and production processes, and experiment new ways to achieve increased well-being with less resources. As pilot initiatives, the inclusive businesses provide information about the benefits and constraints of co-created deals at micro-, meso-, and macro-level. Inclusive business models help to influence systemic perspectives around inclusive markets, including value chains that allow the needy stakeholders to participate and gain broader access to needed skills, services, and inputs. The impact of inclusive business models drives systemic change through innovation, information, and incentives. Market trends and consumer behavior are continuously changing, and social media is playing a critical role in determining marketing decisions. Volatility of consumer markets can have significant negative effects on market share, profitability, and brand equity of the companies. However, volatility is an embedded attribute of the competitive growth theory. The argument central to the theory of change management is that the companies operating in a competitive business environment consider consumer preferences, innovation, technology, and growth-related investments as dynamic variables. Customer-centric companies, therefore, tend to build simpler products to help consumers choose the right product. Involving people, engaging customers, and stakeholders in the business processes transform companies into learning organizations and make them stay need-based and customer-centric in business. Inclusive businesses operate with diverse workforce and gain abilities in converging divergent business perspectives to develop a social vision for carrying out business with

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people. People-led firms largely support decision-making, idea sharing, and emotions in managing business. Such companies develop abilities to fight conscious and unconscious biases as they coevolve with people and society (Yamkovenko & Tavares, 2017). Social interactions often motivate a sustainable and social consumption of products. The interplay of consumers within the social (inter-personal) and digital (remote response) platforms also helps companies to adapt to inclusive business models and stay distinctive in the competitive marketplace. Consumers today are increasingly looking for brands that have a social purpose above functional and competitive benefits. As a result, most companies are taking social stand in highly visible ways. An effective, convergent business strategy creates social and customer values by co-evolving the brand in the society. The network among society, people, and business stimulates co-creation and collective business designing. This convergence of society and business can be better understood through continuous learning about the consumer behavior, operational processes, employee contributions, and competitive growth perspectives (Rajagopal, 2021). As most of the stakeholders in rural areas face challenging problems and needs, they look for a cost-effective and sustainable solution that has societal value and strategic benefits. Therefore, establishing supply chain by linking rural–urban resources and infrastructure is a critical aspect of the success of an inclusive business. Inclusive business firms tend to work with the trusted partners who can develop collaborative business strategies, and manage consumer interface, production, and supply chain more efficiently and cost-effectively in reaching out the stakeholders at the grassroots. GUTS Agro Industry PLC (GUTS), a food processing company founded by two Ethiopian entrepreneurs, supplies high-quality and affordable food products to low-income consumers in Ethiopia. This pilot experiment engages local women entrepreneurs who use ‘tricycles’ to deliver products to the customer’s doorstep making the products available to low-income and marginalized households throughout the country. Inclusivity in business promotes co-creation, cooperative ownership, and collective value proposition to make the business more appropriate for local conditions. Co-creation also leads to frugal innovative solutions to local problems. Customer-centric companies are investing in Big Data to analyze categorical pool of data, increase organizational capabilities, and add innovative products and services in ecosystem business models. The inclusive business model helps firms in creating new possibilities to serve

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people’s latent needs and contribute to the productivity and profit of the firm. Operating with such business model, firms can reduce costs and risks associated with PNS factors and gain significant market power through customers as the ‘gateway’ for leveraging markets at the bottomof-the-pyramid. In this context, the profitability of inclusive business is increasing with many leading companies such as Unilever, Danone, Mastercard, AXA, and Google. This practice has made inclusive business more relevant to every industry. The inclusive businesses stimulate co-creation, coevolution, profitability, and customer satisfaction. Some leaders are building market power and capabilities in emerging markets driven by the magnitude of the stakeholder value and loyalty. The inclusive business practice has the ‘transformative’ potential in the medium and large firms, which significantly contribute toward augmenting social income, reduce the incidence of poverty, and narrow societal inequalities. Many initiatives on inclusive businesses have positive response to socio-economic development and entrepreneurial business at the grassroots. For local enterprises to serve their role as development agents and invest in providing durable solutions to the poor, the objectives of inclusive business are well adapted by the firms to the business ecosystems, e.g., Grameen Bank of Bangladesh (Scheyvens et al., 2016).

The Triple Bottom line Social businesses have focused on the personality and background of the social entrepreneur and the entrepreneurial performance. The social entrepreneurs have unique characteristics including knowledge, cognitive capacities, and altruistic values. Social innovation is an interactive bottomup collective learning process implemented through social enterprises. As a boundary-spanning activity across the public and private sectors, the interactive learning process and the associated capability building for social innovation serve as a catalyst for wider social reform. Social innovations help value creation in emerging economies involving stakeholders and firms in the broader projects. The growing concerns of circular economy and circular business have reoriented the companies toward developing sustainable business models with effective social value chain management. Circular economy encourages sharing of ideas, processes, and outcomes that are widely connected with sustainability projects. Sharing the economy of consumers, stakeholders, and society related to the consumer products, companies encourage them to develop sustainable

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business model. Most companies are engaged in building and implementing sustainable business models in the social interest that helps in value-chain creation and acquiring new customers. While sharing sociocultural attributes of geodemographic segments has been a long-standing practice in society, the sharing economy is used as an umbrella concept to exhibit a broad range of disparate consumption practices and organizational models (Habibi et al., 2017). The value proposition of both customers and social communities contributes significantly in the sustainable business modeling process. Value proposition describes the attributes of product/service offering, the customer segments, and their relationship in the social deliveries, while value creation and delivery describe how value is provided to customers (the channel efficiency and value delivery process), including the structure and activities in the value chain (Osterwalder & Pigneur, 2010). Companies with green business philosophies such as automobiles, energy, textile, and paper products have begun to transform the manufacturing process alongside the competitive landscape. These companies redesign products, technologies, processes, and business models through social enterprises to deliver the social value for their products and services (Nidumolu et al., 2009). Despite the success of some sustainable business models implemented by the manufacturing and operations companies, small, medium, and large-scale companies in regional settings are struggling with the challenge of integrating environmental plans into their core business strategies. Local companies develop low-cost sustainability projects with an objective to enhance outreach to stakeholders. Sustainability has emerged as a megatrend for businesses in the twenty-first century. Companies plan transformative changes in the organization to create social values across the competitive marketplace (Lubin & Esty, 2010). The trend of sustainability has encouraged both high- and low-investment companies. The dominant belief about creating and developing sustainable business model in the customer-centric and industrial-marketing companies is driven by the idea of solving environmental and economic issues and providing high social values. The response of public policies helps in developing sustainable business models through social guidelines to move their businesses toward green and circular economy (Evans et al., 2017). Social and innovation subsystems include social values, entrepreneurship education, and utilitarian innovations. Management of resources and factors of production, procurement,

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and transactions of public goods constitute some significant factors of macro-economic subsystem.

Summing-Up Inclusive business models include the poor into a company’s supply chains as employees, producers, and business owners, or develop affordable goods and services needed by the poor. These business models may be developed by entrepreneurs or within existing companies, large or small. They may be driven by actors from the country where they are being established or from outside actors, be it from developed or developing nations. They may even develop through the initiative of not-for-profit or public actors. In fact, the institutional background, even though it makes a difference for the opportunities and constraints a business model faces, is insignificant for the approach per se. Inclusive business approaches are undertaken in a wider market context and are facilitated by the existence of an enabling environment and the necessary capacities for fair and transparent market activities. When brokering inclusive business models, it is important to do so with a view of also addressing constraints in the wider sector or market to perform better and be more inclusive. Inclusive business and inclusive markets go hand in hand, and without a wider functioning and inclusive markets, it is difficult for individual business models to go to scale and be replicated by other market players. Despite fundamental concerns on inclusive business model, firms have increased attention in working with the stakeholders toward collective decisionmaking. There are various dimensions of inclusivity in business that affect the performance of firms. Inclusivity and diversity in businesses include workplace culture, decision-making, operations, technology, innovation, and customer behavior at the bottom-line comprising people, profit, and sustainability. Understanding people is related to the personality, social values, and ethnicity. Advances in digital technologies have increased the possibilities of developing inclusive business models at niche levels by effective stakeholder engagement. The collective intelligence has widened the scope for a new range of knowledge outreach and power of collective reasoning and decision-making with agility and conformity. Leading businesses today have adapted to customer-centric business model, which is an outgrowth of crowdsourcing and understanding customer perceptions, emotions. Working with such business models encourages customer engagements with brands. Sharing customer

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emotions and experience on brands contributes to collective intelligence, which is used by the firms in developing customer-centric strategies. The inherent satisfaction of co-creation with inclusivity and diversity guides companies to develop customer-centric marketing strategies and leads to novel and superior value propositions. LEGO is a case in point. The company has transformed its philosophy of manufacturing lowcost wooden building blocks to technology-driven mechanical building blocks. The growth of the company relied on customer inputs and analysis of their personality and behavior in transforming its business. Most companies have experimented radical shifts in business strategies over the conventional wisdom to gain sustainable competitive advantage. Some of these strategies are people-centric and crowd-based, which have encouraged customer engagement in today’s heterogeneous and hypercompetitive global business environment. Consequently, empowering people in various geodemographic segments (communities, entrepreneurs, women, and leaders) gained dynamic capabilities such as sensing local opportunities, enacting global complementarities, and appropriating business with local values. Nestlé (Latin America), Unilever (India), and IKEA (Europe) are some good examples of companies engaged in people-based business.

References Aziz, A., & Naima, U. (2021). Rethinking digital financial inclusion: Evidence from Bangladesh. Technology in Society, 64 (in press). https://doi.org/10. 1016/j.techsoc.2020.101509 Chamberlain, W., & Anseeuw, W. (2019). Inclusiveness revisited: Assessing inclusive businesses in South African agriculture. Development Southern Africa, 36(5), 600–615. Danse, M., Klerkx, L., Reintjes, J., Rabbinge, R., & Leeuwis, C. (2020). Unravelling inclusive business models for achieving food and nutrition security in BOP markets. Global Food Security, 24 (in press). https://doi.org/10.1016/ j.gfs.2020.100354 Desai, H. P. (2014). Business models for inclusiveness. Procedia-Social and Behavioral Sciences, 157 , 353–362. Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M. Y., Silva, E. A., & Barlow, C. Y. (2017). Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business Strategy and Environment, 26(5), 597–608.

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Wernick, D. A., & Upadhyay, S. K. (2021). Does the U.S. hospitality market offer fertile soil for Lemon Tree Hotels’ inclusive business model? Harvard Business School Press. Yadav, H., Wadkar, S., & Singh, A. (2022). Good practice notes. Asia Pacific Islands Rural Advisory Services Networks. Yamkovenko, B., & Tavares, S. (2017). To understand whether your company is inclusive, map how your employees interact. Harvard Business School Press. Zhang, T., Lu, C., Torres, E., & Cobanoglu, C. (2020). Value co-creation and technological progression: A critical review. European Business Review, 32(4), 687–707.

PART I

Corporate Responsiveness

CHAPTER 2

“Check Your Cognitive Dissonance at the Door”: Corporate Social Responsibility Driving Anti-Ism Policies for Inclusive Growth Andrée Marie López-Fernández

Introduction Historically, objectionable actions have led to the development of rules, norms, and standards of behavior. Take, for instance, the Nuremberg Code which, among other reasons, was developed because lack of regulation led to the impunity on abhorrent actions. In business, the inclusion of ethics codes and codes of conduct in governance began to gradually increase during the 1970s and 1980s, due to rising distrust and credibility in firms’ activities (Brooks, 1989); that is, because their actions were at the

A. M. López-Fernández (B) Facultad de Ciencias Económicas y Empresariales, Universidad Panamericana, Mexico City, Mexico e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_2

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very least questionable. Unfortunately, policies still tend to be developed and added to codes of ethics once intolerable actions have taken place. Multiple firms’ codes of conduct, principles, and/or ethics codes have been questioned given their activities; thus, codes are insufficient without proper governance and assimilation throughout the organization. Corporate social responsibility (CSR) has been discussed for over six decades; it has evolved from a concept that indicated what business responsibilities were, to the accountability of organizations as stakeholders, that is, interested parties in social, financial, and environmental performance. Increasingly, people prefer to work in socially responsible firms, and consumers prefer to purchase from them (Xu & Han, 2021); in other words, stakeholders prefer to associate with ethical organizations with a strong stance and authentic engagement in CSR. Organizations that align corporate social responsibility with their corporate philosophy and governance achieve business and social growth and development by maintaining successful stakeholder relationship. However, too many prove cognitive dissonance in relation to their CSR engagement; that is, they state to be socially responsible yet participate in unethical and questionable practices. Isms are the clearest form of firms’ cognitive dissonance; the question is how can firms achieve inclusive growth while tolerating and/or enabling isms? The general objective of this conceptual study is to understand the effects of cognitive dissonance related to corporate social responsibility engagement on lack of social and business growth and development. Specific objectives include: (i) to understand the relation between CSR and inclusive governance, culture, and growth; (ii) to study the implications of firms enabling isms; and (iii) to analyze the effects of cognitive dissonance on business and social growth and development.

Literature Review Ethics Codes Codes of conduct and ethics are designed to inform interested parties of the organization’s expectation of behavior. They are relevant for internal and external stakeholders as they provide insight into what the organization deems unacceptable. Ethics codes were popularized in the 1980s for both corporations and research (Metcalf, 2014). They gradually evolved from an internal approach to a both internal and external focus of policies,

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norms, and standards. According to Benson (1989), organizations’ codes include stipulations on: “relations to employees, inter-employee relationships, whistle blowing, effect on environment, commercial bribery, insider information, other conflicts of interest, anti-trust, accounting, consumer relations, and political activities.” Having said that, context is everything when it comes to designing ethics codes; in other words, as society evolves so should an organization’s code of behavior. Codes of conduct have existed for centuries; games, sports, and even war have historically been regulated. Consider the concept Fair Play; at its core, it refers to respect for rules and others (Renson, 2009). Therefore, it seeks to ensure equal treatment and a just playing field in the spirit of the competition. As such, it is equally important in the business realm. Adams et al., (2001) found that the existence of a code of ethics positively impacts collaborators’ perception of an organization in terms of ethical behavior. According to Webley and Werner (2008), ethical codes of conduct are relevant in business, however, insufficient to ensure that collaborators’ behavior is ethical. This statement becomes clear by numerous organizations that, despite having such codes, have been denounced for their unequivocal unethical behavior. For such matter, many organizations have opted for a socially responsible approach to encourage ethical behavior. Corporate Social Responsibility The idea of responsible business practices (Dempsey, 1949) led to the acknowledgment that management’s responsibilities transcend profit generation to stakeholders (Abrams, 1951) and to Howard Bowen coining the term corporate social responsibility in 1953 (Bowen, 1953). Corporate social responsibility (CSR) has kept evolving with changes in business dynamics, as well as social and environmental changes and challenges. Such is the example of socially responsible firms that have incorporated indicators, in their CSR objectives, strategies, and policies, which are aligned with the sustainable development goals (SDGs) for the achievement of the 2030 agenda. Corporate social responsibility is described as organizations’ actions aimed at achieving social, environmental, and financial performance. Although it continues to be a voluntarily practice in most countries and, therefore, organizations, its intent is a positive effect on social issues (Rodriguez et al., 2006) by effectively responding to stakeholders’ needs (Sen and Bhattacharya, 2001).

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Firms that proactively engage in CSR, then, achieve business and social growth and development by maintaining a successful stakeholder relationship—that is, by tending to their needs and wants in an ethical manner. Doing so requires complying with legal standards of ethics (i.e., laws, regulations, and international standards of operation), engaging in stakeholder dialogue, and proactively responding to their needs and wants. Organizations benefit regarding business growth and development when stakeholders perceive that they are authentic in their socially responsible practices; in other words, CSR is positively associated with competitive advantage and financial performance (Nirino et al., 2020; Orlitzky et al., 2003); however, Schaltegger et al. (2019) posit that CSR should lead to an increase in the organization’s value rather than financial performance. Therefore, business growth of the firm is a collateral effect of engaging in CSR rather than the purpose for being socially responsible. Moreover, CSR is positively related to firms’ reputation (Sánchez-Torné et al., 2020), as it may build brand trust (Kim et al., 2015). Organizations’ image is negatively impacted when stakeholders, particularly consumers, do not trust the firm, which can result in switching behavior, negative word-of-mouth, boycotts, and bans. However, according to Yoon et al. (2006), the effects can be tackled by investing in and executing more socially responsible practices. According to Erwin (2011), ethical codes of conduct are tools used to execute corporate social responsibility. This would mean that they, in essence, guide socially responsible behavior within the organization and, in some cases, outside the organization. However, despite having ethical, codes of conduct, and engaging in corporate social responsibility, too many organizations have been failing to comply with legal standards of ethics, let alone CSR-related dimensions focusing on social development and environmental prosperity. In other words, organizational practices and actions are not aligned with their policies, standards, and norms of behavior. Cognitive Dissonance According to Festinger (1957), cognitive dissonance denotes disconnect of one’s knowledge and/or behavior about her/himself. Therefore, cognitive dissonance occurs when a person embraces psychologically conflicting pieces of knowledge (Aronson, 1969; Perlovsky, 2013), which

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tends to be conflicting information. Everyone has experienced cognitive dissonance at some point in their lives while making decisions. As such, it is a natural part of human behavior and, therefore, unsurprisingly seeps through organizational decision-making. In fact, it is quite common and noticeable in the variance among stated policies and organizations’ actual practices (López-Fernández & Atristain, 2017). This cognitive dissonance leads to what has been referred to as corporate hypocrisy (Wagner et al., 2009), meaning that the organization is masquerading as something they are not. There are various manners in which organizations display their cognitive dissonance; it is particularly viewed in relation to ethics and corporate social responsibility with practices including: CSRwashing (Koleva & Meadows, 2021) and social washing (Rizzi et al., 2020), greenwashing (Yu et al., 2020), pinkwashing (Lubitow & Davis, 2011), rainbow washing (Carbonell, 2021), among others. All of these imply a breach of ethics as organizations are lying about their stance and progressiveness for a mere publicity strategy. Moreover, there are much more specific ways in which organizations display cognitive dissonance; common examples of this include, but are not limited to, pink taxing and double-dealing, and isms, all of which are an effect of exclusion. Pink tax, also known as gender-based price discrimination, occurs when a premium price is assigned to products targeted to women (Stevens & Shanahan, 2017). These products either have the same or comparable attributes as the products targeted to men (Abdou & Ayoubi, 2019). In 2015, the New York City Department of Consumer Affairs held a study and found that products targeted to girls and women, including toys, clothing, personal care, and home health care, are priced approximately seven percent higher than the similar products targeted to boys and men (de Blasio & Menin, 2015). These practices are inconsistent with firms stating to be engaged in corporate social responsibility as well as particular policies on equality and gender equality. Double-dealing means acting in one way while thinking in another; in other words, pretending. An example is organizations celebrating the LGBTQ+ community during Pride while profiting from business with legislators with an antigay agenda. For instance, in 2019, Forbes reported that nine firms, AT&T, UPS, Comcast, Home Depot, General Electric, FedEx, UBS, Verizon, and Pfizer, stated to be corporate allies of the LGBTQ community yet together donated about 15 million dollars between 2017 and 2018 to antigay politicians (Ennis,

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2019). And, in 2021, RollingStone reported that Corporate Accountability Action identified large organizations stating support and alliance with the LGBTQ community and donating to anti-LGBTQ legislators (Stuart, 2021); some of these firms include: AT&T, General Motors, the Coca-Cola Company (although states they have paused political donations), Anheuser-Busch, NBCUniversal, American Airlines, Walmart, and Raytheon (Stuart, 2021). Stakeholders that agree with these practices are most likely profit-oriented and driven by secondary interests as well as political interests. Discrimination continues to pervade organizations causing significant harm to the parties involved. Isms are common forms of discrimination, which are biases based on assumptions toward a group of individuals based on one of their characteristics; they are a form of oppression directly correlated with all types of questionable and unethical practices. Table 2.1 includes definitions of the most common isms, as well as other forms of non-ism isms. These forms of discrimination occur in all types of organizations, across industries and sectors, and despite having ethical codes of conduct and/or claiming to engage in corporate social responsibility. Furthermore, they are inconsistent with inclusivity and, therefore, with social growth and development which negatively impacts business growth and development of the firm. Culture certainly influences attitude and behavior, and differences tend to be highlighted; for instance, besides traditions and customs, values and humor also vary amongst cultures. Hofstede developed six dimensions to understand cultural differences and similarities; individualism and collectivism (Hofstede, 2011) have particular relevance when discussing CSR and unethical practices such as isms and other non-ism lexicons. With an individualist culture, CSR either does not cover all pillars or is nonexistent, while a collectivist culture would be aligned with CSR as a holistic approach to business dynamics. Technically speaking, isms would only be associated with individualism; however, collectivist cultures are not exempt from such practices. Inclusive Growth Social growth and development, a by-product of proactive and genuine CSR engagement, stem from inclusiveness. While exclusion is used to control others’ behavior (Abrams et al., 2005), inclusion is a process whereby people’s differences, distinctiveness, are acknowledged (Stephan, 2020), and ensues when they feel valued and have a sense of

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Table 2.1 Definitions of Isms Isms

Definition

Ageism

Prejudice toward old age and aging process (Butler, 1980; Bytheway, 1995) Adults’ prejudice toward youth; assumption: they are naïve/ incompetent (Perry-Hazan, 2016) Prejudice against children (Moore, 2018) Racial prejudice, discrimination (Banton, 2015; Reid, 1988) Prejudice toward people with disabilities (CDR, 2021) Systemic form of oppression based on the belief of superiority and dominance (Garza & Feagin, 2019) Oppression based on the assumption of superiority given gender characteristics (Keat, 1983) Exclusion of people based on social class, particularly of a lower class (Langhout et al., 2007) Discrimination of people that are overweight (Chrisler & Barney, 2017), or perceived to be overweight Prejudice toward heterosexuality (Herek, 1996) Prejudice based on education level (Kuppens et al., 2018), particularly of a lower level The inclusion of minorities for appearances rather than genuine inclusiveness (Hirshfield, 2015; Kanter, 1977)

Adultism Childism Racism Ableism Sexism Genderism Classism Sizeism Heterosexism Educationism Tokenism Other non-ism lexicons Xenophobia Marital status

Religious Homophobia

Prejudice toward foreigners based on fear or hatred (Bordeau, 2010) Discrimination of a person based on her/his/their marital status (Joslin, 2015), be it: single, separated, married, unmarried, divorced, and/or widowed Prejudice based on hatred or fear toward people given her/his/their religious beliefs (Weller, 2011) Prejudice toward homosexuality (Haaga, 1991)

belonging (Alexandra et al., 2021). Inclusivity is the practice of accepting and embracing others with diverse backgrounds (Naqvi, 2021) and is elemental to corporate social responsibility effectiveness. Business inclusiveness may be assured when it is defined as an element of CSR and the firm’s governance; in such way that it is central to business operations. According to Laskin and Kresic (2021), inclusiveness is well associated with positive consumer brand perception, and Eskerod et al. (2015) have posited that inclusiveness is also related to stakeholder engagement and

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satisfaction. Therefore, it produces significant advantages for internal and external stakeholders, including the firm itself. Given the fact that to be engaged in CSR firms must comply with legal standards, their policies and standards must seek to enforce inclusivity and, at the very least, prohibit discrimination of any type. Moreover, because one of the pillars of corporate social responsibility is social performance, policies, objectives, and strategies ought to be aligned with social development which would also require levying inclusivity. As such, excluding current and potential stakeholders leads to their dissatisfaction which hinders effective CSR engagement. The latter is achieved as inclusiveness permeates organizational culture; in other words, as collaborators throughout the organization are committed to ensuring compliance with inclusive policies. To achieve such commitment, collaborators need to be properly trained, as well as perceive that the firm’s policies and practices are reasonable and consistent (George, 2020). Firms that have ethical codes of conduct that include nondiscrimination policies and enable isms are displaying cognitive dissonance. And, because CSR entails social growth and development, organizational leaders authentically seeking proactive CSR engagement may promote anti-ism policies. The latter, by providing clear stipulations on acceptable and non–acceptable behavior, may aid in controlling and eliminating their cognitive dissonance. By doing so, inclusive growth is plausible. According to the Organization for Economic Co-operation and Development, inclusive growth is “economic growth that is distributed fairly across society and creates opportunities for all” (OECD, 2021), and according to Ali and Son (2007), inclusive growth is determined by available opportunities and equal access to such opportunities. Given the above discussion, the following propositions have been framed: P1 :Firms may ensure inclusiveness by effectively engaging in corporate social responsibility. P2 : Inclusive governance informs an inclusive culture which, in turn, produces inclusive growth. P3 : Cognitive dissonance regarding CSR engagement negatively impacts social growth and development. P4 : Anti-ism policies driven by CSR engagement may halt cognitive dissonance, positively impacting firms’ social and business growth and development.

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Conceptual Model The objective of the study is to understand the effects of cognitive dissonance related to CSR engagement on lack of social and business growth and development. To do so, four propositions were framed, and a conceptual model was developed to illustrate the correlation among propositions and main constructs. Figure 2.1 includes the study’s conceptual model. The model describes how a firm that engages in CSR, and upholds inclusivity, builds inclusive governance which drives an inclusive culture and growth. Firms displaying cognitive dissonance regarding CSR are not achieving social growth and development; however, if there is conviction in CSR engagement, anti-ism policies may halt cognitive dissonance, impacting social and business growth and development. Firms, whether engaged in corporate social responsibility, are and should be held accountable for their actions—the reason being that they play a key role in the social wellbeing and economic growth of the countries in which they operate. Moreover, they depend on society and natural resources to operate. Therefore, they are naturally held at a high standard and at an even higher standard if they state to be engaged in CSR. Socially responsible organizations should certainly do their part to alleviate social issues that permeate society such as poverty, hunger, lack of education and health, and inequality. They may do so by developing strategies that enhance social, financial, and environmental performance.

Firm

Inclusive Governance

CSR

Social and business growth and development

Inclusive Culture P1

P3

Cognitive dissonance

P4

Anti-ism policies

Fig. 2.1 Conceptual model (Source Author)

P2

Inclusive growth

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Inclusive growth is affected by social components such as collective intelligence, social behavior, and cognitive complexities. Collective intelligence is the manner in which collective knowledge is developed when a group of people collaborate, share information and data, and solve problems or conflict (Cross, 2014). Social behavior is influenced by the behavior of a group’s members. In other words, collaborators will assume certain behaviors that are shared by the collective. Thus, diversity is key to achieve collective intelligence and social behavior aligned with CSR engagement and, thus, inclusive growth. Inclusive governance and culture, therefore, will either serve as guidance for collaborators to ignore the overt effects of isms and non-ism lexicons, and therefore use them, or lead them towards deference and inclusive growth. To do so, organizational leaders must eradicate common practices that discriminate and segregate those they consider others; these practices include, but are not limited to, isms, which are a clear sign of cognitive dissonance. There are two major steps firms must take to remove the inconsistencies: (i) move from a CSR ideology to a CSR reality, meaning translating policies, standards, objectives, strategies, and tactics from the corporate philosophy, to governance, to the organization’s culture. This may be achieved by regulating corporate socially responsible actions throughout the firm; and (ii) ensure inclusiveness in the effort to guarantee equal access to opportunities; that is, developing and executing anti–ism policies for inclusive growth. Checking Cognitive Dissonance The goal is not only to eliminate cognitive dissonance but to do so by transforming CSR ideology to CSR reality; the proposed process is separated in five phases. Phase I requires ensuring that the firm’s corporate philosophy, governance, and social responsibility are aligned. Phase II entails developing anti-ism policies. They should, at least, be aligned with legal standards of ethics and human rights; they may also be aligned with international guidelines and international law. The policies should address all isms and other non-ism isms; not doing so will not assist in eliminating the cognitive dissonance and will encourage subjective interpretation. Phase III involves anti-ism policy enforcement, which should be stipulated in the firm’s governance bylaws and performed by all collaborators. This leads to Phase IV which calls for a change in organizational culture. Collaborators will require training specialized in anti-ism policies driven

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by CSR, so they not only comply with inclusive policies but also commit to grounding social responsibility to their daily activities. Finally, Phase V entails proactively working toward inclusive growth, whereby economic growth is justly distributed, and opportunities are equally accessible.

Discussion When firms maintain that they are socially responsible and allow isms to take place, four issues are emerging: (i) because the firms state to be engaged in CSR, they are displaying cognitive dissonance; (ii) stakeholders, naturally, perceive that the firms’ so-called socially responsible policies and actions are mere public relations, marketing, strategies, and tactics. According to Wagner et al. (2009), perceptions of corporate hypocrisy can be aggravated when unethical behavior follows firms’ communicating their CSR practices. Meaning that, when stakeholders become aware of a firm, which has previously stated to be socially responsible, engaging in questionable practices the negative impact may be greater. (iii) Given that discrimination is illegal, the firms are also not ethical as they are not complying with the minimum requirement of meeting the terms of legal standards, and (iv) the firms are not socially responsible. In other words, firms’ discourse may be aligned with social responsibility, yet their actions and results are certainly not socially responsible. Stakeholder perceptions of a firm’s cognitive dissonance and thus corporate hypocrisy directly impact their behavior (Wagner et al., 2020) and attitude toward the product/service, brand, and firm. For instance, it may lead to stakeholders perceiving their actions and statements as dishonest (Wagner et al., 2009), which leads to distrust. The latter, in turn, negatively impacts business growth and development. Consequently, another effect is the impact on legitimacy, which is described as stakeholders’ perception that the organization’s actions are deemed appropriate and well associated with social values (Suchman, 1995). Legitimacy is associated with firms’ right to operate, in that it is granted provided the alignment of the firm’s actions and results with stakeholders’ expectations (Dawkins, 2004). The negative effects of socially responsible-related cognitive dissonance on stakeholder perceptions notwithstanding, corporate social responsibility is also the key to drive anti-ism policy development for inclusive growth. For instance, according to Yoon et al. (2006),

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the negative effects may be tackled by increasing the firm’s investments in socially responsible practices. Regarding cognitive dissonance, since people find it difficult to accept inconsistencies, they attempt to validate their decision as to make it consistent (Cooper, 2007) or even rational. Although it is clear that the reason stakeholders would accept firms’ unethical behavior is profit, measurable gain, it is still unclear how they can currently validate the pursuit of profit enhancement over a balance of social, environmental, and financial performance, especially if they state to be engaged in CSR. Inclusive growth is not plausible while tolerating and/or enabling isms; further, the latter does not make good business sense as isms preclude social growth and development which, in turn, negatively impacts the firm’s business growth and development. Based on the premise think globally and act locally, the proposal is to operationalize corporate social responsibility by acting on specific imperative actions for inclusiveness and social growth and development. In this particular case, it means developing anti-ism policies. Inclusive growth demands equal access to opportunities, in which organizations play a critical role, as a lack of development undoubtedly obstructs growth.

Concluding Remarks Increasingly, organizations are taking a stance on business ethics and social responsibility. In many cases, this means that they communicate their posture regarding social responsibility with internal and external stakeholders, however, and do not necessarily act accordingly. Many firms have ethics codes and codes of conduct which are meant to guide appropriate behavior and prevent recurrences of unacceptable behavior; yet do not necessarily deter them from questionable, unethical, practices regardless of what they have communicated. Firms engaging in CSR should comply with laws and regulations, satisfy stakeholders, and attain social, financial, and environmental performance. When these firms’ actions are not in alignment with their policies and standards, they display cognitive dissonance. This may be caused by the fact that CSR tends to be approached as an ideology, because interests are solely or mostly aligned with profit enhancement and not genuine social responsibility. Isms are assumptions, a form of oppression and discriminatory; and since most countries have anti–discrimination laws, they are illegal. This should be reason enough to end the use of isms; however, too many firms allow and/or tolerate

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them. Organizational leaders have the power to create substantial change by designing and implementing anti–ism policies driven by CSR and aligned with the firm’s corporate philosophy and governance. Not acting further encourages discrimination in the workplace, upholds cognitive dissonance, and negatively impacts stakeholders’ perception of the firm; however, taking action to remove inconsistencies can significantly impact social growth and development and, as a result, positively impact business growth and development.

Future Research Directions It is suggested that future research could focus on analyzing stakeholders’ perceptions of anti-ism policies and their effect on their wellbeing, growth, and development. Further, future research could analyze stakeholders’ reasons to continue to support the use of isms and justify discriminatory practices.

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CHAPTER 3

A Meta-Analytic Study of Socially Desirable Responding (SDR) Across Indian and Chinese Cultures Manit Mishra, Tanusree Chakraborty, and Nargis Begum

Introduction Measurement error is an inherent nemesis in any social science research endeavor. It could produce quantifications violating logical desiderata. It can cloud substantive relationships by augmenting or attenuating its strength. It can contaminate the measures and the models proposed.

M. Mishra (B) International Management Institute, Bhubaneswar, India e-mail: [email protected] T. Chakraborty Administrative Staff College of India, Hyderabad, India N. Begum Trident Academy of Creative Technology, Bhubaneswar, India

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_3

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Above all, it can give misleading conclusions jeopardizing the sanctity of the output from an entire research effort. Measurement error is recognized as a serious problem in social sciences (e.g.Bagozzi et al., 1991; Fiske, 1982). Churchill (1979) decomposes measurement error into systematic and random components: XO = XT + XS + XR , where XO is the observed score, XT is the true score, XS is the systematic error, and XR is the random error. The measurement process is prone to error from both the key stakeholders—researcher and respondent. Researcher may inadvertently contribute to the error due to lack of rigor to operationalize the construct. Experts have suggested frameworks to develop improved measures of marketing constructs and reduce error on the part of the researcher (e.g., Churchill, 1979; Gerbing and Anderson, 1988; Rossiter, 2002; Diamantopoulos & Winklhofer, 2001; Peter, 1981). The second source of measurement error is the respondent in a study. Respondents contribute to error in measurement due to limited capability in relation to the level of difficulty of the task of answering and low motivation to carry out a sincere execution of the task of answering (MacKenzie & Podsakoff, 2012). In such situations, respondents tend to satisfice resulting in measurement error. Out of the two errors, random and systematic, contributing toward error in measurement, researchers have repeatedly cautioned against the perils of systematic error. Podsakoff et al. (2003) argued that “although both types of measurement error are problematic, systematic measurement error is a particularly serious problem because it provides an alternative explanation for the observed relationships between measures of different constructs that is independent of the one hypothesized.” A major source of systematic measurement error is method variance (Bagozzi and Yi, 1991). Bagozzi and Yi (1991) defined method variance as “variance attributable to the measurement method rather than to the construct of interest.” The description of what constitutes “method” has expanded over time. Fiske (1982, p. 82) defined method as “the content of the items, the response format, the general instructions and other features of the test-task as a whole.” Bagozzi and Yi (1991) broadened the interpretation to include bias in response due to “halo effects, social desirability, acquiescence, leniency effects.” Socially desirable responding (SDR) generates artefactual covariance between constructs in a proposed model that can inflate or deflate observed relationships between constructs leading to a Type I or Type II error in testing hypotheses. SDR and the resulting method variance

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are a big concern in survey research done in India and China since the respondents belong to a culture which is low on the individuality dimension of Hofstede’s cultural framework. This makes respondents prone to giving responses aligned with the culturally appropriate behavior rather than giving true responses, especially on a socially sensitive phenomenon. Despite its significance, most research in Indian context do not refer to the possibility of SDR. One plausible explanation could be lack of a comprehensive and actionable discussion on these issues in the literature. This article fulfills a major gap in extant literature on socially desirable responding in the context of the survey research done in Indian and/or Chinese respondents. The research map studies in high-collectivity cultures like India and China involving a major source of method variance—SDR. The study is a review of how socially desirable responding has been studied in the context of Indian and Chinese survey respondents and the extent to which it has affected the substantive findings of self-report research. Such an investigation on the existing investigations on SDR would serve to provide a platform for future research on not just this domain but also to any survey-based study involving a self-inventory. It would provide a foundation for the next generation of research on a topic as critical as SDR.

Socially Desirable Responding and Self-Inventory Surveys The tendency to respond in a socially desirable manner on the part of respondents to a questionnaire is a major cause of artefactual covariance between constructs, resulting in method variance (Ganster et al., 1983; MacKenzie & Podsakoff, 2012; Podsakoff et al., 2003; Williams & Anderson, 1994). Crowne and Marlowe (1964, p. 109) define social desirability as “the need for social approval and acceptance and the belief that it can be attained by means of culturally acceptable and appropriate behaviors.” The desire to present oneself in favorable light and draw a self-portrait of a socially sensitive and culturally well-groomed individual reflects in the responses to the statements given in the scale. The mask hides the true responses resulting in suppressing, exaggerating, and/or moderating relationships (Ganster et al., 1983). Podsakoff et al. (2003) define SDR as “the tendency of some people to respond to items more as a result of their social acceptability than their true feelings.” In their comprehensive treatise on potential sources of method

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bias as a result of respondents attempting to satisfice rather than optimizing in their responses, they reckon that the tendency to respond in a socially desirable manner is one of the two variables that are frequently assumed to cause method variance. More specifically, taking into consideration the five stages of the response process given by Tourangeau, Rips, and Rasinkski’s (2000) model, which include comprehension, retrieval, judgment, response selection, and response reporting, social desirability becomes a major source of method bias at the response reporting stage (Podsakoff et al., 2003). Researchers have been aware of SDR’s role in diminishing the motivation of the respondent to answer accurately. The bias is likely to exacerbate if the responses are sought in the presence of researcher/enumerator/interviewer. Richman et al. (1999) assessed the impact of interviewer’s presence on distortions due to social desirability bias. They concluded that distortions are reduced when computer interviews are conducted instead of face-to-face interviews, particularly when the questions relate to sensitive personal behavior. Bowling (2005) assessed different mediums of questionnaire administration to conclude that social desirability bias is higher if interviewer is privy to information at the time of responding. The presence of an interviewer arouses apprehensions regarding being judged on social parameters resulting in socially desirable responding on the part of the respondent. Intentional impression management on the part of respondents persuades them to provide answers that make them look good (Steenkamp et al., 2010). At the same time, it is important to understand that socially desirable responding may not always be conscious and deliberate (Paulhus, 1984), but irrespective of its origin, it is a source of method bias (Baumgartner & Weijters, 2012). Impression management refers to the “conscious presentation of a false front,” whereas Self-deception refers to “the unconscious tendency to see oneself in a favorable light” (Zerbe & Paulhus, 1987, p. 253). This article, however, takes into consideration the intentional impression management since self-deception is an unconscious disposition that can be considered as a “personality variable that is not contamination” (Moorman & Podsakoff, 1992).

Culture as a Moderator Ironically, most of the research on SDR as a source of method bias has taken place in a Western milieu. Not much research has gone into studying socially desirable responding in Asian cultures. It is warranted since culture is intrinsically linked with what would be considered as a

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favorable impression and Asians are culturally very different from the West. Zerbe and Paulhus (1987) noted that individuals over-report activities that are considered culturally desirable and under-report activities that are culturally undesirable. Many other researchers have also found that cultural differences influence responses to questions (e.g.Cohen et al., 1995; Geiger & O’Connell, 2000). In fact, when looked at from the prism of a culture study, social desirability is not undesirable since it is expected that values would differ across different cultures. A comparison of cultural dimensions across countries on power distance, uncertainty avoidance, individuality/collectivity, masculinity/femininity, and longterm orientation revealed the difference in scores (see Hofstede, 2001). For comparative assessment, Table 3.1 gives India and China’s index value with USA as the benchmark and the range as an indicator of extreme values. Some of the dimensions, if not all, are likely to shape social desirability of respondents belonging to a particular culture. Bernardi (2006) examined the association between SDR and Hofstede’s dimensions of culture. He found that SDR has a significant association with individualism. Hofstede (2001) defines individualistic culture as one which gives precedence to self over society. Therefore, high individualism decreases the tendency to give socially desirable responses to questions asked (Bernardi, 2006). Respondents from individualistic cultures are less inclined to appear normatively appropriate since individualism encourages people to exercise their freedom of thought and action. A low score on individualism makes Indian and Chinese respondents vulnerable to SDR.

Table 3.1 Culture comparison #

1 2 3 4 5

Dimensions of culture

Index value

Range of index value

India

China

USA

Lowest (Country)

Highest (Country)

Power distance Individualism Uncertainty avoidance Masculinity Long term orientation

77 48 40

80 20 30

40 91 46

11 (Austria) 06 (Guatemala) 08 (Singapore)

104 (Malaysia) 91 (USA) 112 (Greece)

56 61

66 118

62 29

05 (Sweden) 00 (Pakistan)

95 (Japan) 118 (China)

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Methodology The study uses meta-analysis to assess the significance of SDR in survey researches carried out by recruiting Indian and/or Chinese respondents. The proposition is that since India and China are collectivist cultures, there is a greater likelihood of survey research being contaminated by SDR. Meta-analysis is a replicable method of analyzing and synthesizing findings across different studies conducted on the same constructs. This method has gained precedence over the years as a scientific way of generalizing the direction and magnitude of relationships between variables assessed over multiple studies across different time periods. The construct of SDR has also been subjected to meta-analysis previously. Moorman and Podsakoff (1992) carried out a meta-analytic review of 33 studies that had examined the relationship between SDR and organizational behavior constructs. Their findings suggested that SDR is significantly (although moderately) correlated with several organizational behavior constructs. However, to the best of the researcher’s knowledge, this is the first attempt at meta-analysis of survey research involving SDR done in Asian cultures. Eligibility Criteria The studies used in this meta-analysis have a conceptual replication among them. SDR is assumed to influence all self-inventoried surveys, and therefore, the relationship is believed to exist at a broad level of abstraction. Published studies, available in English, and reporting a relationship between SDR and socially sensitive construct were eligible for inclusion in the study. The studies chosen were coded for sample size and effect size. Literature Search Manual as well as computer-based search of published empirical studies was carried out. The online database searches include EBSCO, Emerald, Google Scholar, and the websites of two of India’s reputed journals, Vikalpa (published by IIM, Ahmedabad) and IIMB Review (published by IIM, Bangalore). The searches were conducted using the following key words: socially desirable responding, social response bias, socially desirable responding India, and socially desirable responding China. Manual searches of the Global Business Review (published by IMI and SAGE) articles were also conducted to scout for relevant articles (Table 3.2).

Li, F., Niu, X. & Li, Y. (2011) Fan, J., Wong, C. C., Carroll, S. A., & Lopez, F. J. (2008) Antin, J. & Shaw, A. (2012) Ray. J. J. (1982)

1

4

3

2

Study

305

898

4645

158

Sample size

India

India

China

China

Country

Study level coding

S. No

Table 3.2

r = 0.19, (p < 0.01)

Sense of purpose (χ2 = 132.83, p < 0.01)

Marlowe-Crowne social desirability scale

Indirect questioning

20 item IM scale from BIDR given by Paulhus (1998)

0.19 302

0.82 185

0.39 4642

Inverse Variance Weight (w)

r = 0.37, (p < 0.01)

ES

0.43 1493

SDR scale Type

F (1152) = 8.09, (p = 0.005) BIDR

Research output

71.42

60.97

89.28

85.47

Random effects Model Weight (Modified w)

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Table 3.3 Comparison of effect size and confidence intervals Description

Overall

Q -The homogeneity statistic

Random effects variance component (vΘ )

47.736

0.011

Mean Standardized effect mean effect size size (ES) (ES) 3.64

-95% Confidence interval

+ 95% Confidence interval

3.53

3.75

63.8

Model The random effects model was chosen for the study since it assumes that the variability between effect sizes is due to sampling error as well as the variability in the population of effects (Lipsey and Wilson, 2001). Therefore, random effects model is more conservative, has larger confidence intervals, and is less likely to incur Type I error. The effect size of each study was adjusted using the weighted inverse variance (Table 3.3).

Findings and Discussion Sample Description The literature search generated 04 refereed publications. The articles were coded for the sample size, the country of origin of the survey respondents, the research output obtained, and the socially desirable responding scale used. The studies used either the BIDR scale (Paulhus, 1998) or the Marlowe-Crowne social desirability scale (Crowne and Marlowe, 1960). For some of the articles, the effect size was given. For other, the effect size was calculated as per the process suggested by Lipsey and Wilson (2001). Since the objective was to do a meta-analysis of the effect of socially desirable responding on personal inventories in the context of India and China, it was ensured that the survey respondents were either Indian or Chinese. Homogeneity The homogeneity or the homogeneous nature of distribution of effect size was determined by calculating the Q-statistic of homogeneity. The model chosen for the study is random effects model which assumes that the effect sizes are heterogeneously distributed. A homogeneity test was conducted with the null hypothesis that the observed effect size is an

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estimation of the population effect size with error that originates only due to the sampling error. The homogeneity test was found to be significant at α = 0.05 (Q = 47.74). The Q-statistic is a χ2 distribution with (k-1) degrees of freedom. The Q-statistic obtained is statistically significant since the critical value of χ2 is 7.81 (α = 0.05, df = 3). Lipsey and Wilson (2001, p. 117) suggest that a statistically significant Q-statistic means “variability among the effect sizes is greater than is likely to have resulted from subject level sampling error alone.” This evidence toward heterogeneity of effect sizes validates usage of random effects model. Accordingly, the inverse variance weights for effect sizes were revised by including a random effect variance component (Table 3.3). Meta-Analysis Results The effect size, means, and confidence intervals were calculated as per the process suggested by Lipsey and Wilson (2001). As given in Table 3.2, the findings revealed that the mean effect size of the association between socially desirable responding and self-inventories in survey research conducted on Indian or Chinese respondents was 3.64. The 95% confidence interval about the mean stands at 3.53 to 3.75. The findings of this study support the widely held notion that socially desirable responding tendencies influence surveys conducted using personal inventories. The findings build upon Lalwani et al. (2006) argument that people belonging to collectivistic societies are more likely to engage in impression management than are people in individualistic societies. The reason being the emphasis Asian cultures lay upon “harmony, fitting in, saving face, and conforming to societal expectations and norms.” Johnson and van de Vijver (2002) in cross-cultural research mapping several cultures also concluded that at country level, socially desirable responding is positively associated with collectivism quotient of the country. Steenkamp et al. (2010) in their summarization of the “state of the literature” state that “individualistic countries rank lower on MRT” (moralistic response tendencies). MRT is defined as engaging in socially desirable responding in community-related contexts, e.g., affiliation, belongingness, intimacy, love, connectedness, approval, and nurturance (Paulhus & John, 1998). Even as the findings reinforce some of the previous primary research undertaken in the area, the contribution of this study lies in setting a

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stage for a thorough meta-analysis of the relationship of the construct socially desirable responding with other socially sensitive constructs in a self-inventory data collection context. Lipsey and Wilson (2001) quotes Fisher (1944, p. 99) as saying, “when a number of quite independent tests of significance have been made, it sometimes happens that although few or none can be claimed individually as significant, yet the aggregate gives an impression that the probabilities are on the whole lower than would often have been obtained by chance.”

Limitations and Future Research We have only included studies published in peer-reviewed journals. Since studies having significant findings are more likely to be published as compared to studies not having significant findings, it hampers the generalizability of the findings of meta-analysis. Despite all efforts to maintain objectivity in the inclusion of studies, there is a possibility of researcher’s bias creeping in the selection process. Further, the qualitative distinction or similarity between the studies may not have been captured appropriately. However, the biggest limitation of study happens to be the sample size of studies. It is an alarming scenario wherein cross-cultural research points toward collectivistic cultures being vulnerable to socially desirable responding, and yet, there is very little primary research to substantiate or negate this suggestion in primary research involving Indian or Chinese respondents.

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PART II

Financial Perspectives

CHAPTER 4

How China Strategically Invests in Africa? The Case of Zambia Satyendra Singh and Jive Lubbungu

Introduction China is one of the biggest and fastest growing economies in the world. The growth has resulted in an increased need for energy and raw materials. The African continent could be the answer; it has resources and variety—minerals, food, and oil. Keeping this in view, China and Africa setup a Forum of China and Africa Cooperation (FCAC) in 2000 to provide a platform to both Chinese and African politicians and business leaders for a dialogue and cooperation between the developing and

S. Singh (B) Marketing and International Business, University of Winnipeg, Winnipeg, MB, Canada e-mail: [email protected] J. Lubbungu Literature in English, Kwame Nkrumah University, Kabwe, Zambia e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_4

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emerging markets. IMF estimates that African economy has the potential to be $5t economy and that household consumption reaching up $2t (Shepard, 2019). The growth agenda has led China to invest in multi-billion-dollar projects in Angola, Ethiopia, Nigeria, Sudan, and Zambia in energy sector, and in Ethiopia and Nigeria in transportation and communications projects. Other countries—Kenya, South Africa, and Mozambique—all rich in natural resources also received significant investments from China. The Chinese foreign investments in these natural resource-rich countries have led critics in advance nations to question the motivations for such investments, as it appears to be based solely on accessing the natural resources. International community has also criticized China for exploiting the economic vulnerability of the African nations, and for investing in Africa for the purpose of the national gain rather than humanitarian advancement (Sautman & Hairong, 2007). Then there is an issue of the Chinese non-traditional aid to Africa, as opposed to traditional definition of humanitarian aid, which relates to saving lives, alleviating suffering, and maintaining and protecting human dignity during and post man-made crises and natural disasters. This issue needs to be addressed as to which type of Chinese aid African countries will accept and ensure that the aid supports these countries’ economic-development agendas (Brautigam & Gaye, 2007). There is also a concern about how people of the African nations perceive the Chinese economic and humanitarian activities. Overall, the African nations that receive Chinese aids and investments do not appear to be concerned about the exploitation or corruption. One of the reasons for not being so concerned may be because Chinese investments benefit Africa in several ways-availability of low-cost Chinese goods— which improves quality of life of African people. Chinese firms also invest in construction of dams, telecommunications, airports, and roads that create employment opportunities and drive technological development in the continent. For example, privately-owned Huawei and publicly traded ZTE have become the principal telecommunications providers in several African nations. Indeed, Chinese investment is significant in Africa which greatly benefits countries in the region. The purpose of the chapter is to examine the four broad factors— natural resources , aid versus partnership, non-interference, and trade relations that influence Chinese investments strategy in Africa. We discuss

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the article within the OLI framework—Ownership, Location, and Internalization—where Ownership relates to Chinese loans and aid programs, Location being Africa, and Internalization encompasses Chinese expansion overseas through foreign direct investments (FDI). In the next section, we focus on the factors that seem most pertinent in explaining Chinese FDI strategy in Africa, followed by a case study of Zambia which is a major recipient of Chinese FDI in copper industry.

