literature on business culture which has relevance to the Indian economic scenario. The first part sums up the theoretical and technical concepts with which the study of business culture relates in recent literature. It explains how this concept is connected with institutional economics and organizational studies. The second part deals with the relevance of business culture in meaningful analysis of the current events in corporate India. It focuses on some key questions which need to be asked in regard to Public Limited Companies.
There are a number of reasons why business culture has gained in importance in the formulation of business strategy. Academicians and successful practitioners of business have concurred on the idea that a study of culture acts like a shot in the arm for global businesses. This current area of business research is very relevant for firms from strategic as well as organizational points of view. A number of big names in global business have learnt this the hard way. Business development initiatives undertaken at considerable expense are known to fail just because important cultural factors in a new business environment were ignored. Launch of products, operations and internal organizational changes have been subjected to rigorous cultural analysis. For instance, it needs to be considered whether the said initiative will gel well with the age-old customs of the region which is the venue for it. There are various positive and normative approaches to this research. This paper discusses some of these with reference to the contemporary Indian economic, social, and political environment.
Positive and Normative Approaches to the Study of Business Culture Like in most branches of learning, there are usually two different approaches to this area of contemporary research. From a positive analysis perspective, we can analyze the popular business practices of a region in the context of its historical and socio-cultural milieu. This approach enables us to understand a typical business practice, in any of the functional areas of management, with the sensitivity it deserves. This helps us have a detached view of the practices which are typical to a particular society. It also facilitatates us in relating such a practice to the larger characteristics of its history and civilization.
On the other hand, we might adopt the normative approach to understand business culture while analyzing a particular contemporary business situation. This might be intended for providing clear directions in formulation of a business policy. In this methodology, comparative studies are very popular. These studies provide a laboratory for enquiring into a range of possible strategies with regard to cultural and organizational questions. Such studies by Casson, Demsetz and others are very popular in guiding organizational planning. Very often, such studies lead to path-breaking restructuring efforts in multinational firms. As a result of such insights, a loss making operation can be transformed into profitable venture.
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