Pimpri Chinchwad Education Trust’s

S.B. Patil Institute of Management

Conference Proceedings on
Innovation in Management
Practices for the Sustainable
Development Goals

Editors:
Dr. Kirti Dharwadkar
Dr. Padmalochana Bisoyi
Dr. Bhushan Pardeshi

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 Director’s Message
The E-Conference focus on the Management Innovation which is the
introduction of management practices new to the firm and intended to enhance
firm performance through sustainability. Management innovation is a
consequence of a firm’s internal context and of the external search for new
knowledge.
There is a need to discuss contribution to the ongoing conceptual
development of Sustainability䇲oriented Innovation (SOI) in various management
practices and provides initial guidance on how becoming and being sustainable.
Sustainability-oriented innovation involves making intentional changes to an
organization’s philosophy and values more strong, as well as to its products,
processes or practices to serve the specific purpose of creating and realizing
social and environmental value in addition to economic returns. The increasing
complication of products and services, quickly shifting market demands, or
growing pressure from various societal groups are trends that necessitate
companies to enact new practices to remain competitive.
This Conference tries to contribute in the understanding of how different
practices of innovation management are associated to mid- and long-term growth.
Nevertheless, find out what impact these practices have on a company’s
performance over a long period of time. Therefore, the use of a systematic
approach for innovation leads to sustainable revenue growth in long term to
remain in business.

Dr. Kirti Dharwadkar

Director,
S.B. Patil Institute of Management,
Pune.
 Editors’ Message
It gives us the immense pleasure to release the Conference proceeding on the
title ‘Innovation in Management Practices for the Sustainable Development
Goals’. The objective of the Conference is to provide a knowledge sharing
platform for dissemination of research and experiential findings through
empirical study, qualitative modelling, case studies, new concepts and state-of-
the-art studies. Innovation is critical for the sustained development and prosperity
of the organizations. Organizations have been shifting their focus from internal
innovation sources to external ones, such as consumers, corporate research,
business partners and universities. The new economic policy of 1991 had both
direct and indirect effects upon the country’s industrial activity. With public
policies and quality programmes as its starting point, industry sought to
rationalize its production processes, putting Research and Development (R&D)
activities on a backburner, even though these were fundamental for production
innovation and differentiation.
The current COVID-19 pandemic has already devastated the economy and
many small businesses have been undergoing; many big businesses default on
debt; consumption demand could take months to recover, as will supply chains;
global merchandise trade suffer; with no way of knowing when normality returns.
Now, the entire country needs to act immediately to prepare, respond, and
recover by unfolding their resources effectively, which implies in both the firms
and their management having entrepreneurial characteristics, such as concern
for the organization’s quality, the capability to devise and implement
complex strategies, learning about the environment on an ongoing basis,
suitable development of the strategies, and the effective use of resources.
This E-conference aims to seek to provide a theoretical and practical
framework for the development of a process of sustainable technological
innovation and to understand how corporate management practices offer input
for the development of policies designed to increase the competitiveness and the
degree of Indian firms’ participation in the international market. The book brings
together leading academicians, industrialists, management professionals,
researchers and entrepreneurs, in the domain of interest from around the world.
We appreciate and thank all the contributors for their valuable contribution.

Dr. Kirti Dharwadkar

Director,
S.B. Patil Institute of Management,
Pune.
Dr. Padmalochana Bisoyi Dr. Bhushan Pardeshi
Associate Professor, Head – Research,
S.B. Patil Institute of Management, S.B. Patil Institute of Management,
Pune. Pune.
 Contents

Sr.
Title Page No.
No.
1 Emergence of Dairy Sector in Odisha: An Analysis of OMFED 1 - 10
Dr. Prabina Kumar Padhi

2 Anatomy and Mechanism of Appreciative Inquiry 11 - 23

Dr. Prabir Chandra Padhy and Ms. Smita Panda

3 A Study on the Opportunities and Challenges Faced by the Organized 24 - 37

Retailers during the Shift of Consumers for Purchase of Products from
Public Labels to Private Label Brands for Sustainable Development
Dr. Kishor Shankar Nikam and Prof. Dashrath Bhiku Bhoite

4 A Study on Supply Chain Management Model of Reliance Fresh Retail 38 - 46

Outlet in Solapur
Dr.Kajal Maheshwari and Mr. Prashant R. Mhetre

5 Social Innovative Practices That Will Contribute in Self-reliant India 47 - 51

Dr. Chandrashekhar Aronkar, Dr. Narendra Kumar Koshti and Dr. LMS
Baghel

6 The Current State of Innovative Investment Avenues in Indian Economy 52 - 57

Dr. Dipti V. Sharma and Dr. Swapnali Kulkarni

7 Using Industrial Ecology and Strategic Management Concepts to Pursue 58 - 67

the Sustainable Development Goals
Mr. Sagar P. Dhamone

8 Innovations in Operations Management Practices 68 - 74

Dr. Satish Chinchorkar

9 Evolution of the Risk Management in Banking Sector 75 - 82

Dr. Manish Sharma and Ms. Akriti Srivastava

10 Green Marketing – A Way to Sustainable Development: A Study on 83 - 91

Consumer Perception Towards Green Products
Dr. Kajal Maheshwari, Dr. Swapnali Kulkarni and Dr. Anuradha Phadnis
11 An Overview of an Innovation in Education and Teaching 92 - 96
Ms. Archana Mhaske

12 M&A – Driving Force for Sustainable Growth in COVID Pandemic 97 - 102

Ms. Komal Mishra and Dr. Manish Sharma

13 To Measure the Effectiveness of e-Learning in India with Reference to 103 - 114

Management Student
Hitanshi Thakkar, Naitik Ghiya and Prof. Devrshi Upadhyay

14 Pandemic Outbreak: Environmental Education as a Key Factor for 115 - 122

Sustainable Development
Urna Bhattacharjee and Dr. Nandita Deb

15 Impact of COVID-19 on Indian Businesses and Remedies 123 - 125

Dr. Abhinay Nirmal

16 Work-Life Balance: A Theoretical Perspective on Imperative Strategies for 126 - 135

Business
Dr. Iram Ansari, Dr. Aishwarya Gopalakrishnan and Dr. Lakshmi Jasti

17 MSMEs: Redefined for Sustainability 136 - 144

Dr. Amarish Padma
 EMERGENCE OF DAIRY SECTOR IN
1 ODISHA: AN ANALYSIS OF OMFED

Dr. Prabina Kumar Padhi

Director, IPREMS, Berhampur.
E-mail: [email protected]

ABSTRACT
Agriculture is no longer experienced just meant for subsistence but to a large extent used for
markets, profits as well as incomes. In the era of globalization, the emergence of agribusiness
sector can assist towards stabilizing agriculture practices further profitable as well as generate
employment opportunities. Dairy is a major sub-sector allied to agriculture which gives a
supplementary income and immense relief to the majority of the people belonging to weaker
sections of the society. The dairy cooperative societies have been built with an intention to
provide assistance to the member unions in the areas of finance, administration along with
technology. With the liberalization of the economy, the dairy industry is undergoing major
developments. India is witnessing winds of transform as of better milk availability, a changeover
to market economy, the performance dairy sector in the country shows encouraging trends, in
terms of milk production, per capita availability of milk, sources of milk production, as also
accessibility of Milk. The growth of dairy activities in the State plays as dominant role for
upgradation of socio-economic status of the rural poor. In particular, the state like Odisha
signifies the remarkable growth in dairy sector with the help of Odisha State Cooperative Milk
Producers Federation Ltd. (OMFED).
In this regards, the present paper is an attempt to put a lime light on the growth and
development of dairy sectors in Odisha with a special reference to the OMFED. Here, an attempt
has been made to evaluate the performance of OMFED with its basic indicators like physical and
financial achievement all the way through the respective time period, i.e., 2005-06 to 2015 -16.
Keywords: Dairy Industry, Performance Evaluation, OMFED, Odisha.

INTRODUCTION
Agriculture is undergoing a massive renovation which involves the survival activity of
farmers involving crop and livestock production. At the moment, it is the combination of
technology as well as market-oriented business which extends from agricultural production, in the
direction of agribusiness. The availability of highly sensitive agribusiness system in a country
enables millions of farmers along with agripreneurs on the way to exploit the promising
opportunities of the agriculture as well as allied sector. In this case, the expansion of agribusiness
sector helps to augmentation of rural employment, food security in addition to with it will
improve the livelihood of peoples in the country.

(1)
2 Innovation in Management Practices for the Sustainable Development Goals

The dairy industry plays as decisive part in concern to the agro-based economy. It occupies
an important place in providing generous capability to the rural people on the way to bring in
additional money in their leisure time. The industry is extended from the milk producers in the
rural areas to the consumers in the urban areas all the way through performing a variety of
intervening processes alike to collection, chilling, transportation, pasteurization, distribution, etc.
The milk produced by small as well as marginal farmers in diminutive quantities which cannot be
transported to the market. Moreover, sufficient transportation facility is not available in most of
the rural areas of the nation. In addition to that the system of processing, preserving and
marketing the milk produced in Indian villages is an immense dilemma. Odisha is one of the least
developed states in India by means of mixed crop livestock farming is the majority leading
farming system for over 80 per cent of all rural households in the state. The state also have the
existence of small as well as marginal operational holdings accounting used for nearly 80 per cent
of the 3.94 million farms, ever-increasing milk production possibly will be an resourceful
approach en route for improving the rural livelihoods. Furthermore, the roles of cooperative milk
supplies societies along with unions have been structured to solve the problem of the producers.
In this perspective the present analysis is an effort en route for find out the trend along with
growth of dairy industry in Odisha with particular reference into the OMFED. This study
moreover tries in the direction of explaining the overall growth of OMFED with its basic
indicators, i.e., physical achievement and financial achievement.

OBJECTIVE OF THE STUDY

The dairy sector impacts around 60 million rural households every day all the way through
the value chain, milk procurement is well thought-out to be the key feature to facilitate creates as
life index of the Indian economy. In this background, the present analysis is made towards
providing appropriate assessment into the growth of the dairy industry of Odisha. For this purpose,
followings are brief objectives of the current study.
Ɣ To study the trend as well as growth of dairy industry scenario of Odisha.
Ɣ To study the physical along with financial achievement of OMFED in Odisha by means
of the changes that have taken place over a given period of time.

RESEARCH METHODOLOGY
To make an analysis over the given objectives, a pragmatic study has been prepared for the
period of 10 years from 2005-06 to 2015-16. The present paper also uses secondary data, which
were collected from different websites, journals. In order to make effective analysis, various data
collected are tabulated as well as analyzed by the method of trend analysis. On behalf of the
analysis, data and literatures are collected from the various issues of Economic Surveys, annual
reports and financial statements of OMFED for different years collected of analysis.

HYPOTHESIS OF THE STUDY

H0: There is a noteworthy development in the dairy sector of Odisha.
H1: There is not so great deal noteworthy development in the dairy sector of Odisha.
Emergence of Dairy Sector in Odisha: An Analysis of OMFED 3

LITERATURE REVIEW
Dairying has turn out to be a significant resultant source of income for millions of rural
families. In order to endow with important information of dairy industry and milk production,
following are the pertinent literature which provides a limelight in this scenario of dairy sector in
India as well as Odisha.
Sundar (2016), in his paper, elaborates the need of agribusiness, range as well as limitation in
India. It examines the assorted probable ways of functioning agribusiness in India along with
several significant policy suggestions. Gandhi Vasant P. (2014), in his paper, tries to explain the
various agribusiness model such as Amul, echoupal, which are exclusively engaged in
agribusiness activities. Furthermore, he founds that agribusiness sector at a standstill in
contributing considerably en route for employment in agriculture along with industry. Prusty R.
Suvashree and Tripathy Sudhakar (2016), in their analysis, made a comparative study towards
estimating the marketed surplus as well as constraints of milk marketing in organized along with
unorganized sector in Cuttack district of Odisha. They also given importance upon to the low
price and irregular payments were foremost milk marketing problems as well as suggested
protective measures for getting marketing benefit; remunerative price with regular payment to the
farmers is needed. T. Hima Bindu and S.E.V. Subrahmanyam (2012), in their study, have made
an endeavour to analyze the operational effectiveness, economic competence as well as growth of
dairy industry in Andhra Pradesh using Z-score analysis. Parameswara Reddy (2010), in his paper,
tries to illuminate the development along with propensity of the milk production in India in
addition to the consequence of cooperative dairying in order to bring about sustainable
development of Indian dairy sector.

STATEMENT OF THE PROBLEM

Agribusiness involves the cooperative business activities so as to perform from farm on the
road to fork. It covers the supply of agricultural inputs, the production furthermore renovation of
agricultural products as well as their allocation to final consumers. As a part of agribusiness dairy
sector in India, all the way through the last three decades has been incredible. It is assumed to be
the resources in the way of accomplishing the impressive growth. For this rationale, this study by
and large determined on the trend and growth of dairy industry in Odisha with a particular
imminent into the OMFED Cooperative of Odisha.

AGRIBUSINESS SECTOR: A CONCEPTUAL OUTLINE

Agriculture has changed substantially from a subsistence activity to become a huge
technology and market driven business. Agribusiness denotes the collective business activities
that are performed from farm to fork. It covers the supply of agricultural inputs, the production
and transformation of agricultural products. Agribusiness includes each and every one action
within the agricultural food as well as natural resource industry involved in the production of food
and fiber. Agricultural businesses otherwise engaged in the marketing, transportation, processing,
along with distribution of agricultural products. Its development in countries such as India is
driven mostly by major changes, which involves numerous activities like advancing efficiency,
commercialization of agriculture, revolutionize in scale along with reorganization of production
and marketing. Moreover, the agribusiness activity helps towards dropping government
involvement in agriculture, varying food consumption patterns, infrastructure, rural-urban
4 Innovation in Management Practices for the Sustainable Development Goals

migration, and information technology revolution. These changes have led to gigantic expansion
in agribusinesses, predominantly, the input agribusinesses including seeds, fertilizers, agro-
chemicals, irrigation equipment and farm machinery. In addition to this, growth in these input
agribusinesses will require addressing the various opportunities and constraints within a
framework including agro-economic prospective, generating ample supply along with managing
distribution. Agribusinesses have been given generous key concern in India en route for their
noteworthy impending in the direction of contributing towards economic development. In the
context of India regarding the investment as well as opportunities in support of investors exist in
the field of agribusiness which includes the following broad areas such as:
Ɣ Production of high-yielding seeds
Ɣ Production of high-quality planting material, including utilization of tissue culture
approach of micro-propagation
Ɣ Existence of highly rated organic farming
Ɣ Processing of millets for a variety of purposes, which includes malt from finger millets
as well as ready-to-eat products
Ɣ Processing of dairy products poultry products, as well as processing of livestock
products

PROSPECT OF DAIRY INDUSTRY: INDIAN SCENARIO

Dairying is an imperative resource of supplementary income to small as well as marginal
rural farmers and agricultural labourers. Dairy as well as agriculture sector share a connection for
the reason that both of them mutually related towards inputs along with outputs, Dairy is a major
sub-sector allied to agriculture. This sector gives an additional income which is a great relief to
most of the people belonging to weaker sections of the society. Agriculture sector provides crop
residues, natural resources in addition to open grazing as sources of feeds as well as fodder in the
direction of supporting towards augmenting the dairy production. For this reason, it is significant
to encourage these twins in tandem towards achieving sustainable growth. In post-independence,
Indian Dairy Cooperatives have been one of the major success stories, having a profound impact
on socio-economic development in rural areas. India has one of the largest stocks of cattle and
buffaloes: it is about more than 50 per cent of the world's buffaloes and 20 per cent of its cattle.
When the world milk production registered a negative growth of 2 per cent, India performed
much better with 4 per cent growth. The successful India Dairy Development Programme
“Operation Flood” which was launched in 1970, has shown how food aid can be used as an
instrument in building the institutional infrastructure that can bring about national dairy
development. It has led to the rejuvenation of India's dairy sector and has created a strong
network for procurement, processing, and distribution of milk by the cooperative sector. In 1989,
the Government of India launched the Technology Mission on Dairy Development (TMDD)
program. The aim of TMDD is to support the efforts of Operation Flood and to improve
employment opportunities and income generation in the rural sector of India through dairying.
Dairy development in India has been acclaimed world over as one of the modern India’s
most accomplish development programme. The growth of dairy sector during the last three
decades has been impressive. A set of government policies which created a suitable price
environment for domestic milk production help the dairy sector. In the history of dairy
development, the decade of 90s has been most important because in it India emerged as the
Emergence of Dairy Sector in Odisha: An Analysis of OMFED 5

largest producer of milk. The encouraging trends in milk production where apparent in the 70s
due to the emergence and replication of AMUL Cooperatives in the country in order to promote
these and ensure the all-round development of the Indian dairy industry.

POTENTIAL AND THREAT OF INDIAN DAIRY SECTOR

One of the promising trends in Indian is dairying is the mounting number of the commercial
dairy farms in the urban along with peri-urban areas. These dairies primarily provide milk on the
way to satisfy the needs of the urban consumers. In this connection, it is highly decisive towards
possessing a well-planned as well as modernized dairy. Therefore, the commercialization of dairy
farming may provide an impetus in achieving the desired goal of self-sufficiency in the context of
Indian dairy sector.
Potentials
Ɣ Better return to investment and profits
Ɣ Opportunity for export of milk and milk
Ɣ Emphasizing on the technologies for the production of animals which will help for the
development of the sector
Ɣ Improved milk production as a result of enlarged accessibility of milk processing
Ɣ Superior transportation conveniences for movement of milk and milk products
Threats
Ɣ Lack of advertising opportunities for the promotion of dairy products
Ɣ Prologue of foreign products that acts as substitute of dairy products in Indian market
Ɣ Low milk productivity animals
Ɣ Weak organized retailing and established cold chain
Ɣ Large unorganized market sector and good dairy practices
Ɣ Weak financial and policy support for industry
Ɣ Inappropriate milk collection system

AGRIBUSINESS MODELS AND INDIAN DAIRY SECTOR

A good agribusiness model should include reaching large numbers of small farmers and
efficiently procuring quantity, delivering a strong marketing effort, and organizing ownership,
management and control so as to benefits to all stakeholders. In this regard, following are the
examples of a few notable agribusiness models which are associated with the development of
dairy sector in the Indian economy.
AMUL Cooperative Model
A model which has been very successful in the dairying agribusiness is the AMUL
Cooperative Model. This evolved out of a successful dairy cooperative initiative in the Kaira
district of Gujarat state. The model was given limelight under the great architect Dr. Varghese
Kurien who was known as father of white revolution. In this model, ownership rests in the midst
of the farmers on a supportive basis. It has a three-tier managerial structure, with primary
cooperatives at the village level, cooperative union next headed for the district level, as well as a
6 Innovation in Management Practices for the Sustainable Development Goals

cooperative federation at the state level. The state federation, the Gujarat Cooperative Milk
Marketing Federation (GCMMF) markets the milk along with milk products underneath the
popular brand names ‘AMUL’ has developed a considerable network covering over 3,500 dealers
and 500,000 outlets. AMUL represents a model of an agribusiness enterprise with the intention of
ensuring a high level of control as well as business efficacy. It also broadly engages in the midst
of small farmers by and large causative appreciably in the direction of rural incomes and
employment. Furthermore, besides the milk business, this model significantly engaged in
providing expansion inputs like veterinary, reproduction along with nourish services which
ultimately made a pathway towards long-standing growth as well as development.
Nestlé Model
Nestlé is considered as one of the most important private foods along with beverages
companies in the world. In the context of India regarding agribusiness activity Nestle has its milk
processing factory in the Moga district of Punjab which involves the production of milk powder,
infant products along with condensed milk. A milk district arrangement involves negotiating
agreements through farmers in support of twice-daily collection of milk, establishing collection
centres in addition to this infrastructure, transportation as well as implementing a programme to
improve milk quality. Nestlé staff members on a regular basis supervise milk quality and
performance with reference to contractual obligations. Along with this, farmers acquire opinion
on milk quality by the side of the collection points.
Heritage Foods Model
The Heritage Group based in Andhra Pradesh was set up in 1992 is a mounting private
enterprise with three business divisions, dairy, retail as well as agribusiness, under its flagship
company Heritage Foods India Limited (HFIL). Heritage’s milk products encompass a
marketplace occurrence in the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and
Maharashtra. The company covers about 200,000 farmers furthermore has the ability to practice
1.5 million liters of milk per day. Heritage has reputable supply chain procedure which involves
the procurement of milk from farmers in rural areas, mostly in Andhra Pradesh and some parts of
Karnataka, Maharashtra and Tamil Nadu. This model involves improving the existing milk
collection centres along with rural retail points in the direction of make a way into the rural
market.