Natural Resources Africa needs new, modern, and efficient industries to counter decades of colonization and deindustrialization. It also has abundant natural resources. So, China seeks to invest and extract natural resources from Africa by creating an alliance (Median, 2006; Rotberg, 2008). Crude oil is one of the natural resources that China needs. It imports about 25 percent of its total crude oil from sub-Saharan Africa. By contrast, Africa exports 65 percent of its crude oil to China as it needs energy to support its ambitious economic plan and to improve quality of life of its citizens. Although China is a significant producer of crude oil, it wishes to diversify its sourcing of crude oil. So rather than just relying on the oil-producing counties in the Middle East, China explores opportunities in Africa. This exploration led the Chinese Sinopec to have stakes in the Angolan oil exploration projects estimated to be over $3b. China made similar deals in Congo, Kenya, and Nigeria among others to import raw material, and in turn, export finished products to Africa. Indeed, China invests significantly in Africa to access cheap natural resources which allows it to produce cheap goods and sell abroad (Davis & Woetzel, 2010). China also prefers employing its own labor in projects to produce goods, restricting the money circulation in Africa, as the wages paid to the Chinese labor are deposited in Chinese banks. The Chinese labor and officers are flexible and rather keen to migrate in Africa, as opposed to labor from other nations who are reluctant to make such move, particularly with families.

Aid Versus Partnership China has been assisting Africa with aid since 1950s and is one of the countries in emerging markets that provides aid to developing countries. Its aid program is based on mutual benefits as opposed to charity. China

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considers itself a partner of Africa rather than aid donor. This partnership arrangement of the aid means mutually-beneficial deals, whereas in a traditional sense, aid would be more beneficial to the recipient than the donor. Chinese aid is more geared toward countries that are strategically beneficial to China, as its main objective is to find a reliable source for raw materials, locate a market where it can sell its finished products, and undermine local businesses so they cannot compete. Unlike aid from advanced nations that focuses on developing quality of life through education, health, food, and women, among others, Chinese aid primarily focuses on transport, storage, energy generation and supply, and communications. Chinese aid has the least priorities in the areas where advanced nations champion a cause. This aid arrangement may be mutually beneficial, but it largely benefits Chinese interests (Du Plessis, 2014). In some cases, Chinese aid program may be better than advanced nations as it addresses the Africans’ immediate needs such modernizing transportation systems and developing infrastructure and telecommunications. The program also allows African countries to oversee the aid and take ownership of it (Brautigam & Gaye, 2007). China broadly provides aid in the six sectors—agriculture, education, health, transportation, energy, and communications —of an economy, assisting over thousand projects relating to textile factories, hydropower stations, stadiums, hospitals, and schools, among others. It appears that China has presented itself as a credible business-only partner to the African nations for mutual benefit, growth, and development.

Non-Intervention China has a non-intervention policy. It allows Chinese business investors and government officials to keep business and politics separate. This policy may have economic and political consequences in Africa but the mutually beneficial Chinese-funded projects (e.g., oil and infrastructure) are based on political reciprocity. It really does not appear to deviate entirely from the traditional Western model; it just keeps business deals separate from politics (Tull, 2006). In reality, Chinese economy is so enormously entrenched into the African economies that it has an outsize role in African politics which it uses to influence foreign governments’ decisions in shipping, oil, and distribution sectors (Barton, 2011). One of the reasons for this influence is that China is able to frame USA as

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an undesirable partner, because American humanitarian aid and investments come with the conditions (e.g., democracy, human rights, abortion laws, among others) that the recipients must accept, which the African nations would rather not accept it. These American values may imply imperialistic maneuvers intent on interfering in the domestic politics of Africa and undermining their stability and progress at large. Because China can provide such opportunities to African nations through its nonintervention policy, it can state that it has no desire in controlling African politics and that its only interest is in business (Tull, 2006). Indeed, China has been successful in forming bond with Africa by villainizing aid from the West and by offering Chinese unique modes of foreign investments and infrastructure loans (Sautman & Hairong, 2007). Consequently, China has displaced European, American, and Japanese diplomatic and capitalistic soft power in many sub-Saharan countries and won influence in countries where Western governments were conspicuous by their absence (Rotberg, 2008). The influence through trade agreements has made China a model for developing nations but it may not be temporary (Sun, 2014). The controversial non-intervention trade relations may be strained if the West tries to reclaim its colonized countries in Africa (Edoho, 2011). Thus, a balance needs to be struck between China’s potentially oppressive influence on Africa and the developmental benefits of China’s presence in Africa (Davis & Woetzel, 2010).

Trade Relations Africans have favorable perceptions of Chinese investments. Chinese were able to forge the perception and the relationship based on being a partner in the economic development, as the Chinese see themselves as a developing country—a view shared by many Africans, which unlike the West, has no history of imperialism (Sautman & Hairong, 2007). Almost all countries—except Liberia and Ethiopia briefly occupied—in Africa were under European rule. Africa still continues to suffer from the colonization and relies on the West which has created vacuum. However, China provides as an alternative to the colonial West. China encourages development without pushing a political agenda on the recipients of their investments (Edoho, 2011). In fact, many African countries welcome China’s investments because of its credibility as a developing nation which has seen an incredible economic growth and poverty alleviation in the past

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few decades. The trade relations are further strengthened by the underlying expectation of reciprocity; that is, when a nation assists another nation, the same is expected in return. China has soft power over Africa at the United Nations proceedings (Martinez, 2015). Despite the implicit request for reciprocity, the African nations seem to view the trade as a mutually-beneficial relationship, even though China uses the relationship to (1) sell the incentive-based packages of aid, loans, and investments; (2) secure votes at the United Nations; (3) open up channels for muchneeded oil and mineral resources; (4) mitigate its food-security concerns; and, (5) gain a strategic foothold on the continent (Davis & Woetzel, 2010).

The Case of Zambia Chinese Investment in Africa in general, and in Zambia in particular, has spawned a bewildering variety of commentaries in the country, as it is perceived as an act of neocolonialist and exploitative undertaking. Many Zambians have embraced Western countries’ hysterical approach of Chinese investment without applying a critical eye to the issue. However, Chinese investments in Africa are a positive and welcome development because it is important for Zambia to reduce poverty and spur economic growth (Ndulo, 2013). Hence, China has become a source of the much-needed capital which may contribute to economic development of Zambia. Zambia-China relations began during 1970–1975 when the government of Tanzania, Zambia, and China built the TAZARA Railway through the Chinese loan to eliminate landlocked Zambia’s economic dependence on Rhodesia and South Africa. Since then, the relations continued which led to about 20 percent of the total FDI in Zambia by the Chinese firms during 2017–2018 (Kasoma, 2019). Zambia-China relations are deeply rooted in trade. The relation is largely defined by China’s demand for Zambia’s copper. Zambia’s export statistics from 2008 to 2017 reveals that China was Zambia’s major copper export destination, although official Zambian trade statistics labeled Switzerland as the top market destination, and China as Zambia’s second top market destination. This assumption was based on the observation that copper was not a product for which there was particularly significant demand in Switzerland. Further, the Swiss economy was known for offering brokerage services. Stakeholders, therefore, opined that Zambia’s copper exports to Switzerland, although

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difficult to trace, were plausibly re-exported by Swiss-based traders to China (Musokotwane et al., 2019). Apart from being an important export destination for copper, China was also a major supplier of various capital and consumer goods to Zambia. Average exports between 2008 and 2017 reveal that China was the third major country for imports, accounting for an average of 8.8 percent of Zambia’s total imports as seen in Table 4.1. Recently, Zambia-China trade relations have grown significantly in the areas of road construction and manufacturing sectors (Chanda & Chibomba, 2020). The growth in the trade was due to the (1) low prices offered by Chinese firms when bidding for projects, (2) the self-financing options—vendor financing—that Chinese gave to the Zambian government owing to the support they got from the Chinese government, (3) the lower level of skilled Zambian personnel (in terms of negotiation, technical and managerial skill), and (4) the poor institutional capability of the Zambian experts in various ministries who dealt with the Chinese firms, among others. The Chinese firms also have cost and technological advantages over Zambian counterparts which contribute to Chinese investment success in Zambia. True, some groups would gain from this trade relations whereas others lose. The former group includes (1) consumers, commercial traders who bring manufactured consumer goods from China for sale in Zambia and (2) entrepreneurs engaged in establishing small scale factories and service centers by buying machineries from China. The possible losers include small scale firms engaged in clothing and footwear sectors and their Table 4.1 Zambia’s Top 5 Major Export and Import Source Markets- 2008 to 2017 Country

Average Export Value

Switzerland China South Africa Egypt Congo DR

$4.8b $1.9b $674 m $649 m $587 m

Share of total Average Exports (%) 61.8 25.5 8.6 8.3 7.5

Source World Integrated Trade Solution World Bank

Country

Average Import Value

Share of total Average Imports (%)

South Africa Congo DR China Kuwait Kenya

$2.4b $1.2b $655 m $400 m $286 m

33.2 16.3 8.8 5.4 3.8

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employees, traditional suppliers, and road-related firms from industrialized countries. Chinese firms have dominance in the road construction industry (Musokotwane et al., 2019). It has overshadowed local Zambian firms which merely end up getting 20 percent of the contracts awarded. Chinese labor and products are also far below the international standard. Further, Chinese firms use their connections with top government officials to crowd out domestic firms (perhaps the authorities may prefer to deal with the Chinese to domestic firms to get unnoticed in whatever they do).

Zambia-China FDI The economic liberalization of Zambia in the early 1990s sought foreign direct investment (FDI) to accelerate economic growth. By 2007, Zambia received the largest FDI from China, offering Zambian businesses a welcome alternative to Western terms of economic engagement. Zambia established Special Economic Zones (SEZs) to attract FDI, industrialize and ultimately diversify the economy away from mining (EIU, 2011). These SEZs are widely seen as key to the government’s success in delivering on its promise to create a “conducive business environment for sustainable economic growth in Zambia” (Nanda, 2013). The SEZs are termed as Multi-Facility Economic Zones (MFEZs) and form part of the economic growth program administered by the Zambia Development Agency (ZDA). According to Felix Mutati, Zambia’s Minister for Commerce, Trade and Industry, “the main policy thrust is to transform the industrial sector by expanding the manufacturing base and increase value addition through the development of export processing zones known locally as Multi-Facility Economic Zones (Barton, 2014).” In a personal interview with Salili, a Senior Analyst at the ZDA elaborated, “the objective of the Zones is to attract FDI. The strategy behind the MFEZ is to locate each one close to an important anchor industry and encourage diverse secondary and eventually tertiary economies to develop from the anchor.” He further clarified that this was usual during the early stages of MFEZ development because “bigger companies come first, and mostly these will be foreign. Smaller local companies will come later” (Salili, 2011). He furthermore adds that other than ZCCM and Lusaka East, Zambia has added two more MFEZs in Lusaka South and Lumwana near Solwezi on the Copperbelt. In Lusaka South, Zambia supplies the land and develops the roads and utilities but is still seeking a strategic

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partner to develop housing and office blocks. Lumwana is the fourth, newest and least-developed zone, anchored around the Lumwana Mine. It has attracted $50 m in foreign investment in 2011, including a new factory from Hitachi (Japan) and several construction and petrochemical firms (Bulletin & Record, 2011). In another personal interview with Sichilongo (2011), it was revealed that MFEZs were open to all investors, but Chinese companies were dominant. Given the relatively limited infrastructure in Zambia, the early development by large investors should later attract more capital-constrained participants. The dominance of Chinese investments in Zambia is a symbiotic partnership, and a broad substitution of historically more exploitative sources of capital (Barton, 2014). His perspective is supported by the parliamentary report of 2019 which indicates that recent Chinese investments in Zambia can be traced to (1) China’s Open Door investment policy (1978), (2) its public promotion of a Win–Win relationship with developing countries (1982), and (3) its Africa Policy (1996) which urged China and Africa to “treat each other as equals, develop sincere friendship, strengthen solidarity and cooperation, and seek common development” (Strauss, 2009). From 1999, China’s Go out policy actively promoted Chinese investment abroad, and President Hu Jintao declared 2006 China’s Year of Africa, announcing $5b of concessionary loans for Chinese companies to invest in three to five Trade and Economic Cooperation Zones in Africa (Hu, 2006). The meeting between President Mwanawasa and the China’s President Hu Jintao in the year 2006 culminated into the establishment of the first Special Economic Zones. Since then, Zambia has witnessed increased Chinese FDI pledges. China has become the largest source of FDI in Africa, and in Zambia in particular, owing to Zambia’s attractive features (Sinkala & Zhou, 2014, Xinhua News, 2007). Despite the dominance of the traditional West FDI and stocks in Zambia, China has steadily emerged as a key investor in Zambia and as a major source of employment opportunities (Musokotwane et al., 2019). As Zambia faces capital constraints, FDI was seen as a critical source of capital financing through exploitation of Zambia’s natural resources—copper and iron ore—which are in high demand in China. FDI in Zambia is mostly concentrated in the mining sector, accounting for about 60 percent, followed by the bank and non-bank financial institutions, manufacturing, wholesale and retail trade, and transport and communication sectors. FDI in the mining sector also emanated from Australia, Canada, Switzerland, India, and Netherlands. The United

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Kingdom accounted for the inflows into the banking and non-banking financial institutions while the manufacturing sector, and the retail and wholesale sectors were dominated by the Republic of South Africa and France, and Switzerland and Mauritius, respectively. As for the transport and communications sectors, South Africa, Saudi Arabia, and Isle of Man took the lead (Chanda & Chibomba, 2020). Chinese FDI contributes to Africa’s development, but the labor issues should be mitigated (Brautigam et al., 2010). China’s incessant demand for raw materials may undo Africa’s efforts at economic diversification, leaving African countries as enclaves for raw materials, facing limited opportunities for sustained development. Chinese firms in Africa importing labor from their homeland, and limited linkages with local firms have negative effects on the local economy. This view is echoed by Musokotwane et al (2019) who submitted that the FDI in Zambia has led to the influx of Chinese nationals and that this has created a problem over the years for human resources management. They argue that the preference for Chinese labor, at the expense of Zambian labor, was detrimental to the employment of indigenous Zambians and their wages. This in part aggravated the incidence of poverty in the country. Further, Chinese migrants tended to be more conspicuous and less assimilated into Zambian society than migrants from other nations. Chinese firms usually disregard local labor and environmental considerations (Brautigam et al., 2010). Some stakeholders, as reported by the Zambian Parliamentary committee of 2019, have affirmed Brautigram’s observation by citing poor conditions of service accorded to local employees, lack of adherence to safety regulations at work, disregard of labor laws and regulations, and lack of environmental considerations. Moreover, concerns were voiced regarding the multiplying of Chinese casual workers, and Chinese investors who turned out to be petty traders, thereby displacing Zambians who were active in those areas. Despite the above gloomy picture about China, it is the world’s largest consumer of copper, and its investments in mining constitute over 88 percent of total Chinese investments in Zambia. Of all the Chinese mining firms operating in Zambia, Chambishi Copper Mine, owned by the Non-Ferrous Company–Africa (NFCA), is the largest. NFCA is a subsidiary of the state-owned China Nonferrous Metal Mining Company (CNMC), which also acquired Luanshya Copper Mine for $50 m after the original owners pulled out in January 2009, citing low copper prices in the international

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market. CNMC acquired an 85 percent share in the Mine and invested over $400 m in recapitalization (Li, 2010).

Zambia-China FDI: The Advantages Despite the numerous complaints about Chinese FDI, the Chinese are building the much-needed infrastructure—roads and electric power stations and are also engaged in copper exploration and similar productive ventures in Zambia from which Zambians would benefit. On the positive side, Chinese investment in Zambia could facilitate the provision of infrastructure (in relatively short time) and affordable and appropriate technology to local firms. Most stakeholders acknowledge that China’s FDI into Zambia is a positive development (Musokotwane et al., 2019). For Zambia’s diversification and industrialization, it was critical for China to provide capital for projects, technology, and other productive resources that would increase productivity, efficiency and output, and create employment opportunities. China provides the much-needed managerial expertise and skilled labor to Zambian firms, particularly in construction sector in which China has more advanced technology and skills. The transfer of technology and skills meant gravitating toward productivity and efficiency gains for Zambian firms. China’s investments in Zambia do not only increase the potential for domestic linkages and value addition in the country, but also provides opportunities for local suppliers to participate in various supply chains and improve their supply capabilities.

Challenges of Zambia-China Investment Cooperation There has been incessant criticism of Chinese firms in Zambia over their poor working conditions and a tendency to stifle the workers’ right to form a union (Lee, 2009). In fact, Chinese investors in the copper industry were the worst followed by the Indians (Fraser & Lungu, 2007). Even violence against Zambian workers occurred when Chinese mine managers at Chambeshi Mine shot and wounded six Zambian workers for demonstrating over poor pay (Barton, 2014). Similar shooting injured 11 protesting miners at the Collum Mine in October 2010 in Southern Zambia (BBC, 2011).

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Another challenge emerging from Zambia-China Investment relates to the Chinese tendency of bringing ready-made goods. These goods do not benefit local Suppliers as they are brought into the country and sold on retail price (Chanda & Chibomba, 2020). There has been growing concern from many stakeholders with regard to Chinese firms in Zambia being given preferential treatment by the Zambian government, a claim Zambian authority have denied. These authorities argued that the 100 percent tax exemption from imports of construction equipment, for instance, has been provided to all investors. In addition, the continued import of both skilled and unskilled labor from China, as observed by the Zambian parliamentary committee of 2019, poses a great labor challenge in Zambia in terms of employment creation for locals. As such those lucky locals who are employed by the Chinese firms endure the pathetic working conditions. Yet another major challenge is that copper now accounts for more than 90 percent of Zambia’s export to China. So any slowdown in economic activity in China impacts international prices of copper, making Zambia’s economy risky and vulnerable to the unpredictable fluctuations (Musokotwane et al., 2019). In sum, “China’s engagement with Africa is full of contradictions. For example, African producers have been marginalized and displaced from the market because of the influx of Chinese goods (Naidu & Davies, 2006).” This has been the cry of the Zambian businessmen and women for a long time now.

Discussion The purpose of the chapter was to examine the four broad factors— natural resources , aid versus partnership, non-interference, and trade relations that could influence Chinese investment strategy in Africa. China needs massive natural resources to maintain its rapid growth rate. To achieve the growth-based goal, it aims to grow its infrastructure to be able to extract the critical natural resources. Africa being significantly underdeveloped creates an opportunity for Chinese investments, which may force the recipient countries to be dependent on Chinese investments to survive, while China can wield its power over certain political decisions within Africa. The natural resource-based trade relations have become a subject of debate. There is growing concern that Chinese investments may indeed be exploiting the African nations. Some argue that the Chinese strategy of accessing African natural resources enables them to pay little

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or no attention to environmental concerns (Johnson et al., 2011). Edoho (2011) argues that China’s goals are to leverage Africa’s economic vulnerability for their own gains while keeping control over its relations with Africa. It is also believed that China had already controlled significant natural resources in Africa. China regularly pledges billions of dollars of aid to Africa in FCAC. It also invests in Africa by way of giving low-interest loans for the development of infrastructure with seemingly no strings attached. Usually, humanitarian aid is guided by the principles of humanity (i.e., saving human lives and alleviating suffering), impartiality (i.e., acting solely on the basis of need and without discrimination), neutrality (i.e., acting without favoring any side), and independence (i.e., free from political, economic, military pressures). Humanitarian aid is a gesture to show solidarity to different nations and to resolve diplomatic disagreements. Although each country has its own decision-making strategy for humanitarian aid assistance, China has a decentralized decision-making system for humanitarian aid. Thus, China does not appear to have a formal humanitarian aid policy document. Different ministries and NGOs in China make their own decisions relating to providing humanitarian aid to countries. The decentralized process for humanitarian aid delivery makes it difficult to track the overall Chinese humanitarian aid. Further, it is challenging to differentiate between aids; that is, Official Development Assistance (ODA) and Other Official Flows (OOF), as not all aid is meant for developmental purposes. It is also important to note that only those countries receive aid from China that do not recognize Taiwan or Republic of China, as Taiwan has strained relations with the mainland People’s Republic of China. China provides more foreign aid to oil-rich sub-Saharan African countries than those that are not oil rich. Almost half of recipients of aid appears to be given to those countries that granted China the first rights to prospect or oil in return (Amusa et al., 2016). In terms of Chinese FDI in Zambia, Chinese investment has created employment for both Zambian and Chinese nationals. However, this employment appears to favor Chinese nationals who are employed in better positions and under better conditions of employment. Musokotwane et al. (2019) report that in certain instances, Chinese nationals are employed to do jobs that require skillsets that are readily available among Zambians, a situation that the Zambian Parliamentary Committee (ZPC) of 2019 finds highly anomalous and illegal.

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The current situation indicates that the China-Zambia trade and investment relations are not as beneficial as envisaged (Musokotwane et al., 2019). So, the relations need to be reviewed to optimize the benefits. Although various Zambian agencies have policies and strategies aimed at making FDI work for Zambia, currently no strategy exists which ensures that Chinese investments in the country are made in collaboration with Zambians to support local businesses (ZPC, 2019).

Recommendations for Managers This study contributes to understanding the Chinese investments strategy in Africa. In general, China has received criticism for its investments in the African economy due to its extreme focus on transactional relations, though Chinese investors claim that they conduct businesses without the influence of politics. Managers need to be cognizant of the forms of underlying relations—transactional or developmental—they engage in. Chinese managers have the opportunities to focus on (1) strengthening Africa’s economic-development strategies and capabilities at the national and regional levels, (2) willingness to undertake additional strategicdevelopment projects in Africa such as recent emphasis on sustainable and results-driven models, and (3) collaborating between Chinese institutions working in Africa and other donors or partners based in Africa. Others suggest that African nations should (1) join together to negotiate with China as opposed to negotiating with China separately, (2) build a strategic Partnership between China and Africa, (3) encourage foreign aid and development in Sino-African Relations, and (4) search for Africa’s investment partners. Our findings support previous assertions (Brautigam, 2016; Davis & Woetzel, 2010). In fact, Chinese have created their own economy within the Zambian economy, as they do not use the products and services of local suppliers in their investments. This limits the multiplier effect, if any, from Chinese investments in Zambia, as the money, materials, machinery, and employees for Chinese projects come from China, largely benefiting the Chinese economy. As a result, there are no backward and forward integration with local manufacturers and suppliers, resulting in a situation where wealth and capital circulate among only the Chinese without infiltrating the Zambian economy (Musokotwane, et al., 2019). Therefore, there is a need to formulate deliberate policies toenhance the Zambia-China relations in a bid to grow the economy. Chinese investors should not be

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allowed to engage in retail businesses, but be limited to manufacturing and wholesale only, so they cannot disadvantage the Zambian businesses. Addressing these issues should create business opportunities for Zambian entrepreneurs and ultimately address the unbalanced trade investments in Zambia. Acknowledgements The support from the Canadian Social Sciences Humanities and Research Council (SSHRC) Explore Grant (ID# 17029, 2022-2025) is gratefully acknowledged. We are also grateful to Mr. Shedrick Salili and Ms Sharon Sichilongo for their valuable insights into somewhat complex and delicate issue of Chinese investments in Zambia.

References Amusa, K, Nara, N., & Viegi, N. (2016). How and why china became Africa’s biggest aid donor. http://www.huffingtonpost.com/the-conversation-africa/ how-and-why-china-became_b_9775722.html. Accessed on April 6, 2022. Barton, B. (2011). China and the European Union in Africa: Partners or competitors? Routledge. Barton, J. S. (2014). Sino-substitution: Chinese foreign direct investment in Zambia. Journal of Chinese Economic and Foreign Trade Studies, 7 (2), 90–109. https://doi.org/10.1108/JCEFTS-08-2013-0025 BBC. (2011). BBC News. Zambia drops Chinese bosses’ mine shooting charges. http://www.bbc.co.uk/news/world-africa-12973534 on April 6, 2022. Brautigam, D. (2016). China’s humanitarian aid: Why is it so low? http://www. chinaafricarealstory.com/2016/06/chinas-humanitarian-aid-why-is-it-so-low. html. Accessed on February 14, 2021. Brautigam, D., & Gaye, A. (2007). Is Chinese investment good for Africa? https://www.issuelab.org/resources/20024/20024.pdf. Accessed on March 1, 2021. Brautigam, D., Farole, T. & Xiaoyang, T. (2010). China’s investment in African special economic zones: Prospects, challenges, and opportunities. Poverty Reduction and Economic Management Network, March (5), 1–6. https://ope nknowledge.worldbank.org/bitstream/handle/10986/10202/536820BRI 0EP50Box345623B001PUBLIC1.pdf?sequence=1&isAllowed=y. Accessed on March 25, 2022. Bulletin & Record (2011, February). New impetus in mining brings social benefits, pp. 24. Chanda, M. M., & Chibomba, K. (2020). Investigating Chinese investment in contributing to the zambian economy: A case study of Chinese investments in Ndola Zambia. The International Journal of Multi-Disciplinary

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Research. Available at http://www.multiresearch.net/cms/publications/CFP 15772020.pdf. Accessed on March 25, 2022. Davis, S., & Woetzel, J. (2010). Making the most of Chinese aid to Africa. http://www.mckinsey.com/industries/public-sector/our-insights/ making-the-most-of-chinese-aid-to-africa. Accessed February 14, 2021. Du Plessis, A. (2014). The forum on China-Africa cooperation, ideas and aid: National interest(s) or strategic partnership? Insight on Africa, 6(2), 113–130. EIU. (2011). Economist Intelligence Unit. 2011. Zambia. Available at: https:// portal.eiu.com. Accessed April 5, 2022. Edoho, F. M. (2011). Globalization and marginalization of Africa: Contextualization of China––Africa relations. Africa Today, 58(1), 103–124. Fraser, A., & Lungu, J. (2007). For whom the windfalls: Winners and losers in the privatisation of Zambia’s copper mines. Civil Society Trade Network of Zambia. Hu, J. (2006). Address by the president of the people’s Republic of China. 4 November 2006. Available at: http://www.focac.org/eng/ltda/dscbzjhy/SP3 2009/t606840.htm. Accessed April 5, 2022. Johnson, S., Paik, W., & Larsen, C. (2011). The rising tides of Africa and China. International Area Studies Review, 14(3), 107–129. Kasoma, A. (2019). Zambia China Relations —Trade and investment. Policy Monitoring and Research Centre. Lusaka. https://www.pmrczambia.com/ wp-content/uploads/2019/01/Zambia-China-Relations-Trade-InvestmentPresentation-Final.pdf. Accessed March 25, 2022. Lee, C. K. (2009). Raw encounters: Chinese managers, African workers and the politics of casualization in Africa’s Chinese enclaves. The China Quarterly, 199, 647–666. Li, P. (2010). The myth and reality of Chinese investors: A case study of Chinese investment in Zambia’s copper industry. Occasional Paper Number 62. Africa Portal. https://media.africaportal.org/documents/SAIIA_Occasi onal_Paper_62.pdf. Accessed on March 25, 2022. Martinez, R. (2015). Chinese soft power, Africa, and the United Nations general assembly. UNLV Theses, Dissertations, Professional Papers, and Capstones. 2490. https://digitalscholarship.unlv.edu/thesesdissertations/2490. Accessed April 6, 2022. Median, M. (2006). China’s Africa policy: Business now. Politics Later, 30(4), 69–93. Musokotwane, S., Miti, M., Nkombo, G. G., Livune, D., Mwila, E. M., Kopulande, S. C., Chali, C., Kamondo, E., Chisopa, D. & Mubika, M. (2019). Report of the committee on national economy, Trade and labor matters for the Third Session of the Twelfth National Assembly. National Assembly

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of Zambia. https://www.parliament.gov.zm/sites/default/files/documents/ committee_reports/National%20Economy%20Final%20Report%202019.pdf. Accessed on March 25, 2022. Naidu, S., & Davies, M. (2006). China fuels its future with Africa’s riches. South African Journal of International Affairs, 13(2), 69–83. https://www.resear chgate.net/publication/247529322.Accessed on March 7, 2022. Nanda, M. (2013). MFEZ key to economic growth. EUI School of Transnational Governance. Zambia. https://allafrica.com/stories/201305270441.html#: ~:text=A%20conducive%20environment%20for%20the,economic%20growth% 20and%20poverty%20reduction. Accessed on March 26, 2022. Ndulo, M. (2013). Chinese Investments in Zambia. South African Institute of Policy and Research. http://saipar.org/wp-content/uploads/2013/09/ Ndulo_Chinese-Investments-in-Zambia.pdf. Accessed March 25, 2022. Rotberg, R. (2008). China into Africa: Trade, aid and influence. USA: Brookings Inst. Press. World Peace Federation. https://www.brookings.edu/book/ china-into-africa. Accessed February 14, 2021. Salili, S. (2011). Personal interview, Senior MFEZ Analyst, ZDA. Sautman, B., & Hairong, Y. (2007). Friends and interests: China’s distinctive links with Africa. African Studies Review, 50(3), 75–114. Shepard, W. (2019). What China is really up to in Africa? https://www.forbes. com/sites/wadeshepard/2019/10/03/what-china-is-really-up-to-in-africa/? sh=20d29bc25930. Accessed April 6, 2022. Sichilongo, S. (2011). Personal interview, Senior Planning and Policy Officer, ZDA. Sinkala, M., & Zhou, W. (2014). Chinese FDI and Employment Creation in Zambia. Journal of Economics and Sustainable Development, 5(23), 39–43. Strauss, J. C. (2009). The past in the present: Historical and rhetorical lineages in China’s relations with Africa. In J. C. Strauss & M. Saavedra (Eds.), China and Africa: Emerging Patterns in Globalization and Development (pp. 227– 246). Cambridge University Press. Sun, Y. (2014). China’s aid to Africa: monster or messiah? https://www.brooki ngs.edu/opinions/chinas-aid-to-africa-monster-or-messiah. Accessed April 6, 2022. Tull, D. (2006). China’s engagement in Africa, significance and consequences. Journal of Modern African Studies, 44(3), 459–479. Xinhua News. (2007). Zambian President Hails Zambia-China Trade Coop. People’s Daily Online. http://english.people.com.cn/90001/90776/ 90883/6323572.html. Accessed April 6, 2022. ZDA. (2011). List of licences issued in the ZCCZ . Zambian Development Agency. ZPC. (2019). Report of the committee on national economy, trade and labour matters for the Third Session of the Twelfth National Assembly. National Assembly of Zambia. https://www.parliament.gov.zm/sites/default/files/ documents/committee_reports/National%20Economy%20Final%20Report% 202019.pdf. Accessed on April 7, 2022.

CHAPTER 5

Antecedents of Consumer Satisfaction in Online Banking: A Systematic Review with the Text Mining Approach Ajay Kumar Ganguly, Rohit Vishal Kumar, Subhajit Bhattacharya, and Subrata Chattopadhyay

A. K. Ganguly Syamaprasad College, University of Calcutta, Kolkata, West Bengal, India R. V. Kumar International Management Institute, Bhubaneswar, India e-mail: [email protected] S. Bhattacharya (B) XIM University, Bhubaneswar, India e-mail: [email protected] S. Chattopadhyay University of Engineering and Management, Kolkata, West Bengal, India

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_5

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Introduction With the advancement of information and communication technology, the banking sector has undergone a significant transformation, making banking services more convenient, faster, and accessible from any location at any time. Information and communication technology has become the backbone of the banking sector. Consumers may use this service to access virtually every banking function that was previously only accessible at a local branch, such as money transfers, deposits, and online bill payments (Joseph et al., 2005). Online banking is sometimes referred to as internet banking or digital banking, depending on the source. As a result, internet banking provides clients with nearly all services typically accessible via a local branch (Zhou, 2004). Most financial institutions provide internet banking on desktop computers and mobile devices. Mobile banking or technology-driven online banking is gaining popularity among different populations as an alternative to traditional banking (i.e., offline bricks and mortar banking infrastructure) in the Indian context (Teeroovengadum, 2020). Like other business entities, Banks are facing the threats of everchanging technology disruption. To counter these threats, the digitization of banking services became indispensable (Kant & Jaiswal, 2017). Several banks, or better to say almost all the banking service providers, have invested in establishing interactive websites, online services, and mobile applications to incorporate technology into their offerings (Levy & Hino, 2016). Consumers in the digitized environment are also becoming used to online and mobile banking practices, which is a growing phenomenon. Indian Banking industry, on aggregate, spends between 1.5% and 2.0% of their yearly revenue on technology, against a range from 7.0% to 10% by global banks (Al-jazzazi & Sultan, 2017). The growth of online banking in India is remarkable. It was recorded 23% in 2015, whereas in the year 2020 it rose to 33% and the online digital banking is expected to expand at a rate of 53%, according to projections by the year 2025, which is very low in comparison with the growth of internet banking in developed nations. Furthermore, cloud computing, APIs, chatbots, machine learning, and blockchain are all contributing technologies to the development of online banking. Real-time payment options or payment alternatives that are immediately available, simplicity of use of online digital banking, and rising smartphone use are all contributing components of the growing parlance of

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the online digital banking sector (Arbore & Busacca, 2009). Due to increasing digital literacy, consumers are gradually inclined toward net banking in developing nations like India. Several works have been conducted in different domains of online digital banking (Adapa & Roy, 2017), consumer satisfaction in online and mobile banking (Amin, 2016), service quality (Yavas et al., 1997), service convenience (Kaura, 2013), service preference (Torres Fragoso & Luna Espinoza, 2017). These studies have categorically talked about the different dimensions focusing on consumer satisfaction related to online banking sectors. However, it is being observed that consumers’ expectations change with the technological upgrades and environmental impact. Choudrie et al. (2018), in their review article, have tried to analyze and depict mobile banking acceptance, usage, and diffusion among the UK’s elderly people. An in-depth assessment of the surrounding literature was presented, as well as an innovative research approach had been portrayed that may be utilized soon. In their review research article, Tam and Oliveira (2017) tried to portray determinants and motives that impact consumer behavior. Aijaz et al. (2015) attempted to evaluate and consolidate previous studies of mobile banking adoption in their study and map the main hypotheses that academics have used to forecast consumer intentions to embrace it. These studies have considered some of the specific dimensions of online banking services and their implications for consumer behavior. Nevertheless, a lack of holistic and integrated literature reviewbased study can bring all possible prevalent constructs together to provide a better insight into consumer attitude and behavior related to the online banking service ecosystem. This article is trying to identify the most important antecedents to support consumer satisfaction in online digital banking. This literature review-based study has considered more than a hundred articles published in Scopus indexed journals from 1997 to 2021 to identify the most dominating and well-accepted constructs to interpret the behavior of online banking consumers in a holistic manner. This article has also focused on finding the most suitable methodologies to execute consumer behavioral research related to the online banking domain. The different researchers have followed various methodologies and models to validate their respective research. Diverse studies have been done so far in the domain of online and digital banking and consumer behavior. However, there is a dearth of existing research in this domain to find an integrated approach to identify the most

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important variables and the best-possible methodologies to integrate the diverse variables more efficiently for future study in this field. Thus, the current research attempted to thoroughly review the different studies on consumer behavioral aspects related to online and digital banking and marketing domains. This research has attempted to unveil the key factors, directly and indirectly, connecting with the online banking service domain and consumer behavioral outcome. This study also intended to explore the possible combination of the key factors that explain the consumers’ perspective on online and digital banking from the existing literature. This study’s findings are based on a thorough review of existing literature in online and digital banking services. This article also aimed at finding the best suitable methodologies to explain the consumer behavior related to online and digital banking in a better way. Another focal point in this study is the key variables associated with online digital banking for better consumer behavioral intention. Specifically, this article offers a systematic approach applying a recursive technique to distinguish between various antecedents of consumers’ behavioral outcomes in the banking sector and uncover the research gap that may lead to defining the scope of future study. In this systematic meta-analytical review, this research article has tried to unfold different dimensions of different articles mostly published in the Scopus indexed journals on online banking and tried to unveil the future scope of research which might be the seeding point of our future research.

Theoretical Framework A literature review is an important approach for condensing the content of publications, establishing the facts, evaluating the content, and cataloging and locating other publications on the subject. This review-based article attempted to find out the key variables and the appropriate methodological approach to interpret the different outcomes related to consumer behavior in the domain of online and digital bank marketing by conducting a quantitative and qualitative measurement of all the published papers (Shaikh & Karjaluoto, 2015). The systematic review analysis has a further benefit that can help identify research gaps in the new field and offer guidance for future studies. In addition, systematic review analysis can handle the big data required to assemble a scientific structure for research topics, whereas the traditional structured method is incapable of doing this (Tam & Oliveira, 2017). In the domain of bank

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marketing, this has been observed that online banking, digital banking, and mobile banking are the growing areas of academic research (Alalwan et al., 2017). Researchers across the globe have tried to focus on the diverse attributes of online, digital, and mobile banking domains like technology adoption (Mulia et al., 2020; Sinha & Mukherjee, 2016); trust issues (Mehrad & Mohammadi, 2017; Shankar & Jebarajakirthy, 2019); service quality (Paul et al., 2016; Shayestehfar & Yazdani, 2019); service preference (Torres Fragoso & Luna Espinoza, 2017); service convenience (Kaura, 2013); consumer satisfaction(Ali and Raza 2017; Kaura, 2013; Zhou, 2004); behavioral intentions (Giovanis et al., 2019; Marinkovic & Obradovic, 2015); performance and effort-expectancy (Arbore & Busacca, 2009; Lin & Chiu, 2013); tangibles which refer to bank technology and infrastructure; consumer service and support (Shankar & Jebarajakirthy, 2019; Wasan, 2018) and other dependent and independent variables. All different variables studied by different researchers followed different combinations of methods with different statistical and nonstatistical models following quantitative and qualitative approaches. In qualitative approaches, the widely used methodologies have been focus group discussion, case studies, interview methods review studies; similarly in quantitative aspect SERVQUAL TAM and extended TAM, SERVPERF, Service Convenience (Mansour et al., 2016), IPA framework. The current research study attempted to identify distinct antecedents of consumers’ behavioral outcomes in banking and to uncover the research gap, which may lead to defining future research scope. This study also aimed to see how the existing literature’s important components combined to explain consumers’ views on online and digital banking.

Methodology Design of a Thematic Review Standard systematic literature review synthesizes existing investigations and extracts explicit methodologies employed in previous studies to find, select, and study important investigations and to guide future studies. Articles containing systematic literature reviews (SLRs) may be roughly characterized as zone-based, assertion-based, or method-based (Saji &

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Paul, 2018). An organized review that focuses on widely used methodologies, important ideas, and constructions is an example of a domain-based review. A literature overview using a framework is used to analyze and show how the frameworks are synchronized to view the literature at a 360-degree angle. There are also other types of reviews, which include hybrid-based review; meta-analysis-based review, bibliometric review. This paper has been classified into the zone-based hybrid structured review where methodologies, variables extraction, and relating the independent, dependent, and demographic variables in technological adoption in the banking sector have been tried to evaluate. There was a total of five steps involved in the execution of this SLR. In the first step, Selection keys have been identified based on the key motive of the paper. In the second step, the emphasis is on looking for publications in the database. In the third step, researchers tried to read and select the titles and abstracts from many different sources; the fourth step entails reviewing and selecting entire papers from a pool of submissions, and the fifth step gives an insight of the papers so that researchers enable to extract zone, methodologies, and tools and models and last but not least the variables. Journals from the Scopus database were downloaded for this project, and the keywords used are mobile banking and Internet online banking (Table 5.1).

Table 5.1 Various steps of systematic literature review First step Second step Third step Fourth step Fifth step

Based on the paper’s central purpose, important selection criteria have been established The emphasis is on looking for publications in the database Researchers tried to read and select the titles and abstracts from a large number of different sources Entails reviewing and selecting entire papers from a pool of submissions Gives the insights of the papers so that researchers enable to extract zone, methodologies, and tools & models, and last but not least the variables

Source Thorpe et al. (2005)

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Structure of the Review The Strategy of Searching the Materials Two types of search strategies were deemed required to complete the systematic review for this study: a. Digital Search: A list of relevant constructs has been identified through currently released papers in the online digital banking domain. Several criteria were considered while selecting these databases, including (1) if they were available to the writers and (2) whether they were relevant to the domain-specific area. b. Manual Search: To enhance our approach, the authors manually searched the indicated articles’ reference lists (i.e., the second search strategy employed in this research). The goal of this approach was to determine whether any items were overlooked while compiling our list. Inclusion and Exclusion of Articles Include-and-exclude criteria were developed to restrict the scope of our research methodology and follow-up study. They are listed in Fig. 5.1 with the reasoning for their inclusion or removal. First, checking criteria is the Duplication of articles. The second one is Indexing Criteria. Only the articles incorporated in the journals indexed in the Scopus, ABDC, and Web of Science are included. The third criteria are the availability of the articles. In our case, the ultimate inclusion for our Review Analysis is 102 articles. Topologies of Systematic Literature Review Process The Systematic Literature Review uses review data to algorithmically connect the internal relationships of Journals, Papers, literature, authors and co-authors, models, variables, co-occurrences, and clusters. Over the past 30 years, the popularity of systematic reviews has spawned new evidence of review techniques. These include integrative reviews, evidence maps, realist syntheses, fast reviews, umbrella reviews (compares and contrasts the results of reviews related to review question), mixed methods reviews, concept analyses, and others (Fig. 5.2). When discussing a review method, researchers, policymakers, and funders may utilize useful typologies of these many review kinds as a reference. The present study’s data was gathered on the parameters suggested

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Articles identified as per the doctoral thesis title

After duplication check Articles Removed

Removed other articles [n2 = 65]

Screened on the basis of indexing [p=n-(n1+n2)] p=112

Only Articles incorporated in journals indexed in Scopus, ABDC & Web of Science are included

Removed unavailable articles [n3 = 10]

Screened on the basis of availability

Ultimate inclusion for our Review Analysis N=[p-n ] = 102 3

Fig. 5.1 Inclusion and exclusion of articles (Source The authors)

by Kipper (2019)—the first criteria or factor is to identify the database where the domain-oriented dataset can be retrieved. The second criteria are the time frame and the third criterion is to choose the right terms to search because our research is domain-specific. The fourth criteria are to select the type of document, here mostly chosen documents are Journals. The last criteria are selecting the right software that can easily analyze the required data in the specified domain. The above five points or criteria have significant value in explaining and justifying the core components for data gathering.

Systematic

Literature Hierarchical Cluster

Multi-Dimensional

Co-occurance

Variables

Models

Authors & Co-Authors

Fig. 5.2 Topologies of systematic literature review process (Source The authors)

Variable Analysis

Illustrative Analysis

Number of Articles

Independen

Dependent

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Fig. 5.3 Distribution of the articles by domain (Source The authors)

Result and Discussion Structuring of Domain of Studies by Years Before proceeding with the assessment of papers, it is critical to understand the year-by-year and zone-by-zone breakdown of articles. We have taken these articles from 1997 to 2021 for text mining and majority of the articles that have been referred to are from 2016 to 2021 (around 66 articles out of 102 articles). Figure 5.3 exhibits that most of the articles fit in Service Quality domain (around 32 articles out of 102); and in the Banking Service Performance and Consumer, Satisfaction Zoner fits 16 articles out of 102 articles. They also contributed significantly to other Zoners like Banking Service Technology and Convenience in this respect. Article Distribution by Publication Origin Then the studies on online digital banking services were published in forty-eight different publications sources or outlets. Naturally, it has been noted that the International Journal of Bank Marketing has published about thirty-eight articles. In most of the studies on online banking, structural equation modelling (SEM), partial least squares (PLS), exploratory factor analysis, and correlation and stepwise regression methods were used as key analytical approaches (83 publications, out of 95 articles). Over the last couple of years, it has been noted that

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structural equation modelling (SEM) has been the method of choice for many academics researching complex latent component relationships. Covariance-based SEM’s increasing difficulties in terms of model’s assumptions about distributions, samples, and the sample size have led to a rise in popularity and effectiveness of a less restricted approach, partial least squares SEM (PLS-SEM) (Ayo et al, 2016). Both longitudinal and panel designs are nonexistent, indicating that these techniques are impossible to carry out in the marketing and banking discipline. Defining the Theoretical Domain A comprehensive systematic review of online digital banking was conducted using the papers gathered in this research. This study used a technique that has previously been used and was well-liked and welladopted by other researchers. Terminology and Nomenclature The terms and ideas used to refer to the implementation of e-banking are vastly different and have changed throughout the years. Internet banking was by far the most important catalyst for financial technology development. It was quickly followed by internet banking, online banking, and finally digital and mobile banking. Two major features stand out. First and foremost, the more recent research is, the fewer terms such as internet and electronic are used, and the greater the usage of terms such as digital and mobile. To do so, research must keep up with the rate of technological advancement and the growing reliance of consumers on digital devices. Secondly, even though these ideas and words have changed throughout time, their underlying meanings have remained remarkably stable. Internet banking, for example, is described as “the use of the internet to provide financial system services remotely.” Automated bill payment, electronic money transfer, and personal computer banking are all key examples of “electronic banking” (Tetteh, 2020). Similarly, mbanking was described as an “A mobile device, such as a mobile phone or personal digital assistant, is used to communicate with a bank through non-voice applications such as text or WAP-based banking services.” Online Banking Adoption Theories and Models In a previous study on consumers’ use of online banking services, it was believed that a specific model accurately described their intents.

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SERVQUAL was mentioned as a significant theoretical framework in 45 articles (44.11%), followed by the technology acceptance model (TAM) in 32 papers (31.3%). Following that, the unified theory of acceptance and use of technology (UTAUT/UTAUT2) was cited in three studies (2.94%), the innovation diffusion theory (IDT)/diffusion of innovation (DOI) was cited in six articles (5.88%), and the SERVPERF was cited in six research articles (5.88%); additionally, the SERVCON model was cited in three articles (3.88%) (2.94%). Several other behavioral models were investigated, either alone or in combination with the innovation adoption models, including the SERVQUAL model, which was used to explain consumer acceptance of online banking. Similarly, much research utilized extensions or modifications of these models and combinations of various existing models to better understand and explain online banking uptake. Some other researchers choose to evaluate and compare the effectiveness of each model in forecasting online banking uptake rather than combining them. Antecedents in Online Banking Despite the main thrust of this section being on antecedents of online banking, this literature analysis revealed that various effects had been used to evaluate the repercussions of using online banking. Satisfaction, which is commonly identified as being a contributor in 30 circumstances, as well as attitude in 12 circumstances, intention in 20 occasions, and behavior (which occurs on 1 occasion only) (as a dependent variable) can characterize these outcomes. The literature study identifies many variables that are regularly and often utilized in the development of online banking acceptance. An easier way to help us comprehend these antecedents is to group them into five different perspectives: attributebased online banking viewpoint which has been segregated into two parts (a) Qualitative (b) technological acceptance; Consumer-Individual; Preference related to Convenience; Trust and dependability and Risk Perception-based perspective are all aspects of online banking. Attribute-Based Online Banking Viewpoint The attributes-based approach to online banking is the most frequent method used in different works of literature on online digital banking. For the most part, it’s based on the implementation of concepts related to the general characteristics of online banking. Service quality-based perspective has been derived from the SERVQUAL perspective; the variables derived

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from the quality perspectives are reliability, responsiveness, tangibility, assurance, accessibility, empathy which has been used most frequently in this literature research study. The technological Acceptance based Perspective has been derived from TAM’s framework, which includes perceived usefulness (PU), which relates to consumers’ views of performance or utility of applying online banking. Another important element in this context is TAM’s perceived ease-of-use (PEU). Consumers’ perceived consistency between online banking and their values, previous experiences, and requirements are measured using compatibility (from DOI). Consumer-Individualized Perspective An important aspect of an online bank’s consumer-centric approach is the way consumers think about themselves which refers to their traits, demographic characteristics, attitudes, emotions, and cultures of consumers. One of the most frequently researched concepts is self-efficacy, which is defined as the belief in one’s own abilities. The direct and moderating influences of age, gender, income, and occupation were found to have mixed outcomes. Preference Related to Convenience Perspective The personal preference and convenience-based viewpoint rely on UTAUT’s notion of personal influence, which is derived from the SERVCON and SERVPERF model. The phenomenon depicts a person’s idea that he or she should embrace a certain technology because of his or her close connections. Social Influence, Security, communication, convenience (which includes different dimensions like the decision, access, transaction, benefit, and post benefit), preference, ease-of-use, reliability, responsiveness, consumer preference, convenience, satisfaction, and loyalty are the key variables that unfold the personal preference and convenience viewpoint (Kaura et al., 2015). Trust Based Perspective It is titled the trust-based viewpoint because it employs the trust paradigm. Thus, the lack of trust is an obstacle to online banking because of the service’s ambiguity. It encompasses trust, security, perceived privacy. The concepts of perceived privacy and security are intimately linked to trust (Levy & Hino, 2016).

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Dependability Based Perspective It employs the dependability paradigm, which utmost importance in respect of online digital banking from the consumers’ point of view. It includes perceived utility, perceived simplicity of usage, assurance, and perceived ease of use. These antecedents are the key constructs of dependability perspective (Chi Cui et al., 2003; Dauda & Lee, 2016). Risk Perception In the context of online banking, it considers all of the variables that serve as obstacles. It encompasses mainly Perceived risk, behavioral intention, perceived ease-of-use, attitude, and different dimensions of risks [like privacy, performance, financial, time, and psychological] derived from different customized models. CRM in Digital Banking Perspective: In the purview of digital banking, parlance CRM plays a pivotal role and the key independent variables concerning CRM in digital banking are responsiveness [in respect to bank employees], knowledgeability [in respect to Consumers], and communication. Technological Perspective In the context of digital online banking, the technological Perspective is the key aspect that comprises perceived usefulness, perceived ease-ofuse, perceived self-efficacy variables that are worth to mention and plays a pivotal role in the specified domain. Perceived Cost Consumers’ consciousness regarding cost incurred toward online digital banking related perceived value, perceived convenience, and perceived utility are the key constructs that play an important role in enjoying convenience and hassle-free banking in the online mode (Fig. 5.4). From the about discussed literature, it can be observed that different studies have tried to identify consumer satisfaction and loyalty in a very isolated and disintegrated manner. But in this proposed model of this review research article, we have identified that there is a possibility of six key categorized independent variables those influence expectation fulfilment; similarly, it also increases the trust within the user community. We can also see that the blended approach of expectation fulfilment and trust

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Fig. 5.4 Conceptual model (Source The authors)

has a significant impact on consumer satisfaction. Once consumer expectation has been fulfilled and assurance of trust is secured, the consumer gets a conducive environment and is fully satisfied with the bank’s retail offerings. Finally, from the continuous service excellence, that consumer gets a cozy environment in respect to their behaviors and the retail service offers from the banks and then other service options have been ignored. Thus, satisfaction has a direct impact on loyalty; similarly, trust and expectation fulfilment also have a major impact on consumer satisfaction; our model proposes that the different multi-mediation effects can be checked whenever online digital banking consumer loyalty is concerned. Consumer satisfaction has a route from expectation fulfilment and trusts similarly whenever we talk about loyalty it comes directly from satisfaction, but it is also boosted by the blended approach of expectation fulfilment and trust. Therefore, trust has a multi-mediation role to play. Consumer loyalty is our proposed model also focuses on the moderation role of two other distinct independent variables that are risk perception of the consumer and consumers personal factors. Risk Perception encompasses mainly perceived risk, behavioral intention, perceived ease-of-use, attitude, and different dimensions of risks [like privacy, performance, financial, time, and psychological] which have been derived from different customized models and their personal factors depict their traits emotions demographic characteristics. The direct and moderating influences of age, gender, income, occupation, and different geographical disposition had varied results.

