Convergence of management practices in India’s IT sector with ana priorivalidation

Abstract

PurposeThe purpose of this paper is to document similarities and differences between management practices of different types of organizations in India’s IT sector through an empirical survey. The authors expected these differences to be significant enough for us to be able to groupa priorithis set of companies meaningfully through cluster analysis on the basis of the similarity of their management practices alone.Design/methodology/approachUsing a mixed-methods approach, 73 senior-level executives of companies working in India’s IT sector were approached with a pretested questionnaire to find out differences on eighteen management practices in the areas of operations management, monitoring management, targets management and talent management. The different types of organizations surveyed were small and amp; medium global multinationals, large global multinationals, small and medium Indian multinationals, large Indian multinationals and small and medium local Indian companies. The differences and similarities found through statistical testing were further validateda priorithrough cluster analysis and qualitative interviews with senior-level executives.FindingsThe management practices of multinationals in India are moving toward Western management practices, indicating that management practices converge as the organizations grow in size. Though the practices of large Indian multinationals were not significantly different from those of global multinationals, the surprising finding was that large Indian multinationals scored better than global multinationals on a few practices. The practices of small and medium Indian companies differed significantly from those of other types of organizations and hence they formed a cluster.Practical implicationsThe finding that large Indian IT multinationals have an edge over global multinationals in certain people management practices is a confirmation of the role of human resource practices in their current success and their continuing competitive advantage.Originality/valueThis is perhaps the first study of its kind to document state of specific management practices across different types of organizations in India’s IT sector and then use measures on these practices to group a priori these organizations for validation.