TREND AND GROWTH OF DAIRY SECTOR IN ODISHA

Dairy farming in Odisha employed more than 60 per cent of total workforce in agriculture
and allied activity. It is unlikely that anyone would quibble over the fact that overall economic
growth and well-being of masses in Odisha is contingent upon the performance of this primary
sector. In Odisha, around 80 per cent of rural households depend on livestock and draw about 30
per cent of their annual income is from livestock. About 85 per cent of livestock are owned by the
landless, marginal and small landholding families. Though India ranks first in the world in milk
Production, Odisha contributes less than 2 per cent of the total production of milk. The Operation
Flood - I programme was started in Phulnakhara, Cuttack in 1970. This was a small scheme of
collection and of 6000 lit/day from nearby societies of Puri and Cuttack and sold them after
processing. The Operation Flood-II programme was started in 1981 which had covered four
districts, i.e., Cuttack, Puri, Dhenkanal and Bhubaneswar.
Emergence of Dairy Sector in Odisha: An Analysis of OMFED 7

The Orissa State Cooperative Milk Producers Federation Ltd. (OMFED) came into being on
01.10.1980 with the objectives of promoting production, procurement, processing and marketing
of milk and milk products for the economic development of the rural farming community. The
federation had received funds from the Indian Dairy Corporation/National Dairy Development
Board (NDDB) for implementation of different activities like milk processing, technical input
programme, support to dairy cooperatives, etc. under “Operation Flood” Programme in undivided
districts of Cuttack, Dhenkannal, Keonjhar Puri and Sambalpur.
It covers all the districts of the State. There are 5,281 Milk Producers Cooperative Societies
(MPCS) with 2.68 lakh members under OMFED. Besides 12 milk unions covering all the districts
have been affiliated to OMFED. OMFED has 13 dairy plants with 6.55 lakh litres capacity per
day, 9 milk chilling centres with 1.95 lakh litres capacity per day, 345 bulk coolers with 5.41 lakh
litres capacity,1 milk powder plant with 5 MT capacity per day at C.S. Pur, Bhubaneswar and one
cattle feed plant with 200MT capacity per day at Khuntuni, Cuttack. During 2015-16, the
Federation has procured 5.26 lakh and marketed 3.92 lakh litters per day. In addition, it has also
marketed milk products, viz., ghee, paneer, butter, curd and milk powder and agriculture/organic
products, viz., turmeric powder and mustard seeds produced by tribes in Kandhamal district.
Besides, OMFED has started producing fruit juice, pickles, jam, sauces and pineapple sip.
From Table 1, it is found out that the number of dairy cooperative societies in Odisha is
showing an increasing trend throughout the respective time period. It increases from 3377 in
2005-06 to 5503 in 2015-16. Similarly, the farmer membership number also depicts a positive
move as it has 20413 in 2005-06 which rises to 267802 in 2015-16. During the given time period,
milk procurement has been more than doubled along with its potential, i.e., 249369 in 2005-06 to
526257 in 2015-16. This achievement of OMFED in terms of its physical activities indicates a
rising trend for fulfilling the self-sufficiency in the milk production of Odisha.
Table 1: Physical Achievement of OMFED

Year Organized Farmer Membership Milk Procurement

D.C.S. (No) (KPD)
2005-06 3377 204013 249369
2006-07 3822 224002 266548
2007-08 4387 236199 288270
2008-09 4625 246410 294383
2009-10 4684 244925 298823
2010-11 4835 253343 342663
2011-12 5022 260611 370179
2012-13 5155 267306 378936
2013-14 5281 272257 390257
2014-15 5409 277117 444473
2015-16 5503 267802 526257
8 Innovation in Management Practices for the Sustainable Development Goals

Table 2: Financial Achievement of OMFED

Year Gross Profit Net Profit after Tax

2005-06 1152.23 103.70
2006-07 1152.24 27.81
2007-08 1489.82 (229.42)
2008-09 2472.38 280.44
2009-10 2446.52 345.35
2010-11 3018.19 226.26
2012-13 3543.41 489.74
2013-14 3498.14 27.74
2014-15 4144.16 226.42
2015-16 1488.58 (2403.58)
Average 2440.56 -90.55
SD 1090.43 836.68
Source: www.omfed.com
Table 2 makes an analysis about the financial achievement of dairy cooperative societies in
Odisha from 2005-2016. In 2007-08, the net profit after tax is found to be negative whereas the
gross profit shows an increase in this year. Till 2012-13, both gross profit and net profit after tax
shows an increasing trend. In year 2015-16, the net profit after tax is again negative.

FINDINGS AND SUGGESTIONS

Findings
The major outcomes of the present study are as follows:
Ɣ It is derived that the milk production in Odisha is mounting throughout the time period.
In 2005-06, it was 1342.30 MT which gradually enhanced to 1938.00 in 2015-16.
Accordingly the per capita availability of milk also increases to 118 grams/day in 2005-
06 from 98 grams/day in 2005-06.
Ɣ During 2007-08, the net profit after tax is found to be negative whereas the gross profit
shows an increase in this year.
Ɣ Throughout the period, i.e., 2005-06 to 2012-13, both gross profit and net profit after tax
shows a rising trend. Again, in the year 2015-16, the net profit after tax is again negative.
Ɣ The number of dairy cooperative societies in Odisha is showing a growing tendency all
the way through the particular time period. In the same way, the farmer membership
number also depicts a positive move as it has 20413 in 2005-06 which rises to 267802
in 2015-16.
Suggestions
Although dairy sector generate self-sufficiency in milk production, the Indian dairy segment
requires safeguard for its survival and sustainability if the respective methods have to be taken in
favour of improving the dairy sector in India such as:
Ɣ To enhance the linkage among rural production areas as well as urban markets
Emergence of Dairy Sector in Odisha: An Analysis of OMFED 9

Ɣ To focus on intensification of indigenous breed on the way to assist drastically in

advancing milk productivity
Ɣ To strengthen dairy farmer cooperatives to enable farmers to get a higher price for milk
Ɣ To generate balanced export policy en route for farmers to acquire advantage of
privileged prices
Ɣ To adopt international standards intended for production as well as processing of milk
for augmenting the market share
Ɣ To promote private sector on the way towards increasing outlay in dairying

CONCLUDING REMARKS
Dairy sector in Odisha offers an enormous prospect en route for enhancing employment,
opportunities moreover livelihoods in rural areas. Therefore, it requires modern dairying
approaches as well as livestock management practices for maintaining self-sufficiency in milk
production. By and large, the dairy sector makes away in accomplishing the desired objective but
still a long path to progress for achieving the sustainable development in the dairy activities in
this connection it necessitates the cooperative efforts of stakeholders, milk producers, supporting
institutions, furthermore dairy professionals towards accomplishing this sector socially,
economically moreover environmentally sustainable.

REFERENCES
1. Sundar, I. (2016), “Agribusiness Scope, Opportunities And Challenges in India”, EPRA
International Journal of Economic and Business Review, Vol. 4, Issue 7, pp. 171-178.
2. Acharya, S.S. (2007), “Agribusiness in India: Some Facts and Emerging Issues”, Agricultural
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ƇƇƇ
 ANATOMY AND MECHANISM OF
2 APPRECIATIVE INQUIRY

Dr. Prabir Chandra Padhy Ms. Smita Panda

Assisstant Professor (Sr.), Teaching-cum-Research Assistant,
Department of Technology Management – SMEC, VIT Business School, VIT,
VIT, Vellore, Tamil Nadu, INDIA. Vellore, Tamil Nadu, INDIA.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
When Naren met with Ramakrishna Paramhans for the first time, Ramakrishna asked him,
“Who are you?” Naren replied, “I am here to know the answer to this question.” And the rest is
history. Everyone knows how Naren became the great Swami Vivekananda later. He was an
Indian Hindu monk and became one of the greatest philosophers of his time. He introduced
Indian philosophies of Vedanta and Yoga to the Western world and had brought Hinduism to the
status of a major world religion during the late 19th century. Ramakrishna had helped young
Naren to discover his inner strengths which ultimately lead to the biggest transformation of his
life. He always believed that Naren can know the world, only if he can know himself. In today’s
scenario, we can say Appreciative Inquiry (AI) is Ramakrishna Paramhans, the organization is
the young Naren which can be transformed into a much better brand, i.e., Swami Vivekananda. In
the business scenario of 21st century, paradigm shift is occurring in all aspects of an
organization, like in, internal structure, functions, etc. These changes happen owing to the change
in the style of leadership. According to Peter Drucker, “The ageless essence of leadership is to
create an alignment of strengths in ways that make a system’s weaknesses irrelevant.” Better
ways of leading change are spreading throughout the world. Certainly, we know that strength
performs, and strength transforms. AI is an important tool to deal with this change. Every
organization has something that works right. The process of Appreciative Inquiry tries to
determine what gives life to an organization when it is most successful and connected to its
members and community. It is different from problem-solving techniques. Because it focuses more
on what is positive in the organization rather than what is wrong. It incorporates an approach for
engaging people at any or all levels to produce positive change. Appreciative inquiry helps the
organization to identify its core strength and capitalize on it to accelerate the momentum of
success. AI creates an aura in the internal environment of the organization which gives rise to
strength revolution. The employees and managers are motivated to focus more on organization’s
strength rather than weaknesses. In appreciative inquiry managers do not motivate the employees
to “think out of box” rather to “think from within a different box.” Appreciative inquiry sees
organizations more as ‘organisms’ and focuses on its life-giving forces. It trusts in the power of
imagination to produce change. The AI model is based on the assumptions that organizations are
socially constructed phenomena. It seeks to create processes of inquiry that will result in better,
(11)
12 Innovation in Management Practices for the Sustainable Development Goals

more effective, friendly, sustainable and vital social systems. It assumes that this requires
widespread engagement by those who will ultimately implement change. This chapter aims to
throw light on the structure and function of appreciative inquiry from institutional transformation
context. It will elaborately explain how appreciative inquiry contributes to the development of the
organization as well as how it focuses more on collective intelligence rather than individual
competence and smoother implementation of institutional change. Here, we will discuss the
process, approaches, and assumptions of AI. Also, this chapter will help to understand the
fundamental approaches and applications of AI. This chapter provides a glimpse of different
aspects of AI which will be helpful for the managers to inculcated design thinking characteristics
in their employees.
Keywords: Engaging People, Design Thinking, Leadership, Institutional Change,
Institutional Transformation, Paradigm Shift, Problem-solving Techniques, Strength Revolution.

INTRODUCTION
Imagine that you received a call one day telling you that you will be moving from your
current home in the next 60 days. Moreover, the caller offers vague details as to the nature of the
new house that you will be occupying and no clear idea of what assistance you will be receiving
in the transfer. You are told that additional information may come at some future time. How will
you react? Possibly you think it as an adventure or you might think, “nobody else has said
anything about moving. I think that I’ll just wait and see if this is really serious.” Or your
response might be, “I love my home. Everything is fine the way it is. I’m not moving!”
Now, imagine another situation. You are approached with an invitation to move to another
house that you will have a part in designing and building. The invitation carries with it a
guarantee that the things you appreciate most about your current home will be considered in
building the new home. Also, you are asked to consider what you would like to see in a “dream”
house, and those ideas will be included for consideration in the new home. Finally, because you
have been involved in the specifications and the architecture of the new house, you have faith that
it is built on solid ground and will withstand all environmental challenges. Now, what are your
reactions?
All of us have a dream house within a place that we can imagine. We believe this is also true
for organizations that people have a dream organization a place where they and others can do
their best work. This chapter is about releasing the energy that already exists in people and
organizations towards reaching that dream. AI has been acquired from the field of organizational
development and has been getting increasing attention for its successful application in facilitating
organization change. (Coghlan, Preskill and Catsambas, 2003).
Ap-pre’ci-ate, v., 1. valuing; the act of recognizing the best in people or the world around us;
affirming past and present strengths, successes, and potentials; to perceive those things that give
life (health, vitality, excellence) to living systems. 2. to increase in value, e.g., the economy has
appreciated in value. Synonyms: VALUING, PRIZING, ESTEEMING, and HONORING.
In-quire’ (kwir), v., 1. the act of exploration and discovery. 2. To ask questions; to be open to
seeing new potentials and possibilities. Synonyms: DISCOVERY, SEARCH, and SYSTEMATIC
EXPLORATION, STUDY.
(Adapted from Cooperrider and Whitney 1999, p. 2, A Positive Revolution in Change:
Appreciative Inquiry (draft), http://appreciativeinquiry.case.edu/uploads/whatisai.pdf)
Anatomy and Mechanism of Appreciative Inquiry 13

The pioneer of Appreciative Inquiry is David Cooperrider. Appreciative Inquiry (AI)

encourages groups to query about and build on what is working when they are at their best, rather
than focusing on what’s gone wrong. By using AI, organizations bring about and sustain positive
change by understanding their capabilities and resources. The simple principle that works behind
AI is that in every group something works. If nothing at all were working, the group would not
exist.
One of the best ways to describe AI is through a brief example:
A hospital in Arizona operated by Lovelace Health Systems was concerned about high
turnover in their nursing staff—a rate of about 20-30 per cent per year. The hospital
administration did not use a conventional problem-solving approach in which they would have
collected data about why nurses leave. This data would have been analyzed to figure out the
source of the problem. Then attempts would have been made to alter those conditions in
expectations of solving the problem.
In contrast, the AI approach that was actually used at this hospital that did not ask why 20-30
per cent of nurses leave each year, rather it asked why 70-80 per cent of nurses stay. A total of
300 nurses in the hospital collected data from one another, sharing their best experiences on the
job. From these stories, they identified key factors in their working conditions that let them
function at their best. The nursing staff then worked with one another and with the hospital
administration to support and reinforce those optimal conditions.
The result was a 30 per cent reduction in nursing staff turnover in the first year, as well as a
significant rise in patient satisfaction with nursing care. According to Susan Wood, a consultant
who worked on the Lovelace AI project, “The process unleashed nurses’ capability and energy to
realize their value within the system. It gave nurses a heightened responsibility for their own
satisfaction.” (Whitney and Trosten-Bloom 2003).

PROBLEM-SOLVING APPROACH VS. APPRECIATIVE INQUIRY

APPROACH
Table 1: Problem-solving Approach vs. Appreciative Inquiry Approach

Problem-solving Approach Appreciative Inquiry Approach

Ɣ Felt need and identification of problem Ɣ Appreciate and value the best of What is
Ɣ Analysis of possible solutions Ɣ Envision: What might be
Ɣ Analysis of causes Ɣ Dialogue: What should be
Ɣ Action planning Ɣ Innovate: What will be
Ɣ Assumes: Organization is a problem to be Ɣ Assumes: Organization is mystery to be
solved discovered
Ɣ Back Door – what is in the way of what we Ɣ Front Door – what is it we ultimately want
want?
Ɣ Deficit Thinking Ɣ Possibility Thinking
Source: Adapted from Cooperrider and Srivastava (1987).
14 Innovation in Management Practices for the Sustainable Development Goals

Other kinds of planning and change strategies often proceed by defining needs, problems,
opportunities, and obstacles. These approaches typically encourage local participation, emphasize
local knowledge, and address real problems. However, such approaches often fail to sustain
participation and commitment. Deficit-based approaches leave people with the impression that
their community is full of problems and needs, many of which require the help of outside experts
to overcome. The focus on needs entrenches a sense of dependence, and reduces people’s
motivation to initiate their own activities, projects, and enterprises.

BACKGROUND
In 1980, David Cooperrider was a doctoral student at Case Western Reserve University in
the US. He was involved in a conventional diagnosis and organizational analysis for a local
organization, the Cleveland Clinic, asking usual questions about “What is wrong with the human
size of the organization?” What he found instead was a highly effective organization with a
positive outlook and high innovation. With the encouragement of his supervisor, Suresh Srivastva,
he concentrated his research on the analysis of the factors contributing to the highly effective
functioning of the clinic.
This was the basis for the development of Appreciative Inquiry (AI) as a process to develop
positive change in organizations. Cooperrider and Srivastva (1987) describe,” appreciative
inquiry is a form of action research that attempts to create new theories/ideas/images that aid in
the developmental change of a system. It is more than an Organization Development tool, rather it
is a ‘philosophy and orientation to change’ that is intended to take a positive and hopeful view of
what is happening among the personnel in an organization and turn that into a pattern for
organizational learning, design, and development.”