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Implications Co-occurrence Analysis of Different Variables Using Co-occurrence analysis, it may be shown that terms that appear simultaneously in an academic paper have a high frequency and strong connection. The co-occurrence networks are often used to visualize connections between various variables across diverse sources of information in question. Electronically saved text compliance to text mining has made it possible to generate and visualize co-occurrence networks. Cooccurrence networks are groups of variables that are linked by being co-located inside a unit of text. Different variables are connected using a set of criteria that define co-occurrence to create a network. Cooccurrence analysis explains that there are several works have been done with the different constructs of service quality dimensions as well as consumer satisfaction and attitude aspects. Here we are also seeing that ease-of-use, risk, attitude, behavioral intentions usefulness is also somewhat liked with each other and unfold in the different research articles. Internet banking, compatibility, use, awareness, and availability are also meaningfully linked with each other which has been seen in different research articles of our purview (Tetteh, 2020). Similarly, transactional access is also closely related to demographic variables like age, gender. Thus, the authors are trying to portray the different connections and co-occurrences of different variables in this way. Multidimensional Analysis of Different Variables The examination of dimension objects structured in meaningful hierarchies is known as multidimensional analysis. Users can look at data from a variety of angles via multidimensional analysis. Here we are clustering the total variables in 8 divisions—the variables in sea green color are most significant and most of the works have been done with that variable which includes consumer satisfaction, service quality, trust, and privacy are the key variables that have been extracted from our study. Next level of significant variables and represented through light yellow, including convenience, behavioral intention, attitude, risk, internet banking, easeof-use, security, etc. The next significant level of variables is represented through grey color which includes access, accessibility, tangibility, reliability, responsiveness, empathy, assurance, etc. Several works have been done with these variables. In this manner, we were able to calculate the

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significance level based on the frequency of use, and we were able to split the total variables into eight clusters based on their frequency of use. Hierarchical Cluster Analysis of Variables In hierarchical clustering, comparable objects are organized into groupings known as hierarchies. Each cluster is different from the other cluster, and the things inside each cluster are generally similar to each other. The first step in hierarchical clustering is to regard each observation as a distinct cluster. Then it performs the following two stages repeatedly: (1) identify the two most similar clusters, and (2) merge the two most comparable clusters. This iterative process is repeated until all clusters have been integrated. Here also we can observe how the eight clusters are merged according to their similarity. Here, we are following the agglomerative approach. In this case, we have denoted eight different colors of eight different clusters. The first two clusters service—quality dimensions and performance expectancy with demographic variables are merged. The next two clusters, e-banking awareness and behavioral intention are also merged together. In this way, a hierarchy has been developed where we can relate the different variables at micro and macro levels. It is to be noted that in this study, we are adopting an agglomerative bottom-up approach. And showing the relations between different variables.

Conclusion Based on more than a hundred selected Scopus indexed research articles published between 1997 and 2020, this article summarizes, synthesizes, and reviews the key findings, to find out the key constructs and antecedents pertaining to online digital banking and suggests new research avenues with an identified group of key antecedents for broadening and enriching the body of knowledge on online digital banking. This paper is structured based on systematic review research. We have tried to accumulate the domain-oriented papers and screened them on the basis of indexing and availability. For screening purposes, we have adopted primarily indexing of the journals and in that case, we are giving importance to those journals which are indexed in Scopus, Web of Science, and Australian Business Dean’s Council (ABDC). After screening on indexing, we have tried to screen the papers based on their availability. The available journals are sorted out based on the year of publication. Secondly,

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the available articles are sorted based on the domain of conceptualization i.e., Zoner. After that, we tried to segregate the articles based on methodology, extract the key independent and dependent variables, and establish their relationship by defining some models. In this way, we are trying to find out the research gap which would be helpful for or our future proceedings. The authors have not attempted bibliometric analysis here, but rather, they have attempted to portray various methodologies and models. The authors have tried to identify the most prominent variables or constructs connected with consumer behavior and behavioral intention concerning digital online banking. The authors’ main goal was to find the bestpossible variables and processes [i.e., methods] feasible, thus they have used text mining technologies to unfold the connections between various constructs and their relative utilization in various journals. To better understand the connection between the constructs, the authors have used multidimensional analysis and hierarchical cluster analysis to group various preceding factors and antecedents in their importance and attempt logical co-relation. For consumers who are the stakeholders in the online digital banking system, this review-based study provides an accurate image of the best potential structures or antecedents that have a significant effect. In several respects, our research varies from a typical literature review in terms of methodological and theoretical perspectives: (1) We conducted a comprehensive literature review; (2) we only examined publications from top journals; (3) we have a large dataset with over a hundred and two participants journal articles, of which only sixty-six studies were published between 2016 and 2021. To meet the need for differing methods of online banking reviews, new research topics, and many problems connected to online banking, the studies have taken various techniques. They suggest several study areas for further online banking research. The syntheses may aid researchers and practitioners in the online banking sector. This review provides proof of SERVQUAL and TAM’s superiority over the SERVPERF, SERVCON, and IPA Framework approach. However, such domination has the additional drawback of having the potential to produce a kind of boredom, which closes the door on the potential development of alternative ideas that may make the subject more interesting. There is not much that varies in most research, to a great degree. Studies from holistic perspectives are required. There have been several studies done on online banking, both in the fields of marketing and consumer behavior, as well as a management

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information system. Almost all of the research that utilizes quantitative methods employ quantitative approaches, while just a small percentage of studies opt for qualitative methods. According to qualitative research and phenological viewpoints, most of the constructs, components, and variables that have been widely used during the last fifteen years remain the leading theories and variables in the field. The uniqueness of online banking uptake and usage may be stifled if current models are replicated and extended. The majority of the previous study has concentrated on the functional elements of internet banking. The emotional component has generally been neglected in previous studies. Thus the emphasis has been extremely limited. The influence of emotional value on consumer behavior and decisions is significant. In a recent study by Ding and Chai (2015), the authors concluded that both happy and negative emotions influenced digital application retention rates. When it comes to negative emotions, instrument advantages may impact them. Experiential, identity, and social benefits, however, affect feelings of positivity. In the area of online, digital banking, research that considers demographic factors seems to be inconclusive.

Managerial Implications Online banking strategists, policymakers who provide a better ecosystem to the online consumer, this paper can guide them by identifying the key variables with which they can work, and they can facilitate their consumers by offering and adopting state-of-the-art, robust, convenient, and easy-touse technologies. This article also talks about the components that have significant roles in consumer satisfaction, precisely that combinations of different factors create an impact on consumer satisfaction. Here we have taken a hundred and two research articles only from the Scopus database in a timeline from 1997 to 2021—which is a limited time frame, not a broad horizon here the authors are not considering other indexed articles. This article analyzed on the basis of different methodology’s used in different articles which has been reviewed here by different models and here authors have tried to extract the different variables [independent and dependent] which might be the key antecedents of the future research but here the keywords and abstracts of those reviewed articles are not being considered to analyze—these are the key limitations of this study.

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Many financial institutions are encouraging their clients to utilize mobile and internet services, such as filing claims, making payments, and transferring money. They’re doing this since many of their consumers are interested in these services. Many of their activities were aimed at the people who had not yet transitioned to digital banking or who were afraid to switch. By starting to use digital banking services, many laggards began to break the ice, and as they became used to this kind of service, and they found the numerous advantages of these services offered.

Future Research Possibilities Only a few studies have looked at post-adoption effects, with the vast bulk of previous studies focusing on digital banking adoption vis-à-vis behavioral intention (Aldás-Manzano et al., 2009; Patel & Patel, 2018; Saji & Paul, 2018). Post-adoption consumer satisfaction and attitudes toward digital banking are highly interesting study areas. Many researchers have worked with different models (Alalwan et al., 2017; Rodrigues et al., 2016) but we have seen very few works that integrate most of the contextual models and use the mixed and optimum methods to depict the consumers’ behavioral intention and satisfaction. From this, we argue that a mix of e-SERVQUAL, SERVPERF, SERVCON, and IPA Framework can be applied in the future study to understand the consumer intention to digital and m-banking in a better way. This study has observed that many researchers in this digital and online banking domain use different dependent and independent variables, but here we have tried to unveil the most significant variables to describe digital banking adoption and consumer satisfaction. Our study has identified that the antecedents namely trust (Mulia et al., 2020; Nguyen, 2020), convenience (Tetteh., 2020), responsiveness (Torres Fragoso & Luna Espinoza, 2017), reliability, empathy (Almugari et al., 2020), compatibility, perceived cost (Eklof et al., 2020), ease-of-use, security (Li et al., 2021), assurance (AlNajem, 2018), tangibility (Islam et al, 2020) and transparency (Saleem et al, 2016) are the most effective to generate consumer satisfaction. But there is a dearth of existing literature where the multi moderation and multi-mediation analysis are being considered to find out the threadbare detail what creates the consumer satisfaction in heterogeneous consumer communities. Thus, this is also a pivotal area to work with these antecedents for predicting the consumers’ attachment to the banking digitization process. In a growing

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nation like India, understanding how demographic and cultural factors impacted the banking digital adaption process is critical. How the digital divide (consumers’ point of view) in the context of demographic and psychographic antecedents influenced the banking digitization process is also a pivotal factor to explore in case of future research scope. Future research can focus on finding out the theoretical gaps by following these constructs related to consumer satisfaction in the domain of online digital banking. The studies can also be conducted to understand the degree of importance of different variables with the help of keywords and abstract analysis with larger data set and the time span could be elasticated according to the convenience to find out the better research outcome. Thus, from the above discussion, it has been observed that many unexplored areas might be the seeding point of future research.

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PART III

Human Resources Management

CHAPTER 6

Impact of University’s Human Resources Practices on Professors’ Occupational Performance: Empirical Evidence from India’s Higher Education Sector Ashraf Alam

Introduction Human resources (HR) have risen to prominence in recent years as a critical component of management, particularly in the West (Subarto et al., 2021). There has been a great deal of discussion on the influence of human resource practices on job performance and job satisfaction in the last 25 years (Amin, 2021). As a result, performance of employees has increased because of these HR practices being put into practice by top organizations (Loan, 2020). All managerial duties have been linked to HR

A. Alam (B) Rekhi Centre of Excellence for the Science of Happiness, Indian Institute of Technology Kharagpur, Kharagpur, India e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_6

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practices such as selection, performance evaluations, training and development, and pay, and their implementation allows companies to maximize the skills of their employees (Maan et al., 2020). Since employee values are essential to an organization’s growth and success, they are valued by all of them (Rai & Maheshwari, 2020). It is imperative for organizations to recognize the importance of keeping employees and ensuring intellectual capital in order to remain productive and responsive to the requirements of their stakeholders in the face of worldwide rapid and continuous change (Alam, 2020c). According to previous studies, good human resource management may have a positive impact on both employee and organizational outcomes (Wang et al., 2020). These strategies also help employees perform better in their jobs (Alam, 2020d). In order to improve universities’ overall rating, its professors play a crucial role (Alam, 2021a). They play a significant role in critical areas such as research quality, faculty academic status, research contributions to society, and the training of future leaders (Alam, 2021b). In order to address a wide range of challenges, universities require professors with a diverse set of skills (Alam, 2021c). Human resources of the highest caliber are expected to be produced by prestigious educational institutions. In order for competent human resources to be effective, efficacious HR practices such as hiring and selection, training and development, performance evaluation, and pay must be put in place (Díaz-Carrión et al., 2020). Despite this, it is still necessary to have robust scientific evidence to support these theories (Alam, 2022a). Numerous countries and corporations have experimented with human resources approaches (Alam, 2022b). Educational administrators and policymakers, however, are not happy with the number of empirical studies researchers have done so far (Peiró et al., 2020). HR techniques have been shown to have a major influence on employee job performance (Silva et al., 2021). Despite this, little is known about the impact of human resources practices on professors’ job performance in developing countries like India (Mwesigwa et al., 2020). HR professionals in most African countries, such as Nigeria, were found to be using training and development, performance evaluation, recruiting and selection, and compensation in order to produce favorable results (Hansen & Stræte, 2020). Furthermore, returns on equity are greater for companies and organizationss that implement long-term incentive programs (Atmaca et al., 2020). The relationship between compensation plans and employee

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performance is positive (Aboramadan et al., 2020). Researchers, in previously conducted studies, have found that a number of HR practices have a major influence on employees’ job performance (Subarto et al., 2021). The findings of the current research will show how various HR practices (recruitment and selection, training and development, performance assessment, and remuneration packages) affect professors’ job performance (Alam, 2020b). There is no prior research that identified the HR difficulties faced by public sector academic institutions in India (Alam, 2022c). Higher educational institutions in general, and Indian public institutions, will benefit from the findings of this study, which investigates the long-standing question of how to improve professors’ job performance (Alam, 2022d).

Statement of Purpose Role of HR practices in India is generally understudied (Wang et al., 2020). HR practices in India’s public and private sectors have a substantial difference, particularly when it comes to HR practices and their effects on employee job performance, and this gap has been found to be rather large (Feng & Savani, 2020). Even though public sector is the major supplier of education in India, the literacy rate is abysmally low (Alam, 2020a). Poor literacy is attributed, among other things, to faculty members’ lack of motivation and dissatisfaction with their work (Aboramadan et al., 2020). Higher education is vital to a country’s socioeconomic development, and institutions serve as havens for talented students (Alam, 2022e). A university’s priority should be finding and maintaining professors who have a proven track record of success (Alam, 2022f). Effective HR practices can immensely help here. In India, there are just eleven public sector universities that have been ranked among the world’s top 500 universities (Alam, 2022g).

Findings from Review of Literature and Development of Hypotheses HR Practices and Employee Job Performance To boost organizational performance, human resource management has gained popularity in recent years, especially in the public sector undertakings (Sinval & Marôco, 2020). If organizationss want to survive and

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grow in today’s globalized world, they must adopt practical policies and processes to improve employee job performance; otherwise, increasing organizationsal productivity and maximizing staff efficiency will be challenging (Toropova et al., 2021). If one wants a competitive edge, one must do so. Worker job performance refers to the acts that may be measured and judged in the workplace, and the consequences of their actions and labor (Inegbedion et al., 2020). Personnel management processes, for example, can be used to evaluate how well employees perform on the job. There has been a long history of human resource management methods in the western world, but in India it has not been tested and implemented on a large scale. Research into the relationship between HR practices and employee output has shown mixed results previously (Wu et al., 2021). It is hypothesized that if these HR practices are implemented in their truest sense, they will lead to increased employee happiness and commitment, as well as increased individual and organizational performance. HR activities including training and development, human resource planning (HRP), as well as performance evaluations, have a positive influence on both employees and organizations (Swanson et al., 2020). Research in past has been undertaken in many industries, including high-tech manufacturing plant and the financial sector. Employee productivity and performance are positively impacted by HR operations such as recruitment and selection; remuneration; performance assessment; training and development; and more (Darvishmotevali & Ali, 2020). Considering the sources of information, we believe that the following hypothesis should be tested among the intended audience: H1:

The association between university’s HR practices and professors’ occupational performance is positive and statistically significant.

‘Hiring and Selection Process’ and Workplace Performance Recruitment is a technique used by companies to attract and place people to fill job openings (Schwabe et al., 2020). Through this procedure, potential employees are found and persuaded to join the organizations. During the selection process, candidates are withdrawn from consideration and only those who satisfy standards and pre-set criteria are retained

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for consideration (Bhardwaj et al., 2021). Inadequate evaluation and selection will result in the organization’s goals being missed, as well as a variety of issues such as high turnover, low productivity, employee stress, and poor candidate selection (Buri´c et al., 2020). To get a competitive edge and to enhance efficiency and effectiveness, employers should use the best available recruitment and selecting process to help them establish the largest pool of highly efficient applicants (Schlaegel et al., 2020). Recruitment and selection methods are crucial to a company’s success because they help in the selection and attraction of potential personnel, which increases job performance and organizational performance (Anastasiou & Garametsi, 2021). Many scholars believe that an efficient hiring and selection process leads to both a competitive advantage and strong job performance (Ali & Anwar, 2021). According to a number of experts, quality of recruitment and selection process has a strong and positive correlation with employee job performance (Alrawashdeh et al., 2021). In light of these findings, the following hypothesis will be investigated among the target audience: H2:

Recruitment and selection have a significant and positive correlation to job performance of university professors.

Relationship Between Employee Training and Work Performance Training and development are an important tools for providing employees with knowledge, skills, and abilities they need now and in the future for effective and efficient job performance, as well as in improving their attitudes and behaviors (Bernarto et al., 2020). It helps individuals and groups to enhance their performance. It is critical for any company since it entails not only positively altering employees’ talents, attitudes, and behaviors, but also in teaching them how to use new technology, which increases both individual’s and company’s productivity (Van Beurden et al., 2021). The influence of training and development on employee’s work performance has been shown by several research in the past (Maas et al., 2021). However, most of these studies took place in business settings, with little attention paid to higher education sector. As a result, author felt the need for additional validation of these findings in the target population.

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H3:

Training and development significantly and positively influence university professors’ job performance.

Employee’s Performance Appraisal and Their Job Performance Performance appraisal is a method for evaluating and improving employee performance while also ensuring that their efforts are aligned with the company’s long-term objectives (Tran, 2020). Employees use success as a parameter for assessments to help them increase their productivity and, as a result, their personal development as well as company’s overall performance enhances (Côté et al., 2021). Individual performance is improved via the use of performance assessments, which involve the development of motivation and the finding of training and development possibilities (Ashraf, 2020). This has a positive correlation with staff productivity (Said & El-Shafei, 2021). Fair performance assessments help both the person and the organizations. Employee morale may be harmed by inadequate performance evaluations, which can lead to employee dissatisfaction and frustration (Wiegand et al., 2021). Human resource management includes components like training and development, pay, and performance assessment that all work together to boost employee productivity (Torlak et al., 2021). Performance appraisal has been established in literature to have a significantly positive impact on employee’s job performance (Lin & Huang, 2020). In light of aforementioned studies, author felt the need to investigate the following hypothesis among the target audience: H4:

Quality of professors’ job performance is intimately tied to the appraisal of their own performance.

Job Performance and Compensation Practices for Employees Compensation is paid to employees who are prepared to take on a variety of duties and services for the benefit of the organizations. Financial and non-financial advantages can be included in remuneration; financial benefits include pay and bonuses, while non-financial benefits include additional vacations and other leisure activities (García-Rodríguez et al., 2020). Employees must be provided incentives to work hard in order to attain high job performance in a corporation (Lai et al., 2020). Great

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staff morale leads to great job performance, which is why a fair and equitable pay plan is viewed as a key factor in achieving this goal (Khaskheli et al., 2020). Job performance and financial incentives are inextricably related (Warr, 2020). Businesses and organizations that place a greater emphasis on long-term benefits of employees have a higher return on equity than those that do not (Peng et al., 2020). Considering aforementioned studies, author felt the need to investigate the following hypothesis among the target audience: H5:

University professors’ work quality is inextricably tied to the quality of university’s pay practices. HR Practices and Job Satisfaction

Researchers from all around the globe have been studying the influence of human resource policies and procedures on employee productivity and well-being for the past quarter-century. HR practices have an impact on the efficacy of employee work performance in accomplishing the business’s goals and objectives (Kundi et al., 2020). According to previous debates on the benefits of HR practices, the firm’s HR practices aided workers in increasing their confidence, motivation, and contentment, resulting in them being more energetic, devoted, and focused on their responsibilities (Ali, 2021). Furthermore, in order to attain high job satisfaction and, as a result, strong performance, a corporation must employ a well-established and dedicated strategy of HR practices (Hoff et al., 2020). “Job satisfaction” refers to one’s emotional sentiments regarding one’s work experience or assessment of one’s own work (Moro et al., 2020). Employees are more concerned with how they feel about their own employment when it comes to job satisfaction (Davidescu et al., 2020). A job satisfaction survey may be used to determine an employee’s feelings about their employment and their level of enjoyment at work (Stefurak et al., 2020). Organizations have utilized a variety of HR practices to guarantee that their employees are satisfied with their employment (Wang & Chen, 2020). A firm must establish suitable HR policies that promote employee happiness while also benefiting the organizations in order to maintain a long-term position in this highly competitive business market (Pfister et al., 2020). HR strategies may impact organizational

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success through influencing employee behavior and attitude, such as job satisfaction, motivation, and dedication to the company (Shafie, 2021). HR rules have an influence on employee behavior in the workplace, according to social exchange theory and signaling theory. In light of above studies, author felt the need to investigate the following hypothesis among the target audience: H6:

Professors’ productivity and HR practices are inextricably linked, and professors’ job satisfaction is a critical mediator. The Mediating Role of Job Satisfaction

Employee work satisfaction and job performance have been found to be directly linked to HR practices (Bellmann & Hübler, 2020). The current investigation hypothesizes that HR practices such as recruitment and selection, performance evaluation, training and development, and remuneration at universities can boost faculty morale and performance provided they are effective; fair; unbiased; adequate; and ample. This study will use professors’ job satisfaction as a mediator in order to examine its mediating impact.

Theoretical Foundation Findings of this research are based on theoretical concepts such as “social exchange theory” and “signaling theory”. The concept of social exchange is based on economic and social resources (García-Rodríguez et al., 2020). Social exchange theory emphasizes on love, respect, and support as opposed to money and commodities, which is the economic side of the idea. According to this concept, employees are in a reciprocal relationship with their employers, and they repay them in kind for what they get. When workers feel good about themselves, they’ll be more likely to do their best work since they’ll believe they’ve been given the support they need to succeed. Individual and organizational behavior can be described in terms of signaling theory. While one party functions as a signal transmitter, the other party operates as a signal receiver and works on deciphering the signal. If a company communicates HR policies that workers see as fair, reasonable, and right, and in accordance with their needs in a manner

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that employees understand as a signal of satisfaction, fulfillment, and optimal performance, this theory is reinforced. “Signals” that transmit the organizational motivation to workers are thought to have an impact on employee behavior by acting as a “influencer” of employee behavior through HR practices.

Conceptual Framework In the conceptual framework for this study, the linkages between the research components and their sequence of impact are depicted diagrammatically (Fig. 6.1). The first flow of influence is initiated by the direct contact between university’s HR practices, such as hiring and selection, training and development, performance evaluation, and compensation, and professors’ job performance. In the conceptual framework’s second loop, university’s HR practices are linked to professors’ job performance. Professors’ job performance is influenced by university’s HR practices in three ways, the third of which is job satisfaction.

Fig. 6.1 Conceptual framework of the study

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Methods and Methodology The overall structure of the research gives testable hypotheses based on the links between the various components (a) university’s HR practices have a direct and positive association with professors’ occupational performance, (b) university’s HR practices have a direct and positive relationship with professor’s occupational satisfaction, and (c) professor’s occupational satisfaction has a mediating influence on the relationship between university’s HR practices and professor’s occupational performance. A questionnaire was used to gather data in this investigation. Quantitative data with a cross-sectional look. Descriptive and inferential statistical methods were employed. Random sampling was employed in this study. Data were collected from a total of 316 academicians from six government-run universities based in six different states of India, namely Delhi, Karnataka, Tamil Nadu, West Bengal, Gujarat, and Madhya Pradesh. More than seventy nine percent, i.e., 250 surveys were returned. Due to missing data, 10 surveys were omitted from the total of 250 that were analyzed in this study. Measures Based on previous research, we built the current study’s survey instruments. The instrument consists of three parts: HR practices, employee satisfaction, and job performance. • HR practices: For HR practices, author adopted the scale from Shahzad et al. (2008) and Quresh et al. (2010). The 5-point Likert scale ranges from 1 to 5, with 1 representing a strong disagreement and 5 representing a strong agreement. There are a total of twenty items in this collection. The Cronbach’s alpha value of this scale is 0.82. • Employee job performance: The scale for its measurement was adopted from Shahzad et al. (2008). The 5-point Likert scale ranges from 1 to 5, with 1 representing a strong disagreement and 5 representing a strong agreement. There are a total of twenty items in this collection. The Cronbach’s alpha value of this scale is 0.74. • Job satisfaction: The scale for its measurement was adopted and modified from Tsui et al. (1992). The 5-point Likert scale ranges

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from 1 to 5, with 1 representing strong disagreement and 5 representing strong agreement. There are a total of twenty items in this collection. The Cronbach’s alpha value of this scale is 0.81.

Findings Demographic Characteristics Demographics of the survey participants include age, gender, marital status, and educational achievement. Most respondents were male, almost 70%. Around 70 percent of the respondents were between the ages of 30 and 46 and remaining were between the age bracket of 25 and 30. Almost 20 percent of the respondents had MS (by research)/M.Phil./M.Tech. degrees, while two-thirds of the respondents had PhD degrees, and the rest had master’s degrees. Analysis of Data To do statistical analysis, SPSS-23 and AMOS-23 were employed. The data was analyzed using structural equation modelling (SEM). For multiple regression analysis, SEM is an excellent statistical method that can be used to identify existing correlations between numerous variables at the same time. SEM helped in determining how big a role job satisfaction has in influencing employee performance. To help assess whether the proposed model is compatible with the dataset, it is provided with numerous variables. In addition to validating the measurement model, SEM was also used to test, fit, and modify the structural model. Confirmatory factor analysis validated the measurement model while path analysis was utilized to verify the other constructs. SEM was employed primarily to develop a statistically valid theoretical model that has both practical and theoretical implications. In order to measure the goodness of fit, absolute and incremental fit indices were utilized. Measurement Model The reliability and validity of the constructs were tested using confirmatory factor analysis (CFA). Output of this analysis is shown in Table 6.1. For all of the study’s variables, composite reliability (CR) estimations of 0.74–0.92 indicate sufficient dependability; the ideal composite reliability

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value is.70 or above (Fornell & Larcker, 1981). The model’s construct validity is evaluated using convergent and discriminant validity. Convergent validity is assessed using the AVE values of the constructs. According to the recommended cutoff value for convergent validity (0.50), this model has sufficient validity. Table 6.1 Factor loadings, composite reliability, and average variance extracted Construct

Items

Practices of HR

Selection and recruitment development and Training Appraisal (performance) Compensation SR-1 SR-2 SR-3 SR-4 SR-5 DT-1 DT-2 DT-3 DT-4 DT-5 PA-1 PA-2 PA-3 PA-4 PA-5 PC-1 PC-2 PC-3 PC-4 PC-5 SJ-1 SJ-2 SJ-3 SJ-4 SJ-5

Selection and recruitment

Development and Training

Appraisal (performance)

Practices of compensation

Satisfaction in job

Factor Loading

R2

0.79

0.65

0.88

0.87

0.91

0.89

0.87 0.81 0.80 0.79 0.71 0.86 0.77 0.84 0.78 0.80 0.86 0.87 0.81 0.83 0.85 0.88 0.80 0.86 0.87 0.87 0.80 0.81 0.90 0.86 0.81 0.80

0.84 0.36 0.39 0.49 0.37 0.54 0.52 0.67 0.48 0.48 0.46 0.55 0.58 0.60 0.40 0.50 0.46 0.58 0.57 0.60 0.38 0.55 0.49 0.55 0.63 0.59

CR (Above 0.6)

AVE (Above 0.5)

0.81

0.86

0.75

0.79

0.87

0.80

0.86

0.82

0.90

0.84

0.87

0.81

(continued)

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Table 6.1 (continued) Construct

Items

Factor Loading

R2

Job performance of employees

JPE-1 JPE-2 JPE-3 JPE-4 JPE-5

0.89 0.90 0.89 0.85 0.86

0.41 0.33 0.45 0.51 0.39

CR (Above 0.6)

AVE (Above 0.5)

0.81

0.73

Table 6.2 AVE and squared inter construct correlations

Recruitment and selection Training and development Appraisal (performance) Practice of compensation Satisfaction in job Job performance of employee

SR

DT

PA

PC

SJ

JPE

0.902 0.524 0.490 0.259 0.339 0.373

0.903 0.410 0.379 0.426 0.511

0.922 0.345 0.327 0.455

0.929 0.362 0.527

0.918 0.433

0.850

Table 6.2 shows the model’s discriminant validity. It can be seen in Table 6.2 that for each construct on the diagonal, AVE’s square root is bigger than the squared inter-construct correlations (SIC) of each construct (Fornell & Larcker, 1981). Overall, the model’s reliability and validity are consistent across all constructs, suggesting that the outputs are within acceptable levels.

Structural Equation Model The very purpose to make use of SEM was to test concomitantly the assessment of proposed model for goodness of fit and the regression pathways (Fig. 6.2 and Table 6.3). To scrutinize model’s appropriateness from varied viewpoints, author used four fit statistics, viz. root mean square residual (RMR), ratio of chi-square to degree of freedom (χ2/df), goodness of fit index (GFI), and root mean square error of approximation (RMSEA) from absolute fit indices to assess model’s goodness of fit. These indicators had the values: RMR = 0.04, χ2/df = 1.89, GFI = 0.91, and RMSEA = 0.03. To evaluate model’s goodness of fit, author

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made use of 3 measures from the incremental fit indices, i.e., Tucker Lewis index (TLI), comparative fit index (CFI), and normed fit index (NFI) with values: TLI = 0.95, CFI = 0.96, and NFI = 0.90. Because the measurement values for incremental fit indices and absolute fit indices were found to lie in the suggested assortments it was thus resolved that the proposed model fit statistically well to the data. Significance level, regression co-efficient (beta co-efficient), and t-value were used to analyze the hypotheses proposed by the author. When the t-value (CR) is above ±1.96 at 5% level of significance, it was found that the regression path was statistically significant. In the proposed model, post analysis, it was found that almost all the associated relationships were positively related. In the model, for each construct, explanatory power of variance is shown by the squared multiple correlation (r 2 ). Promising and satisfactory explanatory power was exhibited by the model on employing university’s HR practices for professors’ job performance. 48.9%, 45.1%, 57.8%, and 43.2% were the variance for different dimensions of university’s HR practices, i.e., compensation, performance appraisal, training and development, and recruitment and selection, respectively.

Fig. 6.2 Structural model of study

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Table 6.3 Model fit statistics

Chi-square (CMIN) Degree of Freedom (DF) CMIN/DF Goodness of fit index (GFI) Root mean square error of approximation (RMSEA) Root mean square residual (RMR) Normed fit index (NFI) Comparative fit index (CFI) Tucker Lewis index (TLI)

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1020.760 54 1.89 0.91 0.03 0.04 0.90 0.96 0.95

Results and Hypotheses Validation To examine the association between variables identified and countenanced in this study, author proposed six major hypotheses. Hypothesis associating university’s HR practices and professors’ occupational performance was found to be positive and statistically significant with path co-efficient (β = 0.60, t = 8.21, p < 0.05) confirming and supporting the first hypothesis. Hypothesis associating recruitment and selection and professors’ occupational performance was found to be positive and statistically significant with path co-efficient (β = 0.63, t = 5.11, p < 0.05) and validating the second hypothesis. Hypothesis associating training and development and professors’ occupational performance was found to be positive and statistically significant with path co-efficient (β = 0.69, t = 7.11, p < 0.05) and supporting the third hypothesis. Hypothesis associating performance appraisal and professors’ occupational performance was found to be positive and statistically significant with path co-efficient (β = 0.53, t = 9.13, p < 0.05) and validating the fourth hypothesis. Hypothesis associating professors’ compensation and professors’ occupational performance was found to be positive and statistically significant with path co-efficient (β = 0.66, t = 8.17, p < 0.05) and validating the fifth hypothesis. Results of the six proposed hypotheses are comprehensively depicted in Table 6.6. Mediating Effect of Professor’s Occupational Satisfaction Author hypothesized in the current investigation that there is a mediating effect of professors’ occupational satisfaction on university’s HR practices and professors’ job performance. Before testing the mediating effect of

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Table 6.4 The direct effect of HR practices on employee job performance Variable

Path

Variable

Standardize estimate

JPE

←

HRP

0.60

CR/ t-value

p-value

Result

8.21

0.000

Significant

professors’ occupational satisfaction, author scrutinized the direct effect of university’s HR practices on professors’ job performance. It was found that the path co-efficient (Table 6.4) of university’s HR practices to professors’ job performance (β = 0.60, t = 8.21, p < 0.05) was statistically significant. In the proposed model, professors’ occupational satisfaction was infixed as the mediator. After that, the direct effect of university’s HR practices on professors’ job performance (Table 6.6) was scrutinized (β = 0.29, t = 4.13, p > 0.05) where it was found that the relationship is statistically insignificant and path co-efficient’s magnitude (Table 6.5) was reduced from 0.60 to 0.29. It was found that university’s HR practices are directly and significantly related to professors’ occupational satisfaction, i.e., path co-efficient of university’s HR practices to professors’ occupational satisfaction is (β = 0.57, t = 6.24, p < 0.05) (Table 6.5). Professors’ occupational satisfaction is also significantly and directly linked to professors’ job performance, i.e., path co-efficient (Table 6.5) of professors’ occupational satisfaction to professors’ job performance is (β = 0.43, t = 9.11, p < 0.05). It is observed that in the proposed model, mediation is full mediation because path has become inconsequential and insignificant, and that the magnitude of path co-efficient is reduced from 0.60 to 0.29 after the introduction of professors’ occupational satisfaction as a mediator. It is thus conclusively reasoned out that university’s HR practices have a substantially significant and direct impact on professors’ job performance through Table 6.5 Output of job satisfaction as a mediator Variable JPE SJ JPE

Path ← ← ←

Variable HRP HRP SJ

Standardize estimate

CR/ t-value

p-value

Result

0.29 0.57 0.43

4.13 6.24 9.11

0.203 0.000 0.000

Insignificant Significant Significant

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Table 6.6 Summary of the findings of hypotheses Hypotheses statement of path Path co-efficient analysis H1: HR practices are significantly and positively related with employee job performance H2: Recruitment and selection are significantly and positively related with employee job performance H3: Training and development are significantly and positively related with employee job performance H4: Performance appraisal is significantly and positively related with employee job performance H5: Compensation is significantly and positively related with employee job performance H6: Job satisfaction significantly mediates the relationship between HR practices and employee job performance

CR/ t-value

p-value

Results on hypothesis

0.60

8.21

0.001

Supported

0.63

5.11

0.001

Supported

0.69

7.11

0.002

Supported

0.53

9.13

0.001

Supported

0.66

8.17

0.003

Supported

0.29

4.13

0.203

Supported

professors’ occupational satisfaction. The hypothesis that was formulated stating that professors’ occupational satisfaction significantly mediates the association and connectedness of university’s HR practices with professors’ job performance was maintained, reinforced, and established. Thus, all the hypotheses that was formulated in the proposed model to examine the associations between variables were found to be statistically significant. Detailed results of the proposed hypotheses are presented in Table 6.6.

Discussion Using job satisfaction as a measure of HR processes and employee job performance is the focus of this study. Convergent and discriminant validity, i.e., the validity and reliability of all of the measuring scales used in the study were validated by using composite reliability and construct

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validity. SEM was used to test the model’s suitability to the data following the development of the predicted link between separate components. Author tested each hypothesis for its structural link to each variable. Goodness of fit statistics are used to test the proposed model and it is determined to be a good match for the data. HR processes and employee job satisfaction were examined in this study to see whether there is a correlation between the two. According to the findings of this study, university’s HR practices have a substantial effect on professors’ occupational satisfaction. There is a positive correlation between these two elements since university’s HR practices compel professors, by investing in them. By investing in their academic staffs through HR activities, universities utilize outstanding HR strategies to compel professors through socioeconomic resources. As a result, professors strive to be more motivated, devoted, and passionate, as well as ready to put in more effort to achieve university’s goals and objectives. In the current investigation, these relationships have been linked to “social change theory” and “signaling theory”.

Conclusion Researcher examined the relationship between various HR practices employed by universities and professor’s occupational performance, as well as the role of professor’s occupational satisfaction in moderating this relationship. The result shows a strong connection between the elements examined in the study. Professor’s occupational satisfaction at government-run universities, according to the data, has a positive influence on professor’s occupational performance when university’s HR practices are well-designed and effectively executed. Methodology, quantitative analysis, and unique results are all expected to increase the quality of existing information on university’s HR practices and professor’s occupational performance. In addition, a study of a group of public university faculty members examined the role of professor’s occupational satisfaction in mediating the link between university’s HR practices and professor’s occupational performance. This study has validated the conclusions of previous research in other populations. It has been found that there are several benefits to have a well-functioning HR system in place. According to the findings of the current research, HR policies can help faculty members enhance their work performance through job satisfaction.

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The most critical importance of the current investigation lies in that it has a wide range of practical and theoretical implications. There are several HR policies that may be implemented by universities to improve professor’s occupational performance through enhancing their work satisfaction. Recruitment and selection procedures may be made more efficient with the help of information available to university’s HR managers and administrators. Training and development, fair performance review, and decent compensation will ensure contentment to professors with their work and will eventually raise their level of performance. There are certain limitations to the existing study. An inherently subjective and bias-inducing method of data collection was utilized in this study, which limits its applicability to other populations. There is no definitive list of independent variables or of the mediators. It is important to note that characteristics such as restricting the study to faculty members, the size of the sample, and its representativeness are all restrictions. Finally, this is a human-perception-based study, which has its own limitations.

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CHAPTER 7

Paradigm Shift to Virtual Learning: A Blessing in Disguise Sourabh Sharma and Megha Sharma

Introduction Importance of virtual learning has emerged due to the present pandemic of COVID-19. The whole education system has revolutionized so that learning does not stop even after physical restrictions. Virtual learning is not a new phenomenon, it all started with the invention of worldwide web in 1990s. The evolution of virtual learning made education available and accessible to everyone at a global place with the use of digital technology which further enhances the knowledge and social skills of all learners (Anderson, 2003; Garrison, 2011; Moore et al., 2011). Virtual learning is a web-based learning, which creates an online learning environment

S. Sharma (B) International Management Institute, Bhubaneswar, India e-mail: [email protected] M. Sharma NIIS Group of Institutions, Bhubaneswar, India

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_7

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and motivates people to interact with each other to learn in a collaborative and experiential manner (Dede, 1995; Harasim et al., 1995). Virtual learning is implemented by accessing the remote multimedia databases for creating a safe and secure learning environment (Hiltz, 1994; Jung & Leem, 1999). It makes a very flexible individualized learning space, based on personal competence, individual need, and style of learning (Naidu, 1997; Reeves & Reeves, 1997). In today’s era, virtual learning is a need of an hour for all the educational institutions across the world. The education which was standstill in the beginning of the pandemic got a life through virtual mode of learning. Students find this shift from conventional learning to virtual learning very useful to connect with their academics where they may interact with their instructor easily as per their mutual convenience (Moller, 1998; Moore, 1993). COVID-19 crisis has deprived 1.2 billion children in 186 countries (UNESCO, 2020) from their conventional mode of education. This challenge was well accepted by the educationalist, and the virtual learning environment was re-established from passive to active. As a result, education has changed drastically, with the surge in virtual learning, whereby teaching is undertaken remotely on digital platforms. Online learning provides an efficient and effective way to gain knowledge through different available options like chat box, live streaming, webinars, etc. This blessing in disguise has given an opportunity to give a rise to different online learning apps like BYJU’s, Vedantu, Udemy, and Unacademy and online learning platforms like Zoom, Google Meet, Blackboard, Microsoft Teams, etc. Students are extensively using these apps and platforms for the acquisition of their knowledge and an uninterrupted learning. There are many advantages, but at the same, there are also many key challenges of virtual learning such as lack of infrastructure and connectivity from end to end specially in remote rural areas in India. Peer learning also plays a very important role in the holistic development of a students which is completely missing in the virtual mode of education. It sometimes creates a sense of isolation in the child. Long duration of online education also creates health hazards like lack of concentration, obesity, eyesight problem, etc. This evaluates the readiness of students for virtual learning and a gender-wise comparison to identify the acceptance of virtual learning in male and female university students in India.

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Literature Review Virtual learning is an online learning which combines technology with teaching and learning processes. It provides a virtual platform to connect, interact, and deliver knowledge in the more effective and efficient manner (JISC, 2009a). Students may have a better global connect to learn and gain without any restriction of location, time, and pace. Geographical boundaries, timeliness, and pace of learning sometimes create hindrance in a conventional learning environment. Students may overcome these problems with the use of virtual learning environment (Font et al., 2013). Virtual learning provides a flexible, computer-based learning environment to the students and educators to interact, disseminate, and acquire the knowledge in a relatively open system (JISC, 2009b). Virtual learning is very important and vital component of teaching and learning amid the ongoing pandemic, but there are several challenges associated with the implementation of same in the classroom. Identifying the technological support (Bascelli et al., 2002), efficiency of the identified technologies for learning (Grasha, 1996), and the student’s acceptance of this shift from a conventional learning to virtual learning (Van Dusen, 1997) are some of the important concerns during the pandemic. The blend of technology and readiness for learning are the key to the successful implementation of virtual learning in the educational process (Becta, 2009). At the same time, teachers also play an important role in this implementation by understanding the learning styles of students on virtual platform and accordingly make the required changes in the teaching pedagogy. According to Keefe and Ferrell (1990) and Robotham (1999), there are different approaches to define learning style. Each student may have their own individualized learning style and may prefer one approach to other to gain optimum in changing scenarios. There are normally three types of interactions in virtual learning environment namely academic interaction, collaborative interaction, and interpersonal interaction. In academic interaction, learner interacts with educator for academic activities, to learn the content in an online environment. This is the most common and frequent type of instructor interaction (Moller, 1998; Moore, 1993). In the collaborative interaction, learner interacts with educator to discuss and solve any concern collaboratively (Adelsköld et al., 1999; Moller, 1998). Last interaction i.e., interpersonal interaction is a social interaction between learners and peers. In this interaction, learners are connected with their peer groups to get

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assistance on different social and academic issues (Gunawardena & Zittle, 1997; McDonald & Gibson, 1998). However, the type of interaction and effectiveness in virtual learning environment varies and depends on learners’ and educators’ skills, learning style, tools, and techniques. Every individual has its own style of coding and decoding of information into knowledge. The virtual learning environment is also very much associated with types of personalities like the students having introversion personality interact more in virtual environment than in physical interaction (Daugherty & Funke, 1998; Hiltz, 1994; Jonassen & Rohrer-Murphy, 1999). Virtual learning has the power to combine content with the use of digital applications such as simulation and animation for better understanding, exploring, and applying that learning in day-to-day life to achieve the excellence (Laurillard, 2013). Massive open online courses (MOOCs) also play a critical role of knowledge delivery in virtual mode. Implementation of MOOCs is completely related to the technology factors (Yang et al., 2017). The technological aspects that affect the effective implementation of MOOCs also include the functionality and readability (van Rooij & Zirkle, 2016), knowledge to use the system (Gamage et al., 2015), the ease of usage or user friendliness, and the storage for future reference (Yepes-Baldó et al., 2016). Although virtual learning has many advantages where the learner and educator are not restricted and conveniently share the knowledge, but it also has some negatives like infrastructural challenges, lack of social and emotional connect, and extra efforts to put to learn new technologies (Gomez, 2016; Padron et al., 2012; Pierce & Ball, 2009). Students in virtual learning environment may experience feelings of isolation (Brown, 1996), frustration, anxiety, confusion (Hara, 2000), and reduced interest in the subject matter (Maki et al., 2000). Despite of all negatives, empirical evidence suggests that the use of virtual learning environment has an impact on student achievement, encourages independent learning, and increases students’ motivation to learn (Joint Information Systems Committee, 2008).

Conceptual Framework The conceptual framework for this study begins with learning style. Learning style was further combined with technology to make it accessible everywhere in virtual mode. Learning style is a preferred and personalized

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way to comprehend the relevant facts and figures. It is an individualized way to gain, process, retain, and apply the knowledge, which may further enhance the problem-solving competence of a learner (Francis, 2000). Learning styles are determined by the way learners acquire and process the information in the individualistic way (Cano et al., 1992). Learning style of every individual varies from person to person (Gregorc, 1979). These days, dominance of technology is touching every aspect of our life. Learning environment as a part of our life has designed and redesigned due to the technological interventions (Moussa, 2018). According to Prensky (2001), “Our students have changed radically. Today’s students are no longer the people our educational system was designed to teach”. Technology has changed our learning environments at all levels, especially at higher education settings. Learning style when combined with technology becomes an integral part of teaching and learning process that connect the learner to the other learners, learner to the educators, and learner to the education (Gynn, 2001).

Research Questions The upheaval of COVID-19 in education although has been managed through virtual learning worldwide, but it is important to investigate the acceptance and readiness for the same in students especially in Indian context. This study aims to examine the following research questions: RQ1 RQ2

Is there a difference in the impact of virtual learning among male and female university students in India? Are students ready to accept the shift to virtual learning?

Research Methodology This piece of research has used descriptive research methodology which describes the characteristics of a particular individual or group in a conclusive manner. Here, the attributes of male and female students and their acceptance for the learning from virtual learning environment have been described. For collecting the data, Snowball sampling technique has been used. Questionnaire containing 21 items to analyze the impact of virtual learning was circulated online among male and female university students with a request to fill and share the same in their peer groups. In response,

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the filled-up questionnaires were received from 346 respondents, divided into 155 male and 191 female university students of India. A selfdeveloped questionnaire (scale) is used to measure the impact of virtual learning on male and female university students. This scale was developed from taking the reference from conceptual framework mentioned above. The scale containing 21 items were segregated into 4 factors using exploratory factor analysis. Description of items is given in Table 7.2. As mentioned, there are 346 respondents segregated into 155 male (44.8%) and 191 female (55.2) university students. There are 195 undergraduate (56.4%) and 151 postgraduate (43.6%) students. Youngsters from 19 to 24 age group have the maximum respondents. It is found that for online studies, around 85% of the respondents are using virtual learning platforms very actively. Out of them, around 62% of the respondents are using YouTube, 57% respondents are using zoom online learning platform, 41% are using WhatsApp, and 36% are using Wikipedia.

Construct Validity and Reliability of the Self-Developed Scale For construct validity and reliability, exploratory factor analysis and Cronbach’s alpha are used, respectively. To check the appropriateness of exploratory factor analysis, Kaiser–Meyer–Olkin (KMO) and Bartlett’s tests were implemented. Here, the results are shown in Table 7.1. The KMO value is 0.776 which is >0.5, and the level of significance for Bartlett’s test of sphericity is 0.000. These values show the significance, and therefore, it is justified to apply factor analysis. Here, Table 7.2 represents factor loading as well as reliability of those factors through Cronbach’s alpha test of reliability. The 21 items of virtual learning scale are clubbed into four factors which are virtual learning Table 7.1 KMO and Bartlett’s test

Kaiser–Meyer–Olkin measure of sampling adequacy Bartlett’s test of Approx. Chi-Square sphericity Df Sig Source Authors’ calculations

0.776 2812.297 210 0.000

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Table 7.2 A summary of exploratory factor analysis and Cronbach’s alpha for the virtual learning scale Factors Virtual learning boons Virtual learning helps in clearing my academic doubts during COVID-19 Virtual learning is giving me a chance to explore new things during COVID-19 Virtual learning is helping me in enhancing creativity during COVID-19 Virtual learning creates an overall online learning environment during COVID-19 Virtual learning can help me in developing employment skills during COVID-19 Online courses are helpful in building my knowledge in specific subject area during COVID-19 I believe virtual learning is a replacement of conventional learning during COVID-19 I am using many MOOC (massive open online courses) for virtual learning during COVID-19 Virtual learning platforms may be used for expressing views and thoughts Virtual learning encourages the online team activities and peer learning Eigen value: 5.410; percentage of variance: 25.761 Cronbach’s alpha: 0.874 Virtual learning banes Sometimes, I lose my interest in online class due to lack of supervision during COVID-19 Many health-related issues like eyesight problems, headache, etc. are experienced by me due to the use of excess Internet for virtual learning I get easily distracted while studying online Connectivity in remote location is a hindrance in virtual learning during COVID-19 Virtual learning is not helping me in improving knowledge in academics during COVID-19 Eigen value: 3.095; percentage of variance: 14.738 Cronbach’s alpha: 0.742 Virtual learning and interpersonal challenges I believe virtual learning hinders the bonding between a teacher and a student Virtual platforms are lacking face-to-face interaction with teachers

Factor loading

0.762 0.759 0.740 0.734 0.671 0.651 0.646 0.645 0.612 0.514

0.768 0.761 0.662 0.536 0.432

0.771 0.707

(continued)

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Table 7.2 (continued) Factors

Factor loading

I believe virtual learning is hampering physical activities that hamper physical health Eigen value: 1.548; percentage of variance: 7.371 Cronbach’s alpha: 0.651 Virtual learning and technological challenges Privacy and security are the main concerns for me while accessing online studies Technological aspect is the main concern for me while accessing online studies I am becoming so addict of using these virtual platforms for learning Eigen value: 1.343; percentage of variance: 6.397 Cronbach’s alpha: 0.607 Total variance: 54.267

0.602

0.729 0.688 0.678

Source Authors’ calculations

boons; virtual learning banes; virtual learning and interpersonal challenges; virtual learning; and technological challenges. The first factor “virtual learning boons” combines 10 items and covers 25.761% of total variance with 5.410 eigen value. The Cronbach’s alpha score is 0.874, which shows the high level of reliability. Second factor “virtual learning banes” has 5 items with 14.738% variance and 3.095 eigen value. The Cronbach’s alpha reliability score is 0.742. Third factor “virtual learning and interpersonal challenges” has 7.371% of variance with 1.548 eigen value. It consists of 3 items with 0.651 Cronbach’s alpha value. The last factor “virtual learning and technological challenges” also has 3 items into it. It covers 6.397% of variance with 1.343 eigen value. The reliability score is 0.607. Churchill (1979) and Hanaysha and Pech (2018) recommended that reliability test value of 0.60 and above shows the acceptable reliability level. The total variance covered is 54.267%. According to Sharma and Behl (2020), “High loading on same factor and no substantial cross-loading confirms convergent and discriminant validity respectively”.

