An Indo-Japanese MNC Operating in India

This is case study of 50:50 Indo-Japanese joint venture (BW-India, pseudonym). The study looks at organizational practices (including organizational structure, management style, human resource practices and non-work practices used to execute work in the organization) and how these are influenced by parent company practices, as well as how they influence organizational commitment (OC). The nature of commitment was found to be 'conditional identification' associated with benefits acquired through personal relationships. The organization was also unique as the production processes were handled in technologically efficient Japanese ways while human resources were managed in traditional Indian value-driven ways. However, even though the financial status of the organization reflected spectacular growth, the organizational culture did not appear to be either proactive or promising. Interviews and non-participative observations in relation to the lived experiences of were formed the body of study methodology. Given the existing scenario, of control systems, centralized decision-making, and non-proactive workforce, it can be concluded that it would be challenge for BW-India to sustain its present levels of profits, growth and brand image in the long run. I. INTRODUCTION Since the liberalization process started in India, the nature and degree of competition has changed qualitatively and the opening up of markets has lured lot of multinational corporations into the Indian market. Many American, Eastern and European have invested here by opening up subsidiaries or joint ventures with local organizations. With the advent of MNCs, the impact of transferred organizational practices on commitment levels of MNC employees has also become popular area of study. Empirical studies have been conducted on joint ventures created by partners from every corner of the world, for example Mexico (Schaan, 1983), the USA (Blumenthal, 1988), Japan and Thailand (Tillman, 1990), Canada (Hebert, 1994), the UK (Hill and Hellriegel, 1994), China (Child et al., 1997) and Norway (Mjoen and Tallman, 1997). Kostova (1999) has proposed that the success of the transnational transfer of organizational practices is mediated by the congruence between the social, organizational and relational contexts. 2. ORGANIZATIONAL PRACTICES The term organizational practice, although widely used by researchers and practitioners alike, has been relatively loosely defined in literature. Researchers from different theoretical perspectives have focused on different defining characteristics of organizational practices and have used different terms in doing so. March and Simon (1958), for example, emphasize the stabilizing function served by organizational practices. They suggest that use performance programs-that is, habitualized actions, routines, and standard operating procedures, which are a central ingredient accounting for the reliability of organizations (Scott, 1995). Evolutionary theorists, such as Nelson and Winter (1982), have studied organizational routines, which they view as the genes of an organization, and have stressed their taken-for-granted, subconscious, and tacit nature. Szulanski (1996) defines organizational practices similarly, although in broader terms, as the routine use of organizational knowledge. Kostova (1999) defines organizational practices as particular ways of conducting organizational functions that have evolved over time under the influence of an organization's history, people, interests, and actions and that have become institutionalized in the organization. Practices reflect the shared knowledge and competence of the organization; they tend to be accepted and approved by the organization's and to be viewed as the taken-for-granted way of doing certain tasks. Practices are multifaceted. They consist of different elements, including set of (un) written rules of how certain organizational function should be conducted and an accompanying set of cognitive elements (such as the concepts and categories by which these rules are described). …

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