PROCESS
David Cooperrider and Diana Whitney describe four steps in the appreciative inquiry cycle
the four Ds are Discovery, Dream, Design and Destiny. It is also called 4-D Model of AI (Annis
Hammond, S., 1998).
Discovery (appreciating – the best of what is): The purpose of Discovery is to identify and
appreciate the best of what is about a community or organization. This is done by gathering as
many positive stories as possible from all key stakeholders. These positive stories reveal what
gives life to the organization or community when it is at its best.
Dream (envisioning – what might be?): The purpose of Dream is to identify what could be
and envision new possibilities for the future. Using information from Discovery, participants
create a set of aspiration statements which help drive the design of future actions.
Design (co-constructing – how can it be?): The purpose of Design is to identify actions that
will support the new possibilities identified in the Dream phase. Participants create and commit to
actions that will help make the aspiration statements a reality.
Destiny (sustaining and creating – what will be?): The purpose of Delivery is to identify
ways to support and sustain the actions planned in the Design phase. Participants identify the
supports needed to implement and uphold the positive changes and work together to make
changes.
Anatomy and Mechanism of Appreciative Inquiry 15

WHY AI?
Compared to other methods of organizing and planning, Appreciative Inquiry provides the
following advantages to groups and communities (Judy and Hammond, 2006):
Ɣ AI promotes ownership of the process and the result. An ideal AI process brings all
stakeholders together to work actively with one another. The process is assisted by an
implementor, but the plans for change grows from the collective experience and wisdom
of the stakeholder.
Ɣ AI honors diversity and opens the way for a group to benefit from its diversity. An
AI process, by definition, gives a role and a voice to everyone. Respect for diversity
leads to better solutions, better-informed group members, and a willingness to work
toward mutually beneficial goals.
Ɣ AI leads to immediate change, even in complex situations. The Appreciative Inquiry
process begins by asking careful questions. When people are asked to tell stories about
how their group succeeds sets in productive energy. But when they are asked, “What’s
wrong here?” the very same energy that is suppressed.
Ɣ AI is sustainable. The appreciative process generates the positive energy that is needed
to carry out changes. Because the changes proposed are based on the group’s own
experience, and are developed by the stakeholders themselves, the group members have
a significant investment in the outcome. The AI process is also repeated. It is not a
linear process that is carried out and completed. At its best, an AI process yields an
“appreciative organization” or an “appreciative community,” where many members are
skilled at designing a future that carries forward the best of the past.
Ɣ AI generates solutions that are grounded in reality. Plans that are put forward by
outside experts may not fit a community appropriately. The AI process is designed to
build a future that honors and carries forward the best of the community’s past, and that
makes optimal use of its present resources. The solutions that a community designs
through an AI process are not based on abstract principles, but rather are “grown” from
their collective experience.

PRINCIPLES
The Five Original Principles of AI (Kelm, Jackie “Appreciative Living: The Principles of AI
in Personal Life”, Venet Publishers, 2005):
The Constructionist Principle (Words create worlds)
The constructionist principle proposes that what we believe to be true determines what we do
and thought, and action emerge out of relationships. Through the language and discourse of day
to day interactions, people co䇲construct the organizations they inhabit. The purpose of inquiry is
to stimulate new ideas, stories and images that generate new possibilities for action. Overall, this
principle says that:
Ɣ Reality and identity are co-created
Ɣ Truth is local. There is no absolute truth
Ɣ We see things as we are
16 Innovation in Management Practices for the Sustainable Development Goals

Ɣ We are deeply interconnected

Ɣ Words create worlds. Reality is constructed through language
Question to be asked under this principle: How can your team constructively collaborate and
compromise?
The Poetic Principle (We can choose what we study)
The poetic principle proposes that organizational life is expressed in the stories people tell
each other every day, and the story of the organization is constantly being co䇲authored. The
words and topics chosen for inquiry have an impact far beyond just the words themselves. They
invoke sentiments, understandings, and worlds of meaning. In all phases of the inquiry effort is
put into using words that point to, enliven and inspire the best in people.
Ɣ Life experience is rich
Ɣ We have habits of seeing
Ɣ Whatever we focus on, grows
Ɣ Find what we want more of, not less of
Ɣ Develop an appreciate eye
Question to be asked under this principle: How can your organization learn positively from
the past and motivate change in the present?
The Simultaneity Principle (Inquiry creates change)
The principle of simultaneity proposes that as we inquire into human systems, we change
them and the seeds of change, the things people think and talk about, what they discover and learn,
are implicit in the very first questions asked. Questions are never neutral, they are fateful, and
social systems move in the direction of the questions they most persistently and passionately
discuss.
Ɣ We live in the world our questions create
Ɣ Change begins the moment we question
Ɣ The unconditional positive question is transformational
Ɣ Develop your sense of wonder
Question to be asked under this principle: What is an example of a positive question?
The Anticipatory Principle (Image inspires action)
The anticipatory principle posits that what we do today is guided by our image of the future.
Human systems are forever projecting ahead of themselves a horizon of expectation that brings
the future powerfully into the present as a mobilizing agent. Appreciative Inquiry uses artful
creation of positive imagery on a collective basis to refashion anticipatory reality.
Ɣ Positive images create positive futures
Ɣ Vision is fateful
Ɣ Create vision before decisions
Ɣ What we believe, we conceive
Ɣ Big change begins small
Anatomy and Mechanism of Appreciative Inquiry 17

Question to be asked under this principle: What is the one way you envision propelling
organizational growth?
The Positive Principle (Positive questions lead to positive change)
The positive principle proposes that momentum and sustainable change requires positive
affect and social bonding. Sentiments like hope, excitement, inspiration, friendship and joy
increase creativity, openness to new ideas and people, and intellectual flexibility. They also
promote the strong connections and relationships between people, particularly between groups in
conflict, required for collective inquiry and change.
Ɣ Positive emotions broaden thinking.
Ɣ The positive core expands as it is affirmed and appreciated
Ɣ Identify and leverage strengths.
Question to be asked under this principle: How can the people in the organization can better
support and encourage organizational change?

APPLICATIONS
Appreciative Inquiry has been used in a wide variety of contexts to initiate, revitalize and
accelerate change. In organizations, some of the many applications include:
Ɣ Large system process changes such as restructuring and mergers.
Ɣ Relational processes such as union/management relationships.
Ɣ Shifting from hierarchical to horizontal team-based processes.
Ɣ Engaging the organization in strategic assessment and planning.
Ɣ Designing inspiring and productive conferences and workshops.
Ɣ Transforming training courses into powerful learning experiences.
Ɣ Creating high performance teams.
Ɣ Coaching for development, goal achievement or motivation.

ASSUMPTIONS
Given by Hammond, Sue “The Thin Book of Appreciative Inquiry”, 2nd Edition, Thin Book
Publishing Company, 1998:
Ɣ In every society, organization or group, something works.
Ɣ What we focus on becomes our reality.
Ɣ Reality is created in the moment, and there are multiple realities.
Ɣ The act of asking questions of an organization or a group influences the group in some
way.
Ɣ People have more confidence and comfort to journey to the future when they carry
forward parts of the past.
Ɣ If we carry parts of the past forward, they should be what is best about the past.
Ɣ It is important to value differences.
Ɣ The language we use creates our reality.
18 Innovation in Management Practices for the Sustainable Development Goals

BENEFITS OF AI
The possible, affirming nature of AI, where people discover and then build on the root causes
of success rather than dissect problems, can be a powerful stimulus to change. It is non-
threatening and empowering.
Ɣ Accelerates change of all kinds.
Ɣ Increases the rate of improvement and the speed of attainment of goals and results.
Ɣ Creates motivation and energy amongst the people who are changing.
Ɣ Improves communication, trust, understanding and relationships.
Ɣ Contributes to team building, and discovers, expands and sustains the best of what an
organization can offer.
Ɣ Changes the basic orientation from problem-focused to possibility-focused.
Ɣ Increases curiosity and sense of vitality.
Ɣ Empowering and gives people the confidence to take risks.

APPRECIATIVE LEADERSHIP (AL)

What is Appreciative Leadership?

Appreciative Leadership contributes the opinion that working together is more important
than authority which can lead to boosting people’s energy, confidence, enthusiasm and good
performance.
The success of each organization depends on combining the strengths of everyone involved.
This form of leadership inspires confidence, and it boosts people’s energy, enthusiasm and good
performance.
The theory is also based on the view that every individual has potential. The core of
Appreciative Leadership is therefore the recognizing of that potential and to transform it into
positive strengths. Together, these ideals represent a shift in leadership. From a traditional and
individualistic approach to leading, to a new standard that helps the leader to achieve the desired
results.
Principles of Appreciative Leadership
Ɣ Inquiry: Inquiry enables people to know that their contributions are appreciated. It’s
important that the leader asks their team what their thoughts and feelings are. Next, the
leader has to listen to them sincerely and say that they appreciate the people and their
input.
Ɣ Illumination: Illumination helps individuals to understand the best ways to contribute.
By practicing this, the leader gets to learn more about the people in their team and their
strengths, as well as the strengths of others. That way, individuals are challenged to
express themselves, take risks and support others in working from their strengths.
Ɣ Inclusion: Inclusion gives people the feeling of being connected to others. When
inclusion is practiced in a group, it opens the door to collaboration and co-creation. This
stimulates an environment in which people feel like they are a part of something. The
result is a strong sense of connection and inclusion, which is good for productivity.
Anatomy and Mechanism of Appreciative Inquiry 19

Ɣ Inspiration: Inspiration gives people a sense of direction. By sharing a vision and

plotting a course, a team becomes hopeful and energetic. This is the basis for
transformation, innovation and long-term performance.
Ɣ Integrity: In the theory of Appreciative Leadership, integrity is about the fact that
people know what is expected of them, that they do their best for the greater good and
that they trust others to do the same. A person with integrity setting an example serves
as a standard for the others to live up to.
Organizational Culture and Change
Diverse spectrum of employees within any organization often structure the organizational
culture that is shaped by the language, customs and interpersonal relationships. The quality of
those determines how harmonious, creative, productive, energetic that culture is. With the use of
Appreciative Inquiry (AI) and Appreciative Leadership, leaders attempt to elevate people to
greater heights and get the most out of their performance.
Characteristics of an Appreciative Leader
Appreciative Leaders work towards a flatter hierarchical structure such that all staff
participate in answering the central positive questions at hand and are empowered to innovate and
create what is needed to move the organization forward. Appreciative Leaders trust the people
they work with enough to step back and allow their staff, co-constructors of the organizational
future vision, to get to work.
Reasons Why Appreciative Leadership Works
Ɣ It lets team members get to know each other in relationships rather than roles.
Ɣ It allows team members to be heard.
Ɣ It encourages team members to dream, and to share those dreams.
Ɣ It lets team members choose how they contribute.
Ɣ It gives team members autonomy and support.
Ɣ It encourages positive change.

ORGANIZATIONAL TRANSFORMATION THROUGH AI

AI is based on a principle that organizations grow in the direction of what they repeatedly
ask questions about and focus their attention on. Researches have shown that when people study
problems and conflicts, the number and harshness of the problems they identify increase. But
when they study human ideals and achievements, peak experiences, and best practices, these
things tend to flourish. Like we can say, beginner bicyclists tend to steer towards whatever they
are looking at most – like a rock on the roadside, a tree or a sometimes a passerby.
AI also believes that organizational members are competent adults capable of learning from
their own experiences and from those of others. In a company which believes in this perception,
makes everyone feel energized by new knowledge and change. As AI becomes a regular way of
working, employees at all levels and all functions identify best practices that the organization can
build on in order to respond to new challenges.
20 Innovation in Management Practices for the Sustainable Development Goals

SOAR (Strengths, Opportunities, Aspirations, Results) ANALYSIS

SOAR is a framework meant to formulate strategy for Industries. The core concept of these
principles are derived from AI principles. This technique is used for strategic planning which
helps Industries to concentrate on their present strengths and opportunities and prepare a vision
for future aspiration and the result they will get.
Strengths
It identifies the various aspects which are going right for the Industry. This also points out
how this industry is better than others. For example, if we take the case of Pepsi, then brand value
is the core strength for it. Other strengths may be market channel, image, etc.
Questions:
Ɣ What are the competitive advantages?
Ɣ What are the unique selling propositions?
Ɣ What are the positive aspects?
Opportunities
After identifying the strengths, the organization has to focus on the opportunities. In this step
organization tries to explore the opportunities from business environment. Opportunities are
always dynamic. Opportunities for an organization differs at different stages of growth.
Opportunities may be in the terms of segmentation, targeting, positioning, etc.
Questions:
Ɣ What are the needs of the marketplace?
Ɣ Where can we grow?
Ɣ What is the scope for new product development?
Aspirations
Once the organization explore the opportunities that exist in the marketplace, then
organization sets the goal and destination for the future. In this step, the organization sets its
vision, provide motivation and challenge the present situation for further progress.
Question:
Ɣ How can we bring a difference?
Ɣ What is the target?
Ɣ What are the core values?
Results
This step sketches a method to achieve the results. Results should be specific, measurable,
achievable, realistic and time bound.
Questions:
Ɣ What are the factors to measure success?
Ɣ How do we rectify our aspirations?
Anatomy and Mechanism of Appreciative Inquiry 21

IMPORTANCE OF SOAR
Ɣ This technique is helpful in identifying the current positions of the company at the same
time deciding the future pathway.
Ɣ It is useful for organization to approach market in a new way.
Ɣ It is useful to explore the areas for further improvement within the organizations.
Ɣ It is useful to set the goal of organization.
Ɣ It is useful to formulate the mission and vision of organization.
Ɣ It is useful to formulate the strategy for STPs.

STEPS TO APPLY SOAR

With reference to the book “Thin Book of Soar” by Stavros and Hinrichs (2009), there are
nine major steps to implement appreciative leadership
Ɣ Identify stakeholders: It is important to identify who will be taking part in the
implementation of SOAR. The participants of the process should preferably belong to
different areas of the company in order to achieve the holistic aim of AI.
Ɣ Design your AI interview: The questions for the interview must be planned out in
advance. The questions must intend to understand the strengths, successes, aspiration
and other positive core of the organization.
Ɣ Engage stakeholders: Both the internal stakeholders like employers, employees, etc.
and external stakeholders such as partners, customers, or suppliers should be engaged to
reveal positive potential futures and possibilities.
Ɣ Reframe problems: In every organization, there exists some problems for discussion.
SOAR inquiry intends to focus on positives rather than justifying threats. Therefore, the
conversations must be reshaped and look for positive solutions.
Ɣ Summarize: This is about confirming the organization’s strengths or its positive core.
Ɣ Establish aspirations and identify results: This is a key part of defining or redefining
the organization’s future vision, which will ideally influence the strengths which are
collectively identified. How will these look? What will they be like?
Ɣ Assess opportunities: Explore the opportunities that are the most desirable, new,
innovative, and full of potential.
Ɣ Craft goals: Goals should be derived from the opportunities identified in the previous
phase. These can be linked with results so progress can be monitored and evaluated.
Goal statements give more clarity.
Ɣ Create action plans: Action plans should enable implementation of these goals and it is
ideal to have a specific plan for each of these goals.

CONCLUSION
Inquiry means a process of exploring information to gain knowledge. It leads to change
because it is an ongoing process of identifying the best experiences, imagining a better future and
then creating it through challenging competence, continuous learning. This chapter set out to
explore the potential of Appreciative Inquiry as a method, as a tool for organizational
22 Innovation in Management Practices for the Sustainable Development Goals

transformation. Appreciative Inquiry focuses mostly on organizational strengths, with experts

working collaboratively with organizations to discover the present and desired future and to plan
for change. Appreciative Inquiry is also used to strengthen relationships. Positive stories about the
organization are used as a platform for transformational change.

REFERENCES
1. Annis Hammond and Sue (1998), “The Thin Book of Appreciative Inquiry”, 2nd Edition, Thin
Book Publishing Company
2. Barrett, F.J. and Fry, R.E. (2005), “Appreciative Inquiry: A Positive Approach to Building
Cooperative Capacity”, Chagrin Falls, OH: Taos Institute.
3. Bushe, G.R. (2012), “Appreciative Inquiry: Theory and Critique”, in Boje, D., Burnes, B. and
Hassard, J. (eds.), The Routledge Companion to Organizational Change (pp. 87-103), Oxford,
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ƇƇƇ
 A STUDY ON THE OPPORTUNITIES AND
3 CHALLENGES FACED BY THE ORGANIZED
RETAILERS DURING THE SHIFT OF
CONSUMERS FOR PURCHASE OF PRODUCTS
FROM PUBLIC LABELS TO PRIVATE LABEL
BRANDS FOR SUSTAINABLE DEVELOPMENT
Dr. Kishor Shankar Nikam Prof. Dashrath Bhiku Bhoite
Head, Department of Commerce, Assistant Professor, Abhinav Education Society’s
Dr. D.Y. Patil ACS College, Pimpri, Pune - 18. Institute of Management and Research, Pune.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
Organized retailers are on the threshold of an increase in India. However, as corporations
line up to grab a bigger and larger slice of the retail pie, the competition will be based on the
manufacturers and the retail chains’ private label brands. Worldwide research shows that as
outlets become a greater power, they have more and more centered on their personal brands at
the expense of manufacturer brands. Personal labels are also called as keep brands and are made
by way of the retailer or by third party supplier party supplier to the retailer’s specifications.
Private label goods and offerings are in an extensive variety of industries which include grocery,
meals, apparels, cosmetics, etc. Historically, personal labels have been seen as cheap, low-
satisfactory products. In recent years, many retail businesses have shifted from public labels to
private label brands for sale of their products for sustainable development. Private label brands
of good quality products and are placed at lower price having attractive packaging and are
advertised by the retailer itself. As consumers have plenty of trust, great personal labels will
boom their presence in the marketplace. There was an extensive increase in non-public label
manufacturers in the current years internationally also. In Europe, personal label items now
account for about 45 per cent of merchandise offered in supermarkets and hypermarkets. Wal-
Mart as an instance has a 40 per cent non-public label representation in their stores. The survey
suggests that 50 per cent of Indian retail will be occupied by means of private label brands in the
next 10 to 15 years. In this paper, the authors are going to bring out the challenges and
opportunities for private label brands in Pune region.
Keywords: Organised Retailers, Consumers, Private Label Brands, Challenges and
Opportunities.