Research Model and Hypothesis Following conceptual research model has been developed to analyze the impact of different virtual learning factors on male and female university

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Fig. 7.1 Impact of virtual learning factors on male and female university students

students. The same model is also used to define the hypothesis which will be examined to make the honest comparisons between male and female university students in India (Fig. 7.1). Following research hypotheses may be derived from the above conceptual model: H1:

H2:

H3:

H4:

There is no significant difference in the mean response of male and female university students for the impact of virtual learning on them with respect to the virtual learning boons. There is no significant difference in the mean response of male and female university students for the impact of virtual learning on them with respect to virtual learning banes. There is no significant difference in the mean response of male and female university students for the impact of virtual learning on them with respect to virtual learning and interpersonal challenges. There is no significant difference in the mean response of male and female university students for the impact of virtual learning on them with respect to virtual learning and technological challenges.

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Data Analysis and Results Research Question 1: Is there a difference in the impact of virtual learning among male and female university students in India? To analyze the impact of virtual learning components on male and female university students, one-way ANOVA is employed. One-way ANOVA is a statistical technique to compare the means of two independent factors. Here, male and female university students are the independent variables which are 155 and 191, respectively. Table 7.3 shows the dimension-wise results of one-way ANOVA: As mentioned in Table 7.3, one-way ANOVA is implemented on all four components of virtual learning i.e., virtual learning boons, virtual learning banes, virtual learning and interpersonal challenges, and virtual learning and technological challenges. The impact of each virtual learning component was analyzed for male and female university students. First component namely virtual learning boons has the significance value >0.05. It means that null hypothesis (H1) is accepted and there is no significant difference in the mean score of male and female university students. In other words, we may say that virtual learning boons have no significant difference on the impact of both male and female university students. High mean score for this component indicates the high impact of virtual learning boons on both male and female university students. This outcome is widely related with current scenario. Since March 2020, all the learnings are taking place in virtual mode. Virtual Table 7.3 One-way ANOVA results examining the impact of virtual learning among male and female university students Factor

Group

N

Mean

SD

F Stat

1. Virtual learning boons 2. Virtual learning banes 3. Virtual learning and interpersonal issues 4. Virtual learning and technological issues

Male Female Male Female Male Female

155 191 155 191 155 191

3.651 3.689 3.705 3.712 3.667 3.464

0.7676 0.6767 0.9541 0.6553 0.6602 0.8618

0.246

0.620 Accepted (H1)

0.006

0.939 Accepted (H2)

6.120

0.014 Rejected (H3)

Male Female

155 191

3.225 3.448

0.7553 0.7473

1.646

0.030 Rejected (H4)

Source Authors’ calculations

Sig

Hypothesis testing

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learning is enhancing the creativity and innovation of students during COVID-19. During “Innovations Unlocked Kerala Student Innovators Meet”, students demonstrated new ideas like installation of mask-vending machine to a software that detects COVID-19 (Nagari Akhilesh, July 2020). IIT, Gandhinagar, students invented a low-cost ventilator which is controlled and monitored by a user-friendly mobile app (IIT Gandhinagar, 2020). Virtual learning environment has literally replaced the conventional learning environment and creates the holistic development of all the students. Today, there are so many MOOCs’ courses like Coursera, Swayam, Udemy, etc. available which provide an affordable and efficient course to learn and develop the new employment skills. Virtual learning also builds team and peer learning environment. Second component, virtual learning banes, has 0.939 significance value which is again >0.05. So here, null hypothesis (H2) is accepted which means there is no significant difference in the mean response of male and female university students for the impact of virtual learning on them with respect to virtual learning banes. Further, the higher mean value of male and female students shows the greater impact of this component. It has been observed that students who have been more exposed to screen are prone to many health hazards such as obesity, eyesight problems, etc. Excess use of virtual learning also impacts on mental health of both male and female students (Chaturvedi et al., 2021). During lockdown, students returned to their hometowns where in remote locations connectivity was a major challenge to attend online classes (Joshi et al., 2020). Students also get easily distracted in online mode as students get engagement in nonacademic activities like social media, chatting, gaming, shopping, etc. Here, the third virtual learning component which is virtual learning and interpersonal challenges has sig. value PE: via perceived support , and SGT-> IU via psychological contract fulfillment (fairness perception) and trust (procedural justice)). • From UGT: Five of the 7 identified constructs are seen to influence PU, PE, and IU, as follows: UGT-> PU: via social interaction, information provisioning, communicatory utility, and entertainment, UGT-> PE: via convenience utility, and UGT to -> IU: via communicatory utility (trust) and privacy violation. The two UGT constructs, relaxation and leisure/ kill time, appear not relevant in job search contexts, and so are not considered in the conceptual model. Thus, taken together, the 10 antecedent constructs from SET and UGT indicate job search to be a complex multidimensional process, influencing candidate’s perceptions of usefulness (PU), ease of use (PE), and intent to use (IU) social media in job search. RQ2:

How is job search facilitated using social media, what are the associated job search behaviors?

Job seekers perceive social media as a multipronged voice and a medium for enhanced self-expression. The dominant mechanism of initiating job search it appears is for the job seeker to personally initialize their job search, in multiple ways. Active job seekers start with keywords to browse jobs and initiate direct contacts with recruiters. They express interest, seek information, and communicate with their profile at any opportunity. In contrast, the passive job seekers use profile enhancement aids, post articles, connect with referrals, explore and complement skill sets of influencers, etc. Both active and passive job seekers appear to do so to differentiate themselves better and to receive a boost in their employment equity. Overall, job seekers perceive social media as an assistive tool to get or retain their job, and to boost their relationship quotients and employment equity.

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What are the behavioral differences of the different types of job seekers, how do they effect job search mechanisms?

Most job seekers fear the prospect of becoming or remaining unemployed as very shaming and worrying, especially passive job seekers. Consequently, job search behaviors appear to vary individually and by the type of job seeker. They trigger discreet or open exchange behaviors: time spent on blogs or posts, feedback loops (as likes and comments), groups joined, information exchanged, who to follow, contacting in private mode, increasing network size and using apps and tools, etc. The unique motivations of job seekers appear to have unique engagement barriers even though the theoretical underpinnings from SET and UGT extend to be contiguous. Thus, passive job seekers feel the assistive tools could become potential threats and sources of discomfort if not used properly. They fear the overt use of such tools is a signal for recruiters to contact them directly causing privacy violations. The consequences of which they perceive would negatively hurt their growth and career prospects. Passive job seekers thus demonstrate privacy concern behavior as their dominant trait and abandon job search when privacy violation occurs or when feel threatened. In conclusion, the study offers a novel conceptual framework to model job search behaviors with social media, incorporating multidimensional constructs from the theories of social exchange and uses and gratifications. The study also confirms qualitative research as a valued paradigm of inquiry.

Limitations Limitations are of the small sample size and the qualitative nature of exploration. The findings nevertheless are not limited, and a large-scale study could validate the novel TAM model that has been proposed.

Implications Research implications are that while TAM has successfully been used across a broad range of studies to validate acceptance and behaviors, the SET and UGT having specific relevance to social media should be given more prominence via empirical studies. Our study references the constructs of SET and UGT to explain the underlying mechanisms of

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social exchange and the reasons why job seekers use social media. It’s likely there may be other distinct constructs from other theories like social network theory, social contagion, social connectedness, etc., that could also influence job search . Practical implications are that this paper could help organizations to address their employer branding and communication processes better. By understanding what social exchange and uses and gratifications to expect with the use of social media in job search, organizations could assimilate same into their talent management strategies.

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PART IV

Inclusivity and Entrepreneurship

CHAPTER 12

Driving Inclusive Leadership to Stimulate Innovation at Grassroots: Restructuring Business Skills Within Entrepreneurial Ecosystem Ananya Rajagopal

Introduction The concept of inclusiveness in business was designed to analyze the growth perspective of the bottom-of-the-pyramid consumer segments as a consequence of global economic growth strategies. The main aim of inclusive business is to diminish the gap between poverty and inequality among the emerging innovation-led enterprises. The inclusive business concept discusses the counteracting model from traditional business growth perspective toward a higher inclusive income-oriented development of small and medium enterprises based on innovative ideologies.

A. Rajagopal (B) Anahuac University, South Campus, Mexico City, Mexico e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_12

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Inclusive businesses are based on the principles of sustainable development goals (SDGs) aimed at filling the breach in social justice, balance in entrepreneurial trade-offs, economic growth, and consumer well-being. The concept of inclusiveness in business helps businesses in promoting collective decision-making process and implementing customer-oriented strategies. Inclusive businesses aim to incorporate bottom-of-the-pyramid segments into the entrepreneurial and industrial market segments to develop profit orientation and long-term strategic growth perspectives (German et al., 2020). Inclusive enterprises emerged with the concept of new generation management outside the conventional wisdom and formal economic order (Chamberlain & Anseeuw, 2019). These enterprises are founded on participatory dynamics of stakeholders including customers who engage in systematically developing the entrepreneurial models based on co-creation, coevolution, and reverse accountability. The enterprises with inclusive business grow on local ecosystems by exploiting multisectoral opportunities and mobilizing stakeholders as business partners (Likoko & Kini, 2017; Stainer, 1998). The development of policies toward inclusive entrepreneurial practices has been a central concept in the markets in developing countries. These policies embed the guidelines oriented toward implementation and measurement of business models developed on the basis of ownership of inclusive entrepreneurial practices, empowerment toward business decisions, risk averse outlook, negotiations, and financial benefits. Such guidelines benefit the consumer community, enhance the value chain propositions of the enterprises, and contribute to the social and corporate security. However, the inclusive business models are oriented toward poverty alleviation bridging the gap between the bottom-of-the-pyramid and the big middle consumer segments, and revise and reinforce strategies to improve social inequities and entrepreneurial injustice (Rosenstock et al., 2020). Inclusivity in business is widely supported by collective leadership, which induces collective cognition and drives people’s action. Inclusive leadership may be defined as people’s movement toward a common goal of socio-economic development by analyzing the voice of stakeholders to improve the existing quality of entrepreneurship. The inclusive leadership has also been explained in the context of social justice theory and social identity theory, which is evolved from the group efficacy and collective actions (van Zommer et al., 2004). Social identity is referred as a psycho-social process of analyzing group cognition blended with the leadership attributes to drive collective decisions and actions

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in support of a common cause. Most innovation-oriented enterprises encouraged inclusive leadership by engaging stakeholders in ideation and innovative concept development process. Such practices led to open innovation by crowdsourcing ideas under collective leadership allowing the stakeholders to participate and coordinate the crowd-based innovation model from the initial stage of ideation to the delivery of innovation (Jasimuddin & Naqshabandi, 2019). The inclusive leadership is based on collective management of knowledge, diffusion of ideas, and transformation of conventional wisdom to extroversion (Cui et al., 2018). The inclusive leadership explores opportunity to facilitate open innovations at the different levels of enterprises ranging from micro enterprises to large enterprises. The collective interactions and collectivity synchronize information, technology, and social skills in developing innovative concepts through inclusive leadership. Such leadership is also emphasized in the crowd-based innovation model (Täuscher, 2017). Inclusivity and leadership drive collective intelligence, which helps in establishing crowd perceptions and interactions to explore contemporary business opportunities and develop innovations using crowd-based business models. Such stakeholder managed innovation opportunities drive competitive advantage and simultaneously present the leadership challenges to manage collective governance and values. Inclusive leadership helps in developing crowd capital to nurture innovation in enterprises by integrating collective values and rationale of innovation economics (Prpi´c et al., 2015). This chapter discusses the key challenges in managing inclusive leadership in the context of innovation continuum in enterprises. The discussions in this chapter focus on stakeholder’s value to the enterprise, leadership value to the stakeholders, and efficacy of inclusive business models in innovation management at the grassroots enterprises. The discussion also focuses on transformational leadership as a new normal to manage inclusive business by empowering stakeholders, developing a reverse accountability governance model to support the collective decision-making and their implementation, and restricting organizational dynamics to drive vertical growth and competitive advantages to improve entrepreneurial performance. This chapter also discusses the concept of inclusive business as a blend of socialization and corporate philosophy by involving people in general and customers and stakeholders in particular in co-creating value-based businesses. The constructs of this conceptual study are based on sociological epistemologies besides the applied

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perspectives of illustrated in the previous studies. Therefore, this study contributes to the existing literature in the context of revisiting sociological and entrepreneurial epistemologies and converging them with inclusive business modeling process.

Literature Review Entrepreneurial ambitions and the changing market dynamics often create dichotomy in achieving desired performance. The entrepreneurial abilities are of dualistic nature embedding desired performance and anticipated challenges in entrepreneurial process. Often, downfall of innovation-led enterprises is caused due to lack of collective leadership and overempowerment of conventional values among entrepreneurial leaders (Zuo et al., 2022). Drawing upon the socio-analytic theory (Hogan & Shelton, 1998), the transformational leadership supports inclusivity in decisionmaking, which supports empowering of stakeholders in the innovation process (Bayus, 2013). It has been observed that transformational leadership in managing inclusive business models has positive effect on collective governance, knowledge sharing (Lin, 2006), and value-driven innovation as the leadership outcomes. The transformational leadership is paradoxical with follower-centric perspective of leadership, which emphasizes the constructionist view (Meindl, 1995) of managing people and organization. Consequently, the transformational leadership empowers stakeholders to participate in entrepreneurial process holistically. The conventional leadership refers to the prominence of leaders, which reveals a potential bias or false assumption making on achieving performance influenced by the leadership than the preferences and participation of stakeholders (Mumford et al., 2000). In view of the above discussion, the following research proposition has been constructed: RP1 :

Transformational leadership empowers stakeholders to participate in entrepreneurial decisions.

Stakeholder engagement has been increasingly observed as a valuable social strategy for developing short- and long-term business strategies. Stakeholder participation includes co-creation of strategies, innovation, and governance of business by facilitating learning and collective action (Sandstorm et al., 2014). Stakeholder participation enables knowledge

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exchanges in operating business from the social perspective, which strengthens the relations between firms and stakeholders in business planning and operations is also aligned with the triple bottom line comprising people, planet, and profit, which establishes ties through social and cultural integration through trust, mutual respect, transparency in communication, and bottom-up collaboration (Barrutia & Echebarria, 2019). To address the problems, needs, and solutions of stakeholders, it is important for the firms to associate with the cognitive and personality traits of the stakeholders to explore actual value propositions and develop positive organizational identity. The values and ethos of stakeholder engagement reflect the foundations of sustainable coevolution and context-bound growth, which can be explained as profit-with-purpose (Sanchez-Chaparro et al., 2022). Consequently, stakeholder governance in the firms maximizes societal expectations and eliminates negative effects on the business ecosystem (Colbert & Kurucz, 2007). Therefore, reviewing the above discussion, the following research proposition has been constructed: RP2 :

Inclusivity in business encourages reverse accountability by enhancing stakeholders’ control on entrepreneurial operations.

Collective decision-making in business firm has emerged as a paradigm shift over the conventional practices of top-down organizational governance pattern. The inclusive enterprises encourage collective cognition and decision-making to address actions on collective problems within the social and organizational ecosystems (Yuan et al., 2020). Collective behavior in decision-making outgrows in homogeneous social environment supported by language, culture, and common interest. The stakeholder engagement in decision-making explains the growth trajectory of firms within the coevolution system (Brammer & Pavelin, 2006). The micro and small-scale firms have shown receptive trends toward making collective decisions by creating value for all stakeholders. Similarly, the emerging firms have also shown receptivity toward collective decision-based social responsibility models by integrating stakeholder values and their analysis of PNS factors (problem, need, and solution). By encouraging stakeholder participation in collective decision-making, firms operating with inclusive business model align core business strategies with

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social needs, consumer behavior, sustainable corporate gains, and competitive advantage, and attain collective power to resolve business issues on social platforms (Nam & Hwang, 2019). Therefore, reviewing the above discussion, the following research proposition has been framed: RP3 :

Inclusive enterprises stimulate collective decision-making for vertical growth driving competitive business performance.

Research Design The research design has been divided into two phases. The first phase of research has been used to develop bibliometric dataset using data repositories and publishing outlets within the reference period of distribution of research studies (1990–2020). Based on the selected bibliometric data, which includes research studies published in the selected journals that have been organized on a bibliometric platform using the BibTex classification. In the second phase, the bibliometric data were built based on the contributions of published research to the contemporary literature. Figure 12.1 (A) exhibits the bibliometric data path used to build data clusters for analysis. The research model based on research propositions is exhibited in Fig. 12.1 (B), which indicates the role of transformational leadership in entrepreneurial business performance through decision-making, inclusivity, and reverse accountability as principal factors. The model specification is focused on determining cross thematic ratios from the bibliometric database developed as indicated in the Fig. 12.1 (A). The cross thematic ratio has been calculated using data on the principal theme and themes across the articles selected in the bibliometric database. The contextual interdependency of sub themes on principal theme has been derived in reference to the frequency of discussion within the articles of bibliometric database (Garfield, 2006). The bibliometric coefficient has been determined as ratio score, which has been analyzed to interpret the cross thematic discussions and consistency of data with the predetermined research propositions. The equations developed for the bibliometric analysis are as illustrated below as Eqs. (12.1) and (12.2) respectively.    Ts  n Cid ∗ Tdisc (12.1) Ctratio = λ +  Tp

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(a) Bibliometric Data Path Data repositories

Scopus / Web of Science Data Repositories

Journals

Bibliometric Platform

Contribution to literature

Data Analysis

Classifications

Publishing outlets

(b) Research Model RP1

RP2 Decision-making Control/ Reverse Accountability

Transformational Leadership RP3

RP3

Business Performance

Inclusivity RP2

Fig. 12.1 Research Design (Source Author)

In the above equation, Ctratio = Cross thematic ratio T s = Sub themes T p = Principal theme Cid = Contextual interdependence n = Frequency of thematic discussion Tdisc In the above equation, λ indicates constant and  indicates multiplier factor. Broadly, the ratio of sub themes over principal theme with multiplication effect of contextual interdependence (Chen & Leydesdorff, 2014) and frequency of thematic discussion reveal the cross thematic ratio. However, in view of the error factor, the cross thematic ratio corresponds to the variables as indicated in the equation below.   Ctd ∗ j n  +ε (12.2) Ctratio = μ Tart where in, Ctd = Cross thematic discussions j n = number of journals in bibliometric database Tar t = Thematic articles

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In the above equation, μ is bibliometric coefficient and ε denotes the error. By analyzing the Eqs. (12.1) and (12.2) consecutively, the cross thematic ratio has been calculated.

Methodology The conceptual framework on inclusive enterprises in developing economies, in the context of transformational leadership, has been derived upon critically reviewing the recent literature on inclusiveness in business and attributes of micro and small enterprises. The bibliometric analysis of previous research studies (1990–2020) has been categorically analyzed in a 3D model comprising leadership attributes, inclusivity factors, and impact on entrepreneurial growth. In all, 292 previous research studies have been reviewed in this study from the leadership and entrepreneurship-based journals indexed in Scopus. A qualitative methodology was followed in analyzing the key indicators and contents of the previous studies related to inclusive business and entrepreneurial growth (German et al., 2020). Data has been acquired on 7 variables on leadership and 14 variables on entrepreneurship from the journals listed in the Table 12.1. The data has been collected on leadership variables from 136 articles from 4 leadership journals across 4 temporal intervals. Similarly, 156 articles were selected from 7 journals on entrepreneurship across 5 temporal intervals. In all, 292 articles across 11 journals on leadership and entrepreneurship themes have been used for data analysis. The data was collected from Scopus and Web of Science, which are the global repositories for bibliometric analysis and document large scale research database with classification of abstract, keywords, and citations. Scopus database is developed by Elsevier, which is the single largest publisher of scientific database and has been networked with Web of Science. However, there are discrepancies in both repositories due to variations in the classification system. This study has used multiple data bases to reduce the biasness on selected inputs across the repositories to conduct bibliometric analysis. The data sets were classified based on the analysis of keywords to minimize the re-occurrences and co-occurrences of document descriptions. Such clarity helped in generating clear structure for data analysis in a matrix form considering keywords, thematic focus, publication outlets, and citations. Based on the above indicators, the dataset has been developed in an ascending order and ranked based-on citations.

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Table 12.1 Resources for bibliometric analysis Domain

Year

Journal

Article

Thematic variables

Leadership

1990–1993 1995–2000 2004–2010 2013–2020

Leadership, Leadership Quarterly, Leadership and Organizational development, Strategy and Leadership

136

Entrepreneurship

1990–1992 1994–1997 2001–2006 2009–2015 2017–2020

Entrepreneurship Theory and Practice, Entrepreneurship and Regional Development, Strategic Entrepreneurship Journal, International Journal of Entrepreneurship and Small Business, Journal of Social Entrepreneurship, Journal of Marketing and Entrepreneurship, International Journal of Entrepreneurship and Innovation

156

Work culture Stakeholder relationship Leader-member exchange Vision, mission, and goals Governance Monitoring and Control Enterprise growth Engagement Empowerment Decision-making Resource management Business modeling Manufacturing Marketing strategies Innovation Management Technology Reverse Accountability Alliances and growth Investment, disinvestment, diversification Gender and equality Operations management

Results and Discussions Data analysis has been conducted categorically by subject areas within the database of articles of Scopus and Web of Science (WoS). Upon examining the taxonomy of leadership, selected papers on collective leadership, transformational leadership, and vertical leadership have been considered for data analysis. The diffusion of knowledge in this section has been analyzed in context to applied entrepreneurial perspectives. These areas provided primary insights blending the interdisciplinary nature of articles that

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emphasized on innovation and restructuring of entrepreneurial business from the perspective of a right fit to the entrepreneurial ecosystem. The articles comprising leadership discussions have been analyzed from the 4 selected top journals with ranking Q1 and Q2, which constituted 46.5% data out of the total sample of 292 articles. The cross journal spread of inputs on leadership accounts for an average of 34 articles per journal. However, the spread of articles considered for data analysis include the journal of Leadership (22), Leadership Quarterly (56), Leadership and Organizational Development (30), and Strategy and Leadership (28). Similarly, the articles related to entrepreneurship have been selected from the top journals with ranking Q1 and Q2, which constituted 53.5% data of the total sample size. The articles for data collection have been spread across 7 top journals comprising Entrepreneurship Theory and Practice (24), Entrepreneurship and Regional Development (22), Strategic Entrepreneurship Journal (31), International Journal of Entrepreneurship and Small Business (18), Journal of Social Entrepreneurship (34), Journal of Marketing and Entrepreneurship (21), and International Journal of Entrepreneurship and Innovation (6). The literature has been classified in a granular way by the keywords, which helped in identifying similar books within the thematic sphere. The articles focusing on transformational leadership and empowerment of stakeholders resulting in entrepreneurial decisions have been analyzed thematically. It has been observed that leadership has been contextually addressed using the functional analysis of variables on empowerment and decision-making during the reference period of dataset. The thematic distribution of leadership articles has been analyzed across the temporal intervals between 1990–1993 (8.1%), 1995–2000 (21.3%), 2004–2010 (24.3%), and 2013–2020 (46.3%), which provided high thematic ratio in reference to journal and research contributions (1: 3.1) on an average during the temporal intervals. The indicated gap in the temporal intervals of bibliometric data refers to marginal availability of the literature on the entrepreneurial leadership theme. The thematic coverage of entrepreneurial leadership related articles during the temporal intervals including the citations have been presented in Table 12.2. The above Table indicates that 7 variables have been analyzed to measure the diffusion of research on leadership and 14 variables have been used to analyze the impact of entrepreneurial growth as presented in the literature during the above referred bibliometric span. The analysis

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Table 12.2 Bibliometric analysis for thematic contribution on leadership and entrepreneurship Domain

Bibliometric variables

Articles reviewed

Leadership

Work culture Stakeholder relationship Leader-member exchange Vision, mission, and goals Governance Monitoring and Control Enterprise growth Engagement Empowerment Decision-making Resource management Business modeling Manufacturing Marketing strategies Innovation Management Technology Reverse Accountability Alliances and growth Investment, disinvestment, diversification Gender and equality Operations management

10 11

1:14.92 1:18.21

7 6

29

1:36.24

2

12

1:30.19

3

32 18

1:39.33 1:22.81

1 5

24 14 36 49 12

1:28.44 1:8.21 1:12.86 1:18.63 1:9.81

4 12 10 7 11

28 18 36 29

1:24.19 1:16.20 1:32.14 1:26.22

5 9 1 3

22 02

1:23.18 1:4.12

6 14

06

1:2.09

13

11

1:16.26

8

22 32

1:24.29 1:30.84

4 2

Inclusive Entrepreneurship Factors

Citation ratio

Threshold ranking

presented in the above Table indicate that the articles on entrepreneurial governance (32), which have fetched the highest citation (1:39.33) among the thematic cluster. This theme converging leadership with governance has ranked # 1 within the thematic research group of entrepreneurial leadership. Similarly, leader-member exchange (29) has been found with high citations ratio (1:36.24) holding the rank # 2 in the

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thematic array. The bibliometric analysis of the data presented in the Table above indicates that the literature on organizational design within the sample bibliometric data has ranked #3 with the citation ration of 1:30.19 out of 12 selected articles. However, the work culture has been found as the lowest citation literature with the lowest rank #7 with citation ration of 1:14.92. The bibliometric data on inclusive entrepreneurial literature has been derived from the review of 156 articles. The bibliometric data was spread across 14 variables during the above reference period, which indicates that the articles on marketing strategy (36) in the context of inclusive enterprises had highest citation ratio with #1 rank, followed by the articles on operations management (32), which have scored the citation ratio of 1:30.84 leading to the rank #2 within the literature threshold of inclusive entrepreneurship. Though many articles on decision-making (49) have been reviewed in the context of inclusivity in enterprises, the citation ratio per article has been found lower (1:18.63) than the first two thematic variables. The least cited articles within the threshold of inclusive enterprises have been found as alliances and growth (citation ratio 1:2.09). The impact of entrepreneurial growth driven by leadership attributes and inclusive entrepreneurial factors as analyzed in this study is exhibited in Fig. 12.2. Leadership Attributes L1 = Work culture L2= Stakeholder relationship L3= Leader-member exchange L4= Vision, mission, and goals L5= Governance L6= Monitoring and Control L7= Enterprise growth

Impact on entrepreneurial growth Low Impact Moderate Impact High impact

Leadership attributes

L7 L6 L5 L4 L3 L2 L1 F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 F14

Inclusive entrepreneurial factors

Inclusive Entrepreneurial Factors F1= Engagement F2= Empowerment F3= Decision-making F4= Resource management F5= Business modeling F6= Manufacturing F7= Marketing strategies F8= Innovation Management F9= Technology F10= Reverse Accountability F11= Alliances and growth F12= Investment, disinvestment, diversification F13= Gender and equality F14= Operations management

Fig. 12.2 Impact on Entrepreneurial Growth (Source Author)

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The qualitative analysis of previous studies revealed that effective relationship with stakeholders empowered them in appropriate decisionsmaking and resource management. The effectiveness of leader-member exchange has also supported stakeholder engagement, decision-making, and their involvement in business operations between moderate to higher degree. However, some leadership attributes such as less democratic governance has shown low impact in manufacturing marketing and innovation management processes (Hall et al., 2014). Contrary to this, liberal governance has helped stakeholders and customers to engage in organizational perspectives due to high perceptions on empowerment. Nonetheless, reverse accountability has moderate to high impact on entrepreneurial growth, which is also supported by some leadership attributes like stakeholder relationship. The analysis of previous studies indicated that involvement of people in entrepreneurial activities helps in design thinking and value co-creation. The inclusive businesses benefit with real-time knowledge on market consumption needs, which stimulate need-based innovation, social responsiveness, and enhancing value propositions of stakeholders and customers. The cross thematic discussion ratios in the bibliometric data have been analyzed across 9 themes related to 3 research propositions. The thematic distribution by research propositions includes transformational leadership (T1 ), empowerment (T2 ), and decision-making (T3 ), which are associated with the research proposition RP1 . In the context of research proposition RP2 , the thematic discussions are distributed across inclusivity (T4 ), reverse accountability (T5 ), and business operation (T6 ). The thematic discussions related to RP3 constitute competitive business performance (T7 ), business growth (T8 ), and collectivism (T9 ). The cross thematic discussion ratios as analyzed for bibliometric data is exhibited in Table 12.3. Transformational leadership and empowerment provide positive impetus for developing inclusive enterprises and explore new opportunities based on stakeholder engagement and collective decisions. The cross thematic discussion as analyzed from the bibliometric data indicates that research studies have contextually discussed high impact of transformational leadership on empowerment (1:29.11) of stakeholders in decision- making (1:36.24) to achieve competitive business performance through inclusive entrepreneurial models. The cross thematic ratios indicate that many studies have discussed the relevance of transformational leadership in collective decision-making by empowering the stakeholders in customer-centric enterprises. The frequency of cross

T1 T2 T3 T4 T5 T6 T7 T8 T9

RP1

1 1:29.11 1:36.24 1:12.06 1:09.13 1:14.16 1:24.02 1:46.72 1:30.72

T1 1 1:42.10 1:35.60 1:06.20 1:15.70 1:21.80 1:18.70 1:39.50

T2

1 1:21.70 1:09.60 1:32.40 1:48.12 1:26.70 1:10.81

T3

* Thematic clusters are explained as in the text above ** The ratio indicates the frequency of cross-discussions across themes by articles

RP3

RP2

Thematic clusters*

Research Proposition

1 1:31.92 1:06.41 1:10.36 1:08.47 1:11.68

T4

Table 12.3 Cross thematic discussion ratio analysis of bibliometric dataset

1 1:04.21 1:02.61 1:06.19 1:25.21

T5

1 1:12.40 1:39.80 1:06.92

T6

1 1:29.27 1:12.77

T7

1 1:03.27

T8

1

T9

258 A. RAJAGOPAL

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thematic discussions indicates the interdependence of themes and its logical output within the broad framework of the research studies. The research studies focusing on stakeholder’s empowerment and decisionmaking indicate the cross thematic discussion ratio of 1:42.10, which emphasizes that decision-making in small and medium enterprises are largely affected by the extent of empowerment of stakeholders and their role in entrepreneurial governance. Similarly, the research studies exploring inclusivity in entrepreneurial practices indicate that the reverse accountability (1:31.92) plays a significant role in promoting collectivism (1:25.21) in enterprises to achieve holistic business growth. The research studies analyzed in the bibliometric data revealed that inclusivity (1:35.60) in enterprises is driven by the empowerment of stakeholders. The above discussion in the context of the results of the bibliometric data analysis is consistent with the research propositions RP1 and RP2 . The research studies included in the bibliometric analysis indicated that transformational leadership significantly affects the business growth (1:46.72) through collectivistic philosophy (1:30.72) in enterprises. In addition, the thematic discussions in research studies have also indicated that business operations (1:24.20) under transformational leadership have positive impact on business growth (1:39.80) and competitive business performance (1:29.27). The results of bibliometric data analysis indicate that inclusivity in entrepreneurship helps stakeholders to monitor, evaluate, and govern the business operations and business growth of the entrepreneurship with proper empowerment under the transformational leadership. Most enterprises are supported by experiential leadership and collectivistic philosophy in managing enterprises. The above discussion based on the results of bibliometric analysis supports the research proposition RP3 , which states that inclusive enterprises stimulate collective decision-making for vertical growth driving competitive business performance.

Implications Inclusive businesses are people-led firms, which benefit from sharing ideas, experiences, and knowledge in managing business. The successful inclusive business companies have shown stronger social interactions on both face-to-face and digital platforms. Companies can create an effective business strategy by converging people’s action in enterprises with customer values in achieving the growth through coevolution. To

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make inclusive businesses a success, the enterprises need to bridge social needs and market demand by constituting profit-with-purpose goals. These enterprises also need to focus on exploiting collective intelligence to update the contemporary market trends, innovations, and value proposition. Strengthening employee engagement with stakeholders and customers will also harmonize the entrepreneurial operations, decisionmaking, and streamlining the projected growth.

Conclusion The philosophy of inclusiveness in micro and small enterprises has emerged as a solution to restructure local economy by identifying local stakeholders to invest in entrepreneurial activities to generate employment, revenue, and economic growth within the niche (Festré & Garrouste, 2015). The bibliometric analysis reveals that inclusive business has become popular as a development approach at the bottom-of-thepyramid by engaging, empowering, and enabling people to achieve holistic entrepreneurial growth. It has also been observed in the study that inclusive enterprises tend to develop unique entrepreneurial design using the triadic dimensions comprising design-to-market, design-to-society, and design-to-value (Rajagopal, 2021). The study endorses several examples of inclusive businesses in micro and small enterprises that amplified their business growth such as AMUL in India, Grameen Bank in Bangladesh, Solar Energy in Senegal, and Tourism in Uganda. The micro and small inclusive enterprises have been spread across agribusiness, health, education, energy, financial services (micro finance institutions), and manufacture in developing economies. Most inclusive enterprises contribute to economic empowerment of enterprises at the bottom-ofthe-pyramid including women entrepreneurs. Inclusive entrepreneurial models supported both empowerment and gender equity as primary goals, while such enterprises also contributed to significant social and economic change (Prahalad & Hammond, 2002). Most inclusive enterprises in developing economies were established in the low-income geo-demographic segments with an objective to explore economic opportunities to increase per capita income in the low-income communities.

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CHAPTER 13

Entrepreneurial Orientation, Human Capital, and Family Business Internationalization: An Empirical Study Akansha Gupta and Amit Kumar Dwivedi

Introduction Internationalization is defined as ‘A process through which a firm moves from operating in its domestic marketplace to international markets’ (Javalgi et al., 2003). The concept of internalization is widely explored in developed countries in large firm’s context. Some study explored this phenomenon in small firm context as well. The relationship between Small and Medium Enterprises (SMEs)and internationalization is still unclear. Moreover, research on family business internationalization is new emerging field. Various scholars have tried to describe the concept of

A. Gupta (B) · A. K. Dwivedi Entrepreneurship Development Institute of India, Gujarat, India e-mail: [email protected] A. K. Dwivedi e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_13

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‘Family Business Internationalization (FBI)’. In India mostly the businesses are controlled by the family. It is a country with rich history and has ritual of robust relationships between the family and businesses have long been a part of the Indian culture. The findings state that nearly 50% of the Nifty50 firms (top 50 in the National Stock Exchange) are controlled and managed by families, the remaining companies are multinational companies or public sector undertakings. Therefore, this study is best suited to be conducted in Indian settings. Lumpkin & Dess, 1996 states that EO echoes a business proactiveness, innovativeness and willingness to handle risks. According to Knight, (2000); De Clercq et al. (2005) various research has studied the association between EO as a one-dimensional construct and numerous pointers of internationalization. According to Kellermanns and Eddleston (2006), EO plays a pivotal role to a business’s progression and triumph, provides significant ability to form competitive advantage (Wiklund & Shepherd, 2003; Brouthers et al., 2015), smoothens the recognition of original business prospects (Webb et al., 2010). Jantunen et al. (2005) argues that business having more EO tends to be more proactive therefore hunt for prospects in new global markets. Family business with more EO performs better in foreign markets because they possess the capabilities needed to develop innovative strategies that provide an advantage in the foreign market, identify, and use technologies that better align with foreign market customer needs, and are willing to take business risks associated with adopting new strategies and technologies in foreign markets (Brouthers et al., 2015). Various authors have defined human capital in their own ways; Schultz (1961) quoted that HC is an amalgamation of skills, knowledge and other abilities related with an individual personality. Intellectual capital leads in this era, many researchers have paid more attention to HC (Korsakiene & Tvaronaviciene, 2012). HC is defined as type of intellectual capital, i.e., the mixture of diverse traits as skills, knowledge, attitudes, individual actions, and mental relationships (Yusfof et al., 2004). With reference to internationalization, HC encompasses skills, knowledge, experience and talent and hence adds value to the business (Fletcher, 2004). HC is treated to be a remarkable forecaster of family business internationalization (Cerrato & Piva, 2012; Goxe, 2010). Onkelinx et al. (2016) stated that accrued HC characterized by level of education and experience of employees is not linked with globalization in progressive business which are on the mode of internationalization. Javalgi and Todd (2011) established that a progressive association between HC and degree of

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internationalization in SMEs in Indian context. Level of education and international experience as measurements of HC are forecasting the internationalization of firms. However, there is a scarce literature on association between HC and degree of internationalization in family business. In the forthcoming sections, theoretical background of the study is elucidated, and hypotheses are stated. Also, empirical data collected from Indian family businesses, including validation of hypotheses through multivariate techniques are presented. A section in this paper presents the discussions on various tests and statistical tools which are applied to explore reasonable answers of research question. Finally, there is a section that provides the research contributions, limitations which are observed, and recommendations for further research.

Theoretical Background and Hypotheses Entrepreneurial Orientation and Internationalization According to Covin and Wales (2012), inclination of firm in the direction of entrepreneurship is largely theorized as EO. Covin and Slevin (1991) stated that even though the construct of EO was fabricated for describing entrepreneurial behaviors in local markets, Covin and Miller, (2014) suggested the usage of EO in a global setting is acceptable. Internationalization is considered to be an entrepreneurial act (Lu & Beamish, 2001; Jones & Coviello, 2005; Liu et al., 2011; Jantunen et al., 2005) as it involves finding novel business prospects in novel surroundings (RipollésMeliá et al., 2007) and integrates acceptance of risk and capability of innovating (Fletcher, 2004). Past research has shown positive association between EO and degree of internationalization (Jantunen et al., 2005; Ripollés-Meliá et al., 2007; Liu et al., 2011; Javalgi & Todd, 2011). Previous research summarizes that the firms with more EO have the probability to launch new products, flourish in unfamiliar surroundings, and expand activities (Dimitratos et al., 2004; Brouthers et al., 2015). As the family business showcase a fascinating situation because of its features and EO is recognized as an important factor that affects family business judgmental process (Moreno & Casillas, 2008; Basco & Voordeckers, 2015), an association between EO and family business internationalization setting still remains unproved, as this aspect is under

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researched (Hernández-Perlines & Mancebo-Lozano, 2016; HernándezPerlines et al., 2016; Calabrò et al., 2017). The authors claim that family businesses are cautious of taking risk, hesitant and conservative (Fernández & Nieto, 2005; Mitter et al., 2014) henceforth these characteristics are very different of entrepreneurship (Naldi et al., 2007). EO mentions about the strategy-making processes that deliver establishments with a foundation of innovativeness, proactiveness and risktaking choices and activities (Naman & Slevin, 1993; Miller, 1983; Wales, 2016; Rauch et al., 2009). Lumpkin & Des, (1996) has conceptualized Innovativeness as the entrepreneurial behavior of engaging and supporting novel ideas, experimentation, and creative procedures results in new services, products, or technological processes. According to Newbert (2007) proactiveness means allowing business to predict the requirement of customers who search for new business operations. Even though entrepreneurs have different insight of the influence of risk on execution (Miller, 1983; Lumpkin & Dess, 1996), management of business is certainly linked with speculation of risk. Various studies consider EO as a crucial organizational process which boosts the execution of the business (Lumpkin & Dess, 1996; Wiklund & Shepherd, 2003, 2005) in the global marketplace (Covin & Miller, 2013; Lee et al., 2001; McDougall & Oviatt, 2000). As EO encourages the rejuvenation of prevailing execution and the search of novel prospects (Lumpkin & Dess, 1996), it is a vital component when the firm is operating internationally where there is a constant change and mounting burden that needs certain skills in order to engage in internationalization (McDougall & Oviatt, 2000).Past research on the internationalization performance construct of both evolving and advanced economies states that EO is particularly supportive in attaining success in overseas (Deligianni et al., 2016; Javalgi & Todd, 2011; Liu et al., 2011; Zhou, 2007; Yamakawa et al., 2008). On the basis of theoretical background and on past research outcomes, first hypothesis deliberates that EO can positively impact the internationalization of recently settled businesses (De Clercq et al., 2005). Entrepreneurial orientation refers to a set of behaviors that are innovativeness, proactiveness, and risk-taking that influences the internationalization process (De Clercq et al., 2005), performance (Zhang et al., 2012) and speed of entry (Zhou, 2007). EO is considered as the important construct in the process of internationalization (Knight & Cavusgil, 2005, 2005)

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therefore EO must support in fostering the internationalization possibility in businesses. Therefore, we propose the following hypotheses: H1: There is a positive relationship between EO and international growth of family business. H1a: There is a positive relationship between innovativeness and international growth of family business H1b: There is a positive relationship between proactiveness and international growth of family business H1c: There is a positive relationship between risk-taking and international growth of family business

Human Capital and Family Business Internationalization Particularly in context of research on internationalization, there is a deficiency of competent individuals which is the major barrier in terms of resource for internationalization (Pinho & Martins, 2010; Tseng & Yu 1991; Tesfom & Luts 2006; Leonidou, 2004; Rabino, 1980). On comparison with the local business, globalized business encounters several other problems linked with variation w.r.t ethical standards; language; suppliers; communication; culture and behavior of customers language and communication. SMEs must have high amount of potentially upgraded individuals with competencies and capabilities if they aim for exporting or internationalizing their business instead of catering to local business. Ortiz et al. (2008) put forward that family business face several problems in finding individuals trained with required skills. Problems of finding human resources make the job of detecting and functioning in global markets challenging in small firms (Gomez-Mejia 1988). From the view point of resource view, firm’s path of development is determined by firm’s competencies and resources. The skills and knowledge of employees are highly valuable to firms. Human capital is contemplated to be critical to the exploitation and recognition of business. Hence, both financial issues and human capital are considered to be an important resource for internationalization process. According to authors Boxall and Steeneveld (1999); Rauch et al. (2005) human capital described as consisting of education, experience, skills. Broadly, it is linked

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to training, education, experience, qualifications, and technical abilities of human resources (Ashton & Green, 1996). It can’t be implied that a specific qualification means the holding of important skill required in specific industry neither skilled workers possess the required qualification (Devins 2008). Hambrick and Mason (1984) showed that abilities and knowledge of individual are knowledge and abilities of personnel are directly linked to their education. Higher education creates the prospects of encountering new settings, people and hence creates more chances of change in the surroundings (Wiersema & Bantel, 1992; Tihanyi et al. 2000). These particular factors are vital in handling the difficulties of internationally developing and to understand various ways of performing business. Moreover, the human capital’s role is also important in the settings of innovation and technological change (Piva & Vivarelli, 2009). In the past studies, researchers have mainly concentrated on the business owner’s human capital. Cooper et al. (1994) showcase the association among education and experience of managers or entrepreneur researched enormously. It is stated that there is a positive association among the top management’s experience, level of education, and internationalization (Tihanyi et al., 2000). As there has been an extensive research on human capital of business founders/owners on entrepreneurship and small businesses but the employee’s human capital has been under researched. Dal Zotto and Gustafsson, (2008) proposed that together the survival and growth of a business rely on its establishment with trained individual. After the investigation of the influence of human capital on the growth of small firms, Rauch et al. (2005) explored that human resources are the vital factor in find that human resources are an important factor in forecasting the growth of small-scale enterprises. So, individuals have a significant role to in the success and growth of SMEs apart from the management team and the entrepreneur (Barret & Mayson, 2008). When the SME is evolving in the global market, the entrepreneur plays an important part in role of the entrepreneur in describing positioning growth paths and strategies (Knight, 2001; Lamb & Liesch, 2002). Though, there is a strong requirement of new roles and organizational development within the business. The amount of people within the firm included in handling internationalization actions also increases (productive subsidiaries, management of commercial and contact with clients and suppliers) with the increase international commitment. Resulting in the strong requirement of accessing qualified individuals with all the essential

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competencies for managing the successful process of international growth. The implementation of growth strategies for internationalization by SMEs consequently highlights the role of human capital of employees into the forefront. H2: Human capital is positively associated to the internationalization of SMEs.

Research Methodology The observational study is built on information from Indian MSME family firms. The purposive sampling was done to collect the data for the study. The survey questionnaire was established via measurement scales acquired from previous studies. Likert-type-five-point scale (ranging from 1 “strongly disagree” to 5 ‘‘strongly agree’’) was used in this research. A self-managed questionnaire was used to assemble the information for this research. In total, 123 questionnaires were gathered. The focus of this research is only on family firms, as main purpose encompasses examining various effects of family characteristics and not comparing the results between family and non-family businesses (Casillas et al., 2011). This study is a quantitative study which is based on information from small and medium-sized Indian family firms. After the initial standards were made, a well-structured and a formal questionnaire was created to gather the data. The pilot study was done with the questionnaire with the owners of numerous companies for ensuring whether the items in the questionnaire were comprehensible before doing telephone interviews. Measurement scales acquired from previous research are used in fabricating the survey questionnaire used for this research. According to Fornell and Larcker(1981) the reliability of separate items was measured by evaluating the values of internal consistency and loading items on their matching construct. The values of internal consistency values for all constructs were decent, ranging from 0.441 to 0.89 (0.89 for international performance, 0.80 for Entrepreneurial orientation, 0.72 for Human capital, 0.535 for Innovativeness, 0.411 for risk-taking and 0.656 proactiveness). Tavakol and Dennick (2011) says that the motive of the Cronbach’s Alpha is to measure the scale’s internal consistency is to assess the internal consistency of a scale and the values are stated in between 0

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Table 13.1 List of Independent and dependent variables Independent Variables Construct Entrepreneurial Orientation (Lumpkin & Dess,1996) Entrepreneurial Orientation (Lumpkin & Dess,1996)

EO

Innovativeness

Risk-taking

Proactiveness

Human Capital (Youndt & Snell, 2004)

Questions

HC

Cronbach Alpha 0.80

Our company is known as innovator among businesses in our industry We promote new, innovative products/services in our company Our company provides leadership in developing new products/services Top managers of our company, in general, tend to invest in high-risk projects This company shows a great deal of tolerance for high-risk projects We seek to exploit anticipated changes in our target market ahead of our rivals We seize initiatives whenever possible in our target market operations We act opportunistically to shape the business environment in which we operate Our employees are highly skilled Our employees are widely considered the best in our industry Our employees are creative and bright

0.72

(continued)

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Table 13.1 (continued) Independent Variables Construct

Questions

Cronbach Alpha

Our employees are experts in their particular jobs and functions Our employees develop new ideas and knowledge Dependent Variable Internationalization of Family Business(Woodcock et al, 1994)

IFB

We are satisfied with growth in overseas markets (growth performance) We are satisfied with market shares in overseas markets (market share performance) We are satisfied with profitability from overseas expansion (profitability performance) We are satisfied with return on investment through overseas sales (return on investment performance) We are satisfied with increase in foreign customer satisfaction (customer satisfaction performance)

0.89

to 1. Cronbach Alpha was put to use for examining the reliability of to examine the reliability of the planned constructs in this research. Table 13.1 represents the summary of all the items used for each of the variables in the questionnaire and the respective values of Cronbach’s Alphas. Tavakol and Dennick (2011) stated that the admissible values of alpha are suggested to be in the values between 0.70 and 0.95, therefore the relatability of all the items is good and internal consistency is high.

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Table 13.2 Descriptive statistics of the variables Variables

Observations

1. 1. 2. 3. 4. 5.

123 123 123 123 123 123

EO Innovativeness Risk-taking Proactiveness Human_Capital IFB

Mean

S. D

Min

Max

26.774 9.8374 6.0244 10.9106 17.8293 14.0163

4.94198 2.40005 2.15187 1.88614 3.20017 5.50407

14.00 3.00 2.00 6.00 10.00 5.00

35.00 14.00 10.00 15.00 24.00 22.00

Results and Discussion Descriptive Statistics Quantitative descriptions are represented in a handy way. There are plenty of measures in an exploratory study, and we can perform our research on huge number of samples. Descriptive statistics assist in simplifying the huge data functionally. Descriptive statistic lessens hefty amount of data in reduces lots of data into a simpler summary. In Table 13.2, from outcome it is clearly visible that value of mean for all the new variables is higher than 6, result from Table 13.2 show that the mean value for all the new variables is larger than 6, ranging from minimum value of 6.0244 to a highest of 26.774. The standard deviation ranges from 1.88614 to 5.50407. Correlation Between Variables Marczyk et al. (2005) stated that the method of correlation is when there is a need of finding out such relationship as it is the utmost simple and values measure of association among variables. Correlation analysis is essential for measuring the importance of the relationship among the variables in the study. The correlation coefficient can measure between − 1 and + 1 denoted by “r.” Since the main objective of the current study is to measure the impact of innovativeness, risk-taking, and proactiveness, human capital on family business internationalization, therefore correlation analysis was essential for computing the importance of the association among variables. In Table 13.3, outcome of Pearson correlation are represented.

* p=0.05, ** p=0.10

6.IFB

5.Human_Capital

4.Proactiveness

3.Risk_taking

2.Innovativeness

1.EO

Pearson correlation Significance Pearson correlation Significance Pearson correlation Significance Pearson correlation Significance Pearson correlation Significance Pearson correlation Significance

Table 13.3 Correlation Analysis

0.801∗ ∗ 0.000 0.814 ∗ ∗ 0.000 0.671 ∗ ∗ 0.000 0.438 ∗ ∗ 0.000 0.400 ∗ ∗ 0.000

1

1

0.491∗∗ ∗ 0.000 0.267∗ ∗ 0.003 0.450 ∗ ∗ 0.000 0.319 ∗ ∗ 0.000

1

2

0.368 0.000 0.308 ∗ ∗ 0.001 0.514 ∗ ∗ 0.000

1

3

0.224 ∗ 0.013 0.055 0.543

1

4

0.169 0.062

1

5

1

6

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Regression Analysis As correlation only calculates the association among variables and thereby estimation of the value of dependent variable depending upon the value of the independent variable can’t be done. Correlation solely calculates the association among the variables and hence cannot evaluate the value of dependent variable based on the independent variable, therefore, regression analysis is considered as the best possible way to contemplate the influence of independent variables on the dependent variable of the research. In this research, two kinds of model are used formulated on the basis of major hypotheses of the research and are posited as: First Model Internationalization of Family Business = f (Entrepreneurial orientation) and f (Human Capital). Second Model Internationalization of Family Business = f (Innovativeness, Risk-taking, and Proactiveness ). The linear association among the new dependent variable and the independent variables for model 1 is stated as: IFB = β0 + β1(EO) + β2(HC) The linear association among the new dependent variable and the independent variables for model 2 is stated as: IFB= β0 + β1 (Innovativeness)+ β2(Risk-taking) + β3 (Proactiveness) Based on the research, β coefficients are anticipated to be positive β > 0 means that all the variables are supposed to have a positive influence on family business internationalization. In the research, all the hypotheses will be examined by multiple regression analysis and when multiple regression is done via STATA, it displays two main outcomes. First is the summary statistics and the second is the table of regression. The table of Summary statistics displays the the coefficient of determination, or the coefficient of multiple determination for multiple regression which is also known as R-Squared. The measure of goodness of fit is calculated by R-squared which is the percentage of the response variable difference which is demonstrated by linear model. The

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value of R-squared is between 0 and 100% where 0% specifies that in the model cannot describe the variation in data around its mean and 100% specifies that the model describes all the variations of the data around its mean. Another value which is displayed is adjusted R-squared i.e., somewhat lesser than R-Squared but it is more precise in adjusting the standard errors of the model. The regression table displays, their standard errors, the p-value, the t tests and the regression coefficients. The standard error is an approximation of the standard deviation calculated from the data. The p–value illustrates the level of confidence, what is the significance of value and display the indication in support or against the null hypothesis. When p = 0.000 < 0.001, it shows that there is a high significance and hence display robust indication against the null hypothesis. The mean change in the response variable for one unit of change in the predictor variable while holding other predictors in the model constant is expressed by the regression coefficients. The t-Value tests display the contribution that a predictor has in explaining the dependent variable, if the coefficient is not zero.

Testing of Hypothesis Regression analysis is performed for the testing of hypotheses in this study. The output of multiple regression is displayed in Table 13.4. The coefficient of determination R-Squared for model 1 in the study is 0.16 or 16%. This shows that 16% of the variations in the model can be described by the explanatory variables of the model while 84% can be attributed to unexplained variation taken by the error term. The coefficient of determination R-Squared for model 2 in the study is 0.293 or 29.3%. This shows that 29.3% of the variations in the model can be described by the explanatory variables of the model while 70.7% can be attributed to unexplained variation taken by the error term. According to Hair et al. (2012), there are no general rules regarding the value of the R-squared value, and the decision of what value of R-squared is considered adequate depends on the research discipline. The regression result among other data gives the β coefficients for each independent variable. These coefficients will be explained for each independent variable comparing to the a priori expectations that all the β coefficients are > 0.

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Table 13.4 Multiple Regression Analysis Model 1 Number of Observations

123

Prob > F

0.000

R-squared

0.160

Adj R-squared

0.146

Variables

Coefficients

Std. Error

t

p

VIF

EO HC

0.403 −0.008

0.104 0.160

4.332 −0.086

0.000 0.931

1.237 1.237

Model 2 Number of Observations

123

Prob > F

0.000

R-squared

0.293

Adj R-squared

0.276

Variables

Coefficients

Std. Error

t

p

VIF

Innovativeness Risk-taking Proactiveness

0.106 0.523 −0.165

0.204 0.236 0.243

1.187 5.673 −1.983

0.237 0.000 0.050

1.333 1.432 1.170

Model 1 H1 proposes entrepreneurial orientation (EO) and international growth of family business are positively related. From the regression table it can be contemplated that regression coefficients (β > 0), positive association among EO and IFB exists. Consistent with H1, if the value is increased by one unit in Entrepreneurial Orientation, internationalization of family business will be correspondingly increased by 0.403 times. Hence, H1 is supported. H2 proposes that human capital (HC) is positively associated to internationalization of Family business. But the values of coefficient of human capital is negative which is not β > 0. If the value is increased by one unit in human capital, internationalization of family business will correspondingly decrease by 0.08 units. Hence, H2 is not supported. On the basis of the outcomes after conducting regression analysis of model 1, the model is.

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IFB = 2.239 + 0.403(EO) − 0.008(HC). Model 2 H1(a) proposed innovativeness and internationalization of family business are positively related. From the regression analysis table, it can be contemplated as β > 0, positive association among innovativeness and internationalization of family business exists, even after the outcomes are statistically insignificant (0.237). It means if the value is increased by one unit in innovativeness, there will be a corresponding increment of 0.106 units in internationalization of family business. Hence, H1(a) is supported. H1(b) proposed that there is positive association among risk-taking and internationalization of family business. From the regression analysis table, it can be contemplated as β > 0, positive association among risk-taking and internationalization of family business exists. It means if the value is increased by one unit in risk-taking, there will be a corresponding increment of 0.523 units in internationalization of Family business. Hence, H1(b) is supported. H1(c) proposed proactiveness and internationalization of family business are positively related. The results are not in line with the expected value i.e., β > 0 as well statistically not significant (0.050). It means if the value is increased by one unit in proactiveness, there will be a corresponding decrement of 0.165 units in internationalization of Family business. Hence, H1(c) is not supported. On the basis of regression results of model 1, the regression model. IFB = 8.836 + 0.106(innovativeness) + 0.523(risk-taking) – 0.165(proactiveness).

Conclusions The primary motto of this research was to determine the impact of EO and HC on the family business internationalization. The outcome of multiple regression states that EO has a positive influence and a major influence on Internationalization of family business. Although HC does not have a positive impact on the family business internationalization. Therefore, we can confirm that hypotheses H1 is supported and hypothesis H2 is rejected. Research on EO in the field of international business has been vivid as the role of EO is to exert a constructive influence on

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family business internationalization. In order augment to the opulent empirical and theoretical research of EO in terms of internationalization, the research particularly discovers in what ways EO influences family business internationalization. The hypotheses were evaluated using family businesses involved in internationalization. The differential roles of EO i.e., innovativeness and risk-taking have a significant impact on internationalization where proactiveness doesn’t impact it. As this research was done in small family business therefore the proactiveness levels are less and it negatively influence the family business internationalization.

Limitations and Future Research The study has some limitations even after making valuable contribution to theory. First limitation of this study is that the study gathered subjective data straight from the owners of family business and not from the secondary sources such as their financial statements or other internal records of family business. This research has contributed a lot in various fields but there is a lack of study that solves the questions raised in all the areas. Lumpkin & Dess, 1996 stated that entrepreneurial perceptions of innovativeness, proactiveness, and risk-taking forms the base for planned decisions, hence further study that is able to channelize the real levels of these dimensions would supplement the comprehension of entrepreneurial firms. Further research using case study method may be useful for exploring whether firms adjust their levels of EO in diverse settings, the extent to which each dimension then fosters internationalization, and the corresponding consequences of such strategic moves. This research was done quantitively, therefore future research should be done qualitatively or with mixed methodology approach that may support in searching the issues that influenced the unwanted results. A lot of similar studies including the current study used multiple regression as the tool for analysis in order to find the impact of EO and HC; hence it would be fascinating to see the usage of other statistical tools in order to analyze whether they will yield analogous results. Murphy et al., 1996 stated that the use of control variable like business age, industry, or size which are appropriate for small business should be involved in order to discover the effects of these control variables. The current study was conducted in India i.e., one country, hence the outcomes can’t be concluded. Therefore, this study should be replicated in other countries and thereby new areas for future research.

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CHAPTER 14

Entrepreneurship Development of Rural Women Through Digital Inclusion: Examining the Contributions of Public Programs Hema Yadav, Manisha Paliwal, and Nishita Chatradhi

Introduction The numbers of women in the rural economy working as farmers, smallscale producers, in plantations and agro-industries is significant. However, women in the rural economy are employed in other sectors, such as education, tourism, and domestic work. Because of disparities and barriers they experience in the rural economy, women are unable to find suitable jobs or boost their productivity. Entrepreneurship plays a vital role

H. Yadav · M. Paliwal (B) · N. Chatradhi Vaikunth Mehta National Institute of Cooperative Management, Pune, India e-mail: [email protected] M. Paliwal Sri Balaji University(SBUP), Pune, India

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_14

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in generating employment opportunities for rural societies, providing selfemployment for those who started up their own business and improving the rural area’s economic status. Now women’s are also interested in starting their businesses in both the rural and urban areas due to overcoming poverty, generating family income and developing Standard of living. Thus, women’s are participating in agriculture, business, and trade without any social and other boundaries. Nevertheless, in India, there are many social and cultural limitations for rural women. Hence, the women’s contribution to entrepreneurial activities is less in rural India’s social and economic growth. Those who carry out entrepreneurial activity establishing industries, business units in rural areas by using agriculture sources are called rural entrepreneurship. In other words, the establishment of industry and business units in rural areas refer to rural entrepreneurship. India faces structural unemployment and underemployment, disguised unemployment, improper trainer and worker relationship, and unequal distribution of wealth today. This is mainly because of digital illiteracy and the shortage of soft skills in many places. Digital literacy is no longer a luxury but a necessity. As digitalization intensifies in India, the digital divide is becoming a profound barrier to social and economic inclusion. Global importance is in ensuring that everyone has the digital skills necessary to succeed in today’s technology-driven environment. A modern telecommunications and information infrastructure are increasingly central to education and employment. However, there is a stark gender gap in women’s access to and use of mobile phones, which is particularly pronounced for rural women. This has proved a chronic challenge to scaling and sustaining digital development solutions for women in India. However, despite its potential, women are underrepresented in the digital world, especially in rural areas where access to new technology is restricted due to cost, availability, and other sociocultural issues. India needs social and political inclusion too. Inclusive growth necessitates women’s empowerment in more than one way. In this regard, both state and citizens have their roles cut out. Governance and participation are the two pillars of inclusive growth as also as total empowerment. Globalization and the Information Technology (IT) revolution have made it possible to have market integration and virtual integration of communities as women march on the road to progress and prosperity. The attributes of technology, its cost-effectiveness, and utility have so far been conducive for development and empowerment. Entrepreneurship

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development among rural women helps to enhance their capabilities and increase decision-making status in the family and society. In the background of these factors, the study aims to answer the question on how digital inclusion necessitates empowerment of rural women and facilitates women entrepreneurship? Furthermore, it focuses on examining the contribution of public programs. After this introductory section, the second section reviews the literature on this subject. The third section is about the materials and methods adopted for the study. The fourth section presents a case study of Digital Inclusion Foundation and the fifth session discusses the conclusion of the study.

Literature Review Entrepreneurship Development of Rural Women A more holistic approach to stabilizing new patterns and processes of sustainable development relies heavily on women, who make up half of all human resources. Women’s equality is therefore critical (Kulkarni et al., 2021). Women’s role in the family and economic growth, as well as societal change, is critical. Women make up 90% of the country’s marginal employees. 78% of all working women in rural areas are involved in agriculture (Malhotra, 2015). The operational components, such as the extent to which enabling enters into community self-help procedures and the sharpening of women’s thinking, are shown by National Institute of Rural Development, India (NIRD) action research projects’ experience. Indian women’s marginalized social and economic standing within their families, communities, and society directly impacts their economic engagement. The majority of women from lower castes, marginalized communities, and minority religions have a more challenging time launching or managing enterprises (Sorgner & KriegerBoden, 2017b). Some of the reasons for women’s lower participation in incomegenerating activities can be attributed to the patriarchal family structure, which discourages women from engaging in income-generating activities, as well as other factors such as difficulty accessing formal finance, poor customer management skills, and a general lack of awareness about government schemes for small businesses. It is critical, therefore, to encourage women to engage in income-generating activities while also equipping them.

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Consequently, women are catalysts in the process of economic development of a country. They are considered willing to take risks and consistently seek to innovate. This is because women play a significant role in both professional and domestic roles. Women are not immune to the disclosure of new technology, which represents a chance for women to flourish in various professions, particularly entrepreneurship. To effect change, it is necessary to implement policies and programs that increase women’s access to secure livelihoods and economic resources, reduce their excessive homework obligations, eliminate legal barriers to their participation in public life, and raise social awareness through effective education and mass communication programs. In general, most studies are beginning to examine the purpose of individual Internet users and the resulting benefits (Hazura et al., 2012). The women were technically empowering themselves to cope with the changing times and productively use their free time and existing skills to set and sustain enterprises. They were tasked with establishing individual or collective revenue production programs with the assistance of self-help groups. This will provide people with revenue and enhance their decisionmaking capacities, resulting in overall empowerment. (Kuratka & Richard, 2001) defined entrepreneurship as the dynamic process of building total wealth. This wealth is created by individuals who take significant risks in terms of equity, time, and career commitment to add value to certain products or services. The product or service may or may not be novel or unique, but the entrepreneur must infuse it with value by acquiring and allocating necessary skills and resources. If the impoverished are organized into self-help groups (SHGs), microfinance is delivered smoothly, effectively, and at lower costs. SHG fosters micro entrepreneurship through microcredit intervention. Microenterprise is an effective instrument of social and economic development. Rural women who have human and non-human resources need an innovative mind and motivation to take up an enterprise. Entrepreneurship is the only way to address rural youth unemployment. It contributes to the creation of employment opportunities for several people inside their social structure. This is especially useful for rural women because it enables them to contribute to the family income while also caring for their own homes and cattle. Rural women have plenty of resources to start businesses. They benefit from ready access to raw materials and other resources derived from arms and animals.

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Herbert (2017) argues that digital development can change the pathways to development, especially for women. Digital technologies can reduce gender gaps in labor force participation, provide better and lowcost access to the public delivery system, and therefore increase the ease of access. Digital inclusion lets women overcome time and space restrictions imposed on them. For women in low middle-income countries, digital savings, credit, and payment services can provide them with a critical link to the formal economy and a gateway to greater economic security and personal empowerment. Lee (2009) analyzes the impact of mobile phones on the status of women in India by considering four key areas: domestic violence, decision-making autonomy, son and fertility preferences, and economic independence. The study revealed that mobile phones could significantly decrease the tolerance for domestic violence among women and increase women’s mobility and economic independence. However, there remains a gender-based digital exclusion that hampers women’s access to digital financial services. Women Empowerment Through Financial and Digital Inclusion Women’s economic empowerment (WEE) is the process through which those deprived of the capacity to make strategic life choices reclaim that capacity. To be economically empowered, women must have the means to achieve economic security for themselves and their families and influence the markets and governance structures and expectations that affect their livelihoods. The process of economic empowerment has many dimensions, including education, healthcare (including reproductive health services), collective action and political participation, and freedom from violence. In addition, access to finance empowers women as it affects a woman’s ability to make decisions, boosts their self-confidence, and improves their status in the community etc. (Cheston & Kuhn, 2002). Financial services contribute significantly to WEE. Women who have access to bank accounts, savings mechanisms, and other financial services have a more extraordinary ability to manage their earnings and engage in personal and productive activities. They may also have choices regarding their time and autonomy over decision-making in areas ranging from job to marriage to contraception use. Noneconomic benefits such as greater self-efficacy and self-worth, confidence, and increased solidarity within a woman’s network may also result from financial services. Nonetheless,

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many of these potential benefits will be realized only if women retain control over their resources. The influence of microfinance programs such as self-help groups (SHGs) on women’s empowerment was examined in an empirical article based on a quasi-experiment household sample. The study’s findings indicated a considerable increase in women’s empowerment among SHG members (Swain & Wallentin, 2009). According to a 2019 research by the International Finance Corporation advocated Financial Inclusion for Woman-Owned Micro, Small, and Medium-Sized Enterprises in India, women account for only 33% of the country’s early-stage entrepreneurs (Mathew, 2019). Despite the importance of access to finance, especially for women, there is still a stark gender gap in financial inclusion. The Reserve Bank of India (RBI, 2015) report highlights the problem of women’s financial exclusion. The report underlines that States with a higher rural population and higher share of the female population had a comparatively lower level of financial inclusion. Under the global post-lockdown circumstances, the necessity for women to start or improve their businesses is essential. This can be accomplished by providing them with the necessary assistance in digital and financial literacy, access to government welfare programs, and awareness of their economic rights, all of which will give them greater control over their finances, enable them to obtain necessary loans with proper documentation for their business and create jobs. Additionally, elevating women’s status enhances their ability for decision-making at all levels and in all sectors of life, particularly in the area of sexuality and reproduction. This is crucial for the long-term viability of community activities. Before the epidemic, women in many parts of the world had less access to financial services than males. Women from low-income families and small business owners have benefited tremendously from advancements in mobile money, fintech services, and online banking. Financial inclusion has also boosted economic growth as a result of digital financial services. While the epidemic has increased usage of these services, it has also created obstacles for smaller companies to flourish and exposed unequal access to digital infrastructure. Throughout the COVID-19 lockdowns, digital financial services enabled governments to deliver immediate and safe financial assistance to “hard-to-reach” individuals and enterprises, thereby mitigating economic repercussions and potentially strengthening the recovery. Digital inclusion has two goals: first, to ensure that all communities could benefit directly from digital technology by gaining access to

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and developing technical skills, motivation, and confidence; and second, to ensure that all communities have the opportunity to improve their quality of life through the use of digital technology (HM Government, 2008). Second, to ensure that the indirect benefits of technology are adequately utilized by society, all parts of planning and deployment services must be improved. For example, early assessments of the implications of digital technology for gender relations stated that the internet possessed the enormous potential for transforming gender relations and identities (Haraway, 1991; Plant, 1998). While widespread acceptance of digital inclusion exists, women have not yet wholly reaped the benefits of digitalization. Therefore, developing a more nuanced and comprehensive knowledge of women’s engagement in the digital revolution is critical for change to occur. Over the years, India has seen a number of programs and progressive legislation aimed at empowering women and increasing their economic engagement— at both the central and state levels. India, meanwhile, has had limited success despite the government’s targeted efforts. The following sections detail some of the efforts made by civic and government organizations to provide new and reinforce current data, research, and evidence that supports successful action and raises the issue’s visibility. 1. Internet Saathi (Internet Buddy) Internet Saathi is a digital literacy program developed by the Tata Trusts and Google to benefit rural women. Launched in 2015, the program aims to connect 300,000 Indian communities and empower women. In this program, mission is to increase women’s economic empowerment and selfdetermination through internet usage in rural India. This opens up new income streams and raises women’s social position. Over 30,000 Internet Saathi’s, armed with cell phones and tablets, operate in 110,000 villages, teaching women how to utilize and benefit from the Internet. Google trains each Saathi for two days, and then they spend eight months talking to rural women. Google collaborated with the Tata Trusts’ Foundation for Rural Entrepreneurship Development (Frend) on the Internet Saathi project. A trial project in Rajasthan, Jharkhand, and Gujarat began in 2013. Later, the program was expanded to 12 states: Andhra Pradesh, Haryana, Bihar, Madhya Pradesh, West Bengal, Tripura, Assam, Gujarat, Uttar Pradesh, Jharkhand, Rajasthan, etc.

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2. Digital Shakti (Digital Friend)1 Digital Shakti is L&T Financial Services’ (LTFS) flagship program. It empowers rural women with the skills and knowledge necessary to successfully impart digital financial literacy training to households in their communities and nurture an ecosystem of digital financial transactions. The program is centered on Sustainable Development Goal (SDG) 5— Gender Equality, and it involves identifying and training women from rural communities in digital financial literacy, leadership, and technology. These females are referred to as "Digital Sakhis." Each Sakhi is supplied with a mobile tablet packed with LTFS Digital Financial Literacy (DFL) modules to learn about and disseminate information about digital payments and other pertinent government program, such as insurance. Additionally, the initiative develops female microentrepreneurs from the communities by providing them with upskilling and enterprise development training to assist them in growing their enterprises and improving their livelihoods.

3. Arogya Sakhi (Health Buddy) Arogya Sakhi Home-based Antenatal and Infancy Care program educates women health entrepreneurs (ArogyaSakhis) from resource-poor rural communities on how to provide preventive care at home, conduct diagnostic tests and screen for high-risk factors, and ensure early referral during the antenatal and infancy periods. Arogya Sakhis are supplied with medical kits and are trained to do routine diagnostic tests such as hemoglobin, blood sugar, urine, blood pressure, fetal doppler, and anthropometric measurements. They are aided by a smartphone application that takes them through the care process, assists in identifying high-risk signs and symptoms, and notifies them when a referral is necessary.

1 Digital Sakhi is an educational program aimed at the digital financial inclusion of rural women. By making rural women the torch-bearers, this commendable program will not only strengthen the country’s future but also supplement the Digital India campaign launched by the Government of India.

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Digital Literacy of Women Awareness dimension quantified through instrument acceptability (adoption) and digital literacy (looking to skills that use digital equipment). Meanwhile, capacity and capability may be evaluated financially, infrastructure can be utilized and owned, and information can be accessed. On the other hand, the accessibility dimension refers to how digital accessibility affects all individuals, regardless of their differences in the digital era. This measurement served to pioneer need, challenge, and interest in digital inclusion in Australia and establish more nuanced conceptual frameworks for determining and managing digital equality. As discussed previously, in terms of time, because the internet enables the adoption of roles that defy gender preconceptions, digital inclusion may provide an opportunity to experiment with alternative time allocations that challenge the gender division of labor. Despite these theoretical recommendations, empirical research on the potential influence of digital participation on gender equality in time utilization is lacking. The field’s early empirical research examined the repercussions of exclusion in terms of social inequality by comparing “haves” and “have-nots,” but they assumed that internet access options are uniform across the entire eincluded population. This absence was highlighted by the second wave of digital divide studies, which discovered that access to technology does not automatically translate into increased social chances; they also demonstrated that an individual could be “info-excluded” while having internet access. They took their analysis a step further by including the acquisition of e-skills and the various forms of internet use. This research contributed significantly to our understanding of the various types of usage and shown how they are socially stratified (Valenduc, 2010; van Deursen & van Dijk, 2014). From a gender standpoint, the digital divide research demonstrated how gender-segregated digital skills acquisition and internet use are as well: Men have more sophisticated digital abilities and spend more time on the internet for pleasure than women do (Castao, 2008; Castao et al., 2011; Helsper, 2010). After identifying skills and usage gaps, the third phase of digital divide studies measured the impact of these gaps on the unequal distribution of internet advantages. While some studies include gender as a sociodemographic component of the sample, they do not examine whether digital inclusion confronts gender disparities such as time and labor divisions between men and women (Quan-Haase

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et al., 2016; Scheerder et al., 2017; van Deursen & Helsper, 2015). The majority of research on internet time use is psychological and focuses on internet addiction, procrastination, and digital multitasking activities (Beavers et al., 2015; Duff et al., 2014; Kim et al., 2017; Müller et al., 2018; Vilhelmson et al., 2016) their emphasis is on the effect of mental health problems, not on societal variables or the consequences of internet use for gender relations. More broadly, studies that take a mutual shaping perspective demonstrate how technologies and society continually impact one another. They examine how digital technologies change daily life while examining how social inequities and conditions affect technology use and production. In terms of gender relations, these studies have made critical contributions to our understanding of how the use of digital technology can be transformational or reproductive (Srensen et al., 2011; Wajcman, 2004).

Research Methodology This study employed a persuasive case study technique (Siggelkow, 2007) to examine both the institutional frameworks or business models that support women’s empowerment and the self-perception of empowerment by women-owned institutions (Pollard, 2006). While a persuasive case study cannot be used to prove a theory, it can be used to illustrate, motivate, and inspire readers to get a better knowledge and respect for a specific theory (Siggelkow, 2007). The study’s objective is to better understand women entrepreneurs’ present patterns of digital tool use, their knowledge with financial tools and overall financial literacy, their current company plan, and finally, their economic status. The study accomplishes the above objectives through the use of both primary and secondary data. The first section of the study uses secondary data to illustrate gender disparities in rural women’s digital inclusion and empowerment through financial inclusion. Secondary data were gathered from the organization’s brochures, notes, and academic material, annual reports, published literature on their website, journals and publications, and news coverage. The second section of the study incorporates primary data from a focus group discussion with 15 female employees and beneficiaries of the Digital Empowerment Foundation. Their qualitative responses form the basis of our research findings (Eisenhardt & Graebner, 2007).

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Women Empowerment Through Digital Inclusion: Digital Empowerment Foundation (DEF) Case Study In male-dominated contexts, it is critical to delve more profound into women’s entrepreneurial prospects’ growth to determine whether women entrepreneurs believe in and act on an improved feeling of agency (Calás et al., 2009). In general, Organizations have access to the raw data sources and data processes in addition to the produced report or visualization itself. Driving toward digital transformation, modern digitalization plans contain characteristics of data democratization (Yoder, 2019). This data democratization is the key to decreasing repeated work, dissolving silos, and building a social network for leveraging the hard data efforts of one business entity for effective usage in another. This section discusses the Digital Empowerment Foundation and how grassroots women become active agents in their empowerment. DEF, a New Delhi-based nonprofit created in 2002 by Osama Manzar and Shaifali Chikermane, believes that access to knowledge and digital know-how is necessary in the digital world and should not result in exclusion. As a result, DEF continually contextualizes and economizes while guaranteeing that access to digital tools is a top concern. The organizations primary goal is to make technology accessible to the masses, empowering women, youth, the differently abled, and the elderly through functional digital literacy, media literacy, and digital upskilling in agriculture, micro and nano business, health, education, livelihood, and entrepreneurship. Over the last two decades, the organizations has been actively engaged in digitally empowering local communities through its 1000 Community Information Resource Centers and a widespread network of 10,000 digital foot soldiers located in rural, tribal, marginalized, and unreached areas across 24 states and 135 districts. As a result, DEF has directly impacted nearly 30 million people, including those living below the poverty line, women, artisans, youth, individuals with disabilities, and the elderly. Kabeer (1999) states that a critical component of empowerment is the “capacity to make choices” in her often cited essay assessing women’s empowerment. Kabeer qualifies her argument by stating that three interrelated dimensions are necessary for women to be empowered to make life decisions: (1) access to resources, including preconditions; (2) agency, encompassing process; and (3) accomplishments, including outcomes.

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Kabeer’s three dimensions are instructive in comprehending the Six-Fold Path of DEF’s work, which governs the launch and execution of projects. • Access & Infrastructure: Providing people with Internet access and educating them about digital literacy. All programs in this programming area are directed toward the overarching objective of universal access to information and knowledge via the Internet, as well as the development of the infrastructure necessary to accomplish this aim. • Governance & Entitlements : By increasing their awareness of their rights and entitlements and providing people with a voice to demand improved governance, improved delivery of government services, and improved protection of their fundamental human rights, we can increase their digital literacy and use of digital tools. One of the primary goals derived from DEF’s Vision and Mission statements is to ensure that digital interventions boost grassroots democracy, improve governance, increase the efficiency of government service delivery, and offer people a voice. This programming area is dedicated to achieving this goal, and all projects under it are geared toward empowering people through participatory democracy, governance, and the complete and comprehensive realization of their rights and entitlements. • Education & Empowerment: By promoting digital literacy and the use of digital tools, we can help individuals gain access to better health, education, skills, and livelihood opportunities. If Access and Infrastructure initiatives supply the hardware, Education and Empowerment projects give the necessary support to eradicate information poverty and, by extension, economic poor. All programs in this programming area are consistent with the national and global mandate to build a digitally literate and information-rich knowledge society. • Markets & Social Enterprise: Providing online presence and digital literacy to grassroots civil society organizations to ensure digital protection of people’s culture, heritage, environment, and natural resources. This programming area promotes better digital integration of grassroots marketplaces with global markets. Markets & Social Enterprises projects aim to help local firms to access global markets. They also aim to develop and enhance entrepreneurship in marginalized and digitally excluded groups, therefore contributing to the societal objective of digital inclusion. Projects in this field

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also aid non-profits and civil society organizations working for digital inclusion or environmental conservation. • Knowledge Hub & Database: To scale up and form partnerships for specific socioeconomic development needs, we are building a knowledge network of digital practitioners and an ICTD database. This programming area aims to build a knowledge network and database on ICT for Development in India and South Asia. All efforts in this domain attempt to create a common platform for recognizing excellent practices, fostering collaborations, and beginning dialogues among experts and individuals from diverse sectors who have a shared purpose. The programs aim to address digital media interventions in South Asia and the Asia–Pacific region, including mobile phones and social media. • Advocacy & Research: Advocacy and advocacy for universal Internet access and greater use of ICT and digital tools for development. Government, industry, civil society and ordinary citizens all support DEF in achieving its goals. Advocacy involves study and intellectual backing. Thus, projects in this programming area address both advocacy and research.

Digital Strategies for Women Empowerment and Development Employed by DEF According to the DEF, information and resources are the most effective tools for rural women empowerment. The internet has democratized data, improving access to information for millions of households worldwide and, in the process, making them better informed. However, women’s access to resources, notably positions in the formal sector, is restricted due to cultural norms that marginalize women’s roles (Brahme, 1984). In India, a more direct single-domain factor contributing to women’s subjugation, particularly those from lower socioeconomic status, is a lack of macro-technical abilities acquired through school or vocational training (Ghosh, 2002). This thought was motivated by the fact that digital literacy in various sectors has become a bare necessity for humanity today. Therefore, different sectors of digital literacy were targeted with appropriate customization, including digital agriculture literacy, media literacy, digital upskilling, digital women literacy, and literacy to access one’s biometrics.

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The second developmental vertical concentrated on improving connection infrastructures, such as fiber networks, through various schemes such as “PMVani.” Improved, frugal, and affordable internet connectivity was the primary goal in order for it to reach the last mile in the most remote locations. The next vertical in which developmental activity began was upskilling the traditional weaver, artisan, and craftsman community, as they comprised a sizable portion of the nano-micro entrepreneur cluster. Technology and internet connectivity were interwoven into the work of grassroots designers, laborers, and weavers, enabling them to access markets and products online, stay current on market trends, and so forth. According to research undertaken by numerous agencies, this had a significant business influence on their daily life. They determined that much asymmetrical information may be combined to facilitate the proper flow of knowledge regarding various perspectives. As a result, clusters such as Bhagalpur, Kanchipuram, Murshidabad, and Pochampalli were convinced that all monies should transform the city into a digital one. Because the digital media was never given precedence in these clusters, MSMEs, and indigenous weavers have traditionally operated in isolation. As a result of this digital intervention, almost 7,000 artists and weavers received online training on building their businesses, social media marketing, and business strategies, particularly during the COVID-19 era. The fourth vertical focused on developing a method for empowering women at the grassroots level to become digital entrepreneurs. Women were chosen as the target group because they provide more impact, are more responsible, accountable, inexpensive to work with, and require less monitoring, as they are incredibly meticulous with reporting/finances/learnings, etc. They spread their knowledge across the home, resulting in the creation of over 1,000 digital women entrepreneurs around the country through the utilization of digital infrastructure and connection. They are so empowered by digital technology that they refer to themselves as Internet Didi, Google Didi, and so forth, posing a threat to the patriarchal order. Soochnapreneur (Information Entrepreneur) Sochnapreneurs are women and young entrepreneurs who strive for the greater good and well-being of their communities. As local social service providers, sochnapreneurs address consumer residents’ information needs at the village, panchayat, and block levels. In 2016, the “Soochnapreneur”

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project was launched for rural women from around India. These women have received business training, including information and technology transfer, to market their products and services to others, mostly in rural areas. This is a curriculum designed to develop the talents and traits of aspiring digital information entrepreneurs. This is a program that fosters and promotes women’s entrepreneurial abilities and characteristics. Agents of community information, dubbed “Soochnapreneurs,” serve as a link between the government and citizens, ensuring that information is accessible to those in rural areas which most need it. They work at both the panchayat and block levels by empowering residents to act. The plan is targeted at rural India’s information culture and economic ecology, where wireless technology and mobile devices are still in their infancy and large swathes of the population remain unreached. Along with offering need-based, relevant, and affordable public and private information services to rural clients, it focuses on rural youth livelihood, skill development, and employment in the information economy. This novel strategy has resulted in some women improving their lives by personal action (MkNelly & Dunford, 1999) and becoming active agents in their empowerment (Ramanathan, 2004). These women entrepreneurs are deviant economic operators who seek to aid the underprivileged. Due to a strongly patriarchal society that limits women’s agency, along with the average low level of female education, a variety of impediments exist for women seeking formal employment (Mayoux, 1995). These impediments are readily apparent in accounting. Jamuna Devi, Arun Kumar’s wife, is 35 years old and a farmer. She is a resident of Karor village, located in one of Haryana’s most rural regions. Her husband owns property on which she works as a farmhand. However, because she lacked formal education, she was unaware of the government benefits to which she was entitled. Mala Yadav, a Soochnapreneur, came to her rescue and enrolled her as a farmer and in the village’s SHG group using her laptop and internet. After joining the group, she was required to contribute 50 rupees each month to spend her own money in future. Mala Ji has also raised awareness among other women who work in self-help organizations and assisted them in opening a joint account for the group’s members. Jamuna Devi, a program beneficiary, used her savings to purchase a tractor after intending to grow her land. The tractor is also used to plow by residents of the following community. She earns her living this way, and as a result, she has developed self-sufficiency and a sustainable source

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of income. “I was required to work on my family’s farm from the age of five, but I wanted to work today to ensure that my children received a decent education, better jobs, and a brighter future. Perhaps one day my son will get a large car and drive me around,” she remarked, her eyes shining. Mala Yadav was important in her achievement, and she still consulted her when in doubt. Mera App (My App) Molinier (2019) examined the obstacles women encounter while attempting to gain access to and benefit from digitalization. Significant impediments were identified—women were less likely to acquire a mobile phone, internet connection was expensive, discriminatory legislation existed, and women lacked knowledge and technical skills, as well as social norms. DEF developed an Android-based app using cutting-edge technology to provide India’s rural poor with a catalogue of welfare schemes and comprehensive information on their rights, empowering them with access to rights and benefits in the core areas of Health, Education, Social Security, Finance, and Livelihood. It is a multilingual application that performs nicely both online and offline. Its user interface is highly intuitive and can be downloaded on any mobile platform. The software has a mind of its own, and once a recipient submits socioeconomic information, the app analyzes the data and recommends various plans accessible in a given state. In addition, it contains information about schemes—benefits, timelines, eligibility, required identification documents, age limit—as well as the whole application process for entitlements. Lee (2009) examines the impact of mobile phones on women’s status in India via the lens of four critical areas: domestic violence, decision-making autonomy, son and fertility choices, and economic independence. The study discovered that mobile phones could drastically reduce women’s tolerance for domestic abuse while increasing mobility and economic freedom. Nonetheless, gender-based digital exclusion continues to obstruct women’s access to digital financial services. Apart from “inadequate cost,” prevalent sociocultural norms in society significantly impede women’s access to digital opportunities (Sorgner & KriegerBoden, 2017a). Ritesh Kujur and his family live in the small village Malar under Kundi in Jharkhand’s Ranchi district. His father is a farmer who earns his living in the field; Ritesh also supports his family’s farming

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methods. Though smartphone owners were largely unaware of government programs suited to them and accessible online. They have now filed for a labor insurance scheme with the assistance of Mer App. He obtained his insurance card within a few days and is now overjoyed, as workingclass people in his community previously lacked insurance due to a lack of funds. He can now profit from five schemes through this insurance coverage. Digital Sarthak2 Digital Sarthak is the Digital Empowerment Foundation’s national digital entrepreneurship and empowerment program, which USAID and DAI fund. Mariscal et al. (2019) identify sociocultural norms as significant barriers to women’s access. Poverty and sociocultural norms might exacerbate gender prejudices about technology use. For this scheme, 100 Digital Sarthaks from marginalized and economically disadvantaged parts of society have been identified across ten districts in seven states who have established Digital Resource Centers in their communities. Digital Sarthaks is building a sustainable firm by delivering digital and entitlement services and training 10,000 women entrepreneurs and 500 community development organizations in digital upskilling. This was made possible because each Digital Sarthak was equipped with a smartphone, multifunction printer, and assistance with running the center. Digital Sarthak is the foot soldiers who will be identified and recruited from ten selected districts to strengthen the ability of women entrepreneurs and women-led CDOs and deliver information to village residents. Kelkar et al. (2004) examined the impact of rural Bangladesh’s microcredit institutions on gender relations and women’s agency. The study’s findings imply that women’s access to microcredit might favorably impact their agency—as income producers, asset owners, more mobile, dealing with strangers, and engaging in trade. All of these improvements have the potential to empower women in household decision-making. Additionally, a woman will be able to transcend hegemonic conceptions of masculine dominance. Mamtavati is a housewife who resides in Barabanki, Uttar Pradesh, with her four children. Her mother-in-law, husband, and 2 Digital Sarthak program focuses on upskilling rural women by introducing them to smartphones and various digital tools like WhatsApp, Facebook etc., whereas Digital shakti imparts digital financial literacy training in rural women.

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4-year-old kid make up the family. Mamtavati was chosen for Digital Sarthak because she is a member of a self-help organizations and has positive relationships with the women in her neighborhood. Mamtavati and her family are overjoyed to have received the assets provided via the scheme, and she is also able to support herself and her family financially by offering training and services to the community. She is not the kind to give up lightly and continually demonstrates the passion for seeking out novel income techniques by maintaining contact with the women she associates with. Mamtavati’s engagement with the Digital Sarthak program has aided her in being financially more assertive and more selfsufficient than she was previously. She has established a center in her residence, utilizing the smartphone and printer provided through this program. People visit her center for digital services such as photocopies and prints, enabling her to generate money regularly. Additionally, she earns money by providing training to female entrepreneurs. Access to finance strengthens women through enhancing their ability to make decisions, boosting their self-confidence, and elevating their social position, among other things (Cheston & Kuhn, 2002).

Conclusion and Way Forward Our study aims to broaden perceptions of women’s entrepreneurship by examining issues of digital entrepreneurship and rural women’s empowerment in India, a country known for its high levels of social entrepreneurship (Bornstein, 2004). It has highlighted the relationship between digitalization and women’s livelihoods and well-being in rural areas. While a single case study with few interviews precludes generalization, we feel our study adds to the body of knowledge on women’s engagement in digital entrepreneurship. The willingness and desire to learn demonstrated by rural women entrepreneurs must be capitalized on. India’s rapidly changing advanced scene has enormous opportunities for women emancipation. The findings support claims made by researchers Mair and Marti (2006) that successful digital entrepreneurship practiced by women within the resource-constrained environment of a developing country and illustrates the absences of government support in the inclusion rural women. Several women empowerment programs promotes women’s social and economic empowerment by establishing community-based reserve funds that assist individuals in saving money, obtaining credit, acquiring financial literacy,

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and investing in income-generating enterprises. Additionally, it implied that the interaction among rural women plays a key role in the process of generating collective intelligence. What is certain is that women in this country are resourceful and creative, and they will find methods to obtain the resources necessary to care for their family. Rather than disregarding these entrepreneurial endeavors, we should pay closer attention to them, particularly to women who are involved in successful organizations like as DEF. To make significant progress toward women’s economic empowerment, it is apparent that a gender perspective must be incorporated at every stage-from public program creation to monitoring and evaluation data gathering. A greater emphasis on policies that align stakeholders’ incentives and those that place fewer demands on state capacity, while also increasing women’s visibility in decision-making, can result in improved outcomes. Each public program that fails to consider these perspectives is a missed opportunity to address the impediments to women’s economic empowerment; a missed opportunity to halt women’s “missing.” Additionally, these women empowerment efforts promote ability development, confidence, access to data and assets, and community action, all of which help position women as confident decision-makers and leaders in their homes and communities. India is increasing the quality of life for women. It demonstrates how Digital India is establishing digital infrastructure as a public utility for all citizens. It makes all government services accessible to the general public and ensures their efficiency, transparency, and reliability at a fair cost. Women are empowered digitally through Digital India, which emphasizes universal digital literacy and the provision of digital resources and services in Indian languages. In this context, organizations like DEF can pave the way for rural women entrepreneurship development through digital inclusion. Acknowledgements We express our gratitude to Mr Saurabh Srivastava, Executive Director, Digital Empowerment Foundation for his tremendous support in the completion of this case and the conduct of personal interviews. We are very thankful to all the staff, members of DEF who spared time for focus group discussions. We appreciate the cooperation of the women entrepreneurs who shared their success stories and DEF experience.

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Mathew, A. (March 2019). Making it in India. Finance & development. Retrieved from https://www.imf.org/external/pubs/ft/fandd/2019/ 03/womensentrepreneurship-in-India-mathew.htm Mayoux, L. (1995). Alternative vision or utopian fantasy? Cooperation, empowerment and women’s cooperative development in India. Journal of International Development, 7 (2), 211–228. MkNelly, B. & Dunford, C. (1999). Impact of credit with education on mothers and their young children’s nutrition: CRECER credit with education program in Bolivia (Research Paper No. 5). Davis, CA: Freedom from Hunger Molinier, H. (2019). Leveraging digital finance for gender equality and women’s empowerment. UN Women. https://www.unwomen.org/-/media/headqu arters/attachments/sections/library/publications/2019/leveraging-digitalfinance-for-gender-equality-and-womens-empowerment-en.pdf?la=en&vs= 4715 Müller, S., Fieseler, C., Meckel, M., & Suphan, A. (2018). Time well wasted? Online procrastination during times of unemployment. Social Science Computer Review, 36(3), 263–276. Omar, F. I., Salman, A., & Rahim, S. A. (2017). The relationship between digital inclusion and support system towards the empowerment of women online entrepreneurs. Journal of Education and Social Sciences, 7 (1), 52–57. Plant, S. (1998). Zeros and ones: Digital women and the new technoculture. Fourth Estate. Pollard, R. (2006). Women entrepreneurs: How important are their perceptions? Academy of Entrepreneurship Journal, 12(1), 1–18. Quan-Haase, A., Martin, K., & Schreurs, K. (2016). Interviews with digital seniors: ICT use in the context of everyday life. Information, Communication & Society, 19(5), 691–707. Ramanathan, M. (2004). Women and empowerment: Shri Mahila Griha Udyog Lijjat Papad. Economic and Political Weekly, 39(17), 1689–1697. RBI. (2015). Report of the committee on medium-term path on financial inclusion. https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/FFIRA27F4 530706A41A0BC394D01CB4892CC.PDF Patil, R. D., Omprakash, S., & Jadhav. (September, 2017). A statistical study on educational development index for literacy parameters of India. Economic Affairs, 62(3), 537–542. Scheerder, A., van Deursen, A., & van Dijk, J. (2017). Determinants of internet skills, uses and outcomes: A systematic review of the second-and third-level digital divide. Telematics and Informatics, 34(8), 1607–1624. Siggelkow, N. (2007). Persuasion with case studies. Academy of Management Journal, 50, 20–24. Singh, S. (02 March 2021). Why do women run fewer than 13% of India’s small businesses. India Spend. Retrieved from https://bit.ly/3cLWjc.

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CHAPTER 15

Industry 4.0 Technologies Transforming the Future of Work in Post Pandemic World Swayam Sampurna Panigrahi and Deepti Chandra

Introduction The interrelation between technological development and employment has been a theme of deliberations in many industrialized countries. Various studies conducted in the year 2017 and 2018 and by organizations and scholars such as Federation of Indian Chambers of Commerce & Industry (FICCI), National Association of Software and Service Companies NASSCOM, International Labour Organizations (ILO), Chapman and Sonne have contended that Industry 4.0 will work

S. S. Panigrahi (B) Operations Management, International Management Institute, Bhubaneswar, India e-mail: [email protected] D. Chandra Human Resource Management, Institute of Public Enterprise, Hyderabad, India e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_15

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through the process of ‘creative destruction’, which would replace the old economic structure with new ones. The workforce of India is mainly in the low paid, informal sector with low skills. However, it has been observed that new technologies may have less impact on the occupations in the informal sector rather the formal organized sector will be affected more due to minimization in routine task jobs (Li, 2022). On the other hand, a few studies indicate that implementation of new technology will also benefit the ‘unorganized sector’ with increased income and improved working conditions (Ilavarasan, 2017; Mehta & Awasthi, 2019). The likely impact of Industry 4.0 particularly on the entry level and lowmedium skilled jobs has also been highlighted by the World Economic Forum report, 2016. The report recommends that these technologies will lead to creation of high-value jobs requiring completely diverse skill sets. Consequently, this may result in possible joblessness in many developed and developing countries including India. The COVID-19 pandemic will have a long-lasting effect on the future of work. Human resource managers need to reconsider work processes of planning, management, performance, and experience arrangements. As a cost-saving strategy, organizations all over the world are replacing their regular employees with contingent workforce (Baker et al., 2020). Disruptive technologies and trends in the fourth industrial revolution such as Internet of Things (IoT), robotics, virtual reality (VR), and artificial intelligence (AI) are completely altering the mode of how people live and work and think. It will change their identities and their sense of privacy, ownership, consumption patterns, the way people develop their careers, develop their skills, meet people, and maintain relationships (Schwab, 2016).

Theoretical Background Human resource management (HRM) is referred to the management of work and people toward achieving desired goals. It is a vital activity for any organization (Boxall et al., 2008). Engaged employees always perform better for their organizations. They work with passion and connect to the company. They show commitment and loyalty toward the organization. They are more productive, stay longer with the organization and are happier (Smith & Marwick, 2009). This integration between man and machine is becoming vital for the success of any organization. Although, machines may not be considered as ‘human resources’, however, in some way they are increasingly becoming a part of the workforce.

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The process of searching and finding out potential employees for any vacant positions in the organization is called recruitment. It is all about attracting competent and qualified applicants who are most suitable for the organization. Selection involves choosing the prospective employees. It involves deciding on the new members for the organization. This process helps companies acquire the right people at the right time for continued operations (Kamran et al., 2015). Successful recruitment and selection practices are the key toward improved organizational outcomes (Naveen & Raju, 2014). The process of evaluating and communicating to the employees regarding how they have performed on the job and instituting a future for improvement is identified as performance appraisal. When successfully implemented the performance evaluations also influence the employees’ level of effort and direction in future. This process identifies the strengths and weaknesses of the human resources and becomes the benchmarks for determining the effectiveness of the organization (Murphy & Cleveland, 1995). Learning and development activities within the organization are concentrated on accomplishing change. It is future oriented and concerned with education and growth of the employees. This enhances the ability of the employee to comprehend and interpret knowledge. Learning and development improves the human skills, analytical ability, and conceptual expertise in the employees. Learning imparts knowledge whereas development focusses more on the personal growth of the employee. Succession planning is a systematic, strategic, and deliberate process by which the competencies and leadership qualities of managers is developed to ensure a development of suitable number of qualified and competent personnel to occupy key managerial positions in future (Mehrabani & Mohamad, 2011). The remuneration received by an employee, precisely the monetary and non-monetary benefits in return for his/her contribution to the organization is called compensation. Management of compensation and rewards is an essential part of human resource management that helps to motivate employees to perform effectively (Shree et al., 2016). As per various studies there exists a positive correlation between job and compensation benefits. Several studies suggest that compensation is the one of the foremost motives for which employees work (Mabaso & Dlamini, 2017). A process of gathering, storing, and analyzing data and information for each employee in a systematic way lead to effective Human Resource Information System (HRIS). It is an integrated system that helps in scheduling,

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decision-making and filing of returns and submitting reports to external organizations.

Industry 4.0 The various components of Industry 4.0 are Internet of Things, Cyber-Physical System, Cloud Computing, Cyber Security, Digital Twin, Augmented/ Virtual Reality, Big Data Analytics, advanced robotics, 4G/5G network connectivity. The adoption of the Industry 4.0 components into the operational and manufacturing related activities in an organization would transform the existing managerial decision-making. A few benefits that are obvious from this adoption are (a) real-time control of the business operations, (b) automated decision-making, (c) identification of faults using simulation, and (d) uninterrupted process mining (Mishra et al., 2021; Van Der Aalst et al., 2007). However, the effect on human resources shall be a matter of concern and needs to be studied in detail. Our study aims at determining the effect of adoption of Industry 4.0 components into business operations on HR functions. It is imperative to discuss and Internet of Things (IoT) refers to a network of interconnected devices which can share data remotely governed by a communication protocol. Authors have defined IoT as the world of interconnected things which can predict and interact among themselves and with the external components (Hasan, 2018). This implies that the machines on the shopfloor shall be embedded with sensory devices to form a data acquisition system which is connected to a remote platform over the Internet. This enables the information sharing within the factory thereby making it a smart factory. The Cyber-Physical Systems (CPS) enables the control of physical entities via computer and software. The term CPS has been coined which represent the conglomeration of the computations with physical processes. CPS can transform the core manufacturing verticals like design and operations. Integrated computers and networks into the assembly lines are responsible for monitoring and control of the physical processes, containing feedback loops wherein the data pertaining to physical processes affecting computations and vice versa are collected (Lee, 2008). The advent of the process of cloud computing marks a fundamental change to the existing information technology (IT) services and, the way they have to be invented, developed, deployed, scaled, updated, maintained, and paid for (Marston, 2010). Cloud is the virtual server

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having a high processing speed, huge memory, and other characteristic features which ensure smooth computation (Durao et al., 2014). Cloud computing is the convergence of IT efficiency and business agility. The IT efficacy implies to the power of advanced computers being utilized diligently by including vastly scalable hardware and software resources. This ensures that the latter is attained through rapid deployment, simultaneous batch processing, business analytics that respond in real time to user requirements (W Kim, 2009). To understand Cyber-Security, it is crucial to first define Cyberspace. It is fusion of all the communication networks, databases, and other information into a canopy of electronic interchange whereby a network ecosystem is created. Cyber-security encompasses both the insecurity rising out of the Cyberspace and the practices or processes that ensure its security. It refers to a set of activities including technical as well as non-technical aspects which are intended to protect the bioelectrical environment and the data it contains and transmits from all possible threats (Cavelty, 2010). The digital twin is the doppelganger of a physical entity in the digital world. The virtual counterpart gathers relevant information from the physical entity in real time and simulates their behavior to derive useful insights and predictions (Mishra et al., 2021). The digital twin serves as the medium for the cyber-physical integration. When integrated with the cyber-physical closed loop, the digital twin has the potential to optimize the complete production cycle (Fei et al., 2018). Augmented Reality (AR) is a real-time direct or indirect representation of the physical world is enhanced / augmented by adding a virtual computer-generated information to it. The aim is to simplify the human lives by offering virtual information about the immediate surroundings. While Virtual Reality (VR) offers a synthetic world to its users without the need to be viewing the real world, AR augments the sense of reality by superimposing virtual images onto the real world in real time (Carmigniani et al., 2011). With the help of these technologies, the time-consuming task of product design can be made simpler, and the errors can be identified and remedied then and there. This can assist the managers even with a non-technical background to decode the physics of the process which can further enhance their decision-making ability. The word ‘big’ in Big data refers to the huge load of data piled onto computer systems that fail to handle and process it. This is because the data in the big data era is way too huge to be loaded into a conventional machine (Tsai et al., 2015). The conventional ways of data mining and data analytics require upgradation to process the

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big data. Big Data Analytics come to the rescue when there is a need of handling and storing the huge dataset through a cloud-based system.