(24)
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 25

INTRODUCTION
Private brand products are commonly supplied by using one employer for offer underneath
every other corporation’s brand. Personal label goods and services are available in a huge variety
of industries from food to cosmetics to internet web hosting. They are often positioned as
decrease value alternatives to regional, country wide or international manufacturers even though
currently a few non-public label manufacturers were located as “premium” manufacturers to
compete with current “name” brands (Baltas and Doyle, 1998).
In Personal labeling, retailer purchases products from numerous manufacturers and then
market those products under personal brand. Private label items are regularly called “shop
manufacturers”, in preference to the "name manufacturers" which can be bought beneath the
brand name of the producer. As an example, the consumer merchandise large Procter and Gamble
manufactures peanut butter and sells it under the brand name Jif, whilst the grocery store chain
Kroger purchases peanut butter from smaller producers and sells it as Kroger brand peanut butter.
Private label products have a tendency to be much less expensive than competing name
manufacturers, largely due to reduced advertising and marketing fees (Batra and Sinha, 2000).
Personal labeling received prominence all through the recession of the late nineteen eighties
whilst many customers chose to give up costly name emblem merchandise in order to keep
money, and plenty of stores commenced to market keep manufacturers in a try to growth income.
But while customer self belief in the economic system rebounded within the Nineties, client
loyalty call brands did no longer.
Today, non-public labeling is a significant commercial enterprise exercise amongst
supermarkets, drugstore chains, and mass merchandisers. Those retailers sell masses of various
gadgets beneath their personal logo names, from basic family gadgets and meals to area of
expertise gadgets and even apparel. A survey by the Private Label producers’ affiliation indicated
that income of personal label merchandise topped $43 billion in 1998. Similarly, the market
percentage held by means of personal manufacturers became predicted to boom to 23 per cent at
huge meals outlets by way of 2004.
Within the early days, personal label goods were essentially cheap imitations of the leading
manufacturers, even copying the colours and designs of the foremost competitors’ packaging.
Even though court docket rulings have supported proper of personal labelers to mimic the
packaging of leading manufacturers (until there may be documented confusion amongst clients),
personal label stores have now moved far from imitation and in the direction of appealing and
packaging in their very own layout. A few stores trust that they need desirable packaging due to
the fact they do no longer do tons marketing and instead depend on consumers taking observe in
their offerings as they walk through save aisles. Over the years, many purchasers started out to do
not forget save brands at the equal degree as countrywide brands have long way fineness,
performance, and pleasure.
Every other emerging fashion worries the kind of products which might be sold as save
brands. Whereas most of the people of private label merchandise was the maximum simple
household items, the areas of boom in latest years had been in top rate and terrific-premium items.
“The increase in premium brands shows that whilst state-of-the-art clients are fee-conscious, they
may be nevertheless choosy about product best,” Jenny McCune wrote in an article for Small
commercial enterprise reviews. “Inferior items are not attracting consumers at any price, that’s
26 Innovation in Management Practices for the Sustainable Development Goals

why income of popular items— the no-call, no-frills sorts—are honestly down” (Jenny McCune,
1994)
The continued boom of private labels has advocated stores to devote considerably greater
attention to developing save manufacturers. “keen to satisfy these value-aware purchasers and
make higher margins as well, many retailers are promoting their residence brands as by no means
earlier than,” McCune noted. “They have centered on improving the excellent of shop
manufacturers to higher compete with call brands and different private-label traces. They are also
lavishing the manufacturers with advertising rather than certainly tossing the products at the
cabinets and leaving them to fend for themselves.”
McCune claimed that the recent increase of private labels has also provided new
opportunities for small and medium-sized producers in an entire spectrum of industries. Rather
than competing at once with a whole lot large groups and incurring the associated marketing
prices, those small producers can grow by using advertising their merchandise to stores. “Despite
the opposition, the trends in private labeling present opportunities for small and midsize
producers that could meet the demands of this marketplace,” McCune said. In essence, the small
businesses who create non-public label goods serve as the manufacturing arm for his or her retail
clients.

FACTORS CONTRIBUTING SUCCESS OF PRIVATE LABELS

In McCune’s article, she has outlined three major factors that determine the ability for
success of small corporations that desire to fabricate private label items: the right product, a
aggressive fee and a strong advertising and marketing application. For merchandise to be
considered for personal labels they have to have a large sales potential, due to the fact that shops
are not usually inquisitive about branding low-demand objects. Similarly, the manufacturer needs
to be capable of guarantee that the product excellent is as proper as or higher than the main brands.
As McCune defined, “A retailer puts its personal call on the line while it private labels your
product, and it might not want that call to be sullied through inferior or inconsistent best.” Small
manufacturers may additionally gain a marketing gain if they are willing to assume duty for
product first-rate, in place of leaving the store protecting the bag. This could contain supplying a
toll-unfastened range on product packaging for clients to make proceedings or suggestions, or
giving the retailer a reduction on destiny orders if the best does now not meet predetermined
requirements.
The form of production method concerned is some other important product-associated issue
of personal labeling. In widespread, private labels are maximum suitable for products that can be
synthetic on a good time table at the same time as keeping outstanding requirements. Personal
label manufacturers must be capable of guarantee their retail customers of dependable, on-time
shipping. Further, they must be flexible enough to ramp up manufacturing fast to meet increases
in call for or to alternate the product's system according to the store’s needs. “Given these needs,
personal labeling generally isn't always for enterprise learners,” McCune mentioned. “Stores look
for producers, whether or not huge or small, which are well-seemed of their fields. In a notably
younger company, but the proprietors' own popularity can atone for the company’s quick tune
file.”
Price is another vital issue of successful personal label production. The price must evaluate
favorably to competing for name brands while also enabling each the producer and the store to
make money. In standard, personal label sales provide excessive quantity but tight margins, so
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 27

charge calculations are crucial. McCune claimed that private label goods are commonly priced 20
percentage or extra below the market leader. In addition, the store normally expects to look a
earnings margin on personal label goods that is 8 to 10 per cent better than it receives with name
manufacturers. Whilst calculating the final income price for non-public label objects,
manufacturers have to be sure to bear in mind any prices which can be incurred specially for the
non-public label line. Those may also consist of tailoring the product to satisfy retailer
specifications or designing unique packaging for each store.
The third aspect in successful non-public label production is sturdy advertising software. The
advertising and marketing program for private label items consists of components: contracting
with shops to end up their dealer for a positive product, and helping the store in marketing that
product to the very last consumer. If a small enterprise lacks knowledge in dealing with retailers,
it is possible to rent distributors or consultants who specialize in personal-label selling. For small
producers who proceed on their personal, however, McCune advocated getting all of the
conditions of the settlement in writing. It is mainly important to decide the quantity of packaging
that have to be stored in stock due to the fact greater packaging with a sure retailer's label turns
into useless if the deal falls through.
Producers will need to hold the quantity as little as possible and perhaps also consist of a
clause that calls for the retailer to reimburse them for unused packaging. It's also important that
the agreement specify realistic delivery dates, product design changes, and the amount of notice
required to terminate the agreement. Ultimately, it is able to additionally be beneficial for non-
public label manufacturers to make contributions their product advertising understanding to their
retail money owed. This can involve recommending particular promotions or maybe developing
advertisements and writing advert copy.
Normal, McCune mentioned that private label production can present splendid opportunities
for small businesses, in addition to extensive challenges. For instance growing private label goods
regularly requires growing a partnership with retail clients. “Private label veterans warn
newcomers to be organized for some hand-retaining since the courting among store and private-
label provider tends to be especially near,” McCune wrote. Nonetheless, she encouraged that
small groups who manufacture private label goods no longer permit everybody retailer to account
for greater than 15 per cent of their income. In the end, most contracts on this region are open-
ended, which allows outlets to alternate providers at any time. Some other ability task is that
name-emblem manufacturers are increasingly more being attracted by way of the increase of
private labeling. It has endorsed many to reduce fees, enhance fee, and in a few instances even
installation non-public-label divisions in their own to take gain of their excess production ability.

REVIEW OF LITERATURE
The principle reasons that have been noted within the business and educational press for
shops choice too inventory private labels are: (a) better retail margins on non-public labels;
(b) negotiating leverage with a countrywide logo producers; and (c) better consumer keep loyalty
(Hoch and Banerjee 1993).
The non-public label brand desire is relying on ‘revel in’ ‘price’, ‘time utility’, ‘ownership
software’, ‘mechanism’ and ‘place software'. Hoch and Banerjee (1993) contested the not unusual
belief that a non-public label’s primary appeal became the enormous price bargain relative to the
countrywide brands, at which they have been offered. They emphasized the role of great within
the private label purchase selection. They determined proof to guide the belief that perceived fine
28 Innovation in Management Practices for the Sustainable Development Goals

changed into a good deal more crucial than the level of fee discount in determining the personal-
label category share.
Several studies have tested the role of flavor in the perceptions of private label brands.
Sundel (1974) used a ‘blind’ (brands not recognized) taste check and discovered that there had
been no substantial differences in respondent rankings between national, regional and keep brands
of bread and canned corn.
However, the national manufacturers have been still perceived by means of clients to be
superior to the regional or nearby keep brands. Labeaga et al. (2007) contend that personal labels
help constructing loyalty through differentiating the store. These brands are to be had at one
retailer exclusively whilst manufacturer manufacturers are available at many competing shops.
Everyday customers of private label brands are faced with menta fees when switching retailers as
their preferred non-public label preference is no longer available.
As a end result, clients who exchange retailers undergo annoying cognitive techniques via
comparing different manufacturers, consisting of unusual keep brands, in deciding on a new
product. Customers who buy non-public label manufacturers frequently do now not best emerge
as unswerving to that particular brand but also to the store thru which it is bought (Collins and
Burt, 2003).
Amongst clients, one apparent reason for their popularity and increase is their price gain over
country wide manufacturers (Batra and Sinha, 2000). Nevertheless, excessive fine appears to be
more vital in figuring out PLB achievement than lower fee (Hoch and Banerji, 1993).
Ailawadi and Keller (2004) identify at the least 4 tiers of private label brands. These include
low-satisfactory generics; medium exceptional personal labels; rather much less high priced but
similar first-rate merchandise; and premium excellent personal labels which might be priced in
extra of competitor producer brands. While the character of a shop’s personal label emblem(s)
ought to be guided, first and major, by its goal marketplace, the authors endorse that successful
retailers will adopt multiple tier of private label brand if they are to achieve huge-scale
marketplace coverage.
In step with Kumar and Steenkamp (2007), half of the private label brands are copycat
manufacturers. These manufacturers basically try to imitate the packaging and content material of
first-tier manufacturer brands. Stores analyze the contents of main manufacturers, after which re-
create the product, thru a process called reverse engineering (ibid). Thus, due to the fact that there
are minimal research and development expenses, and the retailers have already diagnosed that
there may be a probably beneficial market available, these merchandise are more regularly than
no longer a success. The retailers use in-store promotions to aggressively sell the brands, the use
of a “me-too at a cheaper fee” strategy (Kumar and Steenkamp, 2007). This kind of approach
entails generating nearly same product and presenting it at a discounted fee relative to
competition.
Fernie et al. (2003) have diagnosed various benefits to outlets for the improvement of a non-
public label logo: (1) expanded profitability through cost saving and extended margins;
(2) extended shop loyalty and advent of a awesome company identity; (3) possibilities to capture
new marketplace ventures; and (4) elevated bargaining leverage with providers.
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 29

RESEARCH METHODOLOGY
Descriptive research technique had been adopted for the study. Convenient sampling has
been adopted to collect the data from 400 respondents in Pune city. Survey method was employed
in collecting data from the consumers. A well structured questionnaire was used for this purpose.
The study was restricted to certain areas of Pune due to time and cost constraints and hence the
findings cannot be used for other cities or regions. The study is focused on private label brands
only.

DATA ANALYSIS AND INTERPRETATION

1. Visit to Various Retail Outlets

19 per cent of the respondents purchase their necessary items in big Bazaar. 30 per cent of
them purchase from Reliance fresh. They notably have extra customers compared to different
stores taken for the analysis. D-Mart has 16 per cent of the respondents as customers. 15 per cent
of the respondents buy from Grofers. Big Basket has 12 per cent of the respondents as customers.
8 per cent of the respondents purchase their products from Spencer’s. Remaining respondents, i.e.,
4 per cent purchase from different shops.
Table 1: Visit to Various Retail Outlets

Retail Outlets No. of Respondents Percentage

Reliance Fresh 104 26
Big Bazaar 76 19
D-Mart 65 16
Grofers 60 15
Big Basket 47 12
Spencer’s 32 8
Others 16 4
Total 400 100
Graph 1: Visit to Various Retail Outlets
30 Innovation in Management Practices for the Sustainable Development Goals

2. Frequency Visit to Retail Outlets

A major portion of the respondents go to the store monthly, i.e., 39 per cent. 31 per cent of
the respondents go to the store weekly. 10 per cent of the respondents go forthnightly to the stores.
20 per cent of the respondents go to the store once in a month.
Table 2: Visits to the Store

Visits to the Store No. of Respondents Percentage

Monthly 156 39
Forthnightly 41 10
Weekly 124 31
Once in a month 79 20
Total 400 100
Graph 2: Visits to the Store

3. Awareness on Ready-to-eat Items in Private Labels

The respondents are thoroughly aware of the private label brands in equipped to eat objects.
84 per cent of the respondents said they are aware of the ready to eat items in private label brands
who have spoken back to us. 15 per cent of the respondents said are unaware of ready to eat items
in Private Label Brands.
Table 3: Awareness of Ready-to-eat items in Private Label Brands

Awareness of Ready-to-eat Items No. of Respondents Percentage

Yes 336 84
No 64 16
Total 400 100
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 31

Graph 3: Awareness of Ready-to-tat Items in Private Label Brands

4. Awareness on Various Products under Private Labels

The respondents were also privy to the numerous classes of private labels brands. Groceries
pinnacle the list in various categories as almost 42 per cent of the respondents knew non-public
label manufacturers exist in groceries. Subsequent are Home Care products with 25 per cent and
Ready-to-eat snacks with 21 per cent. In the end, it is immediately the meals Instant Food with 12
per cent of the respondents opting for it.
Table 4: Various Categories in Private Label Brands

Categories No. of Respondents Percentage

Groceries 167 42
Home Care Products 99 25
Ready-to-eat Snacks 85 21
Instant Food 49 12
Total 400 100

Graph 4: Various Categories in Private Label Brands

32 Innovation in Management Practices for the Sustainable Development Goals

5. Consumer Knowledge on Different Private Labels

The elements which might be answerable for the respondents to recognize approximately the
non-public labels are indexed out. Nearly 55 per cent of the respondents have regarded about it
for the duration of the time of shopping. A number of them have known due to their friends’
advice that is 35 per cent. Classified ads have performed a small function in the case of personal
Labels because of which simplest 12 per cent have opted for it.
Table 5: Knowledge about Different Categories in Private Labels

Knowledge About Categories No. of Respondents Percentage

At the time of Shopping 221 55
Recommended by Friends 132 33
Advertisements 47 12
Total 400 100
Graph 5: Knowledge about Different Categories in Private Labels

6. Purchase Habit of Consumers towards Private Labels

88 per cent of the respondents have bought the personal label brands from stores. Only 12
per cent have not purchased private label brands from the stores.
Table 6: Purchase Habit of Consumers towards Private Labels

Purchase of Private Labels No. of Respondents Percentage

Yes 352 88
No 48 12
Total 400 100
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 33

Graph 6: Purchase Habit of Consumers towards Private Labels

7. Purchase Duration of Private Labels

The respondents who have been purchasing personal labels for two-three years are greater as
compared to that of other categories. It is far 25 per cent. Recent purchasers of personal labels
also are substantially high. 21 per cent of respondents purchase in last one year and 19 per cent of
the respondents purchased the private labels in last 6 months. 15 per cent of the respondents come
under the category of 1-2 years class. 12 per cent and 8 per cent of the respondents come beneath
the class of users of private labels for the last 3 years and 4 years respectively.
Table 7: Purchase Duration of Private Labels

Purchase Period of Private Labels No. of Respondents Percentage

Last 4 Years 32 8
Last 3 Years 47 12
2-3 Years 101 25
1-2 Years 59 15
Last 1 Year 85 21
Last 6 Months 76 19
Total 400 100

Graph 7: Purchase Duration of Private Labels

34 Innovation in Management Practices for the Sustainable Development Goals

8. Category of Private Label Purchased

42 per cent of the respondents purchase groceries products from Private Label Brands. 25 per
cent of the respondents come beneath the class of ready-to-eat snacks and 21 per cent of the
respondents come under the category of purchasing Instant food. Out of total purchase from
private label brand manufacturers, 12 per cent of the respondents are from home care products
category.
Table 8: Category of Private Label Purchased

Categories No. of Respondents Percentage

Groceries 166 42
Ready-to-eat Snacks 101 25
Instant Food 84 21
Home Care Products 49 12
Total 400 100

Graph 8: Category of Private Label Purchased

9. Factors Influencing Purchasing of Private Labels

Store reputation is the factor which impacts the respondents to a more diploma compared to
different elements, as it constitutes 40 per cent of the full. 25 per cent of the respondents feel that
attractive packaging has influenced them to purchase products. The appealing display has
motivated 20 per cent of the respondents to purchase personal labels. 15 per cent of the
respondents are inspired via different factors which include low rate and prompt customer service.
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 35

Table 9: Factors Influencing the Purchase of Private Labels

Factors Influencing the Purchase of No. of Percentage

Private Labels Respondents
Store Reputation 160 40
Attractive Packaging 100 25
Attractive Display 80 20
Others 60 15
Total 400 100
Graph 9: Factors Influencing the Purchase of Private Labels

FINDINGS FROM THE STUDY

1. A national marketed brand is usually a higher desire than a everyday logo. Respondents
who have selected strongly agree and agree are motivated via the recognition of the
manufacturers. Neither agree nor disagree is selected by means of respondents who
determine on the products based on other elements related to the product. Disagree and
strongly disagree are selected by using the respondents who are not influenced with the
aid of the recognition of the manufacturers.
2. A store’s personal logo is usually a better option than a nationally advertised brand. A
store’s own logo is called as a non-public label emblem. Respondents who have selected
strongly agree and comply with options, purchase goods primarily based on the shop’s
popularity. Disagree and strongly disagree options are opted with the aid of respondents
who are encouraged by the classified ads and also are reluctant to take the chance of
trying a brand new product.
3. Price plays a completely critical component in deciding on a product. Nearly 50 per cent
of the respondents experience that rate is an influencing element but the diploma varies.
Some of the respondents experience that there also are other factors which influence
36 Innovation in Management Practices for the Sustainable Development Goals

them in shopping a product. The alternative elements can be best of the product, the
need of that product and so on.
4. Some of the respondents experience that personal label manufacturers are less expensive
by way of the stores so that consumers buy them as opposed to different branded
products. However, a most quantity of respondents sense that private label
manufacturers are not low priced. It is miles priced in accordance to the product.
Considering the fact that some of the respondents sense that it varies in line with the
situations, they have got selected the option neither agree nor disagree.
5. Respondents who have been the use of non-public labels sense that they are of correct
great and they have no longer had any bad experiences while using the product. A
number of the respondents have had some troubles in the use of the non-public label
brands. And then they stopped using it.
6. Common users of private labels have selected the choice that is favorable for the non-
public label manufacturers. Some respondents sense that properly-marketed brands are
having an excellent value for money as compared to the personal label brands. They
may be very a good deal influenced by way of the advertisements and their reputation.
7. Nearly all the respondents who are users of personal label emblem groceries have been
happy with the products. Neither of the respondents who do now not utilize private label
logo groceries have chosen neither agree nor disagree choice as they may be not aware
about the products.
8. Attractive display is considered as one of the principal elements to influence the
respondents to purchase private label brands. Therefore, most of the respondents have
common that personal label brands have an appealing show. Some of the respondents
sense that famous and well marketed manufacturers are extra attractive as compared to
the personal label brands.
9. Private labels are advertised and offered by the stores. There are no advertisers worried.
Consequently the stores fee the customers and supply them the private label brands
consistent with the client’s requirement. The respondents have responded favorably for
the outlets. But a number of them feel that they're not convenient to the clients in
comparison to the famous brands.
10. Shops are more in variety recently. They pay attention more at the family regions so that
it is at ease for the homemakers. A first-rate portion of the respondents have agreed to
this statement.
11. Since personal label brands are to be had at the required quantities and are also
significantly low charge, it is far without problems adjustable to the family budgets. A
first-rate portion of the respondents feels so. Some respondents are not glad with the
personal label brands
12. A product is taken into consideration to meet a customer most effective while it has sure
capabilities. The price should be cheap; the fine of the product ought to be proper; the
product need to be available at all times; it must be available in the required portions; it
must be reliable and many others. A primary part of the respondents is glad with the
personal label brands. Some find a problem in identifying. Some are dissatisfied with
the private label brands.
A Study on the Opportunities and Challenges Faced by the Organized Retailers... 37