The Future of Work: Beyond Industry 4.0 Organizations need to radically transform the way they conduct business and the type of skills their taskforce requires to help them survive the digital revolution in the work environment. It is predicted that automation will lead to reduction in the workforce in nearly half the companies, while more than half of all employees will require significant re- and upskilling. The COVID-19 crisis has aggravated these trends, increasing the need for integrated, informed, and collaborative action. As stated by World Economic Forum (2020), there is an urgent need for a ‘Reskilling Revolution’ mission which shall provide better jobs, education, and skills to one billion people by 2030, this initiative brings together businesses, civil society, and education and training partners to collectively drive coordinated action and address workforce transformations through intra- and cross-industry collaboration. Researchers advocate for an integrated approach for implementation of Industry 4.0 which means integrating it across the entire value chain, be it manufacturing goods and providing services. Even in future of work, all technical or industrial system will continue to have human involvement. The difference will be in the terms of the interfaces which are yet to be defined. As the Industry 4.0 advances, a growing demand for workplace robots shall arise which will lead to an increase in the demand for IT professionals or in simple words ‘robot creators’ having niche skills and qualifications, according to recruitment firm (Montealegre & Cascio, 2017). While Industry 4.0 enabled work environments shall reduce the muscular strain, it is yet to be established how would it affect humans emotionally. This necessitates a deeper analogy of not just how the future of work will look like, but also the fact that what are the skills that would be essential in future of work. It shall be intriguing to explore the new and improvised set of skills that will be required now from various levels of the taskforce as automation, AI, and robotics take hold. Researchers have inferred that high level skills will become crucial and the need for manual and physical skills shall face a declining trend. However, the demand for technological, social, and emotional, and higher cognitive skills is set to boom. Although the governments are putting in efforts to encourage their citizens to acquire these skills that will help sustain the Industry 4.0

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transition, yet there is a huge gap in designing a curriculum and devising the best learning strategies without being aware about the relevant skills. Some of the key characteristics in future of work will include: • • • • • • • • • • • • • • • •

Humans having more time Psychological Impact on workforce Mental skills over physical skills Attitude toward work Professional relationships Cognitive skills will be in demand for intelligent decision-making Improvement in Ergonomics Organizations are social institutions- not only buildings, architecture, equipment, technology Enhanced Employee Performance Resistance to change affecting Ownership and Loyalty toward organization in the virtual era Mental Health issues Constant need for upgradation with rapidly changing technology Remote Working and its related challenges Dependency on smart devices Blurring lines between personal and professional life

Revisited Employee Skills for the Future of Work The skills required in future of work shall be seemingly unique. It would be anticipated that the workforce develops an attitude of openness and yearning to persistent learning. A key skill set that may be required would be understanding and empathy. Taking risks and allowing foreseeing or discovering new opportunities would be critical for the future. Resilience requires staying updated about new knowledge, reinventing and solving problems. Success depends upon the strengths of relationships, building connections and establishing trust. The future expertise will demand ‘smart actions’ which entails the ‘ability to make things happen’. Competencies will build on talents and organizations will require more and diverse skills (Brower, 2021). The need for workforce to be digitally literate is crucial. Multi-talented workforce with advanced cognitive flexibility would be highly valued by the employers. The evolving technology pertaining to SMAC (social, mobile, analytical and cloud)

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and employment around the world will revolve around artificial intelligence (AI), machine learning, Internet of Things (IoT), computational intelligence and data sciences. Emotional and social intelligence (EI) will however, continue to remain a unique human capability. The ability to collaborate and the natural creativity skills will be going a long way. Job roles would always require the human element (Bibi, 2019). We are in the middle of transformation and are preparing for the future of work. As per the ‘Future of Jobs Report’ (World Economic Forum, 2016), humans will soon share their workspaces with ‘artificial intelligence’ and robots. Presently, robots are unable to compete with the human mind; however, future workplaces will demand human intelligence, connect, innovation, analytical thinking, and active learning, ability of effective communication, cultural intelligence, and adaptability. Upskilling of workforce will be a noteworthy trend for the next five years or so, followed by digital literacy and analytics (Zavyiboroda, 2021). There has been a surge of job roles like data scientists, machine learning and automation engineers and even data visualization specialists. In this transition, self-learning, peer-to-peer learning, and micro-learning strategies are advancing. Almost all occupations will be requiring the exclusive, human soft skills that machines will not be able to replace.

Conclusion In the current scenario, the Industry 4.0 technologies are transforming the realm of work. The human resources will need to quickly learn new skills to be able to adapt to the new normal, now that the COVID19 crisis has accelerated this transformation. The leaders must be able to enlighten the taskforce that Industry 4.0 is not here for their jobs. It is here to assist them in doing their jobs in a more efficient manner. It is not the transformation, which is complex, it is the implementation part. The hybrid model of humans and machines collaborating is not only about analytics. It entails a great deal about the human response/ human behavior as well.

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CHAPTER 16

Women’s Self-Help Groups and COVID-19 Pandemic: Resilience and Sustenance Tanushree Mahato and Manish Kumar Jha

Introduction World Health Organizations (WHO) on 30 January 2020 announced the COVID-19 as a ‘Public Health Emergency of International Concern’ (Menon et al., 2020), and seeing the fast and widespread of the deadly infectious disease declared COVID-19 a pandemic on 11th March 2020 (Cucinotta & Vanelli, 2020). The name COVID-19 represents ‘Corona’ for CO, ‘Virus’ for VI, ‘Disease’ for D and ‘year of occurrence i.e., 2019’ for 19 (Chakraborty & Maity, 2020). To mitigate and stop the spread of COVID-19 and control the economic fallout each country has undertaken various strategies. Underdeveloped health infrastructures, improper medical facilities and poverty in rural areas of developing countries made it difficult to implement effective strategies (Dutta & Fischer, 2021). In

T. Mahato · M. K. Jha (B) Department of Humanities Social Sciences and Management, National Institute of Technology Jamshedpur, Adityapur, India e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_16

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India, to mitigate the spread of the coronavirus, Prime Minister Shri Narendra Modi announced a lockdown in March 2020 with an aim of ‘flattening the curve’ of the increasing trend of corona positive cases as social distancing is the only solution to halt the transmission of COVID19. Through lockdown the widespread of infectious virus in communities reduced to a large extent (Mishra & Majumdar, 2020). This lockdown suddenly curtailed the movement of people, goods and services, halted the operations of schools, colleges and universities, cultural celebrations, political events and closed entertainment avenues, religious temples to reduce the mass gathering. This has also stopped operations of factories, industries, warehouses and markets. This resulted in supply chain cut off, increased unemployment and labour shortages which resulted in acute poverty for rural and marginalized communities. This has revealed the status of the economic vulnerability of the working poor of India. The unprecedented COVID-19 hit the whole world immensely with no certainty of its duration of affecting the world. The number of cases is continuously increasing at an alarming rate hampering the economic status badly. People belonging to rural communities cannot adhere to the social distancing measures as their living conditions does not allow them for distancing which results in an increased threat of spreading of the virus among them. They suffered most with limited access to health, hygiene, proper sanitation, medical facility and food stockpiles. Loss of livelihood and income decreased consumption as a consequence of exhaustion of existing savings which resulted in increased food and nutrition insecurity. The objective of this paper is to comprehend the challenges faced by members of Women’s self-help groups during the COVID-19 pandemic and the supporting role played by them in order to maintain sustainability and resilience among themselves. This paper comprehensively reviews the extant literature on COVID-19 and self-help groups as prior studies in this areas are limited. The literature search has been conducted using key terms ‘COVID-19’combined with ‘self-help groups’, ‘pandemic’, ‘India’, ‘rural women’ from Scopus database and Google scholar. Various articles published by NRLM, government of India and other official websites are also used. This paper has been divided into six sections that start with the introduction followed by description of the emanation and scourges of COVID-19 and the concept of self-help groups and its emergence in India in second section. Third section analyses the challenges faced by

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the members of women’s self-help groups during the pandemic thereafter, fourth section delineates the measures taken in order to maintain sustainability and resilience in their respective communities and villages. Next section explains the policy implication of the study and finally sixth section concludes the paper.

Theoretical Framework Coronavirus and COVID-19 Pandemic The epicentre of coronavirus is China as in the Wuhan City of China the coronavirus was first seen in December 2019 (Li et al., 2020; Shereen et al., 2020). This virus emanated from seafood and wild animal market of Wuhan city and rapidly spread up to various other countries (Shereen et al., 2020). The coronavirus has mutated and recombined behaviour (Ghosh et al., 2020). The common symptoms include cough and cold, fever, shortness of breath, respiratory symptoms, etc. With the highest mortality rate, the COVID-19 disease spread all over the world. Easy transmission, the density of population, environmental condition, nature of the virus and social cultures like meetings and handshaking are the major contributing factors of its rapid spread (Kaushik et al., 2020). Every country was threatened by its unbearable and uncontrollable influence. This pandemic has disrupted billions of lives and jeopardized decades of development causing a global economic shutdown. This gave a lesson that viruses and outbreaks are global threat as it ignores the national and international boundaries and spread worldwide (Minhas, 2020). It is commonly ruminated that since World War II the world is facing humanities largest crisis having the greatest uncertainty and risk (Mahore, 2020). Various diseases and pandemics experienced before COVID-19 are Spanish Flu (1918- 1920), Asian Flu (1957–1958), Hong Kong Flu (1968–69), SARS (2002–04), Ebola (2014–2016), etc., (Mahore, 2020). Maintaining Social distance plays a pivotal role in protecting humans from infection. It refers to keeping a safe distance among the peoples who are not in their households (Biswas et al., 2020). In 1966, Tyrell and Bynoe first described the coronavirus. The term coronavirus came from the Latin word corona which means crown. It has four subfamilies viz., alpha, beta, gamma and delta. It was found that alpha and beta develops from bats but gamma and delta variants develops from pigs and birds (Velavan & Meyer, 2020). It’s a novel infectious

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disease. This causes respiratory tract infection. A person infected by this virus spread this virus rapidly in the environment. It’s fast and widespread across a large population created fear and illness among the people. Unlike tuberculosis and malaria, it is unique having a wide geographical spread, contagious having no symptoms of weakness or disease, having a major effect on older people and persons having comorbidities. This majorly affects older people and people suffering from lower immunity, kidney disease, heart disease, etc. To reduce mortality due to this virus many countries imposed a lockdown on the entire population to mitigate the widespread (De Hoop et al., 2020). The unprecedented crisis that occurred due to COVID-19 affected all most all the countries of the globe. This created a threat to mental as well as physical health among individuals, families and communities (Joshi, 2021).

COVID-19 in India India faced several crises after independence but the effects of those were limited to some areas or sectors. The COVID-19 outbreak has significantly affected not only the economy rather also negatively affected the lives of people without any social, regional and economical discrimination (Mahore, 2020). In India, due to abroad connection, coronavirus cases emerged (Ghosh et al., 2020). The first case of COVID-19 was confirmed in the Thrissur district of Kerala on 30 January 2020 (Menon et al., 2020). The increasing number of infected patients forced the government to impose 21 dayslockdown (1st Phase: 25 March 2020 to 14 April 2020), which extended to 3 May 2020 (2nd Phase: 15 April 2020 to 3 May 2020). This further extended to 17 May 2020 (3rd Phase: 4 May 2020 to 17 May 2020) giving conditional relaxation for the agricultural sector. Again the lockdown was extended to 31 May 2020 (4th Phase: 18 May 2020 to 31 May 2020) (Paul & Nisha, 2020). This extended lockdown caused reduction in available household resources (Debata et al., 2020). Following the stringiest lockdown, the poor and marginalized sector of India suffered the most being majorly dependent on daily wage work in the factories, industries and construction work for a living. This sudden lockdown gave the citizens a great shock across the country. In other countries, maintaining social distance and restrictions in the mass gathering was used as a mitigating strategy for halting the spread of the virus. In India, the lockdown majorly disrupted the working cycle of people

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and it especially negatively affected the rural poor. The mass exodus of migrant workers from their place of work in urban areas to their native villages due to the closure of various production units, halt in industry’s work due to lockdown, loss of job caused a major problem of spreading the infection from urban to rural areas and rising food insecurity. The situation of India was worse due to the pandemic as the prevailing healthcare system was improper and inadequate to tackle such a level of situation where there are numerous corona positive cases daily. More than 85 per cent of the labour force in India suffered the most. Nearly, 80 per cent of them were relying on the informal sector with a very low level of social security or without social security for their livelihood. Due to working in the informal sector and lacking social security, most people were not prepared to cope up with this external shock (Thakur, 2020). To overcome the extremities, the government of India has announced several relief packages for the people of India including farmers (Paul & Nisha, 2020). On 27 March 2020 the first relief package of providing free rations to two-third of India’s population, i.e. 800 million people as well as providing cash transfers to vulnerable people declared by the government of India. The government also declared 3 months crop loan moratorium for farmers and rural workers for a total loan worth Rs.4.2 trillion. In May, the prime minister communicated that the production of domestic products for being self-reliant should be promoted. People should buy domestic products resulting in through the self-reliant India campaign. This will promote the development of rural India as well to contribute to the overall economic development. On 12 May 2020, a relief package worth Rs. 20 trillion (almost 10% of India’s Gross Domestic Product) to have victory over the pandemic was also declared (Ministry of Finance, 2020; Paul & Nisha, 2020). Self-Help Groups The voluntary association of 10–20 women having a common objective, living in similar locality generally termed as self-help groups. These are group based organizations belonging to the similar neighbourhood and socio-economic backgrounds meeting regularly to voluntarily save a fraction of savings in a common pool to grant nominal interest-bearing loans to their members (Kumar et al., 2019). These groups are small in size, economically homogenous and affinity groups of poor people (Nayak et al., 2019). This is an effective instrument for procuring a small amount

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of credit without any collateral. This demoted the traditional culture of taking loans from local money lenders charging higher interest (Mohapatra, 2015). For this group, women are considered as comparatively more serious, trustworthy and willing to pay back the loan amount taken than men (Aggarwal et al., 2015). Through this, they are given financial support to engage in income-generating activities and disseminate information regarding statutory rights, entitlements, social networking, social mobilization, self-confidence, health and well-being widely among the members. The concept of Women’s self-help group has received worldwide recognition as an effective instrument for providing microcredit, empowering marginalized women as well as eradicating poverty. In India, women’s population is almost fifty per cent of the aggregate population. In recent decades, many initiatives have been taken for reducing gender inequality but still, its existence is seen in India. The customary practices of society ignored the proper engagement of women in economic activities as the norms of patriarchal society and social hierarchies provide men more power than women. In India, the scope of self-help group consists microcredit or microfinance facility (Nayak et al., 2019). Selfhelp group programme focuses and expands the horizon of rural women towards productive activities. This benefits the individual women as well as the family and community as a whole. This aids in the creation of social capital among the members participating in self-help groups. Mysore Resettlement and Development Agency (MYRADA) and Professional Assistance for Development Action (PRADAN) initially initiated the movement of self-help group in India in the late 1980s. Thereafter, in the early 1990s, the National Bank for Agriculture and Rural Development (NABARD) created this self-help group mechanism a foundational strategy for the development of rural communities of India addressing the credit constraints of the deprived poor by linking self-help groups with the bank. Then in 1999, the Integrated Rural Development Programme (IRDP) and other allied programmes were converged as Swarnajayanti Gram Swarozgar Yojna (SGSY) in which self-employment and community participation mechanism promoted with a mission to provide opportunities to start micro-enterprises through self-help groups. Again in 2011, the SGSY scheme was rechristened and launched as National Rural Livelihood Mission (NRLM) to focus on the poorest of poor through ‘participatory identification of the poor’ approach under the Ministry of Rural Development, Government of India (Mitra et al.,

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2020). This was further renamed as Deendayal Antyodaya Yojna-National Rural Livelihood Mission (DAY-NRLM) in the year 2015. Under this anti-poverty programme, at least one women member of each poor household belonging to a rural area is brought forward and enrolled in the self-help group network to improve the income level and standard of life of the rural poor. This mobilizes the poor into a community-owned institution, facilitating financial inclusion and providing sustainable and strengthened livelihood. The central thought behind NRLM is that the poor do have potential and capabilities with a strong desire to overcome poverty and have a sustainable livelihood. This mission is based on the demand-driven approach giving power and authority to the individual states to frame out their state-specific poverty reduction action plan. Under NRLM, the members of self-help group adhere to the principle of panchasutra (in English it means five principles), which consists of weekly meetings, savings, lending and borrowing, repaying and maintaining records in book. The self-help group movement of India developed into one of the world’s largest platform for the poor. Participation in self-help group under NRLM improves the standard of living of the members and their poor households (Khaki, 2017). This enhances their confidence to get involved into village affairs and community issues as well as in the local elections (Lavoori & Paramanik, 2014). Various studies have observed that the women participating in self-help group activities are comparatively more empowered than other women in the social, economic, psychological and political dimensions of empowerment (Brody et al., 2017; Nayak & Panigrahi, 2020; Orso & Fabrizi, 2016; Sangeetha et al., 2013). This is a significant tool to eradicate poverty and empower women (Maheshwari & Goyal, 2014; Suprabha, 2014). This encourages frequent meeting and discussion related to their socio-economic issues, domestic issues, legal rights and entitlements with other members which fosters new contacts and relationships among the beneficiaries stimulating social capital (Davidson & Sanyal, 2017). This provides knowledge and wisdom through group discussions and informal conversations improving and strengthening the friendship between them. The self-help group meetings play a vital role in gathering mutual support and raise voice against discrimination and domestic violence issues (Sanyal, 2020) as the group supports the victim to provide respite and relief.

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Challenges Faced by Women’s Self-Help Groups During COVID-19 Pandemic The crisis occurred due to COVID-19 imposed various challenges on members of self-help groups. This pandemic has escalated various socioeconomic crises majorly impacting the poor and marginalized communities (Azeez EP et al., 2021). The COVID-19 pandemic increased threat and feeling of insecurity and sustenance among people due to loss of livelihood and income. The lockdown imposed raised the domestic violence cases to a large extent. The increased burden of care and responsibility and the domestic violence challenges resulted in physical and mental stress among women (Debata et al., 2020). This section highlights the challenges and problem of sustenance experienced by the women members of self-help groups belonging to rural communities of India during the COVID-19 crisis. Fear of Virus The continuous reports of the growing number of positive cases and deaths created terror and threats in rural women as well as other human beings. Each individual was stressed not only for their safety but also for their family members and loved ones (Joshi, 2021). Pandemics generally lead to effect psychologically as well as socially. The common psychological impact includes distress caused by pandemic like fear of the virus, fear of death, physical isolation, worsening of mental health problems, stress due to lack of precautionary information or misinformation, stress due to lack of food distribution information, etc., (Joshi, 2021). Food Insecurity Another challenge is food insecurity caused by this pandemic. Even before the arrival of coronavirus and pandemic, the status of India’s food insecurity was dreadful. In 2019, out of 117 countries India ranked 102 in Global Hunger Index (Khan & Bali, 2021; Mishra & Rampal, 2020). The lockdown increased the cases of malnutrition among the low socioeconomic stratum as loss of livelihood raised difficulties in fulfilling basic food requirements of them (Gopalan & Misra, 2020).

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Difficulties in Participating in Group Activities The success of the self-help groups depends on the frequencies of their weekly meetings and savings (Sanyal, 2020). The members need to adhere to the principle of panchasutra for effective functioning of the group. For Women’s self-help groups, the lockdown was very challenging as the physical weekly meetings of the self-help groups as well as group’s meeting at the village level and cluster level were disrupted. The social distancing policies and the threat of coronavirus infection restricted their ability to meet, save and continue their income-generating activities and also disrupted discussions of their socio-economic problems, domestic issues, and intimate partner violence issues (Tankha, 2020b). This resulted in disruption in sharing intimate details of domestic abuse and lacking community support for their relief. Inability to Sustain the Savings and Problem in Access to Credit Lockdown disrupted the meeting activities to save and contribute to a common fund and receive microcredit for income-generating activities. Studies revealed that capital raised in the form of social, human and financial by women’s self-help groups enable the members to reduce the negative effects of economic and health shocks (Karlan et al., 2017). The regular activities of thrifts and disbursement or recovery of loan amount were on halt due to pandemic (Sanyal, 2020). The impact of lockdown has a long term effect on member’s economic outcomes. The savings accumulated till the emergence of the COVID-19 pandemic were useful in short-run for emergency needs but the accumulation of new savings disrupted due to lockdown. Loss of Income and Livelihood With the restrictions in travel and work the income generation reduced significantly due to loss of employment and collapse of businesses, loss of family members during the lockdown. The closure of markets, mandis, and weekly haats disrupted the selling activities. Women engaged in small manufacturing businesses like papad making, pickle making, candle making negatively impacted due to lack of supplies and orders (Tankha, 2020b). This resulted in increased deprivation for food consumption and

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nutrition insecurity as the existing savings reduced with the passage of time. Increased Domestic Violence The common socio-cultural problems raised by pandemic are economic disparities, discrimination, poverty, political subjugation, reduced income, economic crisis, halt in social networking and elevation in violence against women and girls, etc. Albeit the pandemic or emergencies affect the whole country or world, there are certain groups of individuals who majorly get affected in such a scenario. They are primarily women, elderly, poor, frontline workers, migrants and marginalized section of society (IASC, 2006). Studies revealed that domestic violence in the form of emotional, physical, economic and sexual abuse increases during pandemics (Gearhart et al., 2018). During this COVID-19 pandemic, violence against women increased due to full-day stay at home with their abusers. Loss of income and responsibilities of family for extended period caused by prolonged lockdown are the major factors for increased domestic violence (Sharma & Borah, 2020). Increased Care Burden The loss of livelihood and income, and the increased burden of taking care of the sick, children and elders with the daily chores negatively impacted the lives of poor rural women. All India Time Use Survey, 2019 showed that 5 hours per day and 1.6 hours per day on an average are spent by women and men, respectively, in India on unpaid domestic work (Agarwal, 2021) and this pandemic added an increased burden of this work to women (Power, 2020). Due to lockdown, as all members of the family staying at home for a prolonged time, the burden of domestic work and unpaid care increased upon women. Decline in Routine Check-Ups The poor populations of rural communities are more prone to medical issues and other problems than people of urban and suburban areas (Erwin et al., 2020). Due to restrictions on movement caused by lockdown and risk of getting contaminated by virus by visiting a healthcare

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facility resulted an effective decline in regular check-ups and preventive screening of diseases (Khan & Bali, 2021).

Measures and Resilience by Women’s Self-Help Groups During COVID-19 Pandemic for Sustenance Although stress and catastrophe are incapable of being avoided people learn to overcome, survive and become sustainable in the face of challenges (Kaye-Kauderer et al., 2021). Resilience relates to capacity to adapt, recover and transform in the face of difficulties, stress and shocks. It is the ability to withstand adversity and bounce back and grow despite life’s downturn. The resilient people view the factors of stress as challenges to cope up adversities, they are optimistic, committed and adapted to change (Huffman et al., 2021). Self-help group builds resilience among their members and their households by improving their economic, social and psychological outcomes that help them in their sustenance. In India, members of self-help groups as resilient community warriors have immensely contributed to curb the widespread of coronavirus in every possible way (Ministry of Rural Development, 2020a). Women’s self-help groups actively supported the state government, central government and local administration by taking part in providing rations, cooked food to poor households, giving them strength and confidence to overcome the fear of the pandemic. To mitigate the spread of COVID-19, the State Rural Livelihood Missions (SRLMs) were instructed and advised that the norm of social distancing should be followed during participation in the production of masks and protective gears, making available dry ration and cooked meals to vulnerable families by the groups. There are many appreciable initiatives taken by self-help groups across India during the pandemic. They provided financial support and delivered essential goods to the most vulnerable households. The major responses towards resilience are categorized in following sub sections. Dissemination of Precautionary Measures Women’s self-help groups created awareness in the village and local communities via telephone calls, WhatsApp, social media and various other forms (Ministry of Rural Development, 2020a). As social distancing was the prime preventive measure to mitigate the risk of coronavirus, the use of Information Communication Technologies (ICTs) treated as

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a substitute to physical proximity (Meinzen- Dick, 2020) to disseminate awareness. This helped in highlighting the precautionary measures to reduce the spread of coronaviruses like awareness about sanitation, hand washing, social distancing and quarantine. More than 86 lakh women’s self-help group members under NRLM conducted awareness programme (as of 25th March 2021). To spread awareness about the causes and effects of the coronavirus, Jeevika in Bihar stepped into the domain of IEC which encompasses information, education and communication. Self-help group in Uttar Pradesh communicated social distancing messages by wall painting, rangolis and marking lines and circles for promoting social distancing and spread COVID-19 prevention measures among their community members (Ministry of Rural Development, 2020a). Production of Masks, Sanitizers and Other Safety Kits Women’s self-help groups formed under NRLM contributed immensely towards the production of masks, personal protective equipment kits, sanitizers in the phase of global pandemic COVID-19 in India (Tankha, 2020a). They have actively participated in manufacturing masks immediately after the outbreak as it was the first line of defence against the coronavirus. The produced masks were supplied to local administration, police officials, health department and front line workers. These were also sold in the open market at a reasonable price (Ministry of Rural Development, 2020b). They also participated in manufacturing personal protective equipment like face shield, gowns and aprons (Ministry of Rural Development, 2020b). Many types of masks were manufactured by women’s self-help groups following the advisories of the Ministry of Health and Family Welfare (MoHFW), Ministry of Consumers’ Affairs and following the instructions of Health departments of respective states (NRLM, 2020). Women beneficiaries experienced in stitching and tailoring taken this as an opportunity and produced masks. The masks produced were commonly sold for 10 Rupees to 15 Rupees depending upon the quality and cotton used. As the cost of manufacturing masks incurred between 5.5 to 7 Rupees, the balance amounts are received by the member stitching the masks. This provided a monthly income of 5000 Rupees to 7000 Rupees to them while working from home (NRLM, 2020). Following the various advisories issued by DAY-NRLM to SRLMs regarding precautionary measures

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Table 16.1 Production by Self-Help Groups under NRLM during COVID-19 crisis in India Activity

No. of SHGs involved

Production of mask

55,161

Production of protective 4,851 gear Production of sanitizer 2,166 Production of hand-wash 256 liquid

No. of SHG members Total Production 2,79,733 8,314 19,424 1,065

16,89,27,854 (Nos.) 5,29,741 (Nos.) 5,13,059(Ltr.) 98,653 (Ltr.)

Source https://nrlm.gov.in (as on 25 March 2021)

viz., use of masks, hand gloves, wearing full sleeves upper garments, maintain hygiene and cleanliness, avoiding physical touch, regular hand wash by workers and customers, regular sanitization of self and equipment they positively participated in the manufacturing activities. Table 16.1 depicts that under NRLM, more than 2.79 lakh women collectively participated in the manufacturing of more than 16.89 crore masks, more than 8 thousand women came forward to produce 5.29 lakh Personal Protective Equipment (PPE) kits, more than 19 thousand women members produced 5.13 lakh litres of sanitizers following the guidelines of WHO, more than one thousand women made 98.65 thousand litres of hand wash liquid (as of 25 March 2021). Engagement of women in manufacturing activities promoted training, developed skills, which may further motivate the formation of women’s venture or enterprise. Running Community Kitchens and Distribution of Dry Rations The food crisis and hunger resulted because of lockdown affected a large population of India. To reduce this food insecurity, community kitchens are promoted to feed the needy and vulnerable poor people with cheap, nutritious and in some cases free meals twice a day (Ministry of Rural Development, 2020c). Table 16.2 shows that the women served more than 5.58 lakh, vulnerable needy people, by running 1.22 lakh community kitchens, running 67.27 thousand vegetable delivery units,

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and provided dry rations to more than 35.40 lakh vulnerable households (as of 25 March 2021). In Jharkhand, under the mission named ‘Mukhya Mantri Didi Kitchen’ Jharkhand State Livelihood Promotion Society (JSLPS) under NRLM served cooked meals to the disabled, deprived, needy and poor for free during lockdown. This Didi kitchen was run by women’s self-help groups (Ministry of Rural Development, 2020c). The meals provided were healthy, nutritious prepared and packaged following the norms specified by WHO. Members also delivered meals to the villagers who could not reach to Sakhi Mandals, at their doorsteps. In Jharkhand, the Ajeevika Farm Fresh mobile app was launched by the Chief Minister of Jharkhand to sell fresh vegetables are facilitated by women’s self-help group taking into consideration the social distancing guidelines. Haryana State government also have taken the initiative to run a grain market named ‘Atal Kishan Mazdoor Canteen’. This canteen is specifically run by a women’s self-help group formed under the Haryana State Rural Livelihood Mission (Yadav, 2021). Table 16.2 Services rendered by Self-Help Groups under NRLM during. COVID-19 crisis in India Activity Running vegetable delivery units Conducting awareness programme Providing dry rations to vulnerable households Running community kitchens

No. of SHGs involved 2,237 16,29,906

31,198

–

Source https://nrlm.gov.in (as on 25th March 2021).

No. of SHG members

Services Rendered

54,317

67,270 (Units)

86,92,790

2,42,56,783 (No. of Community members covered) 35,40,384 (No. of households provided with dry rations) 558,071 Persons served by 122,682Community Kitchens

1,97,705

–

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Role of Frontline Health Workers Members of self-help groups also played the role of frontline health workers during this crisis. They supported in delivering child, infants, maternal health and nutrition related entitlements, supplements and tablets and care services (Ministry of Rural Development, 2020c). The role played by them was never been more important than now. They have taken a leadership role in their respective villages (Sanyal, 2020). This supports the fact that, in India, the rural vulnerable women played a significant role to tackle the pandemic through resilience approach and collective action empowering themselves socially as well as economically. The production of these items and provision of services generated wage for women workers building their strength and confidence when the lockdown raised unemployment all over the country.\

Policy Implication Women of rural India play a magnificent role as an agent for sustainability and resilience. Women being positive in behaviour and nature, never hesitate to take the risk and grab economic opportunities for the well-being of their children and family. They are quick to adapt and learn new skills with zeal and enthusiasm. Training and skill development and capacity building programmes should be provided to them easily to make them expert in whatever field they are interested in and foster their management and leadership skill. The insights and findings of the study on the dimension of contribution of self-help group in being resilient with the pandemic situation and supporting at various levels may be useful for the various stakeholders, policymakers and government. This study is novel and will enable in understanding the potential of self-help group in crisis management at rural community level through its innovative and dedicated approach and consequently the various agencies involved in the implementation of NRLM scheme will provide further strong support to achieve its full potential towards community development. The results will assist the policymakers in making further suitable policies to strengthen the self-help groups at various level and enable them to play a significant role in mitigating the negative impact of the pandemic at community level.

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Conclusion COVID-19 proved disastrous for human life and disrupted the socioeconomic system of India and entire world. Lockdown in India has disrupted the lives especially among the rural poor (Dutta & Fischer, 2021). Women of rural India generally obscured from the spotlight, during this destructive pandemic seen taking care of their communities. In India, the women’s self-help groups supported the government in fighting with COVID-19 with full courage, safety and zeal (Sharma et al., 2021). The government of India should support and strengthen the self-help group members viewing its huge potential in supporting the community and village life through its innovative and resilient approach during the crisis period. This paper concluded that rural women living in villages contributed immensely during this devastating pandemic in nurturing the entire nation. Although the government schemes and entitlements are the only sources of security on which the poor households rely for managing the threat and risk of this pandemic and sustain their livelihood. The women’s self-help groups in India with their resilient approach transformed downturn to success. They provided significant relief to the extremely deprived and vulnerable peoples of the rural area and supported in mitigating the impact of pandemic through collective action.

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CHAPTER 17

Exploring the Institutionalization Process: A Qualitative Analysis in a High Impact Community Alberto Borbolla Albores

Introduction Impact investing is a way of investing that seeks financial returns along with social and environmental impact. This way of investing has gained strength in the financial ecosystems across countries. Impact measurement is one of the most relevant challenges presented by this ecosystem. There are a variety of metrics developed by international and local organizations, giving an important variety in ways of measuring impact in local contexts. Studies on high-impact investor communities in the Latin American region have been scarce. The high-impact ecosystems in this region are in a consolidation stage (Dumont et al., 2016). One interesting case

A. B. Albores (B) Universidad Anáhuac México, Mexico City, Mexico e-mail: [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_17

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study is AIIMX,1 which is a group of financial companies that seek to promote financial innovation by stimulating high-impact investment in the traditional financial ecosystem of Mexico. In 2016, AIIMX emerged as a conglomerate of financial companies that sought to promote a new investment paradigm that has impact as its main feature. Studying a community of investors allows us to understand their institutionalization processes regarding the establishment of standardized practices that are registered in the convergence of languages, practices, and horizons of meaning that the community presents. The institutionalization of a community goes from a phase of imitation of the best practices of the organizations related to its ecosystem, to stages where the normalization of practices more related to the characteristics of its social context is captured. The research objective of this study was to explore the institutionalization processes of a financial community. To this end, we conducted qualitative research to explore the speeches and their meanings reported by the members of the AIIMX. This type of research allowed us to understand that this community is in the pre-institutionalization phase where the diversity of the community is homogeneous, its practices and metrics were adopted from other reference sources of the ecosystem and the creation of content and knowledge of value is found in an incipient phase. Twenty in-depth interviews were conducted with investors, mentors, and social entrepreneurs. These interventions were carried out at the Ibero-American High Impact Investment Forum, held in the city of Mérida, Mexico. This research contributes by better understanding of the current state of institutionalization of high impact investing in Mexico. Studying the community of investors allowed us to understand the processes of institutionalization of meanings and practices within a social institute, thus identifying that the imbalance between meanings and practices within a community produces value creation disabilities within the community, since imitation does not generate identity cohesion or knowledge relevant to local problems.

1 In Spanish AIIMX stands for Allianza por la Inversion de Impacto Mexico, which means Alliance for Impact Investment in Mexico.

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Literature Review For this paper, we adopt the perspective of sociological institutionalism as a conceptual theory, since it allows us to contrast the difference between the social imaginary (myths) of an institution and the habitual behaviors of its members. Behaviors are legitimized through myths, which often they do not respond to behaviors (Meyer & Rowan, 1977). Social Illusory For sociological institutionalism, the word “institution” has a broader meaning than a mere organization or its brick and stone buildings; it includes the formation of implicit conceptual agreements from which actors make decisions and generate social practices, structures of beliefs, social practices, values, and ways of doing and being, that is, the social imaginary (Castoriadis C, 2012) constitute the institutionalized actions and attitudes of a community. The social imaginary is constructed through language as a mean of encoding and habituation (Lindón, 2012; Berger & Luckmann, 1993). The imaginary is the set of values, institutions, laws, and symbols through which people imagine their social whole. The theory of social imaginaries has been widely used in various studies to explain globalization processes (Steger, M., 2009), data management and activism (Lehtiniemi T, & Ruckenstein M, 2018). According to the previous discussion, institutionalization can be understood as a legitimate classification scheme (Cegarra J., 2012). Every community establishes a certain institutionalization in its activities and identities (Castoriadis C, 2012) with the aim of creating trust and legitimacy in its members and with significant others (Berger & Luckmann, 1993). To begin the construction of an imaginary, a horizon of meaning is required that starts with group common knowledge. Such information— tacit and dispersed—is expressed in collections of knowledge (Endress M, 2005; Berger & Luckmann, 1993), which embraces every formalized social group and which determines its cognitive and type orientation. For example, congresses, workshops, events, official information, etc. The sociological institutionalism is separate from the neoclassical approach (Stark A, 2018; Powell & DiMaggio, 2012) and assigns economic processes and activities within social and cultural contexts. The rational actor is replaced by an actor whose rationality is limited by its cultural context. The limits of their context restrict the rationality of the

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actors. Context-bound rationality, known as Context Bound Rationality (Nee & Ingram, 2001), suggests that decisions of social actors are limited by the information available to them at a given moment of time. In this line, economic sociology suggests that rationality is not only limited by, but interwoven or “embedded” in non-economic institutional contexts (Granovetter M, 1985; Callon, 1998; Nee & Ingram, 2001). Sociological institutionalism provides the notion that culture, norms, and social rules shape behaviors and practices, which are key aspects of institutional construction. This perspective has been used to evaluate corporate governance, mainly regarding issues of legitimacy and transparency, organizational analysis focused on organizational isomorphisms, myths, and ceremonies (Hallett T, & Hawbaker A., 2020), public policy and its relationship with the rationality of the actors (Peters B. G, 2016), international organizations and their management of local and global norms and cultures (Oksamytna K, 2018). One dimension of the institutional perspective has been used to carry out organizational analysis, from understanding the processes of mimicry and organizational legitimacy (Powell & DiMaggio, 2012), to understanding organizational changes, to issues of power and legitimacy within the organization (Powell & DiMaggio, 2012) and the construction of gender in organizations is stuck by regulations and informal institutions (Galea et al., 2020). However, the study of institutionalization processes remains scarce (Tolbert & Zucker, 1996). Reciprocal Relationship: Typification and Habituation The study of the investment community is based on the perspective of Giddens (2008), which identifies institutionalization as the process of consolidating common practices and meanings. They point out that the relationship established between typifications and habitualizations (Tolbert & Zucker, 1996), produce trust and identity in members of the community. This reciprocal relationship between meanings and practices allows the members of the community to identify the same problems and their decision-making to be consistent with their perceived social reality. These shared meanings establish cognitive schemes in the community that determine their decision-making model. Institutionality is built and rebuilt in two steps that operate in a circular manner and feed each other: typification and habituation. Typification refers to the codification of social actions and practices—meanings that

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are given to them—while habituation refers to the sustained repetition of such typifications, generating behavior patterns. Typification generates routines (habituation), which in turn, generate better typing (Berger & Luckmann, 1993). For this reason, the concepts of typification and habituation are decisive for understanding the institutionalization process of a community of professionals. Understanding the behavior of a group of people involves finding patterns of meaning in their actions (Giddens, 2008). The projection of the social horizon of a group depends on and is limited by its significance systems. What we seek in this study is to understand the role that this system of meanings plays within a community of investors and how they typify and generate habits appropriate to their idea of projection.

Methodology A methodological design was carried out that seeks to explore and describe the experiences of people with respect to an event, occurrence or problem (Hernández-Sampieri, 2018). By assessing the experience of individuals through how they build their experience in discourses, meanings, attributions allowed us to capture the current state of typification within the studied community. To explore the experiences of the members, semi-structured in-depth interviews were conducted. A topic guide was used that helped us to carry out an open but orderly interview regarding its narrative sequence. This type of technique is flexible and continuous; the interviewer has a general research plan (key questions) by which they establish a general direction and follow the topics raised by the interviewee (Babbie, 2000). Twenty in-depth interviews were conducted with members of the AIIMX community. The interventions were carried out at the IberoAmerican High Impact Investment Forum held in the city of Mérida, Mexico. The dispersion of the interviews was intentional, so that there was interviews to investors, entrepreneurs, and mentors. Interviews were recorded with the permission of the informant and later transcribed. There are 16 h of audio recording and around 100 pages of transcript. Two researchers analyzed the results independently to later reach a consensus on the results (Table 17.1). We used this profiling because it was for the organization to segment its members during the event: (1) Capacity Builders are those actors in the

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Table 17.1 Profiles of interviewees

Interviews

Capacity Builders

Entrepreneurs

Investors

University research professor (1) University research professor (2) University research professor (3) Official of an international organization (4)

- University social entrepreneur, (1) University social entrepreneur (2) University social entrepreneur (3) University social entrepreneur (4) Start-up technology Social entrepreneur (5) Start-up on gender education Social entrepreneur (6) Start-up on inclusion

Investor Venture capital fund (1) Investor Venture capital fund (2) Investor Venture capital fund (3) Investor Venture capital fund (4) Investor Venture capital fund (5)

20 in-depth interviews Source Author

ecosystem who are dedicated to advising or consulting on entrepreneurship. They also serve as connectors between entrepreneurs and investors, (2) Entrepreneurs are those actors in the ecosystem that present a social solution, and (3) Investors are those actors in the ecosystem in charge of incubating and activating social businesses. The topic guide was built considering as criteria, the registered in the institutionalization process model (Tolbert & Zucker), specifically in the following five dimensions: • • • •

Current state of the high-impact investment ecosystem. High-impact investment Mexico (challenges, problems, challenges). Value creation. Future.

During the observation and interviews, we observed various patterns regarding attitudes and activities, environment and context, type of interactions (exchanges of information), relevant objects and actors. The primary activities of participants in the community revolved around seeking networking, specifically with investors. There were no connecting channels between entrepreneurs or between entrepreneurs and capacity builders. The interactions were highly centralized around investors, their rules, norms, symbols, language, and culture. Secondary activities

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consisted of events such as presentations, and workshops in which the high impact panorama in Mexico was discussed. In this context, being centralized in the figure of the investor, which gave them a transactional character weakened the interactions. Additionally, most interactions were conducted in English.

Findings Data analysis was carried out according to the triangulation model seeking validity and reliability in the data analysis. Each researcher performed open coding with the aim of identifying categories and subcategories. The two coding were contrasted to perform an axial coding that would identify the key dimensions suggested in the information. Five key findings about the construction of the social imaginary of the community emerged from this framework. Fuzzy Classificatory Schemes Different discourses on the same topics are identified, starting with the very definition of what high impact means. Discourses on high impact investing are not aligned and refer to different things. There will be another person who defines it differently, the truth is something that is still very subjective. (Entrepreneur, 2) Here everyone has a definition of the idea of impact. (Capacity Builder, 4)

Throughout the study we discovered that one of the fundamental blind spots within the community lies in its very definition of what high impact means and its implications. This finding suggests that institutions are being built. We maintain that success in its construction will depend on its institutional capacity to integrate typifications of the social context into its traditional imaginaries, which lead to culturally sustainable habits. In other words, the meanings of high impact in Mexico are being built based on foreign elements and those of the financial world, leaving aside particular elements of the country and concepts of the social world.

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I think that each one has explored a little where that impact is going, I think that an ecosystem that is growing is normal and it is an opportunity to share best practices and lessons learned in order to perhaps once again close that channel and understand well where you are going. (Entrepreneur, 3)

Imaginary Under Construction (Organizational Mimicry) Interviewees do not share the same projections of meaning, which made it difficult for them to maintain a common horizon. This caused the network build to be poor. This absence of horizon generates the perception that the ecosystem is young, new or incipient, even when it is rationally known that it is not. This is because it is in a constant “state of construction.” Perhaps it is a topic that seems not so new, I already learned that it has been around for ten or twelve years, but it is recent, in quotes. (Entrepreneur, 1)

Added to this dissonance is the fact that attempts are made to understand local reality through the common horizons of other cultural contexts. The same actors are aware of the need for the ecosystem to develop a local horizon of common sense on which to build. Yes, clearly it has been very influenced by the idea that you see in the United States in Silicon Valley, they believe that by having the amount of money you can invest in ideas that are just being tested, but perhaps with little impact, I think that rather we are copying a mentality that exists in another country that already has a much more developed environment or investment process. (Investor, 2) The entrepreneur in Mexico has two types: the one who is very privileged, who is a guy from a very good university, from a good family, who saw an opportunity, saw that he had a privilege and wants to solve a problem, is a person who it has resources, it’s in all these forums, it has first-hand information about trends and universities. The other type of entrepreneur arises in a much more organic and spontaneous way, sees that there is an opportunity to do something in his community or in his environment and grows as he needs it, but he is perhaps much more in contact with that reality and sees that things must change. (Capacity Builder 1)

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Fragile Institutional Supports Actors perceive that belonging to the ecosystem requires a great amount of energy and resistance. Since the support and knowledge institutions that channel resources into common practices are in their infancy, this task falls to them as individuals. The common denominator is people with a lot of energy, always active and thinking of new things that they can do as an alliance or cooperate with others, but many of them lack coordination between the actors in the ecosystem. (Entrepreneur, 4) Events, seminars or talks are not relevant topics that work for us on a day-to-day basis and sometimes I feel that they do not provide the fundamental resources to support entrepreneurs. (Capacity Builder 6) Sometimes we do not invest in ventures due to the lack of trust and transparency of the teams of entrepreneurs. (Investor, 3)

This is visible also in the perception of access to networking. It’s networking, levers, truly turning to see entrepreneurs who are already social entrepreneurs but who are much more community-based and who perhaps become more invisible because they don’t have access to this type of event. Here we have very good entrepreneurs, but there are also others who are, for example, in some community doing great work, but they are not here. So, make it much more inclusive. (Capacity Builder 6)

Typifications and dissonant habits in this regard, we can find that the lack of support and common horizons is generating tensions or different confrontations between financial and social meanings. This lack of shared meanings produces an open community and little group identity. As this is a very financial ecosystem, profitability is very important, some others will never have a chance, because they have not managed to reach their goal. Break-even point, or because naturally all the focus has been on helping the beneficiary and not on being financially sustainable. (Investor, 2) It is perceived that in the ecosystem each one is looking for their interest and there is no common goal that integrates all of us involved. (Entrepreneur, 4)

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This imbalance in habits is presented in the difficulty of generating strong and comprehensive measurement mechanisms. Because we are not good at measuring or planning, culturally we do not have an approach towards that and measurement is complex, being able to have indicators to see, I said that I want to change this in the world and also how does that look in numbers without indicators is extremely complex. We are increasingly professionalizing entrepreneurships, but today, it is an area of opportunity that still hurts us. (Investor, 4)

Performance Scenarios Rituals, ceremonies expressed in the form of events, expos, forums, seminars, and webinars are scarce and limited to exclusive groups. They are not found to be creating value for the community and remain only superficial attempts to create community. Just now I have met many people and I think the common denominator is people with a lot of energy, always active and thinking about new things, all that remains is to find spaces for true connection with others. (Entrepreneur, 5)

Sometimes this phenomenon can be perceived as a kind of performance. The risk for me is what I told you, sell more show than generate impact. (Capacity Builder 6)

The consolidation of the investor community implies a continuous process of institutionalization in which scenarios of significance are established for its members and thus a horizon of shared meanings and practices. The community first establishes a common framework or horizon and accommodates its typifications of social reality by translating them into patterns of action and social practices. With the routinization of their practices, this process begins to consolidate in the minds of the subjects in the form of norms, inertia, and values. This process can be visualized as a cycle of typifications and habituations in which the typifications represent the generation of language and symbols in common and the habituations, the sustained repetition of the same in already established routines and processes. In this study, it has been possible to observe that the high-impact Mexican

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community is in a phase of construction of its institution that has not reached a point of maturation and institutional strength. The institutional construction of the same necessarily implies the development of the diversity of members, their own practices and metrics appropriate to their local contexts. According to the speeches of the interviews, the investor community is in a pre-institutionalization phase because its shared horizon is unbalanced regarding its typifications and the creation of habits. Regarding actors, the imbalance is perceived as a dispersion of meanings. For me the impact can be very strict from adhering to meeting basic needs. For another, impact can be supporting any type of company that is not necessarily solving an access problem, but that is generating jobs for people.

To sum up, the logics of community creation are based more on networking than on the construction of meaning. That is why there is a diversity of typifications of reality and little landing on them. Additionally, centralization of the process of creating the social imaginary in the figure of the investor means that the languages and symbols of the typifications that occur within the community are developed in an exclusive manner on their own terms. The figure of the investor is signified by financial and foreign typifications, paradoxically distancing it from the goals of high impact typified in Mexican cultural and social terms. Finally, there is a gap between what they say and what they do. What they say revolves around cosmopolitan/financial interpretive schemes, while their actions must be developed in local conditions that are very typical of the Mexican context. In response to this situation, the integration of the country’s socio-cultural conditions into the social imaginary of the high-impact community is required so that its concepts, institutions, and measurements are in line with the social realities in Mexico. That is, to go from a phase of constant classification to a phase of habituation.

Conclusion and Implications The high-impact entrepreneurial ecosystem in Mexico is in an incipient phase of consolidation that is characterized by the replication of successful methodologies in other countries and by the support of expert institutions for developing such instruments abroad. However, the country has a specific institutional and cultural context that is generally not considered.

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In this study, we have been able to observe that this social phenomenon generates cultural blind spots that hinder the construction of the social imaginary of the community. A future line of research has to do with institutional capacity registered by entrepreneurial ecosystems and how it manifests itself as a trigger and limiter of entrepreneurial intentions, through an imaginary perspective of organizational power. On the other hand, it would also be valuable to evaluate the mechanism through which the social imaginary is translated into more adequate and effective metrics. From there, future research questions arise: what non-economic factors influence high-impact investing, regarding trust and legitimacy of the entrepreneurial ecosystem? To what extent does the structure of beliefs and values that inscribe the AIIMX coincide, or is it limited by the noneconomic institutions of the context? Does the metric used by the AIIMX to evaluate the impact of the investment consider other aspects besides the economic ones? Our intuition is that all these subjects involve the exercise of a limited and decontextualized evaluation tool. This study can help us to recognize the cultural limits that determine the rationality of actors in Mexico, to develop more focused and effective strategies in a Mexican cultural context. We can also begin to glimpse how the construction of a social imaginary generates more effective networking processes that contribute to the cohesion of the high-impact ecosystem.

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Endress, M. (2005). Introduction: Alfred Schutz and contemporary social theory and social research. In Explorations of the Life-World (pp. 1–15). Springer, Dordrecht. Galea, N., Powell, A., Loosemore, M., & Chappell, L. (2020). The gendered dimensions of informal institutions in the Australian construction industry. Gender, Work & Organization, 27 (6), 1214–1231. Giddens, A. (2008). Consequences of modernity. Alliance. Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481–510. Hallett, T., & Hawbaker, A. (2020). The case for an inhabited institutionalism in organizational research: Interaction, coupling, and change reconsidered. Theory and Society, 50(1), 1–32. Hernandez, R., Fernandez, C., & Baptista, P. (2016). Investigation methodology. Sampieri 6th Edition. Soriano, R. R. (1991). Guide to realize social investigations. Plaza and Valdes. Hernández-Sampieri, R., Fernández Collado, C., & Baptista Lucio, P. (2018). Research methodology (Vol. 4, pp. 310–386). Mexico: McGraw-Hill Interamericana. Leme, A., Martins, F., & Hornberger, K. (2014). The state of impact investing in Latin America. Bain, Incorporated. Lindón A. (2012). The concurrence of the spatial and the social. In T. De la Garza & G. Leyva (Eds.), Treatise on the methodology of the social sciences: Current perspectives (pp. 585–616). UAM-CFE. Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American journal of sociology, 83(2), 340–363. Nee, V., & Ingram, P. (2001). Embeddedness and Beyond: Institutions. The New Institutionalism in Sociology, 19. Oksamytna, K. (2018). Policy entrepreneurship by international bureaucracies: The evolution of public information in UN peacekeeping. International Peacekeeping, 25(1), 79–104. Peters, B. G. (2016). Institutionalism and public policy. In Contemporary approaches to public policy (pp. 57–72). Palgrave Macmillan, London. Powell, W. W., & DiMaggio, P. J. (Eds.). (2012). The new institutionalism in organizational analysis. University of Chicago press. Steger, M. F. (2009). Meaning in life Tolbert, P.S., & Zucker, L.G. (1996). The Institutionalization of Institutional Theory.

PART V

Marketing

CHAPTER 18

To Study the Influence of Antecedents, Consumer Lifestyles and Consumer Involvement: Determining the Mediating Role of Visual Merchandising Sourabh Sharma, Rajesh P. Jawajala, Amruta Rajesh Jawajala, and Megha Sharma

From unorganized and periodic markets to supermarkets/hypermarkets, the Indian retail has witnessed massive transition and it presently ranks as the seventh-largest retail destination globally. Food and Grocery

S. Sharma (B) International Management Institute, Bhubaneswar, India e-mail: [email protected] Present Address: R. P. Jawajala MIT World Peace University, Pune, India e-mail: [email protected] A. R. Jawajala Stratagem Consulting and Research, Pune, India © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_18

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segment accounts for a major chunk of the total retail sales followed by the Clothing and Footwear segment. With unorganized retailing accounting for 96% of the total retail revenues, the Indian retail is dominated by unorganized retailers. In terms of segmental contribution, the apparel and footwear segment has been the major driver of organized retailing. The growth of organized retailing aided by factors like massive growth of population, increasing urbanization and nuclearization of families, growing participation of females in the workforce, all this coupled with the growing per capita income of the Indian consumers and time constraint factor has brought about an alarming change in the Indian consumption pattern. The growing number of households has not only pushed the demand for necessities but the combined mix of greater purchasing power and willingness to spend has resulted in the nuclear family’s shifting focus toward luxury/semi-luxury products. This has thus led to the emergence of modern retail formats such as specialty retail, luxury retail, one-stop shop concepts, etc Rising incomes will create a 583 million strong Indian middle class, with estimates for the annual household disposable incomes rising from 1,13,744 rupees in 2005 to 3, 18,896 rupees in 2025 if India were to maintain its current growth rate over the next two decades. This will catapult India to make it the fifth-largest consumer market by 2025 with aggregate consumption growing in real terms from 17trillion Indian rupees in 2005 to 34 trillion Indian rupees in 2015 to 70 trillion Indian rupees by 2025 a fourfold increase. India will experience a tremendous consumption growth in its booming middle and upper classes, total combined spending by these classes will more than quadruple in the first decade $94 billion to $407 billion by 2015 and nearly 13 times over the next two decades to reach $ 1,207 billion by 2025. As incomes tend to rise consumers, the values and preferences of consumers tend to change and they spend less on basic necessaries and more on discretionary items. With discretionary spends rising, from 35% of average household consumption in 1985 to 52% in 2005. With this

e-mail: [email protected] M. Sharma NIIS Group of Institutions, Bhubaneswar, India e-mail: [email protected]

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trend continuing to reach 70% of average household consumption over the next 20 years, for these households’ consumption will grow rapidly across all categories such as transportation, food and beverages, health care, personal products, education and recreation, apparels, communication, household products, housing, and utilities. Though there may be relative shift between categories, however, with special reference from this paper’s perspective mention may be made of apparels and clothing which would still rank among the top five spend categories across all major socio-economic classes of India.

Literature Review Dimensions of Visual Merchandising—Definitions The practice of visual merchandising is the activity that coordinates effective merchandise selection with effective merchandise display. Some describe Schimp the role of visual merchandising to create awareness about a product, about its benefits, encourage customers to buy the product, optimize the utilization of space for merchandise display— make it easy for the customers to locate, evaluate and select a product and reinforce a retailers visual communication about a product.“ The presentation of a store and its merchandise in ways that will attract the attention of potential customers and motivate them to make purchases” (Diamond & Diamond, 2003). “Visual merchandising is the total store environment including merchandise presentation, store design and image, mannequins, props and materials, lighting, graphics, and signage influences product sales and store image in the retail setting” (Cahan & Robinson, 1984; Diamond & Diamond, 2003). Visual merchandising is also considered as a way of presenting merchandise effectively to improve the desirability of a product and to influence a customer’s buying behavior. Visual merchandising is defined as the “Activity, which coordinates effective merchandising selection with effective merchandising display, visual merchandising is therefore concerned with both how the product and/ or brand are visually communicated to the customer leading to the creation of a positive psychological or behavioral outcome, ultimately leading to purchase”. Visual merchandising is thus concerned with both how the product and/or brand is visually communicated to the

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customer and also whether this message is decoded “appropriately”— in this context affecting a positive psychological or behavioral outcome ultimately leading to purchase (Kerfoot et al., 2003a, 2003b). Dimensions of Visual Merchandising–Store Layout The key facets within merchandise display can be identified besides others are Layout (Levy & Weitz, 1996). The complexity of the store layout task lies in the relationship between categories on sale as well as on the impact that it produces on the consumer spatial behavior and in-store traffic. Farley and Ring suggesting that the shoppers might be influenced to buy by the layout itself and that a good store layout forces each customer to travel past as many displays as possible. McElroy et al. (1990) emphasize that the store design or the design of the place affects the consumer perceptions or attitudes. Fixturing (Levy & Weitz, 1996) Merchandise. Presentation techniques (Buchanan et al. 1999), packaging. It has been frequently suggested that good interior store design maintains customer interest, encourages customers to lower their psychological defenses and make a purchase (Kotler’, 1974; Bitner, 1992a, 1992b). The physical in store environment has been examined in relation to various elements: orienting factors; Signage (Bitner, 1992a, 1992b); Ambient conditions (Bitner, 1992a, 1992b); which Kotler (1974) termed as “store atmospherics.” The work regarding the physicality of the in-store environment focuses on the “communication” of elements through cues and stimuli that the customer digests through a number of sensory modalities (visual, aural, olfactory, haptic and taste). Given the fact, up to 90% cues provided by an environment are digested through sight it follows that many environmental cues in the retail context are visually communicated, thus further strengthening the link between visual merchandising and the considerations of the physicality of the in-store environment. Research has been carried in relation to the physiological and psychological effects of color, Gerard states that generally, warm colors (red and yellow) have produced opposite physiological and psychological effects than cool colors (blue and green), which are opposite on the color spectrum. Bellizzi et al. (1983) When the effects of color in retail store design were studied the results indicated that despite color preferences, subjects were physically drawn to warm color (yellow and red) environments, but they paradoxically found red retail environments to be generally unpleasant, negative,

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tense, and less attractive than cool color retail (green and blue) environments. He speculated that a red environment may over stimulate buyers both physiologically and psychologically and thereby may impair purchasing deliberations and buying decisions. (Cited in: Bellizzi & Hite, 1992). Simonson and Winer; Kumar and Leone (1988); Abratt and Goodey (1990) describe product display as an in—store stimuli, which is a promotional technique used to encourage impulse buying, increase the rate of unplanned purchase, the study also found that displays are one of the most influential factors on unplanned purchases. Gutierrez has found in his research regarding impulse purchases that “the presence of environmental stimulation variables such attractive store displays may moderate the choice of search strategies and help in making impulse purchases.” Davies and Tilley (2004) explained that product shelving has an important influence on consumer behavior. Both the height at which the products are displayed and the number of rows in the store can influence the sales of products, in a moderate sized general supermarket, the average shopper will select only thirty five of the likely several thousand different items on display. Moreover, most frequently purchased products should never be in adjacent spaces but should be spread throughout the store thus increasing the probability of impulse purchasing of the intervening products. Careful placing of high-demand lines can help to attract customers to parts of the shop: while impulse purchase lines with high profit margins be placed alongside the everyday goods. It was mentioned that more than 50% of purchases by supermarket shoppers are pre— planned and the remainder are largely stimulated by the display in the store. Dimensions of Visual Merchandising—Music Bruner (1990) suggests that the genre of the background music is likely to produce stronger effects on perceptions and preferences. According to Cupchik et al. (1982) since preferences for musical genres are strongly influenced by individual differences varying the genre of a store’s background music is more likely to produce differential effects across customer groups. (Cited in: Areni & Kim, 1993), Milliman (1982) suggests that slow tempo of instrumental background music can significantly slow the pace of in-store traffic flow of supermarket customers, as opposed to fast tempo. An early study by Smith and Curnow (1966) found that significantly less time was spent in the stores when the music was loud compared

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to when it was soft. Kellaris and Rice (1993) reported that the impact of loudness on musical preference differed by gender, with females reacting more adversely than males to louder music. Dimensions of Visual Merchandising—Lighting Lighting is a chief factor in the environment’s impact on individuals because brightly lit rooms are more arousing than dimly lit ones, Areni and Kim (1994) found that consumers examined and handled significantly more items under ‘bright’ lighting conditions than under ‘‘soft’’ lighting conditions. Illuminating Engineering Society of North America (IES) Handbook states that ‘‘the primary goals common in the lighting of merchandise are to attract the consumer, to initiate purchases, and to facilitate the completion of the sale’’ (Rea, 1993). The IES recommends that when illuminating merchandising spaces, lighting designers should create a ‘‘pleasant and secure environment to do business’’ (Rea, 1993, p. 591). Summers and Herbert (1999) observe that a more appealing store with better-illuminated merchandise may entice shoppers to visit the store, linger, and hopefully make a purchase. Their findings suggest that a retailer’s manipulation of the in-store supplemental display lighting may achieve a significant increase in general consumer involvement with in-store display merchandise. Cleanliness Carpenter and Moore (2006) observed that both frequent and occasional shoppers across all retail formats indicated cleanliness as the single most important store attribute. Yun and Good (2007) declared that shopping in an immaculately clean store might generate image perceptions of cleanliness, contentment, or luxury. R. Gajanayake, S. Gajanayake, H. Surangi in their study examining the impact of visual; merchandising techniques on patronage intentions among Sri Lankan customers in their supermarkets have found very significant correlations between the patronage intentions of customers and the factors mentioned above viz. Store Layout, Product Display, Color, Music Lighting, and Cleanliness. Display factors while often receiving individual attention, were not viewed in isolation, respondent’s perceptions often involved various factors in combination. This “holistic” interpretation of display is at odds with the various approaches conveyed in the literature.

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Dimensions of Visual Merchandising: Customer Relationship Management—Enhancing Customer Satisfaction& Experience Kerfoot et al. in their study found that various themes like merchandise color, manner of presentation, type of fixtures, qualities of materials, type of lighting impacted and influenced the consumers. These store environment cues were associated with multiple purchases, transmit signals relating to merchandise pricing perceptions and by implication quality reduce shopping experience costs (Baker, Parasuraman, Grewal & Voss, 2002a, 2002b), exclusivity or premiumness, modern or “funky.” They may also aid in developing unique relationships with a store’s ambience aided by the display and location of merchandise thus encouraging greater. Retailers can help customers to find the right products through focused merchandising, intelligent store design and layout, and other visual merchandising practices, such as product displays, packaging, and signage (Abrams, 1996; Baker, Grewal & Levy, 1992). This indicates the importance of visual merchandising in retail stores for increasing purchase intention. Store layout, merchandise selection, and assortment are included in the “list of salient attributes” to which the consumer is exposed in determining the store image and act as “value signals” in the consumers perception of value (Smith & Burns,1996). Visual merchandising contributes to efficient retail practices, from the planning of floor layouts to the standardization of merchandise presentation and signage, creating visually appealing shopping environments where the layout facilitates “sensory and tactile interaction” between the customer and the product. Window display and visual merchandising were drawn together with the emergence of lifestyle retailing, with its emphasis on coherent retail brand communication through close attention to design throughout the store environment. Nelson and Ellison (2005) cite in their study what P&G calls the “first moment of truth”—three to seven seconds when someone notices an item on a store shelf and believe they are a crucial determinant of product choice. Chandon, P. et al. (2009) examined the interplay between in-store and out-of-store factors on consumer attention to and evaluation of brands displayed on supermarket shelves. Using an eye-tracking experiment, they found that the number of facings has a strong impact on evaluation, which is mediated entirely by its effect on visual attention and works particularly well for frequent users of the brand, for low-market-share brands, and for young and highly educated consumers who are willing to trade off brand and price. They also found that gaining in-store attention is not always sufficient to drive

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sales. For example, top- and middle-shelf positions gain more attention than low-shelf positions; however, only top-shelf positions carry through to brand evaluation. Display of the products on the shelves and counter is a major factor influencing the impulse behavior, however, females did more impulse buying on the shelves compared to males who displayed impulse buying on the counter (Ghani, 2010). In a study examining the effects of online visual merchandising cues on pleasure and arousal on buying—high and low task relevant cues—on consumers under different situational involvement viz. browsing vs. purchasing found that pleasure and arousal induced by various online visual merchandising cues were positively related to consumer satisfaction, purchase intention, and approach behavior (Young. H., 2010). In another case of intimate wear apparel retailing, it was found that retailers must intensify their retail identity by unique visual merchandising strategy to arouse purchase. Dimensions of Visual Merchandising–Strategic Role: Create Sustainable Competitive Advantage—“Store Brand Experience &Store Identity” The development of approach or avoidance behavior is related significantly to the consumers like or dislike of visual merchandising. Visual merchandising can attract consumers to enter stores and can communicate brand image, aid in the creation of differentiation and brand identification (Israel, 1944; Lea-Greenwood, 1998). Kim Jiyeon observed that due to increasing competition and the similarity of merchandise, retailers utilize visual merchandising to differentiate their offerings from others’ as well as to improve the desirability of products. However, there is need for more comprehensive study on the influence and importance of visual merchandising on brand differentiation and recognition. Greenwood L. (1998) said that the re-naming of display as visual merchandising has led to centralization and professionalism of the function. Centralization of visual merchandising has given the function a strategic profile which has to date been neglected within the literature. The move toward centralization and therefore increased professionalization and sophistication of the creative process includes the following benefits (1) communicating a cohesive brand image; (2) differentiating the offer from the competition; (3) integrating promotional effort across the brand; (4) increasing availability of technology to facilitate the process and thereby help in creating a unique customer experience.

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Shopping Behavior and Consumer Involvement Shopping behaviors explain how and where a consumer shop. The comfort level of making clothing purchase decisions for oneself, frequency of purchase, amount of time spent shopping, and amount of money spent for an outfit can be useful to the retailer. Store environments (e.g., lighting, color, and music) influenced consumers’ emotional states such as pleasure and arousal that in turn influenced consumer response behaviors (Baker et al., 1992; Bitner, 1992a, 1992b; Buckley, 1991; Donovan & Rossiter, 1982; Donovan et al., 1994; Spies et al., 1997). This in turn increases purchase intentions (Babin et al., 2003; Fiore & Kimle, 1997). Kinley et al., studied the degree of involvement with shopping for clothing which affects the frequency with which GenY consumers seek the opinions of others when making clothing purchases for themselves; the non-personal sources that influence the frequency of clothing purchase; and certain shopping behaviors. They examined the level of involvement with shopping as a psychographic descriptor and a demographic descriptor to create a shopper profile to determine the various shopping tendencies. Demographic group is defined as measurable, substantial, accessible, and actionable (Donthu and Cherian, 1994). When a generation meets these abovementioned criteria, it is defined in the literature as a group of people with certain attitudes and behaviors in common that are different from the generation before it. Involvement Involvement is an unobservable state of motivation, arousal, or interest (Rothschild, 1984). In a consumer behavior context, involvement is the degree to which consumers are engaged in different aspects of the consumption process as it relates to products, advertisements, and purchasing (Broderick & Mueller, 1999). Josiam et al. describe involvement construct as an imperative psychographic facet of consumer behavior, consumer’s level of involvement is determined by the personal relevance of an object (Michaelidou & Dibb, 2006) and as the heart of the person-object relationship. Zaichkowsky defines involvement, as “a person’s perceived relevance of the object based on inherent needs, values, and interests” (Zaichkowsky, 1985). Higher the degree of relevance of an object to a consumer, the higher that consumer’s level of involvement with the object, under high-involvement conditions, consumers

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engage in an extended problem-solving process (Zaichkowsky, 1985). Thus, high-involvement implies greater relevance to the self. Foxall et al. (1998) recognized involvement for the role it plays in attitude formation, consumer satisfaction, and brand loyalty. Level of involvement can affect consumer reactions to promotional media, their attitudes and behaviors with respect to a certain pursuits, and the way they make decisions. Involvement may be categorized as enduring, situational, or responsive. Michaelidou and Dibb (2006) cite the Laaksonen (1977, p. 445) definition of response involvement as a behavioral process and thus a “means to mediate information search.” Situational involvement represents a mental state of temporary interest or concern (Laaksonen, 1977) in which the level of involvement is governed by the object or situation. Enduring involvement, on the other hand, is “intrinsically motivated, purchase independent and adopts the social psychology perspective, the degree of psychological connection between the individual and the stimulus object,” enduring involvement is thus stable overtime. Involvement, Shopping Behavior and Its Impact on Clothing Purchases Research has demonstrated a positive correlation between involvement and clothing purchases (Michaelidou & Dibb, 2006). Josiam et al. asserts that the more involved a consumer is, the more likely they are to shop for longer periods, and be receptive to promotional initiatives. O’Cass found that involvement leads to confidence in product purchase decisions. Male Gen Y collegians with a high-involvement orientation to shopping for clothing generally purchased and spent more and were more aware of popular labels than shoppers with a low-involvement orientation. High-involvement consumers tend to prefer shopping for clothing at specialty stores and are more likely to be aware of name brands and fashion trends (Shim & Kotsiopulos, 1992). Sullivan and Heitmeyer (2008) found that involvement was not a factor in Gen Y’s preference for shopping in particular retail stores. Price as a factor in purchasing weighs heavily on involvement, higher the price, the more involved consumers are likely to be (Laurent & Kapferer, 1985), Similarly, Summers et al. found involvement to be a significant predictor of the desire to purchase luxury fashion. Comfort with making decisions concerning product purchase can be related to the degree of confidence the consumer possesses about the product category, the degree of confidence affects the strength of the

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relationship between attitudes and behavior. Confidence, then, “represents a consumer’s belief that their knowledge or ability is sufficient or correct,” regarding the product category. Fashion involvement and time spent shopping have been found to be significantly and positively related (Flynn & Goldsmith, 1993). Guiry et al. found that shopping enthusiasts, who most strongly embraced recreational shopping as a part of their identity, went shopping more frequently than other shoppers went. Similarly, Scarpi found that consumers who see shopping as fun (hedonic) had a higher purchase frequency and were more likely to make unplanned purchases than the utilitarian shopper who purchased less often and was unlikely to continue shopping once they found what they needed. In American society, most consumers consider shopping a fun and social activity. People visit shopping malls as tourist attractions while traveling even though there are comparable stores in their home city Guiry et al. found that the consumer who enjoyed the recreational nature of shopping more spent more time and significantly more money than those who did not view shopping as positively. Kinley, Josiam and Lockett (2009) in their study to examine the relationship between shopping behavior and involvement on Gen Y consumers found significant differences between high, low, and medium involvement shoppers. The high-involvement shoppers seek significantly more information and show more reliance (Higher involvement) for their shopping decisions on “Opinions of others,” as well as “Non Personal idea sources.” They display a greater degree of comfort levels (higher confidence) shop more frequently and spend more (expenditure) on shopping as compared to the medium and low-involvement shoppers thus clearly indicating the important relationship between customer experience, store atmospherics and shopping involvement. Due to increasing competition and the similarity of merchandise, retailers utilize visual merchandising to differentiate their offerings from others’ as well as to improve the desirability of products. Research has shown that impulse buyers usually do not set out with the specific purpose of visiting a certain store and purchasing a certain item; the behavior occurs after experiencing an urge to buy (Beatty & Ferrell, 1998), and such behaviors are influenced by internal states and environmental/external factors. In-store browsing and the displays may dispose the consumers to impulse buying (Hart & Davies, 1996). Research findings suggest that impulse buying accounts for substantial sales across a broad range of product categories (Bellenger, Robertson & Hirschman,

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1978; Cobb & Hoyer, 1986; Han, Morgan, Kotsiopulos, & KangPark, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995; Weinberg & Gottwald, 1982) it is worthwhile for retailers to understand factors within the retail setting that trigger consumers’ impulsive reactions.

Scope and Significance of the Study Definitions of visual merchandising and the literature review existing on visual merchandising demonstrate that visual merchandising is multidimensional and has a strategic role to play—visual merchandising as an element has been used to motivate a consumer to induce him to make more purchases. Visual merchandising is used to communicate a positive image in order to bring a positive behavioral outcome toward a brand; visual merchandising has also been used to differentiate one’s merchandise offerings from the other; visual merchandising has been used to trigger consumer’s impulsive reactions to generate sales. Thus, visual merchandising has encompassed the functions of marketing, sales, brand recognition, customer satisfaction. In the context of the dynamic and ever-increasing importance of the role of visual merchandising, it becomes imperative to study it an Indian context with special reference to its influence on consumer demographics, consumer lifestyles, their purchase intentions, fashion brand selection and store brand patronage in a unified and integrated manner especially. Research studies pertaining to the same are unavailable in an Indian context, a crucial research gap in the area exists and needs to be addressed to generate valuable insights both from a theoretical perspective for advancement of theoretical literature as well as from a manager’s perspective for better understanding of consumers and increase profits.

Objective of the Paper and the Research Problem • To study the role, nature, and type of antecedents, consumer lifestyles and the degree of consumer involvement in determining the fashion brand selection and store brand patronage of consumers. • To study the influence of Visual Merchandising as a mediating factor on the role of antecedents, consumer lifestyles and consumer involvement in determining the fashion brand selection and store brand patronage.

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• To study the determining influence of visual merchandising as a mediating factor in fashion brand selection and store brand patronage in enhancing overall consumer satisfaction and customer experience on different consumer segments based on their differences in consumer lifestyles, consumer involvement and consumer demographics.

Research Methodology The research study involved a thorough review of the literature involving visual merchandising and its various dimensions spanning at least over a decade as a part of secondary data collection. To achieve its primary objectives study relied on a field survey conducted in Pune city. For primary data collection, a structured questionnaire was administered to respondents in Pune city. 679 completed questionnaires were finally selected out of total 1800 respondents surveyed. For the purpose of field study, Pune city was geographically divided into six different regions were branded exclusive menswear fashion outlets/malls were located for the purpose of coverage. The area was categorized on various criteria like location of residential population in industrial clusters such as software or manufacturing clusters, pure residential clusters—upscale; working class suburbs—middle-income localities (based on real estate price index prevailing in the city). To tap the youth segment various shopping street/malls were covered to capture as much diverse demographic strata sample as one can for this study. The questionnaire was designed in such a manner to capture as much information about the respondents. The first segment of the questionnaire collected data about the demographic factors of the respondent (Age, Occupation, Education, Income, Native place/region belonging to, Family size). The second segment of the questionnaire comprised of questions pertaining to the role of influencers and their impact on respondent’s brand preference (both store brand and fashion brand choice/preference). The third segment relates the impact of Visual merchandising to above two segments and overall store experience. The questionnaire has divided visual merchandising into three unique aspects to capture its influence on the purchase intentions of various demographic classes of shoppers. Visual merchandising is classified into three parameters namely Store Design (Visual Aspects); Store Layout (Spatial Aspects);

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Store Design (Sensory Aspects). Store Design (Visual Aspects) is further sub classified into store color, store theme, store lighting, in store imagery and the respondents were asked to rate the sub parameters on the degree of importance on a scale of 1–5 (1 = least important and 5 = most important). Similar procedure was repeated for Store Layout (Spatial Aspects), which was also sub classified into merchandise display, POS display, fixture/fittings, mannequins, window display, and Store Design (Sensory Aspects) which was sub classified into music, aroma, ambient temperature, and ambient noise. The questionnaire also attempts to study the impact of visual merchandising on enhancing customer satisfaction through the respondent’s overall store experience thereby affecting consumer’s store choice selection and fashion brand patronage. Appropriate inferential and descriptive statistical tools were employed to test the findings of this paper using SPSS 17.0 V software like Chi square test of contingency, Multiple Regression analysis.

Discussion of Findings H1 There is a Significant Relationship Between Income and Brand Preference There is significant relationship between Income and Brand Preference Chi Square (35) 65.87, p < 0.05. There was found significant relationship between the respondents income and brand preference as the respondents income ranging from less than 2 lakhs up to 10 lakhs indicate Raymond Brand as the most preferred brand followed by Allen Solly as the second most preferred brand (Income ranging from 2–6 lakhs and 8–10 lakhs). Van Heusen was the third most preferred brand among respondents (Income 6–8 and > 10 lakhs). Louis Phillipe brand was preferred only among respondents (Income 4–6 lakhs). The above findings indicate that Raymond’s as a brand showed high degree of brand preference among respondents across low, medium, and high-income segments while the other brands showed a preference either among the low (Allen Solly) or medium (Louis Phillipe) or high-income (Van Heusen) segments. Accordingly, H2 There is Significant Association Between Brand Preference and Influencer of Fashion Brand

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There is no significant association between Brand Preference and “Influencer of Fashion Brand” Chi Square (28) 34.0, p > 0.05. Among the various factors such as “Reputed brand name,” “Fashion brand matching Personality and Lifestyle,” “Congruence between Self-image and Brand image,” “Expense Budget,” and “Other influences if any” it was observed that for all the brands respondents choose “Reputed brand name,” “Fashion brand matching Personality and Lifestyle.” H3 There is Significant Association Between Brand Preference and “Person as Influencer of Fashion Brand” There is no significant association between Brand Preference and “Person as Influencer of Fashion Brand” Chi Square (35) 37.1, p > 0.05. H4 There is a Significant Relation Between Age and “Person as Influencer of Fashion Brand” There is a significant relation between Age and “Person as Influencer of Fashion Brand” Chi square (45) 65.06, p < 0.027. It was interestingly observed among the respondents that the type of “Person as Influencer of Fashion Brand” changed across their age brackets between 26–30 age bracket “Friends/Colleagues” played an influencing role; between age bracket 31–35 “Wife and Self” played an influencing role; between 36–40 age bracket “Wife” played an influencing role. Thus, it can be inferred that the nature of influencers changes across age brackets of the respondents on brand preference. H5 There is Significant Association Between Brand Preference and “Media as Influencer” There is significant association between Brand Preference and “Media as influencer” Chi Square (42) 101.11, p < 0.05. Among the various media, the respondents rated TV and News Paper as the most influential source that they refer to, which impacts their brand preference/choice for all the brands except for brand “Van Heusen” for which “TV and Fashion magazines” as the most influential factor impacting the brand choice. Interestingly “Van Heusen” is also the brand chosen exclusively by respondents belonging to highest income bracket > 10 Lakhs. H6 There is Significant Association Between Brand Preference and “Planned Purchase of Fashion Brand”

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There is significant association between Brand Preference and “Planned Purchase of Fashion Brand” Chi Square (21) 32.41, p < 0.05. When the respondents were asked whether they planned their purchases for the respective brands and an interesting observation was found that the respondents indicated they only “sometimes” planned the purchases the fashion brands, this was interesting because the fashion brands surveyed were exclusive and priced at a premium and one would have expected a greater degree of consumer involvement. It was also observed that the respondents who preferred Color Plus “Always” planned the purchases of that brand H7 There is Significant Association Between Brand Preference and Store Design (Visual Aspects) There is significant association between Brand Preference and Store Design (Visual Aspects) Chi Square (28) 53.35, p < 0.05. When the respondents were asked how important they felt the aspects of Store Design (Visual Aspects) influencing their brand preference choice it was observed that respondents for all the brands rated Store Design (Visual Aspects) as “Important” while for Allen Solly brand, they rated it as “More Important.” H8 There is a Significant Association Between Brand Preference and Store Design (Spatial Aspects) There is a significant association between Brand Preference and Store Design (Spatial Aspects) Chi Square (28) 46.63, p < 0.05. When the respondents were asked how important they felt the aspects of Store Design (Spatial Aspects) influencing their brand preference choice it was observed that those who preferred Raymond’s (Respondents belonged to low, medium and high income) and Wills Lifestyle rated it as “Important” while respondents who preferred Allen Solly (low to medium income),Louis Phillipe (medium income), and Van Heusen (medium to high income), and Color Plus rated the Store Design (Spatial Aspects) as “More Important” in influencing their brand preference choice. Thus, across income brackets it can be inferred that the Store Design (Spatial Aspects) plays a significantly important role as an influencer of brand preference. H9 There is Significant Association Between Brand Preference and Store Design (Sensory Aspects)

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There is significant association between Brand Preference and Store Design (Sensory Aspects) Chi Square (28) 46.93,p < 0.05. When the respondents were asked how important they felt the aspects of Store Design (Sensory Aspects) influencing their brand preference choice, it was observed that the respondents who preferred Raymond’s, Louis Phillipe, Van Heusen, and Wills Lifestyle rated it as “More Important.” Interestingly, all the above brands preferred to belong to different income brackets of respondents as indicated by the findings mentioned in finding no.01 above respondents. While those who preferred Arrow, Allen Solly, and Color Plus rated the influence of Store Design (Sensory Aspects) as “Important” in influencing their brand preference. H10 There is Significant Association Between Brand Preference and “Consistency of Store Brand Image” There is significant association between Brand Preference and “Consistency of Store Brand Image” Chi Square (28) 52.85, p, < 0.05. Respondents indicated a significant relationship between Brand preference and “Consistency of Store Brand Image” for all the brands rating it as “More important” with except those respondents who prefer Raymond’s, who rated it as “Important.” The above finding indicates that “Consistency of Store Brand Image” plays a significant role in influencing brand preference/choice.

Multiple Regression Analysis Multiple Regression Analysis test was conducted to study the influence of Store Design (Visual Aspects/Sensory Aspects/Spatial Aspects) on Consistency of Store Brand Image. The multiple regression model was significant since for the ANOVA test p < 0.05. The equation derived from the model is as followsConsistency of Store Brand Image = 1.462 + 0.25* S.D. (VA + 0.152*S.D. (Sensory Aspects) + 0.201*S.D.(Spatial Aspects) ). (Coefficient of Determination) *(r2 ) is 0.242, This shows moderate relation between “Consistency of Store Brand Image” (dependent variable) and independent variable that is, Store Design (Visual Aspects/Sensory Aspects/Spatial Aspects) it is interesting to study to what degree each predictor that is independent variable, Store Design (Visual Aspects/Sensory Aspects/Spatial Aspects) affects “Consistency of Store Brand Image”.

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S.D.(Visual Aspects) (b = 0.252) This value indicates that as S.D.(Visual Aspects) increases by one unit “Consistency of Store Brand Image” also increases by 0.252 (t = 5.325, p < 0.05). S.D.(Sensory Aspects) (b = 0.152) This value indicates that as S.D.(Sensory Aspects) increases by one unit “Consistency of Store Brand Image” also increases by 0.152 (t = 3.706, p < 0.05). S.D.(Spatial Aspects) (b = 0.201) This value indicates that as S.D.(Spatial Aspects) increases by one unit “Consistency of Store Brand Image” also increases by 0.201 (t = 4.675, p < 0.05). Multiple study the (Visual

Regression Analysis test was conducted to influence of independent variable Store Design Aspects/Sensory Aspects/Spatial Aspects) on “Overall store experience.”

Regression model was significant since the ANOVA test showed p < 0.05, the equation derived from the model is as follows— Overall store experience = 3.145 + 0.181 (S.D.(Spatial Aspects) ). Coefficient of Determination (r2 ) is 0.038, this shows weak relationship between Overall store experience and Store Design The S.D.(Visual Aspects) and (Visual Aspects/Sensory Aspects/Spatial Aspects) . S.D.(Sensory Aspects) are not significant predictors of Overall store experience, since for both these independent variables p > 0.05, however for S.D.(Spatial Aspects) is significant predictor of Overall store experience (t = 3.576, p < 0.05). (*S.D.- abbreviation for store design).

Conclusions Visual merchandising encompasses the functions of marketing, sales, brand recognition, customer satisfaction. This paper studies the mediating role of visual merchandising by classifying the elements of visual merchandising into—visual, sensory, and spatial aspects and studies the role and nature of the antecedents, consumer lifestyles and involvement, consumer demographics affecting brand selection and store patronage. Store Design (Visual Aspects/Sensory Aspects/Spatial Aspects) plays a significant role in influencing brand preference/choice, enhancing consistency of store brand image, and improving overall store experience thereby affecting fashion brand and store brand selection. Besides this, demographic factors like

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respondents age, income, and other influencers like people, media, and a significant association brand preference.

Implications of the Study Rising incomes will create a 583 million strong Indian middle class catapulting India to make it the fifth-largest consumer market by 2025.As incomes tend to rise India will experience a tremendous consumption growth in its booming middle and upper classes, the consumer values and preferences tend to change, the consumption patterns change. Visual merchandising is an important strategic tool in fashion marketing, it arouses consumer’s interest and consumer involvement, communicates brand image, influences consumer’s perceptions. Visual merchandising can create sustainable competitive advantage thereby creating “Store Brand Experience & Store Identity,” enhancing customer satisfaction and experience. This research studies the mediating role of visual merchandising by classifying the elements of visual merchandising into—visual, sensory, and spatial aspects and also studies the role and nature of the antecedents, consumer lifestyles and involvement, consumer demographics affecting fashion brand selection and store brand patronage in an unified and integrated manner there by generating valuable insights both from a theoretical perspective for advancement of theoretical literature as well as from a manager’s perspective for better understanding of consumers and increase profits. Results showed that Store Design (Visual Aspects/Sensory Aspects/Spatial Aspects) plays a significant role in influencing brand preference/choice, in enhancing consistency of store brand image, and improving overall store experience. Demographic factors like respondent’s age, income, and other influencers like people, media, also played a significant role in influencing brand preference. Research study of this kind is unavailable in an Indian context yet and can serve as a direction/foundation for the further studies in this area in the future. This study is unique in the sense that, no study of this nature has ever been carried out in an Indian context until date. Even internationally few studies have attempted to classify the various aspects that constitute elements of visual merchandising by classifying them into—visual, sensory, and spatial aspects.(McGoldrick, 1990; Marsh, 1999) and however not in unified and integrated manner like this paper has attempts to do. This paper not only studies the role and nature of the antecedents, consumer

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lifestyles and involvement, consumer demographics affecting brand selection and store patronage, but also attempts to study the mediating role of visual merchandising thereby generating valuable strategic insights on the role of visual merchandising.

Research Limitations This study does not focus on the impact of things like special promotional events and the role of visual merchandising in influencing consumer purchase intentions during promotions. No previous research of this type with a similar objective has been carried out earlier in an Indian context in a unified and integrated manner to be referred to as a benchmark study. As retail in India is an evolutionary phase, the results of the study may vary with time, context and settings of the study. Besides these more extensive studies need to be carried out before the robustness of the findings can be generalized in an universal context especially in the context of things like culture and lifestyles which are ever changing and evolving.

References Baker, J., & Grewal, D. (1992). An experimental approach to making retail store environmental decisions. Journal of Retailing, 68, 445–460. Baker, J., Grewal, D. & Parasuraman, A. (1994). The effect of store atmosphere on consumer quality perceptions and store image. Journal of the Academy of MarketingScience, 23–34. Baker, J., Grewal, D., Levy, P., & A. & Glenn, B. (2002a). The influence of multi-store environmental clues on perceived merchandise valve and patronage intentions. Journal of Marketing, 66, 120–141. Bitner, M. J. (1992a). Services capes: The impact of physical surroundings on customers and employees. Journal of Marketing, 56, 57–71. Babin, B. J., Hardesty, D. M., & Suter, T. A. (2003). Color and shopping intentions: The interviewing effect of price fairness and perceived affect. Journal of Business Research, 56(7), 541–552. Baker, J., Levy, M., & Grewal, D. (1992). An experimental approach to making retail store environmental decisions. Journal of Retailing, 68, 445–460. Baker, J., Parasuraman, A., Grewal, D., & Voss, G. B. (2002b). The influence of multiple store environment cues on perceived merchandise value and patronage intentions. Journal of Marketing, 65, 120–141. Bellizzi, J. A., & Hite, R. E. (1992). Environmental color, consumer feelings, and purchase likelihood. Psychology & Marketing, 9, 347–363.

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Beliizzi, J. A., Crowley, A. E., & Hasty, R. W. (1983). The effects of color in store design. Journal of Retailing, 59, 21–45. Bitner, M. (1992b). Servicescapes: The impact of physical surroundings on customers and employees. Journal of Marketing, 56, 57–71. Diamond, J., & Diamond, E. (2003). Contemporary visual merchandising environmental design (3rd Ed.). Prentice Hall. Donovan, R. J., & Rossiter, J. R. (1982). Store atmosphere: An environmental psychology approach. Journal of Retailing, 58(1), 34–57. Donovan, R. J., Rossiter, J. R., Marcoolyn, G., & Nesdale, A. (1994). Store atmosphere and purchasing behavior. Journal of Retailing, 70(3), 284–294. Kerfoot, S., Davis, B., & Ward, P. (2003a). Visual merchandizing and the creation of discernible retail brands. International Journal of Retail and Distribution Management, 31, 143–152. Kerfoot, S., Davis, B., & Ward, P. (2003b). Visual merchandising and the creation of discernible retail brands. International Journal of Retail & Distribution Management, 31(3), 143–152. Kotler, P. (1974). Atmospherics as a marketing tool. Journal of Retailing, 49, 48–64. Lam, S. Y., & Mukherjee, A. (2005). The effects of merchandise coordination and juxtaposition on consumers’ product evaluation and purchase intention in storebased retailing. Journal of Retailing, 81(3), 231–250. Lea-Greenwood, G. (1998). Visual merchandising: A neglected area in UK fashion marketing? International Journal of Retail & Distribution Management, 26(8), 324–329. McGoldrick, P. (2002). Retail marketing (2nd ed.). McGraw-Hill.

CHAPTER 19

Dynamic Capabilities and Performance of the Firm: The Mediating Role of VRIN Resources Ritu Singh

Introduction The focal point of strategic management research is on maintaining a firm’s competitive advantage (Helfat & Peteraf, 2009). The resourcebased theory (RBT) explains that a firm can create and sustain competitive advantage using their idiosyncratic resources that are valuable, rare, inimitable, and non-substitutable (hereafter as VRIN resources) (Barney, 1991; Newbert, 2008). However, the RBT has been considered static in nature and criticized for not considering the dynamics of the business environment while explaining the firm’s competitive advantage. The main

R. Singh (B) Operations Management & Quantitative Techniques, International Management Institute, Bhubaneswar, India e-mail: [email protected]; [email protected]

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_19

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limitation of resource-based theory is its inability to provide an explanation for the integration and development of relevant resources in a turbulent business environment (Priem & Butler, 2001). Furthermore, the value of resources is mostly context-dependent (Miller & Shamsie, 1996) and change in resources or adoption of new resources often takes more time than the changes in the business environment (Teece et al., 1997). Therefore, it can create rigidity inside a firm if it only focuses on existing resources, leading to problems in the adaption of resources according to the new market (Leonard, 1992). The dynamic capability view (DCV) emerged from these unanswered questions of how firms achieve and sustain competitive advantage in the hyper-competitive and turbulent business environment (D’Aveni et al., 2010). Scholars advocate that dynamic capabilities can create, renew, and reconfigure the resources and capabilities required to address the environmental changes (Helfat & Peteraf, 2009; Teece, 2014; Winter, 2003). Studies on the nature of dynamic capability and its importance in value creation, competitive advantage, and performance have been well investigated theoretically in literature (Eisenhardt & Martin, 2000; Helfat & Peteraf, 2009; Teece, 2007, 2018; Teece et al., 1997; Winter, 2003; Zollo & Winter, 2002). However, to complement these theoretical arguments and precisely understand the effect of dynamic capability on firm outcomes, relevant empirical studies are needed to explore the presence of other variables in different business settings (Pezeshkan et al., 2016). Some researchers have tried to investigate the mediating impact of different forces on the association between dynamic capability and performance, see: Protogerou et al., 2012; Takahashi et al., 2017. However, most of the studies are limited to dynamic industries such as pharmaceutical, semiconductor, and other manufacturing sectors which makes the investigation in the service industry quite relevant (Teece, 2007). Following the suggestions of Easterby et al. (2009); Helfat and Peteraf (2009); Winter (2003), this study tries to examine how VRIN resources and dynamic capabilities are related to the firm’s performance. Drawing on the RBT (Barney, 1991) and DCV (Teece et al., 1997), this study has proposed a theoretical model to explore the following unanswered questions: (1) Does the dynamic capabilities influence the development of firm’s VRIN resources? and (2) Does the influence of dynamic capabilities on the firm’s performance mediated by the firm’s VRIN resources? Consequently, the objective is to investigate the link between the firm’s resources, dynamic capabilities, and performance. The proposed relationships are

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analyzed using survey data of 218 service firms operating in India. The study contributes to the literature by providing empirical evidence for the relationship between dynamic capabilities and performance of the firm, with the firm’s VRIN resources as a mediating variable that strengthens this relationship. The rest of the study is organized as follows. The next section provides the theoretical background for the study followed by the development of hypotheses in the third section. In the fourth section, research methodology has been described and results are presented in the fifth section. Finally, section six concludes the study.

Theoretical Background Dynamic capability concept was first defined and proposed in 1997 by Teece, Pisano, & Shuen as “firm’s ability to integrate, build, and reconfigure internal and external competencies to address the changing environment”. After the seminal study by Teece et al. (1997), the dynamic capability concept was subsequently defined and extended by many scholars. Eisenhardt and Martin (2000) defined dynamic capabilities as “[t]he firm’s processes that use resources—specifically the processes to integrate, reconfigure, gain and release resources” and “the organizational and strategic routines by which firms achieve new resource configurations”. Zollo and Winter (2002) explained that dynamic capability includes standard entrepreneurial processes (i.e., identifying undersatisfied demands and mobilizing the resources to satisfy them and improve performance of the firm), but the critical value of dynamic capability exists in helping firms to do this repeatedly, thereby helping them to achieve a sustainable competitive position. Dynamic capability has been defined differently throughout extant literature; however, one commonality among them is that dynamic capabilities are firm-specific and future-oriented; and shape a firm’s routines (Winter, 2003), knowledge (Zollo & Winter, 2002), and resource positions & capabilities (Eisenhardt & Martin, 2000). In this study, dynamic capabilities have been considered as a firm’s ability to systematically and purposefully create, extend, or modify its resource base (adapted from Eisenhardt and Martin (2000), Helfat and Peteraf (2009), and Teece (2007)). This definition of dynamic capability indicates that irrespective of any final impact, the primary influence of dynamic capability is on the firm’s resources. Consequently, the dynamic capability concept is not necessarily directly linked with performance of the firm, but it is the firm’s

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ability to recombine and reconfigure resources to cope with the changes in the business environment. Thus, it specifies that the dynamic capability can impact the performance of the firm indirectly by reconfiguring its resource base, i.e., the value of dynamic capability depends on the extent that resulting resources can improve performance of the firm. For the empirical analysis on dynamic capability, scholars have been suggested to focus on sets of routines/activities which possess the dynamic capability (Helfat & Peteraf, 2009). Therefore, based on the explanation of Eisenhardt and Martin (2000); Pisano and Teece (2007); Teece (2014), this study measures the dynamic capability in terms of sensing, learning, integration, and reconfiguration capability of the firm. These capabilities encompass the activities where resources are created, refined, integrated, and altered to generate value for firms in a turbulent business environment to address emerging changes (Ambrosini et al., 2009). Sensing capability is defined as the ability of the firm to sense and interpret stimuli or changes by effectively searching and analyzing information about the external and internal environment (Li & Liu, 2014). Learning capability refers to the firm’s ability to obtain, transform, and use new knowledge and skills. It makes the operational processes effective and efficient through reviews and repetitions. The integration capability is the firm’s ability to integrate individual knowledge into the collective system for a shared understanding (Pavlou & El Sawy, 2011). Reconfiguration capability is defined as the ability of the firm to alter existing internal and external resources with integrated knowledge to deal with the emerging changes. In sum, these dimensions are considered as a composite variable and are expected to give a complete representation of dynamic capabilities to address the demand of the turbulent business environment.

Hypotheses Development VRIN Resources and Performance of the Firm The resource-based theory explains that VRIN resources are necessary for the firm’s performance (Barney, 1991; Wernerfelt, 1984). VRIN resources are uniquely possessed by the firm, difficult to copy by competitors, not tradable, and developed over time through the complex interaction among firm culture, history, and human capital. These resources are not protected by legal rights, but through knowledge barriers (Amit &

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Schoemaker, 1993; Miller & Shamsie, 1996). They improve the performance of the firm not only by market control, but by creating an ability to adapt to environmental changes and customers’ needs. Yet, the knowledge barrier that prevents the VRIN resources to be copied by the competitors is not perfect. It is possible for rivals to develop similar knowledge and skills. But in general, it takes time and the company may take a step further in developing new skills by that time (Wiklund & Shepherd, 2003). Thus, the study suggests that the VRIN resources enable the firms to deliver the offerings at a lower cost with superior value improving the performance of the firm level. Therefore, the hypothesis is proposed as follows: H1: Firm’s VRIN resources positively influence performance of the firm.

Dynamic Capabilities and VRIN Resources Dynamic capabilities do not involve in the production of goods and services, instead, they create, build, integrate, and reconfigure firm resources (Teece, 2007). The resources are needed for the firms to effectively perform day-to-day operations, for example, production of goods and services, fulfilling specific customers’ needs, etc. The recombination and reconfiguration of these resources according to the changes in the business environment is a prerequisite to maintain the performance of the firm level. The dynamic sensing capability enhances the firm’s ability to identify the changes in the business environment which improves the chances for opting efficient and effective actions to shape its resources compared to competitors. For example, competitive benchmarking, a process for developing, appraising, and transforming the firm’s resources and capabilities through a detailed comparison with other firms and taking the cautions to extend and modify the resources is more about the deep understanding and insights (Protogerou et al., 2012). Dynamic learning capability facilitates the assimilation and transformation of new knowledge for better utilization, which is crucial for sustainable competitive advantage (Pavlou & Sawy, 2011). The integration process promotes job rotation practices and teamwork environment, which facilitates the creation of new knowledge with existing skills and experience (Makkonen et al., 2014). Specifically, cross-functional teamwork enhances the bond

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among employees, promoting knowledge sharing and increasing knowhow, which improves the recombination and reconfiguration of resources. For example, Toyota’s basic dynamic capability is the interplant exchange of knowledge and information, to quickly distribute the new ideas across the plants through various channels, which significantly contributes to the evolution and re-organization of Toyota’s manufacturing systems (Fujimoto, 2000). Therefore, given the impact of dynamic capability on the VRIN resources, the hypothesis is proposed as follows: H2: The dynamic capability has a positive impact on the development of the firm’s VRIN resources.

Mediating Role Firm VRIN Resources The dynamic capability can effectively create a competitive combination from the unique characteristics of firm resources to enhance the performance level (Pavlou & El Sawy, 2011). It can create, renew, and reconfigure the resources and competence required to address the environmental changes (Teece, 2007, 2014). Ambrosini et al. (2009) explained that dynamic capabilities improve, renew, and modify the firm’s current resource bases. Protogerou et al. (2012) examined the effect of dynamic capabilities in the context of 271 Greek manufacturing firms and found the direct effect to be insignificant, but a significant indirect effect through the marketing and technological capabilities in different levels of environmental dynamism. Takahashi et al. (2017) findings suggest that there is an indirect influence of dynamic capability on firm’s competitive advantage through modification and reconfiguration of operational capabilities of the firms. Carrick (2016) suggested in his study that dynamic capabilities are vital for the development of R&D resources in life science firms leading to improved performance of the firm. Thus, according to the above arguments, the hypothesis is proposed as follows: H3: The firm’s VRIN resources have a mediating impact on the relationship between dynamic capability and performance.

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Methodology Sample and Data Collection The sample firms for the data collection were chosen from the Prowess database of the Centre for Monitoring Indian Economy (CMIE). The process of selecting the sample started by dividing the firms into two groups based on their profit level in 2018. The first group consisted of 30 firms with the highest profit in that year and the rest of the firms in the second group. Next, 5 firms from each group in each service sector are randomly selected to make sure that the study has sufficient industry and performance variance (Gutierrez-Gutierrez et al., 2018). A link to the survey is sent to a minimum of five senior and five mid-level executives of these firms, as studies confirm the attitude difference between those levels of hierarchy (Payne & Mansfield, 1973). Two hundred eighteen usable responses came from 2100 questionnaires distributed, representing a 10.4 percent response rate, which is an acceptable level of response rate for firm-level analysis. The respondent’s firm represents various sectors of service industries (see Table 19.1). Table 19.1 Characteristics of the study sample

Characteristics of the respondent firms Industry group Finance and accountancy Computer & IT services Telecommunications Tourism E-commerce Transport Others Number of employees > 100 Above 100 Firm Age Less than 5 years 5–10 years More than 10 years

Percent of respondents (n = 218) 27% 25% 13% 7% 5% 5% 20% 11% 89% 21% 10% 69%

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Measurement Items The measurement items for the constructs were adapted from the existing studies with some modification in wordings and were pre-tested via interviews with two CEOs, three senior managers, and two faculty members to assess the face validity in the Indian context. The items to measure VRIN resources were taken from Lin and Wu (2014). The items for dynamic capability constructs were adapted from studies by Makkonen et al. (2014) and Teece (2007). The performance of the firm was measured in terms of market share, sales growth, return on investment (ROI), and return on assets (ROA) (Wang & Wang, 2012). Control variables; firm size and age are used due to their potential impact on the financial performance of a firm (Newbert et al., 2008). Table 19.2 represents the list of measurement items used in the study. Common Method Variance (CMV) Before administrating the survey, proactive measures in survey design are included to control for the common method variance. Further, the model fit is examined using the “single-factor procedure” (Podsakoff et al., 2012). For the sample, the single-factor model did not fit well (κ 2 /df = 7.722, goodness of fit index (GFI) = 0.509, comparative fit index (CFI) = 0.640, incremental fit index (IFI) = 0.642, root mean square error of approximation (RMSEA) = 0.176, (standardized) root mean squared residual ((S)RMR) = 0.103), indicating that CMV is not responsible for the covariation among the measures. Thus, common method variance was not a problem in this study.

Results and Analysis The structural equation modeling in AMOS-22 has been used for the analysis. The summary of descriptive statistics is given in Table 19.3. The highest correlation coefficient among the constructs is 0.543 (between VRIN resources and dynamic capability), less than the threshold value of 0.75, suggesting that there is no multicollinearity issue.