SUGGESTIONS
The private label manufacturers must be made visible to the customers. The numerous
classes of personal label brands together with groceries, prepared-to-eat snacks, immediately food,
home care products and soon have to be certainly proven to the human beings. The factors which
impact the purchasers to buy other products should be diagnosed and based totally on that the
ones elements should be blanketed in non-public label brands also. It ought to be of true nice. It
have to be to be had in unique portions. The expenses have to be considered low. Considering that
no advertisement is used for private label brands, phrase of mouth advertising must be finished.
CONCLUSION
From apparel, healthcare products, fixtures to customer items like soaps, private labels are
making their presence felt in a variety of retail items. Even though personal labels are overdue
entrants, they're catching up rapid growth. Within the remaining couple of years, non-public
labels have visible unprecedented growth with the entry of shops which includes future institution,
shopper’s prevent and Vishal Megamart. At present, in-keep brands constitute pretty much five
percentage of the overall prepared retail enterprise, say, professionals. Due to the fact that doing
enterprise in private labels is fetching large earnings margins to shops, the interest in those
merchandise is developing rapidly. The margins variety from 15-20 percentage in the FMCG area,
round 20 percentage in digital goods and 30-70 per cent in apparels in comparison to mounted
brands. “For outlets like future institution, it bills for 70-seventy five per cent of its income,” says
Purnendu Kumar, senior retail consultant, Technopak Advisors, a consulting company
specializing in the retail quarter. In-keep labels are as a minimum 5 to 20 per cent less expensive
across diverse classes. This is due to the fact they reduce out middlemen and different costs and
pass at the advantage to the customer. Personal labels are not any extra taken into consideration
‘down marketplace’ substitutes for installed manufacturers. That they are less expensive and do
not compromise on pleasant appeal to quite a few urban consumers.
REFERENCES
1. Baltas, G. and Doyle, P. (1998), “An Empirical Analysis of Private Brand Demand Recognizing
Heterogeneous Preferences and Choice Dynamics”, The Journal of the Operational Research
Society, Vol. 49(8), pp. 790-798.
2. Batra, R. and Sinha, I. (2000), “Consumer Level Factors Moderating the Success of Private
Label Brands across Product Categories”, Journal of Retailing, Vol. 76(2), pp. 175-191.
3. Collins, A. and Burt, S. (2003), “Market Sanctions, Monitoring and Vertical Coordination with
Retailer-Manufacturer Relationships: The Case of Retail Brand Suppliers”, European Journal of
Marketing”, Vol. 37(5/6), pp. 668-689.
4. Hoch, Stephen J. and Shumeet Banerji (1993), “When Do Private Labels Succeed?”, Sloan
Management Review”, Vol. 34(4), Summer, pp. 57-67.
5. McCune, Jenny, “Catch a Growing Wave”, Small Business Reports, June 1994.
6. Kothari, C.R. (2009), “Research Methodology”, New Delhi: New Age International Publication.
7. Labeaga, J., Lado, N. and Martos, M. (2007), “Behavioral Loyalty toward Store Brands”,
Journal of Retailing Consumer Service, Vol. 1(1), pp. 1-10.
8. Stern, L. (1966), “The New World of Private Brands”, California Management Review, Vol. 8(3),
pp. 43-50.
9. Vedamani and Gibson, G. (2010), “Retail Management”, New Delhi: Jaico Publication.
ƇƇƇ
 A STUDY ON SUPPLY CHAIN
4 MANAGEMENT MODEL OF RELIANCE
FRESH RETAIL OUTLET IN SOLAPUR
Dr. Kajal Maheshwari Mr. Prashant R. Mhetre
Assistant Professor, MBA Student,
S.B. Patil Institute of Management, Pune. S.B. Patil Institute of Management, Pune.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
The present paper intends to focus on sustainability issues associated with the supply chain
management of green vegetables and fruits in Reliance Fresh. A detailed analysis will be made on
the procurement of green vegetables and fruits from farmers and wholesalers respectively, to
dispatch of the same to the consumers considering the hygiene and quality perspectives. The
research universe will be confined to the Reliance Fresh Outlets in Solapur, Maharashtra. An
exhaustive study will be carried out through value chain analysis, comparative analysis. An
integrated sustainable supply chain model will be framed in this regard. The vegetable suppliers
and the staff of Reliance Fresh Retail outlet involved will constitute the research population unit
of study. This study will be helpful for Reliance Fresh in planning for cold storage, warehousing
and transportation, marketing as well as maintaining the conditions of hygiene, quality, freshness
and healthy consumption. Sustainability and growth through value creation of Reliance Fresh are
studied by value chain analysis in supply chain management.
Keywords: Sustainability, Supply Chain Management, Reliance Fresh, Green Vegetables,
Value Chain Analysis, Hygiene, Quality, Strategy.

INTRODUCTION OF SUPPLY CHAIN MANAGEMENT

Supply Chain Management can be defined as the management of flow of products and
services, which begins from the origin of products and ends at the product’s consumption. It also
comprises movement and storage of raw materials that are involved in work in progress,
inventory and fully furnished goods.
The main objective of supply chain management is to monitor and relate production,
distribution, and shipment of products and services. This can be done by companies with a very
good and tight hold over internal inventories, production, distribution, internal productions and
sales.

CASE OVERVIEW
Reliance Fresh started the retail journey in November 2006 with the first Reliance Fresh
store. Today they operate over 93 cities across India with 700+ stores with a family of over 13
(38)
A Study on Supply Chain Management Model of Reliance Fresh Retail Outlet in Solapur 39

million happy customers. They are not only the largest grocery retailer in the country but also the
only retailer who has successfully fulfilled the entire spectrum of Indian consumer's needs as they
provide good quality Fresh produce, Dairy and bakery products over and above the staples and
FMCG products.
Reliance Industries Limited (RIL) is the biggest private company of India, a conglomerate
that has its business spread across retail, gas exploration and production, refining and marketing
petrochemicals and telecommunications. The company seeks to capture the entire Indian market
with the launch of its Jio Infocomm 4G services and become the largest data service provider.
The Brand Trust Report 2013 also reports RIL as the 7th most trusted brand in India.

TO STUDY BUSINESS PRACTICES OF RELIANCE FRESH

Reliance Fresh is a supermarket chain which forms part of the retail business of Reliance
Industries of India which is headed by the corporate giant Mukesh Ambani. With a vision to
generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and
consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance
Groups foray into organized retail. Since its inception in 2006, Reliance Retail Limited (RRL) has
grown into an organization that caters to millions of customers, thousands of farmers and vendors.
Based on its core growth strategy of backward integration, RRL has made rapid progress towards
building an entire value chain starting from the farmers to the end consumers. Reliance plans to
invest in excess of ` 25,000 crores in the next 4 years in their retail division. The company
already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh
vegetables and fruits, staples, groceries, fresh juice bars and dairy products. A typical Reliance
Fresh store is approximately 3000-4000 square feet and caters to a catchment area of 2-3 km.
RRL now operates 22 different formats across India. 453 Reliance Fresh stores in over 45 towns
and cities are operational across India. Including the Reliance Fresh stores, the company now
operates over 900 retail stores across India.

OBJECTIVES
1. To make detailed analysis of the procurement of green vegetables and fruits from
farmers and wholesalers.
2. To study dispatch of the green vegetables and fruits to the consumers considering the
hygiene and quality perspectives.
3. To study the scope of Reliance Fresh Outlet in Solapur, Maharashtra.

GROWTH AND DEVELOPMENT OF ORGANIZATION

Post launch, in a dramatic shift in its positioning and mainly due to the circumstances
prevailing in UP, West Bengal and Odisha, it was mentioned that, Reliance Retail is moving out
of stocking vegetables and fruits. Reliance Retail has decided to minimize its exposure in the fruit
and vegetable business and position Reliance Fresh as a pure play super market focusing on
categories like food, FMCG, home, consumer durables, IT and wellness, with food accounting for
the bulk of the business. RRL increased its footprint to more than 900 stores in 80 cities across 14
states in India. The company may not stock fruit and vegetables in some states. Though Reliance
Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with
local vendors partly due to political reasons, and partly due to its inability to create a robust
40 Innovation in Management Practices for the Sustainable Development Goals

supply chain. This is quite different from what the firm had originally planned. When Reliance
Fresh store opened in Solapur, not only did the company said the store’s main focus would be
fresh produce like vegetables and fruits at a much lower price, but also spoke at length about its
“farm-to-fork” theory. The idea the company spoke about was to source from farmers and sell
directly to the consumer removing middlemen out of the way. Reliance Fresh, Reliance Mart,
Reliance Digital, Reliance Trends, Reliance Footprint, Reliance Wellness, Reliance Jewels,
Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. In addition,
Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty
Stores branded as IStore. RRL has a direct engagement with over 5 million customers following a
loyalty programme 'Reliance One' which was offered from the first day of its operation.
Reliance Fresh at a Glance
Reliance Fresh is the convenience store format which forms part of the retail business of
Reliance Industries of India. Taking another leap ahead, Reliance Fresh Direct makes the grocery
shopping even simpler by bringing it to customer’s doorstep. A comfortable shopping can be
done from home; office or on the move and selection can be made from a wide range of 6000+
products.
Reliance Fresh offers convenience of shopping for everything that the customer needs for
his/her home – be it fresh vegetables and fruits, rice, dals, oil, packaged food, bakery and dairy
item, frozen and pet food, household cleaning items, specialized beauty and personal care
products from a single virtual store. The customer can get started by registering with Reliance
Fresh, select the products he/she needs, choose the delivery time convenient to him/her and pay
the way he/she wants to-through cash/credit card/net banking and food coupons. Reliance Fresh
will handpick the customer’s order the way he/she would have done it himself/herself and deliver
it to his/her home just when he/she wants it.
Promise
Reliance Fresh gives all that the customers want wide range of brands and products to choose
from exclusive ranges like organic, regional delicacies and many more. It offers on-time delivery
at customers’ convenience and dedicated workforce network and infrastructure to ensure it.
It provides convenient options of delivery slots, customer friendly interface, user friendly and
easy to navigate website, well-trained customer service agents to assist customers during order
booking and enquiries. It also ensures fresh, hygiene and high quality products stored and
transported in high standards of hygiene and temperature control.

SUPPLY CHAIN MANAGEMENT IN RELIANCE FRESH

Reliance Fresh makes its purchase of green vegetables and fruits from the local farmers but
never from the mandis. They have established the rural business hubs in many parts of the
country. The objective of Reliance Fresh is to make the entire value chain more effective, robust
and responsive. By approaching farmers directly, it thereby reduces the procurement wastage that
further paves the way for better returns to Indian farmers and wholesalers as well as it renders
greater value for the Indian consumers. In the first phase, vegetables and fruits are procured from
the suppliers and wholesalers followed by processing, separating rotten ones and finally
packaging for sale.
A Study on Supply Chain Management Model of Reliance Fresh Retail Outlet in Solapur 41

The objective of the Collection Centre is to buy fresh and good quality of vegetables and
fruits. The company can save the Mandi charge through these practices. Figure 1 illustrates the
farm-to-fork model of Reliance Fresh.

The Farm-to-fork Model

Big Retail Changing Millennia-old Market Relationships

MANDI RETAILERS’
ROUTE IDEAL

Farmer Farmer

Aggregator

Agriculture
market yard

Wholesaler
Collection centre
Semi -
wholesaler
Processing &
Retailer Store distribution centre

Consumer Consumer

Fig. 1: The Farm-to-fork Model of Reliance Fresh

Reliance started its retail operations of Reliance Fresh store by following the supply chain
model comprising of procuring vegetables and fruits directly from the farmers and operating with
moderate margin. (Mass selling was the key to Reliance Fresh operations for the first few months.)
Figure 2 represents the supply chain management of Reliance Fresh. It is clear that the raw
material is procured from farmers or suppliers and the wholesalers, and the farmers and
wholesalers use their own logistics for assembling the same in the collection point. From the
collection point, Reliance Fresh uses its own logistics for transportation and processing in
collection point, then transported to processing point or DC and ultimately to the customers
through the retail outlets. Realistic supply chains have multiple end products with shared
components, facilities and capacities. The flow of materials may require various modes of
transportation, and the bill of materials for the end items may be both deep and large.
42 Innovation in Management Practices for the Sustainable Development Goals

Fig. 2: Reliance Fresh Supply Chain Management Model

Value Chain Analysis in Reliance Fresh

Value chain analysis consists of primary activities like inbound logistics, operations,
marketing and sales, services and secondary activities like infrastructure, procurement,
technology development and human resource development. Fig. 3 illustrates the primary activities
of value chain analysis and Fig. 4 represents the secondary activities of value chain analysis.
Figure 5 illustrates the value chain analysis of Reliance Fresh briefly.
Primary Activities of Value Chain Analysis

Fig. 3: Primary Activities of Value Chain Analysis

A Study on Supply Chain Management Model of Reliance Fresh Retail Outlet in Solapur 43

Secondary Activities of Value Chain Analysis

Fig. 4: Secondary Activities of Value Chain Analysis

Supportive Activities in Value Chain Analysis of Reliance Fresh

Infrastructure
Reliance Industries has invested nearly ` 3,000 crore to expand the Reliance Fresh stores.
The stores work on The Ranger Format which means selling of fresh vegetables to the road sellers.
Reliance plans to invest in excess of ` 25,000 crore in the next 4 years in their retail division. The
company already has in excess of 650 reliance fresh outlets across the country. A typical Reliance
Fresh store is approximately 3000-4000 square feet and caters to a catchment area of 2-3 km.
Procurement
Procurement of vegetables, fruits, dairy products, bakery items directly from the farmers and
wholesalers based on the pre- negotiated contacts. By procuring directly, they weed out the
middleman commissions, costs of loading and unloading, transportation costs and wastage due to
exchange of hands. Perishable products are procured from nearby areas of distribution centers.
Non-perishable products such as FMCG products which have longer shelf life are procured
centrally by their merchandising department.
Procurement Policies and Procedure, Inventory Management
Procurement Policies:
1. Centralize purchase through various distribution centers directly from manufacturer.
2. The category manager and the SCM manager plan the overall merchandise to be offered
at the store.
3. Orders are automatically generated by the SAP system when the level of the
merchandise reaches the reorder level.
4. The category manager can anytime check the inventory level.
5. The category manager receives the order automatically generated by the system and
then forwards it to the SCM.
44 Innovation in Management Practices for the Sustainable Development Goals

Human Resource Development

Human resource management of Reliance Fresh is categorically divided into three: top level
management, under this strategy makers and cluster managers are included, mid-level
management, under these area managers and store managers are included and low level
management, under this only assistant store manager is appointed. Different factors are
implemented in human resource management like strict appraisal policies, less working hours as
compared to its competitors, timely wages and timely notice prior to termination and recruitment
from friends and referrals.
Inbound Logistics
The inbound activity of Reliance Fresh primarily begins with the role of the category heads
belonging to the distribution centers (DCs) who are entrusted with the task of choosing of
different categories of vegetables and fruits. These people are highly experts in selecting items
that are meet the quality standards. After procurement the next phase calls for the transportation
of the merchandise from the DCs to the Reliance Fresh Outlets by means of trucks and vans, hired
on a contractual basis. After reaching the outlet, the merchandise is assembled and space
allotment is done. Vegetables and fruits are stored in open chillers with proper temperature
regulations. Sophisticated large-sized, specially designed and germ resistant metallic crates are
used for storing the vegetables and fruits.
Store Operations
The merchandise is checked properly from time to time by the supervisor. The house keeping
people clean the outlet at least 7 times a day’s span. Refrigeration and temperature are checked
regularly by the store manager. In the later half of the day, indent of the next day merchandise is
prepared by the store manager with the help of the supervisor. At the end of the day, the closing
stock is checked and further details of replenishment are forwarded to the head office by the
supervisor. The cash manager checks the balance and compares it with the sale. The store winds
up for customers around 10pm. The accounting procedures are completed and the operators shut
down the outlet at 11 pm. In Figure 6, the Reliance Fresh store layout and design are depicted
clearly.
Store Layout and Design
Store Layout: Grid Type Layout
Grid Type Layout: This type of layout is a retailer’s primary choice when it comes to
Layout Planning or Designing. These layout makes you feel where and what are you shopping.
Ambience: Reliance fresh provides good ambience having proper lighting, ventilation
facilities. Also products are properly arranged according to category. Customers are provided
with trolleys and baskets to select products on their own. For this purpose enough space is made
available with the help of grid layout. Air conditions are also used.
Shelving Pattern: Use of Wall Racks, Corner Racks, Retail Gondolas, Fruits and Vegetable
Racks, Shopping Trolleys and Baskets, Wire Products, Check Out Counter, Glass Shelves and
Accessories, Gondola End Racks, Wall Unit Racks, Wire Baskets.
A Study on Supply Chain Management Model of Reliance Fresh Retail Outlet in Solapur 45

Edible Oil, Ghee,

Cosmetics, Cleansing Item
Confectioneries
B
I
S
C
U

Frozen Fruits, Curds,

I

Rice, Atta
Milk, Milk Products, Tea,

Vegetables

Drinks, Butter
Dry Fruits, Drinks

Pulses, Dal, Sugar

S
Coffee

S
N
A
C
K
S Fruits

Dairy, Egg CASH COUNTER Fruits Books

Fig. 5: Reliance Fresh Layout Design

Services and Support
The salesman are well trained in handling customers and well informed about the available
merchandise in context of pricing and offerings. They are experts in multi-tasking. They provide
personalized service to customers and meet their queries. They time to time operate as per the
instructions of the top management. They have a close monitoring on the available inventory and
they furnish the information as regards of procurement.

CONCLUSION
Reliance Fresh manages its value chain effectively. The vegetables and fruits are delivered to
the customers with proper emphasis on freshness and hygiene. The distribution centers keep a
track of the inventory requirements at the outlets and carefully select the vegetables and fruits
from the local farmers and wholesalers. The retail stores well manage the vegetables and fruits
under properly regulated temperature and chilling conditions. Proper emphasis on pest controlling
and germ contamination are done looking at the shelf- life of the items. The staff are well trained
and well informed about the available categories of vegetables and fruits and the technology been
used in Reliance Fresh. Customers get attracted at the ambiance as well as the abundance of
vegetables and fruits in Reliance Fresh. Hygiene, quality, safety and competitive price have
always concerned Reliance Fresh supply chain management; in recent years, social responsibility
and the more holistic goal of sustainability have also earned official recognition.
46 Innovation in Management Practices for the Sustainable Development Goals

REFERENCES
1. Austin, Robert, D. (2001), Ford Motor Company: Supply Chain Strategy, Harvard Business
School Publishing (December 21): 9-699-198.
2. Bhutman, J. (2002), “A Pain in the (Supply) Chain”, Harvard Business Review (May): 1-5.
3. Collins, Jim (2003), “The Ten Greatest CEOs of All Time”, Fortune (21 July): 54-69.
4. Deloitte, Touch, T. (2003), “The Challenge of Complexity in Global Manufacturing”.
5. en.wikipedia.org/wiki/Reliance Fresh.
6. www.reliancefresh.com.
7. www.ril.com.

ƇƇƇ
 SOCIAL INNOVATIVE PRACTICES THAT
5 WILL CONTRIBUTE IN SELF-RELIANT INDIA

Dr. Chandrashekhar Aronkar

Professor and Head, Department of Economics,
National Defence Academy, Khadakwasla, Pune.
E-mail: [email protected]

Dr. Narendra Kumar Koshti Dr. LMS Baghel

Assistant Professor, Department of Economics, Associate Professor,
Government Autonomous Mahakoshal College of JNM PG College,
Arts and Commerce, Jabalpur. Barabanki (UP).

ABSTRACT
The Indian economy is going through a phase of a serious pandemic COVID-19 and this
pandemic has affected the economy severely. To help various sectors during this time,
Government has announced various packages/programmes to boost almost all the sectors.
Government also has introduced a very important and ambitious vision of Self-Reliant India
(Atmanirbhar Bharat). Indian economy has richness of resources and is full of potential to
become self-reliant. While going for implementing these policies, some of the important social
innovative practices will strengthen to this vision. Present pandemic has taught us many lessons
regarding health, education, employment, hygiene, older people care, disable people care,
poverty and environment. Indian economy is going to be a strong and self-reliant economy but for
solving above issues we need some social innovative practices which require involvement of all
the stake holders Government, people and social organizations to make India a self-reliant,
healthy and happy country. During this pandemic, the role of Digital and ICT resources are
highly effective. The Government has effectively extended the mobile facilities, e-banking
facilities, various applications for agriculture, payment apps and gateways to rural areas of the
country. Now, with the help of these technologies, some innovative programmes can be
introduced in rural education and rural health for effective outcome of Government’s efforts.
Similarly, some innovations are also required in creation of employment to rural youth especially
for rural women.
Keywords: Social Innovative Practices, Self-reliant India.

INNOVATION IN EDUCATION
During this pandemic, when school colleges are closed, almost all the institutions are
imparting education through Digital learning. With the help of various learning management tools,
software and other e-learning tools schools and colleges are giving education to their students.
(47)
48 Innovation in Management Practices for the Sustainable Development Goals

Though this technology based education seems to be a solution at present, but this has also
created a serious digital divide amongst poor and rich background students and rural urban
students. To make India self-reliant, it is important that the rural students also actively participate
and they also get equal opportunity to explore their talent.
The innovation require in education system is that all the villages of the country must be
enabled with latest technology of digital learning and with the help of Government teachers and
private teachers, NGOs and specially with participation of successful people of that village, who
are now established in various fields and settled in other part of the country or of the world must
share their knowledge to motivate youngsters of the village. A common place must be selected
where Big TV/Screen/computer and other paraphernalia can be arranged and with the help of
latest technologies teaching learning can be conducted.
In this programme, Government may invite NGOs, corporate sector and individuals those
who are willing to contribute. Even this can be connected to nearby schools and colleges and even
coaching classes where teachers are available. This will be a great innovation and village students
can be benefited by this and problems of deficiency of teachers, non-availability of school
buildings and even colleges can be addressed. The role of teacher will always remain important
and all these efforts will magnify the role and excess of teachers to the students who are deprived
of learned teachers.
Such programmes of education should include all other activities also. In addition to basic
school education or college education, women education, adult education awareness programme
about health and hygiene etc can also be introduced. Guidance and counseling on agriculture and
other social, cultural issues may be addressed by experts through technology. One proper centre
with technology would ensure wide coverage of learning experiences for all in rural areas.
Importance must be given knowledge of that area, culture, value system and availability of
resources and potential of employment and related skills must be developed.
Role of the Governments would be identifying the villages where schools and colleges are
not available at various levels, than assessing the requirements of teachers, than identifying the
institution where teachers are available and then effective coordination between Institutions to
efficient exchange and sharing of knowledge resources and teachers with the help of technology.
This will help all the existing institution as well as those areas where there are no institutions or
teachers are available.
Government has been giving top priority for digital learning in rural areas. Even National
Education Policy importance has been given to digital rural education (http://bweducation.
businessworld.in). Various initiatives have been taken by the Government to promote digital
learning under the National Mission on Education through Information and Communication
Technology (NMEICT). eBasta is another initiative that offers a framework to make school books
accessible in digital form as e-books to be read and used on tablets and laptops. Other such
initiatives include SWAYAM, SWAYAM Prabha, National Digital Library (NDL), Spoken Tutorial,
Free and Open Source Software for Education (FOSSEE), Virtual Lab, E-Yantra, MOOCs and
the like. Along with this, the present Government’s Digital India initiative includes a massive plan
to connect rural areas with high-speed internet networks.
In New Education Policy, much importance is given to Indian traditional wisdom and overall
personality development. This will definitely pave the way for an effective learning and
successful career to youngsters based on values and ethics. National Education Policy 2020 says
“The rich heritage of ancient and eternal Indian knowledge and thought has been a guiding light
Social Innovative Practices That Will Contribute in Self-reliant India 49

for this Policy. The pursuit of knowledge (Jnan), wisdom (Pragyaa), and truth (Satya) was always
considered in Indian thought and philosophy as the highest human goal. The aim of education in
ancient India was not just the acquisition of knowledge as preparation for life in this world, or
life beyond schooling, but for the complete realization and liberation of the self.”

INNOVATION IN HEALTH FACILITIES

Pandemic has created a challenge before our health facilities. Though the Government has
effectively channelized all the health facilities for the people, but the magnitude and severity of
the pandemic has created stress on our resources. Otherwise also, country needs to expand health
facilities to all the citizens. A healthy nation can have productive and effective work force to
contribute in national income.
This is the time Government can think of innovation in health facilities. The role of various
Government and Private hospitals as well as social and welfare organizations will be of great use.
A proper networking of institutions requires to be done and all should work with proper
coordination with one mission to make our country healthy. Participation of corporate sectors as a
social corporate responsibility can also be encouraged.
Basically, innovative model of health services coordination has to be developed so that the
services of best doctors can be available to all villages with the help of digital consultation and e-
clinics concepts. Government can create pool of trained health workers of local villages and also
creating small depots of generic medicines created and looked after by some doctors, hospitals,
NGOs, social welfare organizations and corporates.
This model will work on the basis of sharing of medical expertise and for this Government
can motivate doctors and medical experts from various places to give their valuable time for the
society and with the help of technology these medical experts can do the diagnosis and prescribe
medicines. Under the guidance of leading doctors, trained medical workers can facilitate some
health facilities to villagers and poor people. At least this model can be used for general illness
which is common in nature and season based. For specific illness or specialty treatment, centers
can be developed at Tehsil level where again with the help of existing doctors and expertise of
leading doctors through technology, treatment can be given to patients. This type of health
services will reduce burden from medical facilities of big cities and also unnecessary traveling of
patients in trains/buses or other transport can be reduced. Central Government is taking
appropriate policy decisions for making digital health a reality in India.
On 15th August, 2020, Honorable Prime Minister Shri Narendra Modi has announced
National Digital Health Mission (https://www.hindustantimes.com). He said that the project will
provide a health ID to every person in the country, and benefit the poor. The Prime Minister said
that whatever medicine a doctor prescribed, when was it prescribed, what were the reports – all
this information will be linked to a person’s health ID.
It is going to be another flagship initiative of the government like Ayushman Bharat.
Every person in the country will get a digital health ID which is basically a digital format of
all his/her health records which will be linked to the registry of doctors and health facilities
across the country. The platform has been planned to improve efficiency, effectiveness and
transparency of health service delivery. The health ID will be in the form of a mobile application
of website.
50 Innovation in Management Practices for the Sustainable Development Goals

During this pandemic, it has been observed that the impact of COVID-19 in India has not
been as severe as it is there in other part of the world. In these achievements the role of
Government and administration is very important; also, Indian way of life, food, habit and even
Indian traditional medicines has created very effective results. It is desired that while expansion
of health facilities Indian traditional medicines or therapy must be given priority which will be
easy for entire country to connect.
Innovation in Employment Creation
India is having largest number of young population and number of youth residing in rural
areas is very high. India need a great innovation to create huge employment for these youngsters
and that will not only remove mass poverty from the country but also contribution of young
people will increase in GDP.
We need to develop certain areas wherein low skilled and semi skilled as well as moderately
educated youth can be involved in productive activities. These areas can be agro-based industries,
garment making, leather products, spare parts, electronics and electrical, computer, etc. wherein
by providing training to youngsters they must be developed for productive use. In creation of
employment, importance should also be given to women as this will be an important step for them
to get not only financial security but also to have social status.
Indian traditional knowledge of medicines and art and craft can also be very effective in
creating employment. Government is giving high importance to India traditional knowledge and
cultural values. During COVID-19, it has been experienced that Indian way of life and traditional
medicines and food habits have helped effectively to boost the immunity of people and save them
from the severe effect of corona virus.
Government along with NGOs and leading Medical, Technical and Management Institutes to
come together to form proper various projects so that employment can be created in rural areas
and the products can be produced technically perfect and it can be marketed across the world
professionally. This is the time when Indian clothing, food, handicraft, traditional medicines,
plantation, floriculture, horticulture leather shoe, traditional ornaments, etc. can be marketed with
most professional way and it should be properly supplied to global market with the help of ICT
facilities of village and by connecting rural people with others. These all efforts will create jobs in
rural areas for low skilled, semi skilled and even unskilled persons and they can contribute in
mainstream development of the country.
Government of India has implemented many programmes for skill development and
placement of rural youth (https://rural.nic.in/). Ministry of Rural Development is undertaking two
initiatives in skill development under the National Rural Livelihoods Mission (NRLM) which are
as follows:
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) is a placement linked skill
development program which allows skilling in a PPP mode and assured placements in regular
jobs in an organization not owned by the skilled person. A total of 2.28 lakh youths have been
trained in the year 2018-19 against a target of skilling of 2 lakh rural youth.
Skill development through Rural Self Employment and Training Institutes (RSETI), thereby
enabling the trainee to take Bank credit and start his/her own Micro-enterprise. Some of such
trainees may also seek regular salaried jobs. Under this scheme, a total of 4.03 lakh youths have
been skilled in the year 2018-19 against a target of skilling of 3.95 lakh youth.
Social Innovative Practices That Will Contribute in Self-reliant India 51

DDU-GKY is being undertaken as PPP Project all over the country through Project
Implementing Agencies (PIAs) registered with the Ministry of Rural Development. Further,
Guidelines of the scheme mandate State Governments to take up skill training projects with
Corporate Social Responsibility funding.
These three social innovations in the field of Health, education and employment with the
help of Information and communication technology will change the future of rural people and
also villages will have better developmental opportunities. Local resources will also have proper
utilization. These innovations will channelize the efforts of all the stake holder of development in
proper direction and will bring change in the lives of poor people and that will be a real
contribution to the vision of “Atmanirbhar Bharat”.

REFERENCES
1. https://rural.nic.in
2. https://www.hindustantimes.com
3. http://bweducation.businessworld.in
4. https://www.gsb.stanford.edu
5. http://www.socialinnovationacademy.eu

ƇƇƇ
 THE CURRENT STATE OF INNOVATIVE
6 INVESTMENT AVENUES IN INDIAN ECONOMY

Dr. Dipti V. Sharma Dr. Swapnali Kulkarni

Associate Professor, Faculty of Management, Associate Professor,
Marwadi University, Morbi Rajkot, Gujarat. PCET’s S.B. Patil Institute of Management, Pune.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
Many types of investment avenues or channels for making investments are available. A sound
investment program can be constructed if the investor familiarizes himself with the various
alternative investments available. Investment media are of several kinds – some are simple and
direct, others present complex problems of analysis and investigations. Some investments are
appropriate for one type of investor and another may be suitable to another person. The ultimate
objective of the investor is to derive a variety of investments that meet this preference for risk and
expected return. The investor will select the portfolio, which will maximize his utility. Securities
present a wide range of risk-free instruments to highly speculative shares and debentures. From
this broad spectrum, the investor will have to select those securities that maximize his utility. The
investor, in other words, has an optimization problem. He has to choose the security, which will
maximize his expected returns subject to certain considerations. The investment decision is an
optimization problem but the objective function varies from investor to investor. It is not only the
construction of a portfolio that will promise the highest expected return but it is the satisfaction of
the need of the investor. For instance, one investor may face a situation when he requires extreme
liquidity. He may also want safety of securities. Therefore, he will have to choose a security with
low returns. Another investor would not mind high risk because he does not have financial
problems but he would like a high return. Such an investor can put his savings in growth shares,
as he is willing to accept the risk. Another important consideration is the temperament and
psychology of the investor. Some investors are temperamentally suited to take risks; there are
others who are not willing to invest in risky securities even if the return is high. One investor may
prefer safe government bonds whereas another may be willing to invest in blue chip equity shares
of the company. Many alternative investments exist. These can be categorized in many ways. The
investment alternatives/avenues are given below in Figure 1.

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The Current State of Innovative Investment Avenues in Indian Economy 53

Fig. 1: Investment Avenues

Ɣ The investment avenues have been categorized as direct and indirect investment
alternatives/avenues. Direct investments are those where the individual makes his own
choice and investment decision. Indirect investments are those in which the individual
has no direct hold on the amount he invests. He contributes his savings to certain
organizations like Life Insurance Corporation (LIC) or Unit Trust of India (UTI) and
depends upon them to make investments on his and other people’s behalf. So, there is no
direct responsibility or hold on the securities. An individual also makes indirect
investment for retirement benefits, in the form of provident funds and pension, life
insurance policy, investment company securities and securities of mutual funds.
Individuals have no control over these investments. They are entrusted to take care of
the particular organization. In the organizations like Life Insurance Corporation or
Unit Trust of India, provident funds are managed according to their investment policy
by a group of trustees on behalf of the investor. The examples of indirect investment
alternatives are an important and rapidly growing segment of our economy. In choosing
specific investments, investors will need definite ideas regarding a number of features
that their portfolio should have.
To summarize:
Ɣ Direct investments are those where the individual has a direct hold on his investment
decision.
Ɣ Indirect investments are those where the investor is dependent on another organization.
Keywords: Innovation, Investment, Indian Economy.
54 Innovation in Management Practices for the Sustainable Development Goals

1. RISKLESS VS. RISKY INVESTMENTS

Most investors are risk averse but they expect maximum return from their investments. Every
investment must be analyzed because there is some risk in it. Only government securities are risk-
less. The Indian investment scene has many schemes to offer to an individual. On an analysis of
these schemes, it appears that the investor has a wide choice. A vast range of investments is in the
government sector. These are mostly risk-free but low return yielding. Several incentives are
attached to it. The private sector investments consist of equity and preference shares, debentures
and financial engineering securities. These have the features of high risk. Ultimately, the investor
must make his investment decisions. The dilemma faced by the Indian investor is the
reconciliation of profitability, liquidity and risk of investments. Government securities are risk-
free and the investor is secured. However, to him, the return or yield is very important as he has
limited resources and would like to plan an appreciation of the investments for his future
requirements. Government securities give low returns and do not fulfill his objective of money
appreciation. Private sector securities are attractive, though risky. Reliance, Infosys, Wipro and
Tatas give to the investor the expectation of future appreciation of investment by several times.
The multinational and blue chip companies offer very high rates of return and also give bonus
shares to their shareholders. Real Estate and Gold have the advantage of eliminating the impact of
inflation, since the price rises experienced by them have been very high. The Indian investor in
this context cannot choose his investments very easily.
An investor can maximize returns with minimum risk involved if he carefully analyzes the
information published in the prospectuses of private companies. Contents as the past performance,
name of promoters and board of directors, the main activities, its business prospects and selling
arrangements should be assessed before the investor decides to invest in the company. From the
point of view of an investor, convertible bonds may under proper conditions, prove an ideal
combination of high yield, low risk and potential of capital appreciation.

2. FIXED AND VARIABLE PRINCIPAL SECURITIES

Fixed principal investments are classified as those whose principal amount and the terminal
value are known with certainty. Cash has a definite and constant rupee value, whether it is
deposited in a bank or kept in a cash box. It does not earn any return. Savings accounts have a
fixed return; they differ only in terms of time period. The principal amount is fixed plus interest is
earned on the deposit. Savings certificates are classified as national savings certificates, bank
savings certificates and postal savings certificates. Government bonds, corporate bonds and
debentures are sold having a fixed maturity value and a fixed rate of income overtime. The
variable principal securities differ from the fixed principal securities because their terminal values
are not known with certainty. The price of preference shares is determined by demand and supply
forces even though preference shareholders have a fixed return. Equity shares also have no fixed
return or maturity date. Convertible securities such as convertible debentures or preference shares
can convert themselves into equity shares according to certain prescribed conditions and thus
have features of fixed principal securities supplemented by the possibility of a variable terminal
value. Debentures, preference shares and equity shares are examples of securities sold by
companies to investors to raise necessary funds. To summarize:
Ɣ Fixed securities terminal values are certain with fixed return and maturity dates.
The Current State of Innovative Investment Avenues in Indian Economy 55

Ɣ Variable principal securities terminal values are uncertain. Their price is determined by
demand and supply mechanism.

3. NON-SECURITY INVESTMENTS
‘Non-security Investments’ differ from securities in other categories. Real estate may be the
ownership of a single home or include residential and commercial properties. The terminal value
of real estate is uncertain but generally there is a price appreciation, whereas depreciation can be
claimed in tax. Real estate is less liquid than corporate securities. Mortgages represent the
financing of real estate. It has a periodic fixed income and the principal is recovered at a stated
maturity date. Commodities are bought and sold in spot markets; contracts to buy and sell
commodities at a future date are traded in future markets. Business ventures refer to direct
ownership investments in new or growing business before firms sell securities on a public basis.
Art, antiques and other valuables such as silver, fine China and jewels are also another type of
specialized investments which offer aesthetic qualities also.
These features should be consistent with the investors’ objectives and in addition should
have additional conveniences and advantages. The following features are suggested for a
successful selection of investments.