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Table 19.2 Measurement items and factor loadings Constructs

Measurement items

Dynamic capability

Sensing capability (Cronbach’s α = 0.879) We frequently scan the environment to identify new business opportunities We periodically review the likely effect of changes in our business environment on customers We often review our services to ensure they are in line with what the customers want Learning capability (Cronbach’s α = 0.930) We have adequate routines to assimilate new information and knowledge We are effective in transforming existing information into new knowledge We are effective in utilizing new knowledge We are effective in developing new knowledge that has the potential to influence our performance Integration capability (Cronbach’s α = 0.870) We use networks as knowledge resources We are forthcoming in contributing our individual input to the group We carefully interrelate our actions to each other to meet changing conditions We record and integrate historical methods and experiences in handling firm issues Reconfiguration capability (Cronbach’s α = 0.840) We have clear human resource re-allocation procedure We rapidly respond to market changes We rapidly respond to competitor’s actions Firm’s specialized know-how is above the industry average

VRIN resources

Factor loadings

0.632 0.751

0.770

0.778 0.834 0.849 0.831

0.688 0.692 0.754 0.663

0.650 0.768 0.702 0.759

(continued)

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Table 19.2 (continued) Constructs

Measurement items

Factor loadings

Firm’s cooperative alliance experience is above the industry average Firm’s reputation is above the industry average Firm’s culture (i.e., perception of quality, ability to manage change, etc.) is above the industry average Market share Sales growth ROA ROI

Performance of the firm

0.817 0.811 0.611

0.801 0.845 0.934 0.942

Table 19.3 Descriptive Statistics, Cronbach’s α, CR, and AVE values N = 218

(1) VRIN resources (2) Dynamic capability (3) Performance

Mean

S.D

Cronbach’s α

CR

5.475

1.148

0.827

0.839

0.569 1

5.289

1.065

0.947

0.945

0.552 0.543**

1

5.217

1.360

0.955

0.951

0.797 0.493**

0.500**

AVE

(1)

(2)

(3)

1

** Correlation is significant at the 0.01 level (2-tailed).

Measurement Model Results The goodness of fit indices related to the measurement model in confirmatory factor analysis showed a satisfactory fit to the data (κ 2 /DF = 2.268, CFI = 0.935, RMSEA = 0.07, IFI = 0.935, (S)RMR = 0.065) (Fornell & Larcker, 1981). The factor loading for each item is significant (p < 0.001) and composite reliability (CR) values are all greater than the minimum threshold value of 0.7 (Fornell & Larcker, 1981). The Cronbach’s α value for all constructs is above the minimum level of 0.7 (Hair et al., 2014) indicating the construct reliability. The average variance extracted (AVE) values for all constructs are greater than 0.5, showing adequate convergent validity (Hair et al., 2014). The discriminant validity was achieved as the squared correlation of two variables is

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less than the AVE for each variable (Fornell & Larcker, 1981) (see, Table 19.3). Structural Model Results The goodness of fit indices for the structural model (κ 2 /DF = 1.994, CFI = 0.940, IFI = 0.941, RMSEA = 0.068, and (S)RMR = 0.549) suggest an adequate model fit (Hair et al., 2014). Direct Effect Results The path analysis results show that the firm size has very little influence on the firm’s performance (β = 0.093, p = 0.098), and firm age has no significant impact on performance (β = -0.065, p = 0.246). The dynamic capability has a positive impact on VRIN resources (β = 0.752, p = 0.001) and performance of the firm (β = 0.239, p = 0.023). Further, VRIN resources positively influence performance (β = 0.483, p = 0.001). Mediation Results The bootstrapping method is used to test the mediation effect of dynamic capability (Shrout & Bolger, 2002). For analysis, the bootstrap sample size of 5000 is selected with a bias-corrected confidence interval of 95 percent, and the upper & lower bound of the confidence interval is checked to assess the acceptance or rejection of hypotheses (Hayes, 2013). The alternative hypothesis is rejected if these bounds include zero because it means the indirect effect is not present with a 95 percent confidence level. But, if the lower and upper bound does not include zero, then the alternative hypothesis is accepted. The result suggests that the VRIN resources positively mediate the influence of dynamic capability on performance (lower bound = 0.217 and upper bound = 1.107, p = 0.001). Table 19.4 provides a summary of the mediation results.

Conclusion and Implications For the successful growth of a firm in today’s turbulent environment, constantly evolving measures should be implemented in organizations. Dynamic capabilities are one of those competencies that can increase the progress bar and enable the firms to create breakthroughs and

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Table 19.4 Summary of mediation results Path Dynamic capability Dynamic capability VRIN resources –Dynamic capability Performance

Direct effect –- > Performance –- > VRIN resources > Performance –- > VRIN resources –- >

Indirect effect

0.239* 0.752** 0.483** 0.512**

Note: ** p < 0.01, * p < 0.05

achieve great success. Even though the literature intuitively agrees on the value creation ability of dynamic capabilities, this study was carried out to empirically validate this agreement. The paper presents a research framework to cover the relationship between dynamic capabilities and performance of the firm, with the firm’s VRIN resources as a mediating variable that strengthens this relationship. Using the RBT and DCV together, this research empirically overcomes the tautological criticism of the dynamic capabilities view by explaining the presence of an indirect relationship between dynamic capability and performance of the firm. It suggests that the dynamic capability positively influences the development and reconfiguration of VRIN resources, which leads to improvement in performance of the firm in terms of sales growth, market share, ROI, and ROA. The proposed indirect relationship extends Zott’s (2003) proposition of direct relationship between dynamic capabilities and performance and implies that dynamic capabilities influence performance of the firm by renewing and modifying the resources into new ones that better align with the demand of changing environment. The finding also suggests that the indirect effect of dynamic capabilities on performance through reconfiguration and modification of VRIN resources is higher than the direct one. It implies that firms with a strong level of dynamic capabilities can renew, modify, and reconfigure their resources according to the changes in the business environment and achieve a higher level of performance. It contributes to the literature by providing empirical evidence to distinguish between resource-based theory and dynamic capability view to achieve sustainable competitive advantage. The firm’s VRIN resources are very crucial for superior performance of the firm, however, only exploiting existing resources will not

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help the firms to maintain their position in the market for long. The dynamic capability allows the firms to not just use the firm’s strategic resources more effectively, but also to recombine and reconfigure them to respond to the changing business environment. Further, most of the empirical studies on dynamic capabilities are conducted in highly turbulent industries such as pharmaceuticals, technology industries, semiconductors, etc., mainly in the manufacturing sector examining the impact on firm’s performance. However, it is equally important to examine the dynamic capability concept applicability and validity in the service industry in different economies exhibiting different characteristics (Easterby-Smith et al., 2009; Protogerou et al., 2012). Henceforth, this study contributes to the literature by providing evidence of dynamic capability in service firms operating in the emerging economy of India. The findings indicate the importance of dynamic capability in the service industry context, suggesting the firms to invest in the dynamic capability to achieve and maintain superior performance. This study also has some limitations which provide directions for future studies. Given the drawbacks associated with the perceptual nature of data, future studies can further validate the objective of this study. Considering the dynamic nature of processes and routines used in the framework indicates the possibility of reverse causality and feedback loops between VRIN resources and dynamic capabilities. Case-based studies or longitudinal research can increase our understanding of this relationship. However, cross-sectional studies must be performed first to establish the model before using a case-based method or longitudinal method to test their applicability.

References Ambrosini, V., Bowman, C., & Collier, N. (2009). Dynamic capabilities: An exploration of how firms renew their resource base. British Journal of Management, 20, S9–S24. https://doi.org/10.1111/j.1467-8551.2008.006 10.x Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33–46. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17 (1), 99–120. https://doi.org/10.1177%2F0149206391 01700108

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PART VI

Case Studies

CHAPTER 20

Swasthika: Reworking on Marketing-Mix Ranjani Kumari, Nitish Nigam, and Rajeev Verma

Introduction India is a country which is known for the culture of food. Indians are big foodies, and snacks form a very important part of every Indian. It is found that consumers identify food as the part of the culture and identity. This study also reports that 78% of the Indian adults are moving toward healthy nutrient rich organic snacks.1 Indian cultural factors and 1 ‘Study Suggests Snacks Are Increasingly Replacing Meals in India; Here’s Why’, The Indian express (blog), 5 December 2019, https://indianexpress.com/article/lifestyle/ health/study-snacks-replacing-meals-india-mondelez-international-snacking-habits-hungerpangs-6151753/.

R. Kumari (B) · N. Nigam Fellow Program in Management, Chandragupt Institute of Management, Patna, India e-mail: [email protected] N. Nigam e-mail: [email protected] R. Verma Chandragupt Institute of Management, Patna, India e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_20

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eating habit raise weight concern and it is now general understanding that conscious efforts are required for health and wellness. As per Nielsen, health and wellness foods industry of India is a $133.612 crore market and growing with around 10%.3 Along with this as per the Euromonitor health and wellness report 2021, with the COVID-19 pandemic the consumption interest of Indian consumer has moved toward healthy products and it has acted as a game changer for India’s health and wellness beverage and packaged food industry.4 Understanding the market trend and the consumers consciousness, Meenal Singh and Rohan Kumar decided to start a business, Swasthika Biotech and Nutraceuticals Pvt. Ltd., keeping in mind the health consciousness and health benefits required by the consumers. Swasthika is a herbal packaged food product based in Palampur of Himachal Pradesh. Meenal Singh and Rohan Kumar (Co-founders) of Swasthika are first-generation entrepreneurs by choice. They both are Ph.D. in Food technology from reputed institutions of the country. Understanding the consumers demand of healthy food and snacks, they decided to produce herbal cookies with medicinal properties. As both the founders are food technology expert, food composition and testing are not a problem for them. On the basis of the trend and demand, they developed idea of producing herbal cookies with medicinal values. They performed the concept testing and got license from FSSAI to develop the product. Finally, they started the production and launched the herbal food products in Palampur, Himachal Pradesh in June 2020 with the initial investment of 0.5 million. Within first six month of its launch, company could generate average demand of 3000 packs per month with distribution only limited to Himachal Pradesh. Once second wave COVID-19 cases started declining by July 2021 in India, they expanded their business to Uttarakhand and Bihar. However, company saw surge in the demand (9000–12,000 packs per month) in the last quarter of FY 2021–22. While in April 2022, the demand increased to an average 3000 packs per day, i.e., 90,000 2 Converted using $1 = 77.48 Indian Rupee. 3 The Nielsen Company, ‘INDIA ACQUIRES A TASTE FOR HEALTH AND WELL-

NESS’, 2016, https://www.nielsen.com/wp-content/uploads/sites/3/2019/04/nielsenfeatured-insights-india-acquires-a-taste-for-health-and-wellness.pdf. 4 ‘Health and Wellness in India’, Euromonitor, accessed 18 May 2022, https://www. euromonitor.com/health-and-wellness-in-india/report.

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packs per month. Out of these almost 60% demand came from Himachal Pradesh especially from 12 stores located on prime locations. Currently, they are working at their full capacity, but facing lots of operational issues in meeting the demand. They also have problem in understanding why Himachal Pradesh has huge demand while other two states Uttarakhand and Bihar are having lesser demand. Further, other marketing channels such as D2C need to be explored to scale up their business.

Industry Overview After the COVID-19 outbreak, the food consumption pattern has been shifted to healthier alternatives.5 Following the contemporary consumer preference, the Indian food market is also shifting toward a healthier lifestyle to meet the surge in demand for health and wellness foods. The global healthy snacks market witnesses progressive market trends due to the shift in consumption patterns of individuals. Referring to the report by Grand View Research, the global healthy snacks market is expected to grow at a compound annual growth rate (CAGR) of 6.6% between the year 2022 to 2030.6 The market growth is associated with consumers’ concerns about its nutritional characteristics, including high vitamins and proteins and low calories. Further, the report pointed out fastest growth in the Asia Pacific regions during the forecast period. In line with the global pattern, the Indian snacks market has also been inclined to healthier products. Moreover, the IPSOS survey highlighted that 91% of Indians are trending toward healthier alternatives to traditional snacks.7 According to the report titled, “India Un-junking: A $30 bn appetite for Health Food”, India is the fastest-growing market for health foods at a CAGR of 20%. Consequently, the Indian health food market will be $30 billion in the next five years.8 Additionally, the market

5 Laura Di Renzo et al., ‘Eating habits and lifestyle changes during COVID-19 lockdown: An Italian Survey’, Journal of Translational Medicine 18, no. 1 (8 June 2020): 229, https://doi.org/10.1186/s12967-020-02399-5. 6 Grand View Research, ‘Healthy snacks market size, share & trends analysis report by product (frozen & refrigerated, fruit, bakery, savory, confectionery, dairy, others), by distribution channel, by Region, And Segment Forecasts, 2022 - 2030’, April 2022. 7 IPSOS, ‘DIET, SUPERFOODS AND WELLBEING’, 2020. 8 Avendus Capital, ‘India Unjunking: A USD 30 Bn Appetite for Health Food’, March

2022.

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for snacks is expected to grow by a CAGR of 25.2% between the forecasted periods. The rapid growth in the Indian health food market has been driven by changes in consumers’ attitudes due to COVID-19, a rise in disposable income, millennials’ personal and planetary concerns, and rising e-commerce penetrations. The growing demand for health snacks has been catered by both, traditional and new start-ups. The key players in healthy snacks market include Britannia Nutri-Choice, Yogabar, RiteBite, Snackible, and Nourish Organics.9 Britannia Nutri-Choice is a dominant player in the premium healthy snacks market with the market share of 70%.10 In emerging players, Yogabar, a healthy snacks start-up, has made its presence through approximately 6,000 retail stores and online channels. It is one of the fastest-growing healthy snacks brands of India11 (Annexure I).

Organizational Structure Swasthika Biotech and Nutraceuticals Pvt. Ltd. is headed by two cofounders; Meenal Singh and Rohan Kumar. They are leading a team of 8 people who are working to manage the different aspects of business. They have a horizontal or flat organizational structure, as these two co-founders only manage all the 8 members of the team and have very short chain of command. Both the co-founders have 50–50% stake in the company. It is also recognized under start-up policy and is FSSAI certified organization.

Business Model Swasthika Biotech and Nutraceutical Pvt. Ltd. is basically a manufacturing company registered as start-up business model. They have innovative technologies to produce quality herbal ingredients. They develop the 9 ‘Top 15 Healthy Snacks Brands in India 2022 - Emerging & Establishing’, Wellcurve Blog (blog), 19 August 2021, https://www.wellcurve.in/blog/best-healthy-snack-brandsindia/. 10 Neha Tyagi, ‘Britannia Nutri-Choice Packaging Not a Copy of ITC Product: Court’, The Economic Times, 11 March 2017, https://economictimes.indiatimes.com/ industry/cons-products/food/britannia-nutri-choice-packaging-not-a-copy-of-itc-productcourt/articleshow/57583500.cms. 11 Tenzin Norzom, ‘How Healthy Snacks Startup Yoga Bar Saw 3X Revenue Growth despite Going Online during the Pandemic’, YourStory.com, 21 June 2021, https://you rstory.com/herstory/2021/06/yoga-bar-revenue-growth-pandemic-pivot.

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herbal products with the association of CSIR-IHBT lab, Government of India. They produce herbal healthy cookies with medicinal benefits in the clean environment of Palampur, Himachal Pradesh. They use medicinal herbs approved under schedule IV and schedule VI of food safety standards (Nutraceuticals Novel foods, FSMP) 2016. They provide the end-to-end solution to the consumers through online platform as well as through the middleman and retailers. They handle the process of quality control themselves as they are experts in food technology. They handle the manufacturing and distribution by maintaining the supply to the defined associated retailers at specified place. They have started their business from Himachal Pradesh and expanded their business to Uttarakhand and Bihar in year 2022.

Product Portfolio Swasthika caters its market demand through its three different flavors of herbal cookies, namely Ashwagandha, Pipli-Sonth, and Harad-Pipli. The cookies’ raw materials include whole wheat flour, jaggery powder, refined rice bran oil, and Himalayan herbs. All the cookies have been packaged in three different packaging. Initially, the company has launched the cookies at the price of $0.52 per packet. Later in July 2021, the company has launched cookies in the hard packet at the price of $0.13. Furthermore, focusing on the online market, Swasthika has brought out combo packaging of all three flavors and packs of three for each flavor.

Swasthika’s Marketing Mix Product Swasthika’s offering is the quality herbal food products for health care, with medicinal benefits. They produce tasty and healthy herbal snacks like herbal cookies. They produce different varieties of herbal cookies with different herbs giving varied health benefits to the consumers and help building their immunity. These herbal cookies are made of whole wheat flour instead of refined flour with jaggery in place of white sugar. They use refined rice bran oil instead of regular vegetable oils. The products contain medicinal herbs approved under schedule IV and schedule VI of food safety standards (Nutraceuticals Novel foods, FSMP) 2016. They have several products like Ashwagandha cookies in vanilla flavor with benefits

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of Ashwagandha like immunity boost and stress relaxation, Pipli-Sonth cookies in vanilla flavor with benefits of Pipli and Sonth like immunity boost and improved digestion, and Harad-Pipli cookies also in vanilla flavor with benefits of Harad and Pipli like immunity boost and relieved constipation. All the products are FSSAI certified and with hi-fiber and zero percent trans-fat. Price Swasthika Biotech and Nutraceutical Pvt. Ltd, follow competitive pricing strategy and maintain pricing comparative to the other brands in the industry. The pricing of the 25gms packet is $0.13, while the pricing of the 100gm packet is $0.52. In the industry, the pricing of 250 gm Britannia Nutri-Choice cookies is $0.52, which is less than Swasthika products. While the pricing of 330gm RiteBite cookies is $3.10, which is high in comparison to Swasthika. Furthermore, Snackible snacks start just from $0.39 and Nourish Organics cookies with $2.58 for 150 gm. Place The company uses both traditional channel partners as well as ecommerce platforms. In the year 2022, the company’s products are available in Himachal Pradesh, Uttarakhand, Bihar, and Delhi. They have associated Kirana stores, super-mart, supermarket, and even sweets and snacks store, so as to make their products available to the end consumers. Promotion The company is promoting their products by using promotional schemes with the retailers and middlemen involved in the distribution network. They are giving extra margin of around 10% to the retailers to promote the product. There is no digital presence of the company so far.

Issues Related to Product Marketing Although the Swasthika’s herbal cookies have many USP’s like healthy, medicinal herb based, made up of jaggery and whole wheat flour with use of rice bran oil, still the product marketing has many issues. There is difficulty in positioning the product, as even though the company is

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giving 10% margin, which is much better than other competitors, the local snacks shops are not ready to give them shelf space. The major issues related to the marketing of their herbal cookies identified through market research are: Transportation of Products The most important issue is that products are being produced at the plant based in Palampur, Himachal Pradesh and it needs to be transported to areas like Uttarakhand, Bihar, and Delhi. In transportation to suburban and rural areas, lots of products get broken and it causes huge loss to the company which cannot be recovered. At the present situation transportation causes huge loss in terms of transportation cost and wastage of products. Packaging Second most important issue in product marketing and product positioning is the packaging of the product. The product packaging is not very attractive as compared to the competitors; it gives the look of low-quality product. Packaging is not professionally designed. The company uses soft packaging made up of polythene material which leads to the breaking of the product while in long distance transportation. The product packaging should be carton based with classy colors and well designed with proper information, as packaging is one of the most important tools of promotion.

Founder’s Dilemma After releasing the company’s annual report for FY 2021–22, the founders and their management found themselves at crossways. Discussing the report with the management, the founders contemplated various alternatives to enhance the company’s reach. Based on the report, they evaluated the various efforts to maximize the reach of its products. Moreover, the annual report revealed that its manufacturing plant is operating at its maximum level. One alternative to management is to limit their market to Himachal Pradesh. Currently, the Himachal Pradesh (HP) market, the local market has an average demand of 3000 units per day, that is its daily

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manufacturing capacity. Also, HP has a maximum share of the company’s revenue. As per the report, the profit margin for the company is 10% of the total revenue. Consequently, the company is expected to meet break-even after one year. However, the management thinks they will face difficulty in generating sustainable profits by operating only at its origin state. After the weeks of discussions, the founders’ decided to look for the scalability of the businesses. However, the company had launched its products earlier in Bihar, Uttarakhand, and Delhi but could not gain significant market share as of no advertising efforts. Further, sales team added the issues pertaining to its packaging compared to its competitors. In this regard, the company has decided to rethink its packaging. Further, the management is also identifying the options for strategic alliance for outsourcing its production facility to scale up the business. Pointing on this, “we need to evaluate our expansion plan carefully ensuring product quality and sustainability of the company”, founders added.

Annexure I Major players in healthy snacks market.

Founded in Mode of operation Pricing

Britannia NutriChoice

Yogabar

RiteBite

Snackible

Nourish Organics

Swasthika

2007

2014

1991

2015

2017

2020

Online

Online

Online

Offline

150 gm/ $2.58

25 gm/ $ 0.13 100gm/$0.52 Through e-commerce and retailers

Online and Online offline and offline 250 gm/ 380gm/ $0.52 $5.16

Distribution Through Channels retailers and ecommerce platform

330 gm/ $3.10

Starts with $0.39 Direct to Direct to Direct to consumer, consumer consumer through and and retailers, through through and eeecommerce commerce commerce platform platform platform

Direct to consumer and through e-commerce platform

Source Compiled by authors using respective websites of the company

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Annexure II

Source Compiled by authors using company’s input

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CHAPTER 21

Bash on Regardless: A Case of a Hardy Leader Pallabi Mund

‘Giving Up’ is never a choice for Prasenjit Mund, who has always believed in the saying—“When the going gets tough, the tough get going”. He not only religiously follows this proverb but also implements it in his day-to-day challenges in the Print Industry where the work itself is so unpredictable. Prasenjit works as the Resident Editor (RE) for The Times of India’s Madhya Pradesh and Chhattisgarh editions. When one looks back at his journey of life, one feels amazed by the grit, determination, dedication he has shown in living a life that wasn’t his first choice. He has been successfully dealing with all the adversities of life and work, and acted as a crusader in the COVID-19 pandemic too. What makes him so resilient? Is it his optimistic attitude of having hope against hope; or a kind of behavior which reflects in his personality when undergoing stressful situations? Let’s get answers to those questions through his life’s situations.

P. Mund (B) D. A. V. School of Business Management, Bhubaneswar, India e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0_21

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Background of the Study The once-in-a-century pandemic has created a scenario which is not only stressful but also a testing time for everyone, regardless of gender, age and geography. The whole world is reeling from this catastrophe and organizations and businesses are struggling to sustain. Leaders of organizations are facing unprecedented challenges in this volatile, uncertain, complex and ambiguous (VUCA) world following the Covid outbreak. Business leaders are certainly not immune to this ever-changing and fluid business environment, yet some organizations adapted, survived and even thrived in adversity. Many could not. Resilient organizations are built upon resilient leaders, who adapt very well to ever-changing and risky business environments and inspire workers. Such a situation calls for one of the most vital qualities of a leader—“resilience”. Resilience or “hardiness in leadership” is the ability to bounce back in adverse and stressful situations, to channelize and control their surroundings while staying committed to one’s own duties and responsibilities. Hardiness, a stress-resilient multifaceted personality, was first developed by Suzanne C. Kobasa in 1979 which was thereafter extensively studied by many researchers who even tried postulating and adding new dimensions to the existing body of research. This case is a constellation of contingency factors which highlights the role of hardiness and its dimensions, i.e., the 5Cs of Hardiness (Kobasa’s 3Cs—Commitment, Control & Challenge (1979), S. Maddi’s 4th C—Connection (2002) and P. Mund’s 5th—Culture (2017, 2021) in predicting hardy leadership behavior in Prasenjit during the outbreak of COVID-19. How these five hardy dimensions fostered resilient leadership and contributed toward a resilient organization is what this case is all about.

Journey from an Army Cadet to a Resident Editor in the Times of India Since his childhood, Prasenjit was very passionate about the Indian Army and started learning Taekwondo to toughen up for it. After completing his schooling from Blessed Sacrament High School, Puri, Odisha, India, and 12th from Ravenshaw College, Cuttack, he cleared the tough entrance examination for the National Defence Academy (NDA) in his very first attempt and joined as an Army Cadet. He was living the life of

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his dreams—through mud, sweat and blood—and things had just begun taking shape when destiny showed its fickle hand. An injury in training was worsened by wrong medical procedures, leaving his right trigger finger disabled. He was given a disability discharge and returned home as a 19-year-old with his dreams shattered, unsure of life back in the civilian world, but in true NDA spirit, bashed on regardless. He enrolled in a fashion designing course, conscious of the boom in the fashion industry and his own artistic and creative skills and topped the exam. While studying and working as a fashion designer, he also completed his graduation in English literature and resumed Taekwondo to earn his black belt. On any given day, he would juggle these three worlds—full-time English Honours classes, fashion lessons and business, and ran his own Taekwondo school while also teaching spoken English and personality development at a tutorial. He excelled in all three—stood second in his college in graduation and fourth in his university in Masters in English, got the Presidential recognition in his fashion designing course, won several fashion competitions, and was the youngest Taekwondo referee at the National Games Punjab in 2001. Then, he found his second calling—journalism. He walked into it without any diploma or degree in media studies but with a nose for news, desire to serve society and the NDA spirit of ‘bash on regardless’. He put in 15 hours a day, seven days in a week, in his early days when he learnt the ropes of both reporting and editing (production), realizing very early on that both skills are vital to excelling in the field. Thriving on firefighting and challenging assignments, he rose up the ladder, always looking to reskill himself technologically and intellectually. Along with handling editorial tasks, he also got interesting reporting assignments, field reports from conflict zones, elections and military issues. He moved into leadership roles and now heads a multi-edition center of the world’s best-selling English newspaper, The Times of India. If you ask him how he managed to survive losing a career he had worked so passionately for and built another career equally passionately, he says one of the key reasons is that he was rock solid in his belief that he can turn things around. He never looked back in anger, never blamed anyone for his misfortunes and failures, and set himself small targets to stay in a winning frame of mind. The grueling physical and mental conditioning at NDA, his sense of finding balance with his “Chi” through taekwondo, and the urge to try one more time, take one more step, kept him positive.

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Prasenjit’s Commitment Toward Work and Life Leaders are committed—to themselves, the people around them and their goals. They extract the maximum out of the 24 hours in a day and strive to fulfill their responsibilities to their family, organization, peers and their personal ambitions. During the Covid pandemic, Prasenjit had to firefight on several fronts, often ignoring his own physical or mental distress. The demands of home and work from home in a time-intensive industry like the print media made it particularly challenging. But he stayed committed to the organization’s goals, ensured quality and stayed to schedules. At the same time, he used time saved from commuting to improve himself—exercised longer, painted, cooked and started learning the guitar on YouTube (a passion he had nursed since childhood). It helped him stay in a positive frame of mind. When Covid started waning, it turned out that business had stayed in the green despite the lockdown and the daily production of newspapers played a key role.

Prasenjit’s Internal Belief & Locus of Control A key hardy leadership trait is learning & finding your center of gravity and staying on an even keel, regardless of the storms around you. One of the ways Prasenjit does this is to “compartmentalize” and tell himself, “This too shall change”. He always believes “change is around the corner” and keeps going till he finds that corner. Right since his NDA days, when he learnt to pack in pain and agony into one room, lock it up and walk into another room in his mind where he could sit down and gaze at a beautiful sunrise or a lake or himself as a commissioned Army officer, Prasenjit learnt to deal with multiple problems at the same time by compartmentalizing each and dealing with them separately. No matter what the challenge, he always believes he is in control. Once, when he was tasked with bringing out the editions of another important center of TOI and had barely a couple of hours to prepare for, the thought that it was short-notice never occurred to him. As always, it was just a task that had to be done and he had to find a way to do it. Within minutes, he realized that it wasn’t just one edition but eight editions with different paginations and layouts. He asked for printouts of the page plans, set them together and identified pages that he could do once and source to the other editions. A plan of action was in place. That was half the task done. Next, he learnt that he hadn’t ever worked with

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most of his new team members, who like him had been cobbled together from other editions. But they were all committed to a common goal. With a battle plan ready and the team having a shared commitment, the task was achieved to perfection. What’s better, the team members have been best of friends since then. Self-belief, domain knowledge, thinking out of the box and a personality of confidence and cheerfulness are key traits in a leader and they come together to help him stay controlled and balanced in adversity.

Turning Challenges into Growth Opportunities Prasenjit never tires of repeating a military joke. A team of paracommandos drop into a battle zone and realize they have fallen smack in the middle of an enemy entrenchment. An NCO comes running to the team leader to say, “Captain, we are surrounded”. To which the officer replied: “We are commandos, we are supposed to be surrounded”. Prasenjit always tells himself that given life’s uncertainties, “exceptions” are the only normal. He plans for situations but expects things to go downhill. When a plan goes to perfection, he’s happy, when chaos erupts, he is thrilled because it offers him a challenge. He loves the adrenalin rush and realizes that it’s only in adverse situations that a leader truly shines and is recognized. When he lost the use of his right index finger and the pain made it difficult to even use the right hand, he tied his shoe lace and tie knot with his left hand. He began learning to write and paint with his left hand, taking it as an opportunity to be ambidextrous. When he was medically discharged from NDA, he switched from the rough and tough world of the military to the soft-skill world of fashion designing, and from science to English literature. When he was told that not having a journalism qualification would be an impediment, he used the opportunity to work double-shift, both as a reporter (by day) and copy editor (by night). Most new journalists specialize in either stream but he did both, which helped him immensely in his journey up the ladder as he could understand the challenges, problems and aptitudes of both reporters and desk writers.

The Emotional Connect and Empathy One of the most important aspects of a leader’s personality, if not the most important, is empathy. It helps a leader understand each team member and bring them together to work for a common goal. It’s

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an intangible quality that yields very tangible results. In the unprecedented Covid crisis, empathy turned out to be the most significant aspect for a leader. Prasenjit stayed connected with each of his team members separately because everyone was fighting their own internal storms. The uncertainties of business (and consequently jobs), the rigors of working from home, Covid infection of themselves and family, daily news of death around them, and the difficulty in separating household work and professional work from home made for a deadly combination that preyed on people’s minds. In the office environment, it’s much easier to gauge someone’s emotions. One look at someone’s face and you understand if he/she is going through a problem. But in the faceless communication of online work, Prasenjit tried to gauge inflections in one’s voice to understand their mental status. He held regular group meetings where the only agenda was to meet, see each other’s faces, make small talk and spread the cheer. Maybe sing or crack a joke. Prasenjit found that very often people want someone to simply tell them “I’m there for you”. During lockdown, when even goods transport was shut down in the lockdown, one of his employees ran out of an important medication and couldn’t find it anywhere. During a work conversation, Prasenjit realized something was amiss and asked if he could help. When the team member told of his problem, Prasenjit used his contacts to arrange for the medicine and have it delivered. It was a small thing but a massive boost to the employee’s morale and the message went around that there’s a shoulder to lean on. Prasenjit helped arrange for hospital beds, oxygen and medicines for scores of people, including employees, their friends and relatives, and even strangers, earning goodwill for the team and the organization, TOI.

The Influence of Culture A leader is the mix of his experiences and self-belief. What he learnt from his parents in childhood, his peers, his failures and his victories is the culture he is made of. It’s like a second skin. The values he imbibed as a child from his parents have stayed with him. Ethics, honesty, morality and the courage to choose the harder right than the easier wrong have helped him take clear-cut decisions when faced with a dilemma. The ethos and values of the elite National Defence Academy have given him strength of character and mental and physical toughness. The spirit of “bash on regardless” in NDA helps him bulldoze through obstacles. The bonding

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in military training—unparalleled in the strength gained through shared pain—he tries to infuse among his team members in a professional media environment. ‘One for all and all for one’ isn’t a proverb in the military, it’s a way of life. During the Covid times, it turned out to be pillar of strength in the virtual newsroom. Employees readily stood in for others who were themselves struck down by Covid or were caring for their Covid-infected near and dear ones. They voluntarily gave up their off days when the need arose as everyone realized each had to stand with the other. Prasenjit led by example, working seven days a week, almost non-stop through the two years of the pandemic. He never asked or expected anyone to give up his/her off day, but his team members did so on their own if the need arose. Together, they won. Together, they are hardy.

References: Kobasa, S. C. (1979, January). Stressful life events, personality, and health: Inquiry into hardiness. Journal of Personality and Social Psychology, 37 (1), 1–11. Maddi, S. R. (2002). The story of hardiness: Twenty years of theorizing, research and practice. Consulting Psychology Journal: Practice and Research, 54(3), 173–185. https://doi.org/10.1037//1061-4087.54.3.175 Mund, P. (2017). Hardiness and culture: A study with reference to the 3Cs of Kobasa. International Research Journal of Management, IT & Social Sciences (IRJMIS) (USA), 4(2), ISSN: 2395–7492. Mund, P. (2021). Culture and resilience at work: A study of stress and hardiness among Indian corporate professionals (1st ed.,). Routledge. https://doi.org/ 10.4324/9781003182986 Interview with Mr. Prasenjit Mund conducted by author dated 22 March 2021 at Bhopal, Madhya Pradesh. Retrieved from https://in.linkedin.com/in/pra senjit-mund-b6017641 dated 25 March 2021. Retrieved from https://www. youtube.com/watch?v=9VLrXMJzppg dated 27 March 2021, Interview of Prasenjit Mund with Lakecity Live.

Index

A Affective commitment, 174, 221, 226, 227, 232, 234, 236 Africa, xvii, 61–66, 69, 70, 72–74 Agile business, 4, 9 Agro-industries, 287 Artificial intelligence (AI), 216, 312, 316, 318 Augmented Reality (AR), 315 B Banking services, 80–82, 88, 89, 98 Bibliometric analysis, 96, 250, 252, 255, 256, 259, 260 Bibliometric platform, 250 Big Data, 19, 82, 314–316 Blockchain, 80 Bottom-of-the-pyramid (BoP), ix, x, xiii, 2, 3, 5, 7–9, 15, 20, 245, 246, 260 Brand image, 366, 376, 377 Brands, viii, ix, xii, xiii, 2–4, 15, 18, 19, 22, 23, 32, 35, 39, 194, 195,

361, 365, 366, 368, 370–378, 402, 404 Business canvas, 5 Business skills, 245

C Capacity builders, 347, 348 China, 10, 49, 51–54, 61–74, 325 Cleanliness, 335, 364 Cloud computing, 80, 314, 315 Co-creation, xi–xiii, xvi, 2, 4, 9, 15, 16, 18–20, 23, 246, 248, 257 Coevolve, ix, x, xii, 4, 5, 19 Cognitive dissonance, 30, 32, 33, 36–41 Collective decisions, xii, 16, 246, 249, 257 Collective governance, 247, 248 Collective intelligence, xi, xiii, xiv, xvi, 1, 3, 7, 16, 22, 23, 247, 260, 305 Collective leadership, 246–248, 253

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 Rajagopal and R. Behl (eds.), Inclusive Businesses in Developing Economies, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1007/978-3-031-12217-0

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INDEX

Collective performance, ix, xvi Collective power, 250 Collectivistic societies, 55 Colonization, 63, 65 Commitment, xiv, 1–3, 6, 7, 9, 36, 110, 174, 175, 199, 270, 290, 312, 413 Communicatory utility, 222, 228–230, 233, 234, 236 Community-based input, 218 Community information, 301 Community kitchens, 335, 336 Community marketing, 3 Consortium enterprise, 16 Consumer, x–xii, 5, 10, 11, 18–20, 35, 67, 70, 81, 83, 88, 90–93, 96–98, 245, 246, 300, 360, 362, 364–372, 376–378, 399–404, 406 Consumer behavior, xii, 18, 19, 81, 82, 96, 97, 250, 363, 367 Consumer-centric approach, 91 Consumer involvement, 359, 364, 370, 371, 374, 377 Consumer lifestyles, 359, 370, 371, 376–378 Consumer relations, 31 Consumer satisfaction, 80, 81, 83, 92–94, 97–99, 366, 368, 371 Consumer wellbeing, 246 Context-bound growth, 249 Convenience utility, 222, 228, 231, 232, 234, 236 Conventional wisdom, 23, 246, 247 Co-occurrence networks, 94 Corporate philosophy, xv, 30, 38, 41, 247 Corporate social responsibility (CSR), vii, viii, xiv, xvi, 13, 30–41 Corruption, 62 COVID-19, 133, 137, 139, 143, 144, 292, 312, 316, 318,

323–326, 330–336, 338, 400–402, 409, 410 Crowd-based innovation model, 247 Crowd behavior, xvi, 1 CSR-washing, 33 Cultural dimensions, 51 Customer-centric, ix, xi, xv, 13, 18, 21, 257 Customer relationship, 4, 5 Cyber-Physical Systems (CPS), 314 Cyber-security, 315 Cyberspace, 315 D Decision-making, 1, 7, 12, 22, 33, 73, 192, 246–250, 254, 256, 257, 259, 260, 289–292, 302, 303, 305, 314, 315, 346 Deindustrialization, 63 Demand-driven approach, 329 Design thinking, xi, 16, 257 Design-to-market, vii, xiv, 3, 4, 260 Design-to-society, vii, ix, 3–5, 13, 260 Design-to-value, 3–5, 260 Design-to-value philosophy, vii, 5 Diffusion of knowledge, 253 Digital inclusion, 287, 289, 291–293, 295, 296, 298, 299, 305 Digital literacy, 81, 288, 293, 295, 297–299, 305, 318 Digital platforms, 7, 134, 259 Digital technologies, 22, 133, 291–293, 296, 300 Digitization, 8, 80, 98, 99 Discrimination, 33–36, 39–41, 73, 193, 198, 326, 329, 332 Disruptive technologies, 312 Diversity, xi, xiii, xvi, 1, 2, 6, 9, 11, 12, 14, 16, 18, 22, 23, 191, 344, 353 Domestic violence, 291, 302, 329, 330, 332

INDEX

Dynamic capability view (DCV), 382, 392 E Economic empowerment, 260, 291, 293, 304, 305 Emerging markets, viii, xi, xv, xvii, 10, 11, 13, 14, 20, 62, 63 Employee engagement, 1, 5, 14, 260 Employee training, 111 Employer attractiveness, 189, 193, 194, 198, 201 Employment opportunities, 62, 69, 71, 288, 290 Empowerment, 16, 246, 248, 253–255, 257, 259, 288, 290, 291, 296, 297, 301, 329 Entrepreneurial behavior theory, 195, 196 Entrepreneurial ecosystem, 245, 254, 353, 354 Entrepreneurial governance, xii, 255, 259 Entrepreneurial orientation (EO), 265, 268, 271, 272, 276, 278 Entrepreneurial performance, 20, 247 Entrepreneurship, xi, xvii, 10, 21, 197, 203, 246, 252, 254, 256, 259, 267, 268, 270, 287–290, 297, 298, 303, 304, 348 Entrepreneurship development, 289, 305 Ethical codes, 31, 32 Ethical culture, 183 Ethics, xi, 29–34, 36, 38, 40 Exchange quality, 221, 226, 232, 234, 236 F Facebook, 190, 203, 218, 224, 228, 303

419

Family business, 11, 267, 269, 274, 278–280 Family Business Internationalization (FBI), 266, 267, 269, 274, 276, 279, 280 Family responsibilities, 152, 155 Fashion involvement, 369 Financial and digital inclusion, 291 Financial exclusion, 292 Financial performance, 31, 32, 40, 388 Food consumption pattern, 401 Food insecurity, 327, 330, 335 Foods industry, 400 Foreign direct investment (FDI), 63, 66, 68–71, 74 Fragile institutional supports, 351 G Gender disparities, 295, 296 Gender dynamics, 202 Gender equality, xiii, 6, 33, 191, 204, 294, 295 Globalization, 151, 188, 266, 345 Governance, xi, xiii, xiv, 3, 4, 7, 29, 30, 35–38, 41, 247–249, 255, 257, 291, 298, 346 Governance and entitlements, 298 Green recovery, 13 Greenwashing, 33 Group activities, 329, 331 H Habituation, 345–347, 352, 353 Health and wellness, 400, 401 Health infrastructures, 323 Higher education sector, 107, 111 Hindustan Unilever Limited (HUL), 3 Hiring and selection process, 110, 111

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INDEX

Household consumption, 62, 360 Human capital theory, 193 Human Resource Information System (HRIS), 313 Human resource management (HRM), 108–110, 112, 189, 190, 192, 197, 312, 313 Human resources practices, 107, 108 I Identity, x, 15, 97, 154, 195, 196, 249, 344, 346, 351, 366, 369, 399 Impact measurement, 343 Impulse buyers , 369 Inclusive business, viii–xii, xiv–xvii, 1, 2, 4–9, 11–16, 18–20, 22, 245–249, 252, 257, 259, 260 Inclusive growth, vii, 29, 30, 34, 36, 38–40, 288 Inclusive leadership, 245–247 Inclusivity, ix, xi, xiii, xvii, 1–9, 11–14, 16, 18, 19, 22, 23, 34–37, 246–250, 252, 256, 257, 259 India, x, xvii, 3, 10, 15, 16, 49, 51–54, 69, 80, 81, 99, 108–110, 116, 134, 138, 141, 142, 146, 151, 152, 176, 183, 187, 188, 223, 260, 266, 280, 288, 291–293, 299, 301, 302, 304, 305, 312, 324, 326–330, 332–338, 360, 361, 377, 378, 383, 393, 399–403, 410, 411 Industry 4.0, vii, 311, 312, 314, 316, 318 Information and communication technology, 80 Information economy, 301 Information seeking, 222, 230–232 Information technology (IT), xv, 151, 176, 177, 288, 314

Innovation, viii, x, xii, xiii, xvi, xvii, 3–7, 10–13, 15, 17, 18, 20–22, 90, 143, 193, 195, 198, 216, 247, 248, 253, 254, 257, 260, 270, 318, 344 Innovation economics, 247 Innovation-led enterprises, 245 Institutionalism, 345, 346 Institutionalization process, 343, 344, 346–348 Instrument-symbolic model, 193 Internet of Things (IoT), 312, 314, 318 Inter-role conflict, 153 Investment cooperation, 71 Investments, ix, x, 4, 6, 8, 9, 13, 15, 18, 40, 62, 65–67, 69–75, 200, 253, 255, 273, 344, 348, 354, 400 Investor communities, 343 Involvement, xi, xiii, xvi, 16, 257, 316, 366–369, 376–378 Isms, 30, 33–36, 38–41 J Job commitment, 153, 164 Job-hunting, 216 Job satisfaction, 1, 107, 113–117, 122–124, 153, 164, 174, 196 Job search, 215–217, 219, 220, 223, 224, 229–238 K Knowledge gaps, 204, 216 Knowledge hub, 299 Knowledge sharing, 248, 386 L Layout facilitates, 365 Leader-Member Exchange (LMX), 6, 7, 12, 172, 253, 255, 257

INDEX

Leadership attributes, 246, 252, 256, 257 Learning and development, 313 Learning environment, 133 Learning strategies, 317 Learning styles, 137 Legitimacy theory, 193 LGBTQ, 33, 34 Lighting, 361, 364, 365, 367, 372 Livelihood, 9, 16, 17, 290, 291, 294, 297, 298, 301, 302, 304, 324, 327, 329–332, 338 Lockdown, 143, 292, 324, 326, 327, 330–332, 335–338, 412, 414 Loyalty, 6, 7, 20, 91–93, 312, 317, 368 M Machine learning, 80, 318 Marginalized communities, 289, 324, 330 Marital status, 35, 117, 152–154, 156, 158, 160–163 Marketing Mix, 399 Market integration, 288 Massive Open Online Courses (MOOCs), 136, 139, 143, 145 Medical facility, 324 Meta-analytic study, 47 Mexican community, 353 Microentrepreneurs, 294 Moral disengagement, 181 Multimedia, 134, 233 Music, 363, 364, 367, 372 N Natural resources, 17, 37, 62, 63, 69, 72, 73, 298 Neutralization, 181 Non-intervention policy, 64, 65 Nuclearization of families, 360

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O Occupational performance, 107, 110, 116, 121, 124, 125 Occupational satisfaction, 116, 121–124 Online banking, 80–84, 88–92, 96–98, 292 Organizational citizenship behaviors, 172, 175 Organizational mimicry, 350 Organizational responsibilities, 172

P PACT (people, accountability, control, and transformation), 4 Pandemic, xiv, 133–135, 144, 312, 323–325, 327, 330–334, 337, 338, 400, 402, 409, 410, 412, 415 Parental status, 152, 153, 155, 156, 160, 162, 164–167 Partnership, xii, 5, 8, 9, 62, 64, 69, 72, 74, 299 Patriarchal family, 289 Patriarchal society, 301, 328 Peer learning, 134, 139, 143, 318 People-driven organizations, 188 Perceived cost, 92, 98 Perceived ease of use, 92, 218, 219, 222, 223, 226, 231, 232, 234 Perceived organizational support (POS), 173–183, 372 Perceived support, 221, 226, 232, 234, 236 Perceived usefulness (PU), 91, 92, 218, 219, 222, 223, 225–230, 232, 234 Performance appraisal, 112, 120, 121, 123, 313 Phenomenological interviewing, 224 Pinkwashing, 33

422

INDEX

Poverty, ix, xiii, xv, 15, 16, 20, 37, 65, 66, 70, 245, 246, 288, 297, 298, 303, 323, 324, 328, 329, 332 Proactiveness, 266, 268, 269, 271, 272, 274–276, 278–280 Process mining, 314 Profit-with-purpose, vii, xiii, 249, 260 Psychographic descriptor, 367 Psychological contract fulfillment (PCF), 221, 226, 233, 236 Public-private partnership (PPP), 13, 146 Public program, 287, 305

Q Quality of life, 16, 62–64, 293, 305

R Rainbow washing, 33 Real-time control, 314 Reciprocal relationship, 114, 346 Reciprocity beliefs, 173, 175–179, 181–183 Recruitment and retention, 187, 189–193, 195, 197–204 Relaxation, 222, 228, 230, 234, 236, 326, 404 Resource-based theory (RBT), 381, 382, 384, 392 Retailing, 360, 365, 366 Reverse accountability, 3, 7, 246, 247, 249, 250, 253, 255, 257, 259 Risk perception, 90, 92, 93 Rituals, 266, 352 Rural women, 3, 287–290, 293, 294, 296, 299, 301, 303–305, 324, 328, 330, 332, 338

S Self-Help Groups (SHGs), ix, 290, 292, 323–325, 327, 328, 330, 331, 333, 334, 336–338 Sensing capability, 384, 385, 389 Service quality, 81, 83, 88, 90, 94 Shopping behavior, 367, 368 Signaling theory, 114, 124 SMAC (social, mobile, analytical and cloud), 317 Small and Medium Enterprises (SMEs), xii, xv, 14, 245, 259, 265, 267, 269–271 SMART (strategic, measurable, accessible, responsive, and trustworthy), 14 Social acceptability, 49 Social capital, 328, 329 Social capital theory, 193, 194 Social desirability, 48–51, 53, 54, 183 Social development, ix, 13, 16, 32, 36 Social distancing, 324, 331, 333, 334, 336 Social enterprise, viii, 20, 21, 298 Social exchange relationship, 171, 172, 174, 181 Social exchange theory (SET), 114, 171, 173, 216, 217, 219–223, 225–228, 232–237 Social identity, 246 Social identity theory, 246 Social illusory, 345 Social imaginary, 345, 349, 353, 354 Social interaction, 19, 135, 222, 228, 229, 232, 234, 236, 259 Social justice theory, 246 Socially desirable responding (SDR), 47–52, 54–56 Social media, xii, 5, 18, 143, 189–191, 199, 202, 203, 216–233, 235–238, 299, 300, 333

INDEX

Social media recruitment, 216 Social media usage behavior, 215 Social mobilization, 328 Social networking, 190, 191, 199, 202–204, 218, 328, 332 Social practices, 345, 352 Social system, 12 Social washing, 33 Social wellbeing, 37 Socio-economic issues, 329 Special Economic Zones (SEZs), 68, 69 Stakeholder engagement, 5, 6, 16, 22, 35, 248, 249, 257 Stakeholder relationship, 30, 32, 253, 255, 257 Stakeholders, viii, ix, xi, xiii–xvii, 1–9, 11, 12, 14–22, 30–32, 34, 36, 39–41, 48, 66, 70–72, 96, 108, 205, 246–249, 254, 257, 259, 260, 305, 337 Stakeholder value, xvi, 15–17, 20, 249 Start-ups, 10, 11, 187–189, 191–197, 199–201, 203, 204, 402 Store layout, 362, 365, 371, 372 Strategic growth perspectives, 246 Structural equation modelling (SEM), 88, 89, 117, 119, 124 Supermarket, 359, 363–365, 404 Sustainability, viii, 8, 13, 20–22, 324, 325, 337 Sustainable development, 9, 13, 16, 289 Sustainable development goals (SDGs), 9, 31, 246

T Taxonomy of leadership, 253 Technological development, 62, 311 Technology, 18

423

Technology acceptance model (TAM), 83, 90, 91, 96, 217–220, 222, 223, 225–235, 237 Technology adoption, 83, 217 Text mining, 80, 88, 94, 96 Theories of social exchange (SET), 216, 219, 223, 225, 237 Trade relations, 62, 65–67, 72 Transformational leadership, 4, 6, 9, 12, 16, 247, 248, 250, 252–254, 257, 259 Triple bottom line, 9, 20, 249 Trust, 221, 346 Trust paradigm, 91 Turbulent business environment, 382, 384 Typification, 346, 347, 349, 351–353 U Unethical behavior, 31, 39, 40, 172, 173, 180, 181, 183 Unethical pro-organization behavior (UPB), 172–176, 178–183 Urbanization, 360 Uses and gratifications (UGT), 216, 217, 219–223, 225, 228, 234–238 V Value chain, ix, 14, 21 Value propositions, x, xi, xv, 5, 9, 19, 21, 23, 203, 249, 257, 260 Virtual integration, 288 Virtual learning, 133–146 Visual communication, 361 Visual merchandising, 359, 361, 362, 364–366, 369–372, 376–378 Voice of stakeholders, 7, 246 VRIN resources, 381–386, 388–393 VUCA (volatile, uncertain, complex and ambiguous), 410

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INDEX

Vulnerability, 2, 62, 73, 324 W Whistle blowing, 31 Women, 154 Women empowerment, 291, 297, 299, 304, 305 Women entrepreneurs, 3, 19, 260, 296, 297, 300, 301, 303, 305 Women-owned institutions, 296 Work-Family conflict, 151, 153, 154 Workforce management, 188–193, 197, 200, 202

Working conditions, 71, 72, 312 Working cycle, 326 Workplace autonomy, 7, 12 Workplace performance, 110

Y Yuva Mitra, 16, 17

Z Zambia, 62, 63, 66–75 Zambia-China relations, 66, 74