4. FEATURES OF INVESTMENT AVENUES

The features of an investment program consists of safety of principal, liquidity, income
stability, adequate income, purchasing power, stability, appreciation, freedom from management
of investments, legality and transferability.
Safety of Principal
The investor, to be certain of the safety of principal, should carefully review the economic
and industry trends before choosing the types of investment. To ensure safety of principal, the
investor should consider diversification of assets. Adequate diversification involves mixing
investment commitments by industry, geographically, by management, by financial type and by
maturities. A proper combination of these factors would reduce the risk of loss. Diversification in
proper investment program must be reasonably accomplished.
Liquidity
An investor requires a minimum amount of liquidity in his investments to meet emergencies.
Liquidity will be ensured if the investor buys a proportion of readily saleable securities out of his
total portfolio. He may, therefore, keep a small proportion of cash, fixed deposits and units which
can be immediately made liquid. Investments like stocks and property or real estate cannot ensure
immediate liquidity.
Income Stability
Regularity of income at a consistent rate is necessary in any investment pattern. Not only
stability, it is also important to see that income is adequate after taxes. It is possible to find out
some good securities which pay practically all their earnings in dividends.
56 Innovation in Management Practices for the Sustainable Development Goals

Appreciation and Purchasing Power Stability

Investors should balance their portfolios to fight against any purchasing power instability.
Investors should judge price level inflation, explore the possibility of gain and loss in the
investments available to them, limitations of personal and family considerations. The investors
should also try and forecast which securities will appreciate. A purchase of property at the right
time will lead to appreciation in time. Growth stock will also appreciate over time. These,
however, should be done through analysis and not as speculation or gamble.
Legality and Freedom from Care
All investments should be approved by law. Law relating to minors, estates, trusts, shares
and insurance be studied. Illegal securities will bring out many problems for the investors. One
way of being free from care is to invest in securities like Unit Trust of India, Life Insurance
Corporation, mutual funds or savings certificates. The management of securities is then left to the
care of the Trust who diversifies the investments according to safety, stability and liquidity with
the consideration of their investment policy. The identity of legal securities and investments in
such securities will also help the investor in avoiding many problems.
Tangibility
Intangible securities have many times lost their value due to price level inflation,
confiscatory laws or social collapse. Some investors prefer to keep a part of their wealth invested
in tangible properties like building, machinery and land. It may, however, be considered that
tangible property does not yield an income apart from the direct satisfaction of possession or
property.
Table 1: Features of Investment Avenues

Particulars Risk Return/ Capital Liquidity/ Tax

Current Yield Appropriation Marketability Benefit
Equity Shares High Low High High High
Debentures Low High Very Low Very Low Nil
Bank Deposit Low Low Nil High Nil
Public Provident Fund Nil Nil Low Low Moderate
Life Insurance Policies Nil Nil Low Low Moderate
Real Estate Low Low High in Long- Moderate Changes
term according to rules
Gold and Silver Low Nil High in Long- Moderate Nil
term
Investment is a study of employment of funds for the purpose of a return to the investor. It is
of long-term horizon and it has to be planned through a proper process of evaluation. The
investment process consists of different stages such as preparing an investment policy, making
investment analysis, valuation of securities, portfolio construction and review.
The Current State of Innovative Investment Avenues in Indian Economy 57

POINTS TO REMEMBER
Ɣ Investment is employment of funds for achieving additional income and growth in value.
Ɣ Investment must be distinguished from speculation and gambling in terms of time
horizon, risk, return and decision-making process. Investment is usually planned
whereas speculation and gambling depend on immediate decisions with also the element
of ‘luck’.
Ɣ Investments are transfers of financial assets from one person to another. They range
from low risk to high risk.
Ɣ Investments are usually long-term and low risk. Speculation is high risk and high return
and for short-term period of time.
Ɣ Investments may be financial claims or real and tangible assets like land and buildings,
plant and machinery, gold, antiques, etc.
Ɣ Investment may be direct and indirect securities like shares and debentures. Investments
in provident funds, pension funds and mutual funds are forms of indirect investments.

REFERENCES
1. Vijay, P. and Siddharth Shastri (2016), “A Study of Various Investment Avenues in India”,
International Journal of Advanced Multidisciplinary Research (2016), Vol. 3(3), pp. 48-51.
2. Bhaskaran Narayanan (2012), “Investors Behavior in Various Investment Avenues: A Study”,
International Journal of Technology Marketing, Vol. 2(7), pp. 164-189.
3. Gupta, Mansi and Kavitha, D. (2019), “Various Investment Avenues with a Special Focus on
Real Estate Investment Trusts (REITs)”, International Journal of Emerging Technologies and
Innovative Research (www.jetir.org), ISSN:2349-5162, Vol. 6, Issue 2, pp. 665-672, February-
2019.
4. Ramanathan, K.V. and Mennakshinsundaram, K.S. (2016), “A Comparative Study between
various Investment Avenues” (ISSN 2348-1269), IJRAR – International Journal of Research
and Analytical Reviews, Vol. 3, Issue 1, Jan-March 2016.
5. Patil, Sonali and Kalpana Nandawar (2014), “A Study on Preferred Investment Avenues among
Salaried People with Reference to Pune, India”, IOSR Journal of Economics and Finance (IOSR-
JEF), e-ISSN: 2321-5933, pp. ISSN: 2321-5925, Vol. 5, Issue 2 (Sep.-Oct. 2014), pp. 09-17.

ƇƇƇ
 USING INDUSTRIAL ECOLOGY AND STRATEGIC
7 MANAGEMENT CONCEPTS TO PURSUE THE
SUSTAINABLE DEVELOPMENT GOALS
Mr. Sagar P. Dhamone
Assistant Professor,
Department of Mechanical Engineering,
Bharati Vidyapeeth’s College of Engineering, Lavale, Pune.
E-mail: [email protected]

ABSTRACT
My research paper focus on the development of an ecology for industry point of you material
and energy flows through industrial systems. The global industrial economy can be modelled as a
network of industrial processes. The concept is develop from start to end of any product and
successfully sale of product into the market. Analyses develop the product as per market required.
Also, statistical analysis is taken in to consideration for development of product aim of this paper
is to develop is ecology which can help for each and every part of a business strategic and
financial management.
Industrial ecology (IE) has been successfully used in engineering practice for decades and
has been suggested as a method that can provide the concepts and methods necessary to bridge
the gap between traditional business practice and sustainable development. The analysis showed
that while the SDGs are primarily aimed at the national level, they also hold relevance for
business through innovation, partnerships, and strategic positioning, inter alia. The analysis
found that the integration of IE and business strategy is highly relevant for three of the SDGs, but
captures elements of all 17 to varying degrees. IE has a strong focus on innovation and its
potential in new markets, products, and business models. IE is also consciously aimed at the
efficient use of energy and resources, ideas that are relevant to mitigating, adapting, and building
resilience in a changing future, but are also relevant to traditional concepts of business strategy
and competitive advantage. This paper shows that through the combination of IE and strategic
management theory, commercial organizations can positively contribute to the Sustainable
Development Goals while building competitive advantage.
Keywords: Global Goals, Text Mining, Management, Business, Competitive Advantage.
INTRODUCTION
Industrial ecology offers an analytic tool that can be applied in various ways and at various
levels of economic aggregation. Because the field is still emerging, considerable debate exists
over industrial ecology’s use and value in different contexts. In this article, we explore one
dimension of industrial ecology: its potential application as a tool for shaping firm strategy and
competitiveness. We examine, in particular, the connections between industrial ecology and
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Using Industrial Ecology and Strategic Management Concepts... 59

current work in the fields of competitive strategy and international competitiveness. We observe
that industrial ecology can spur a certain type of corporate thinking that, when screened through
the lens of resource productivity, may lead to innovations that improve efficiency, lower costs,
and raise the value created by a production process. Industrial ecology can thus serve as a tool for
sharpening firm competitiveness. We note, however, that although industrial ecology has
potential in the realm of competitive strategy as a “discovery” tool, it has limitations as a broader
firm-level guide for strategy generally. Design for the environment (ME), materials cycling, and
an emphasis on closed-loop production processes will yield competitive advantages in some
circumstances. But in other cases, these approaches will not enhance a firm’s competitive position.
Notably, closing some loops may add costs that exceed the benefits to be obtained, especially if
the regulatory system within which a company operates does not fully internalize the costs of air
or water pollution or waste disposal. In addition, attention to energy and materials flows can
distract from the optimization of other scarce resources such as the analytic attention of managers.

Extraction

Disposal Production

Use Manufacture

Fig. 1: Use of Industrial Ecology

The economic benefits of business activities have improved prosperity and living conditions
around the world. At the same time, many of these activities have directly and indirectly led to
negative impacts including environmental damage and social inequality. With a growing
imperative for large-scale societal transformations towards sustainability, it is evident that
traditional business thinking is not able to effectively deliver the changes that are required, and is
often continuing to contribute to the creation of further problems and reinforcing unsustainable
activities (Geels and Schot, 2007; Westley et al., 2011). However, the nature of business is
gradually changing, with increasing calls for commerce to be transformed into an engine of
sustainable development through corporate citizenship, social entrepreneurship, and pro-
environmental behaviors (Abram et al., 2016; Bayon and Jenkins, 2010; Hart et al., 2003; Marcus
et al., 2010; Rahdari et al., 2016; Sutton-Grier et al., 2014; Westley et al., 2011). The traditional
position that the relationships of society and the environment to the firm were those of client and
(limitless) resource provision and waste disposal (e.g. Porter, 1979; Teece et al., 1997; Wernerfelt,
1984) have shifted, to a view where social licence to operate is critical to corporate survival, and
the firm can derive competitive advantage from interaction with environmental management
60 Innovation in Management Practices for the Sustainable Development Goals

activities (Hart, 1995; Hart and Dowell, 2011). These changes are also evident in the movement
towards sustainable materials programs and supporting policy programs incorporated in circular
economy principles (Dentchev et al., 2016; Silva et al., 2015) and industrial symbiosis models
(Rosano and Schianetz, 2014).

METHODS
This study was designed as a scoping study on the crossovers and connectivity between
industrial ecology, business strategy, and the SDGs. A scoping study methodology was chosen to
identify existing synergies and establish foundations for further research. While there are diverse
methodological approaches for scoping studies (Arksey and O’Malley, 2005; Sarrami-Foroushani
et al., 2015), we sought to integrate a rigorous and transparent literature review with quantitative
analysis to synthesize this area of interdisciplinary research and identify research crossovers
between different areas of relevant literature – industrial ecology, strategic business management,
and sustainable development (Arksey and O’Malley, 2005; Pickering and Byrne, 2014).
The methodology involved three steps: a systematic, quantitative literature review reviewing
online databases using selected research criteria; a software-driven text mining analysis of the
SDGs; and an integrated analysis of the literature data set (step 1) using concepts derived from the
SDG texts (step 2). The second and third steps in the study involved use of a text mining software
tool called LeximancerTM. The study was not intended to explore specific examples of how IE
principles had resulted in quantifiable competitive advantage, but identified the conceptual
crossovers between IE and strategic management, and how these are relevant to the potential
achievement of SDGs by firms Leximancer software is useful in exploring concepts across large
data sets (Chen and Bouvain, 2009; Smith and Humphreys, 2006). It analyzes text using
thesaurus-derived concepts from the document sets, iteratively building up a thesaurus of
associated concepts through intelligent proprietary algorithms. Concepts are indexed and
weighted, resulting in a thematic view of relationships between concepts, which can subsequently
be mapped in two dimensions allowing for themes specific to the research problem to be
investigated (Thomas, 2014).
In other words, Leximancer reads document sets and produces a map of key concepts, with
their relationships indicated by their proximity or distance on the map. Leximancer has been used
in a diverse range of applications, including in the examination of corporate social responsibility
reporting (Chen and Bouvain, 2009), historical trends in long range planning literature
(Cummings and Daellenbach, 2009) and the roles of finance and commerce in climate change
mitigation markets (Thomas, 2014). Concepts are placed on the map in proximity to terms with
which they share meaning or a relationship. Through examination of the resulting concept map,
frequency counts, and relationships between both concepts and themes, qualitative interpretations
can be made based on the quantitative, algorithmic analysis (Smith and Humphreys, 2006).
Leximancer identifies the main concepts present in document sets, and indicates how these
concepts are thematically connected.
The first step of the study involved assembling a data set of relevant literature that discussed
all three topic areas, using the systematic quantitative literature review process outlined by
Pickering and Byrne (2014). The search was conducted in the leading databases relevant to
business, technology, and sustainability, namely ProQuest ABI/INFORM, comprising
ABI/INFORM Global, ABI/INFORM Trade and Industry, and ABI/INFORM Dateline. The
database covers peer-reviewed journals, theses and dissertations, working papers, industry reports,
Using Industrial Ecology and Strategic Management Concepts... 61

leading business and economics periodicals, and major news media sources. The database seeks
to represent and provide a complete picture of international business and corporate trends
(see http://www.proquest.com/products-services/abi_inform_complete.html). Other databases
(including Scopusand Web of Science) were tested, but resulted in few relevant hits for all three
search terms, and were eventually excluded from the final analysis.
The search terms chosen were “industrial ecology”, “business strategy” and “sustainable
development”, and the database search captured papers in which all three search terms appeared.
Initially the search terms were entered without quotation marks, but this resulted in over 4000
results. Quotation marks were added to each search phrase, which reduced the search results by a
factor of 10 and targeted the results towards the specific topics of interest in this study – the
examination of the crossover between IE, business strategy, and the SDGs. The analysis was
completed progressively over a number of weeks but finalized on 31st July, 2015. Results were
filtered to include only peer-reviewed, scholarly articles, published in English, for which full-text
papers were available. This resulted in a data set of 290 unique papers and associated citation
information. Microsoft Excel software was used to determine metrics from the citation
information, including counts for journal title, source database, place of publication, and subject
tags, inter alia (see Supplementary Materials for the full data set). Papers were read to ensure
their relevance and confirm that each considered all three specific topics of interest in this study:
“industrial ecology”, “business strategy” and “sustainable development”. The second step in the
research applied the Leximancer software to identify the main concepts present in the SDGs. The
full text of the 17 goals and the associated 169 target descriptions was entered into the
Leximancer software, and a number of iterations run to develop a stable concept map. Words
improperly identified as concepts (e.g., ‘including’, ‘use’) were manually removed from the
analysis for clarity. The results of this step provided ‘seed’ concepts that characterize the SDGs –
these are shown in Table 1. The third step involved a dual process, also using Leximancer, to
analyze the data set of literature using the seed concepts identified in the SDG full text. Concepts
were again manually vetted to remove duplicates resulting from the dual data sets, group similar
terms (e.g., environment and environmental, companies and firms, etc.), remove improperly
identified terms, and to ensure a stable set of results. This produced a detailed and extensive
analysis of the literature data set indicating how and to what extent it incorporated the central
concepts found in the SDGs. These results are shown in Table 1. In addition, up to three
keywords were manually identified for each of the 17 SDGs, based on the authors’ reading of the
text. For example, the text for SDG2 reads “End hunger, achieve food security and improved
nutrition, and promote sustainable agriculture”, from which the keywords ‘nutrition’, ‘food’, and
‘agriculture’ were identified as being principal literature descriptors of the goal. These keywords
were subsequently entered into the Leximancer software as concept seeds in place of the
automatically generated concepts used previously. The project was run again and vetted as in the
previous phases, with concept maps and frequency counts produced (these are shown in Table 2
and Fig. 3). These were then used to quantify areas where the literature on IE and business
strategy overlap to support the implementation of the SDGs.
In summary, the analysis identified literature discussing conceptual crossovers and synergies
between industrial ecology and strategic management, and tested this body of work using the key
concepts present in the text of the SDGs. The results indicated specific areas in which businesses
can apply IE principles and achieve competitive advantage while addressing the sustainability
aspirations of the SDGs.
A schematic of the research method is presented in Fig. 2.
62 Innovation in Management Practices for the Sustainable Development Goals

Table 1: Results from the Leximancer Analysis of the UN Sustainable Development Goals

Concept Count Relevance Concept Count Relevance

(%) (%)
countries 75 100 universal 18 24
sustainable 57 76 persons 18 24
development 56 75 land 18 24
developing 53 71 strategies 14 19
access 48 64 regional 14 19
international 46 61 sustainably 14 19
national 41 55 vulnerable 13 17
support 30 40 implementation 13 17
resources 28 37 innovation 11 15
promote 24 32 ecosystems 11 15
technology 24 32 disasters 11 15
domestic 22 29 gender 10 13
increase 22 29 needs 9 12
women 20 27 food 6 8

Fig. 2: Schematic of the Research Process

Using Industrial Ecology and Strategic Management Concepts... 63

Table 2: Results of Analysis using Manually Identified Keywords for each SDG as Seed Concepts
SDG Keyword Concept Relevance SDG Keyword Concept Relevance
Count (%) Count (%)
Goal 1 poverty 181 5 Goal 10 inequality 35 1
Goal 2 nutrition 188 5 equity 481 14
agriculture 297 9 Goal 11 cities 214 6
food 756 22 settlement 25 1
Goal 3 health 698 20 Goal 12 production 2464 71
wellbeing 92 3 consumption 1591 46
Goal 4 education 810 23 Goal 13 climate change 974 28
learning 812 23 impact 2341 67
inclusive 558 16 Goal 14 ocean 55 2
Goal 5 gender 135 4 sea 37 1
equality 128 4 marine 41 1
Goal 6 water 964 28 Goal 15 ecosystem 767 22
sanitation 720 21 forest 221 6
Goal 7 energy 2950 85 degradation 280 8
modern 287 8 Goal 16 society 1206 35
Goal 8 employment 249 7 justice 251 7
economic 297 9 accountable 305 9
growth
Goal 9 innovation 2080 60 Goal 17 implement 785 23
infrastructure 467 13 partnership 311 9

Fig. 3: Concept Map Derived from Leximancer Analysis of UN Sustainable Development Goals
64 Innovation in Management Practices for the Sustainable Development Goals

RESULTS
The first step in the study was the systematic literature review, with a total of 290 academic
articles mentioning all three search terms identified through the search. The data set (attached as
Supplementary Information) includes a variety of field codes or ‘tags’ for each article, and
comprised: 230 ‘feature’ articles(meaning papers appearing in special issues or otherwise
highlighted as a ‘feature article’ in the database field codes), 18 articles from sources labelled as
periodicals, 11 regular journal articles, with the remainder consisting of case studies, literature
reviews, and book reviews, inter alia. All the papers identified were found in the ProQuest/ABI
INFORM Global database. A small number of papers were identified in the Scopus and Web of
Science databases, but were excluded from the assessment for not meeting the selection criteria
(i.e., peer-reviewed journal article, for which full text was available). Articles were published in
117 unique journals. The major journals publishing in this field are Business Strategy and the
Environment (29), Journal of Business Ethics (26), Supply Chain Management (13), International
Journal of Operations and Production Management (11), and Greener Management International
(9). Publications per year generally followed an upward trend, with only a single paper identified
in 1994, while 38 unique papers were published in 2012.
Numbers have decreased slightly since this time, with 34 published in 2013, 28 in 2014 and 6
identified in 2015. From the citation information, 520 unique subject tags were identified, with
the most common being Studies (197), Sustainable Development (93), Environmental
Management (93), Social Responsibility (49), and Supply Chains (36). The ‘Studies’ resulted can
be discounted, representing the large proportion of papers reporting original research.
In the second step of the study, a digital copy of the proposed SDGs and associated targets
was loaded into the Leximancer software. The resulting concept map is presented in Fig. 3, with
associated concept frequency and relevance counts displayed in Table 1.

THE LIMITS OF INDUSTRIAL ECOLOGY

Although industrial ecology can help improve resource productivity, its stand-alone value as
a guide to company strategy and competitiveness is limited. In particular, paying attention to
energy and materials flows and closing loops within the production process will, in some
circumstances, detract from rather than improve a company’s competitive position. Three such
situations come immediately into mind.

COSTS EXCEED BENEFITS

The belief in the perfection of the circle cannot be taken too far. Even when company gains
and social benefits are summed, the costs of closing some loops may exceed the benefits. The
recapture of water vapor, for example, may well create large private costs for any company that
undertakes to do so, and is unlikely to produce benefits to society (or the company) that justify the
investment. In this case, it makes sense not to close the loop, both from a company point of view
and from a broader societal perspective.
The tendency of some industrial ecology advocates to overstate their case and insist on the
superiority of entirely closed-loop systems is self-defeating. There are many places where a DfE
approach will generate value. Conceding that, in some realms, closing loops will not generate
value strengthens the case for industrial ecology as a corporate strategy tool. Moreover, a more
nuanced theory of industrial ecology, which acknowledges its limitations and concentrates on the
Using Industrial Ecology and Strategic Management Concepts... 65

substantial zone of overlap with competitive strategy thinking, will be far more persuasive to the
business community.

CONCLUSION
At the firm level, industrial ecology offers a promising discovery tool for enhancing resource
productivity and ensuring that companies operate with optimal efficiency and profitability.
Industrial ecology can promote innovation and help managers find opportunities, both inside and
outside their firms, to add value to their products or to cut overall costs—and thus to improve
their competitiveness. But for companies operating within our existing (imperfect) environmental
regulatory structure, industrial ecology cannot be counted upon to optimize financial performance.
Industrial ecology at the firm level must be seen, therefore, as a useful tool for improving
resource productivity but not as an independent guide to competitive strategy.
The traditional business practices fundamental to 20th century economic development have
largely ignored the natural environment and society in which they have operated. As we move
further into the 21st century – a period in which human activities are the primary drivers of
planetary environmental and climate dynamics (Waters et al., 2016) – it is evident that business
leaders cannot operate in isolation, but must alter their view of the firm to one in which they
recognize their critical role in a larger social-ecological-industrial system. A shift in strategic
direction for business is required, one that identifies the competitive advantages associated with
environmentally and socially responsible business practices through the science of industrial
ecology, its focus on sustainable industrial systems and its interconnection with modern business
strategy. The analysis presented here contributes to the growing body of evidence that proactive
sustainability practices are strategically advantageous for firms.
The broad central principles of IE have the potential to contribute to the achievement of the
international SDGs. IE provides a basis for a further evolution in thinking where the firm exists as
part of, and because of, the social-ecological system, and competitive advantage is found through
the combination of internal competencies and from the full consideration of external drivers. This
study suggests areas for further research, including detailed assessment of the value creation
frameworks mentioned previously – the Creating Sustainable Value framework (Hart et al., 2003)
and Eco-Synergy approach (OSU Centre for Resilience, n.d.), inter alia – to determine synergies
between these and IE. Even more importantly, the next step in this evolution in sustainable
business thinking will be to develop the methods and frameworks to enable the transfer and
sharing of ideas between IE and strategic management. This should be a two-way transfer as no
single discipline or strategy can solve the sustainability challenge alone. There is clearly a need
for conceptual frameworks that can be applied by business managers to harness IE principles and
concepts in strategic planning and evaluation processes. This area warrants further research and
there is need for the development and articulation of theoretical frameworks that integrate IE
principles and strategic management concepts in a way that offers practical operational tools for
business managers. Additionally, development of quantitative studies that analyse the benefits of
implementing IE principles and approaches in corporate decision-making to reach the SDGs
should be conducted, using the results of this paper as baseline.
The private sector is critical to achieving the SDGs. Business plays a central role in the
provision of the products and services that are required now and into the future, and is the
cornerstone for economic investment, job creation, and a multitude of other important aspects of
sustainable development. It is now necessary to embrace a more holistic approach to economic
66 Innovation in Management Practices for the Sustainable Development Goals

development, building value in human and natural systems for the long term. The concepts that
underlie IE align closely with the ideas of sustainable development that inform the SDGs. This
paper has identified some of the potential crossovers in IE principles in the strategic pursuit of
competitive business advantage and the SDGs. While IE at the firm (business) level can be seen
as a useful tool for improving resource productivity, it is not an independent guide to competitive
strategy (Etsy and Porter, 1998). This research identified three particular areas of crossover and
connectivity in the industrial ecology, business strategy, and sustainable development literatures:
(1) the efficient use of energy and resources; (2) the pursuit of innovation; and (3) mitigation of
an adaptation to climate change, as areas of competitive advantage for firms resulting from
application of IE principles. The identification and focus on competitive advantage through these
sustainable management and development activities, should be encouraged, promoting the
potential realization of the SDGs and the ongoing evolution of current business thinking to meet
the sustainability challenges ahead.

REFERENCES
1. Geels, F.W. and Schot, J. (2007), “Typology of Socio-technical Transition Pathways”, Research
Policy, Vol. 36, pp. 399-417.
2. Gladwin, T.N., Kennelly, J.J. and Krause, T.S. (1995), “Shifting Paradigms for Sustainable
Development – Implications for Management Theory and Research”, Academy of Management
Review, Vol. 20, pp. 874-907.
3. González-Benito, J. and González-Benito, Ó. (2005), “Environmental Proactivity and Business
Performance: An Empirical Analysis”, Omega, Vol. 33, pp. 1-15.
4. Graedel, T., Allenby, B. and Linhart, P. (1993), “Implementing Industrial Ecology”, IEEE
Technology and Society Magazine, Vol. 12, pp. 18-26.
5. Griggs, D., Stafford-Smith, M., Gaffney, O., Rockstrom, J., Ohman, M.C., et al. (2013), “Policy:
Sustainable Development Goals for People and Planet”, Nature, pp. 495, 305-307.
6. Guillén, M.F. and Baeza, E.O. (2012), “Global Turning Points: Understanding the Challenges for
Business in the 21st Century”, Cambridge University Press.
7. Hahn, R. and Kühnen, M. (2013), “Determinants of Sustainability Reporting: A Review Of
Results, Trends, Theory and Opportunities in an Expanding Field of Research”, Journal of
Cleaner Production, Vol. 59, pp. 5-21.
8. Hajer, M., Nilsson, M., Raworth, K., Bakker, P., Berkhout, F., de Boer, Y., et al. (2015),
“Beyond Cockpitism: Four Insights to Enhance the Transformative Potential of the Sustainable
Development Goals”, Sustainability, Vol. 7, pp. 1651-1660.
9. Hart, S.L. (1995), “A Natural-Resource-based View of the Firm”, Academy of Management
Review, Vol. 20, pp. 986-1014.
10. Hart, S.L. and Dowell, G. (2011), “A Natural-Resource-based View of the Firm: Fifteen Years
After”, Journal of Management, Vol. 37, pp. 1464-1479.
11. Nelson, R. and Winter, S. (1982), “An Evolutionary Theory of Economic Change”, Cambridge,
MA: Belknap Press.
12. Nordhaus, W.D. (1992), “The Ecology of Markets”, Proceedings of the National Academy of
Sciences of the United States of America, Vol. 89(3), pp. 843-850.
Using Industrial Ecology and Strategic Management Concepts... 67

13. O’Rourke, D., L.S. Connelly and C. Koshland (1996), “Industrial Ecology: A Critical Review”,
International Journal of Environment and Pollution, Vol. 6(2/3), pp. 89-1 12.
14. Panayotou, T. and C. Zinnes (1994), “Free-lunch Economics for Industrial Ecologists”, in
Industrial Ecology and Global Change, edited by R. Socolow, Cambridge: Cambridge
University Press.
15. Parkinson, G. (1990), “Reducing Wastes can be Cost-effective”, Chemical Engineering, Vol.
97(7), pp. 30-33.
16. Porter, M.E. (1990), “The Competitive Advantage of Nations”, New York: Free Press.
17. Porter, M.E. (1991), “America’s Green Strategy”, Scientific American, Vol. 264(4), p. 168.

ƇƇƇ
 INNOVATIONS IN OPERATIONS
8 MANAGEMENT PRACTICES

Dr. Satish Chinchorkar

Free Lancer
E-mail: [email protected]

ABSTRACT
There is a popular say that ‘do the things differently if you want different results’. In today’s
competitive world, it is essential for every business to get the better results from optimum input
resources available to sustain. For getting the better results, thinking and further systematically
implementing the innovative ideas is the key. Today, Japan is the second-largest steel exporter in
the world. This is despite of fact that Japan does not have the required sources of natural
resources like iron and coal. Additionally, paucity of land to erect the steel processing plant
infrastructures makes it further grim. However, this miracle was possible by implementation of
the effective innovations in management. As rightly stated by Hamel (Gary, 2006), management
innovations are more important than even great products and skilled people for the success of
business-leaders like General Electric, DuPont, Procter and Gamble, Visa and Linux. According
to Burkus (David Burkus, 2013), there is no scarcity of good ideas in the world; the only precise
recognition of business problems is required. Further, sustainability of innovations need to be
ensured. This paper attempted to study the business opportunities and related innovations in
operations management.
Keywords: Operations Management, Innovation, Sustainability.

INTRODUCTION
The innovations are not limited to only finding new materials, technology or inventing new
products, but finding the ways to become more energy efficient and productive management
practices. Innovations in Operations Management consist of finding out totally new ways of
obtaining and completing the orders, inventing innovative products and services, providing the
best customer service, or doing any other activity that can optimize the enterprise operations.
There is an extreme difference between terms “managing the inventions” and “inventions in
management”. Managing the inventions includes traditional way of managing (i.e., activities such
as planning, organizing, coordinating and controlling) the inventions. The inventions can be
related to new raw material, new technology or new product or service. However to contemplate
inventions in management, the management practices (in this case, specifically Operations
Management practices), should be identified first and then find the opportunity to implement
these innovative practices either radical or incremental manner.

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Innovations in Operations Management Practices 69

THEORETICAL BACKGROUND AND LITERATURE REVIEW

In their paper (Danielsson and Strigård, 2012) stated that defining the innovations is
management is really challenging. They explained that how the innovation processes vary from
organization to organization, because of their different organizational structures. According to
them, “being innovative is not optional anymore; it is must for firms that wish to sustain
competitive advantages as well as staying ahead of competitors”. The impact of innovations in
operations management is on reducing the green house gases, during operations, transportation
and delivery system including packaging involves green supply chain management practices
(Chinchorkar, S. and Limay, S., 2017). The impact of Management Innovation (MI) and
Technological Innovation (TI) on organization performance with the arbitrating role of
sustainability (Zhang et al., 2019) was done in which sustainability is measured in terms of
environmental and economic performance.
While explaining the contribution of Management Innovation (MI) in mid-term and long-
term growth and profitability (Sánchez et al., 2011), the model to audit and classify the Operation
Management Innovations is proposed. The necessity of Sustainable Innovations (SI) was
articulated (Fadhilah and Ramayah, 2012) as a solution to becoming greener yet competitive. The
influence of management practices, technology, human resources and external relationship on
Sustainable Innovations (SI) is elaborated in which management practices includes research and
development activities with Life Cycle Analysis (LCA). Whereas HR practices includes training
and employee participation. External relationships include agencies like stakeholders, regulators,
customers, suppliers, competitors and environmental activists.
The innovations in services, banking and information technology is explained (Qureshi et al.,
2008) with types of innovations as radical, incremental and me-too. The degree of innovativeness
was determined and observed that incremental innovations results in improvement specifically in
SMEs (Small and Middle Enterprises). The correlation is established with Innovative
Management (IM) practices + Degree of Innovation (DI) + Innovation Type (IT) and Innovation
Performance (IP). They explained the relationship between Innovation Performance (IP) and
Organizational Performance (OP) + Market Performance (MP).
The classification of innovations (WoĨniak, 2015) suggested for better control. Innovations
can be classified as product, new method of production, new market, new raw material and new
organization. Based on outcome the innovations were classified as social utility to public;
improve quality and comfort, creating new inventions, transform socio-economic and political
environment and changes in ecosystem.

HYPOTHESIS
Innovations in Operations Management Practices improve the Organizational Productivity,
Performance and Sustainability.

METHODOLOGY
The paper is conceptual in nature and is based on the personal experience, interviews and
study of past research conducted. A systematic approach is proposed to explore the Innovations in
Operations Management Practices. A mixed approach was used in this paper. The respondents
were drawn from industry professionals in the field of operations management. Feedbacks were
also taken from academicians in the domain of production and operations management.
70 Innovation in Management Practices for the Sustainable Development Goals

DISCUSSION

1. Innovations
Innovation can be treated as a new idea or imaginations or creative thoughts as the
application of better solutions to meet new requirements, increase productivity and sustainability,
and delight the customers.
These new ideas or innovation comes through methods such as brainstorming, empathy
mapping and Belbin techniques. The classification of Innovations Types recommended in terms
of Technology and Market (Lopez, 2015) is explained in matrix as follows:
Table 1: Classification of Innovations

Technology Market
New Existing
New Radical Innovations Disruptive Innovations
Existing Architectural Innovations Incremental Innovations
The Radical Innovation is recommended in new market for emerging technology, whereas
Disruptive Innovations recommended for existing market (for emerging technology).
The Architectural Innovation is recommended in new market for existing technology,
whereas Incremental Innovations recommended for existing market (for existing technology).
Based on these four types of Innovations following strategies were recommended.
Table 2: Innovations Strategies

Product Market
Sustainable Disruptive
Radical Improvement in product in existing Innovative product in emerging market
market
Incremental Consistent and steady process Improvement in product in disruptive
market
Improvement in product in existing market is recommended in Sustainable Market for
Radical Innovations, whereas Innovative product in emerging market is recommended in
Disruptive Market (for Radical Innovations).
Consistent and steady process is recommended in Sustainable Market for Incremental
Innovations, whereas Steady Improvement in product is recommended in Disruptive Market (for
Incremental Innovations).
There are different types of Innovations such as Product Innovation, Service Innovation,
Process Innovation, Open Innovation, Value Innovation and Management Innovation. In this
paper Management Innovations are considered, which includes business strategies, systems and
structures of management.
2. Operations Management Practices
Traditional practices in Operations Management consist of planning, organizing, controlling
the people, information, goods/material and finance. Innovative Operations Management
Innovations in Operations Management Practices 71

Practices includes concepts such as Maturity Model for Production Management which was
developed (Kosieradzka, 2017), in which a complete approach to solving problems in production
management involving the design of new and the application of existing methods and techniques.
The concept uses a toolbox of methods and techniques designed to achieve the key goal. The
model builds on the following concepts: 5S, LM (Lean Manufacturing), TOC (Theory of
Constraint), TQM (Total Quality Management), Six Sigma, TPM (Total Productive Maintenance),
Kaizen and BPR (Business Process Reengineering).

PRODUCTIVITY ASSESSMENT

MATURE LEARNING ORGANISATION

Quantitatively Managed Processes
Executed Processes

Managed Processes

Optimised Processes
Defined Processes

Fig. 1: Maturity Model for Production Management

Ref.: Anna Kosieradzka, Procedia Engineering, 182 (2017), pp. 342-349
Adoption of appropriate innovative practices in the traditional approach is suggested in
increase the productivity.
3. Organizational Productivity and Performance
Paul in his article ‘Defining and Measuring Productivity’ (Krugman, 1994) given simple
definition of productivity as ratio between the output volume and the volume of inputs. According
to him, productivity can be considered as one of the important source of economic growth and
competitiveness. Additionally, the productivity can be used for assessment of organizational
performance also.
Innovations in Operations Management should be classified, implemented and productivity
with performance shall be measured on three levels management. As the innovative practices at
72 Innovation in Management Practices for the Sustainable Development Goals

strategic (top) level are different than innovative practices involved at tactical (middle) level, and
innovative practices at tactical (middle) level are different than innovative practices involved at
operational (transaction) level.

Fig. 2: Management Levels

The impact of strategic level innovation management practices on firm innovation
performance (Kalay, 2015) was analyzed for manufacturing sector in Turkey. In this study, the
author concluded that the specific factors namely innovation strategy, organizational structure,
innovation culture, technological capability and customer-supplier relationship having direct
impact on organizational productivity and performance.
4. Sustainability
The term Sustainability is originated (Kuhlman and Farrington, 2010) in Brundtland Report
in 1987. In the context of Innovations in Operations Management Practices, Sustainability can be
viewed as continuous updation on current market focus, movement and catering the requirement.
The three pillars of the Sustainability are also known as Triple Bottom Line (TBL) is as
shown in Figure 3.

Fig. 3: Three Pillars of Sustainability

Sustainability is integrated balanced achievement of three dimensions, namely Social
element which is related to people, Environmental element which is related to planet and
Economic element related to profit.
Innovations in Operations Management Practices 73

Sustainability is all about equilibrium between three Ps, People-Planet-Profit. Achieving this
balance is a challenging task. Traditional operations management practices have constraints to
attend the results. Hence there is necessity and scope for the innovations in operations
management practices.
In fact, achieving the sustainability itself is an innovative challenge in the field of operations
management practices.
Table 3: Triple Bottom Line concept of Sustainability

Social People Improve the well being of workers

Environmental Planet Reduce the carbon emissions and pollution
Economic Profit Optimizing resources, Minimize wastage

FINDINGS AND RECOMMENDATIONS

Operations Management typically involves many activities and practices to transform the
input (raw material) into output (finished goods). This involves various stages such as design,
planning, control and implementation.
Managing the innovations is a complex process. Successful implementation of new ideas
known as Innovation involves external as well as internal factors. External factors such as
locations and government policies are having impact on results. Also internal factors which
mainly involve management practices also influence the outcomes. Toyota and Dell are classic
examples of implementation of radical and incremental innovations in manufacturing or
production management, whereas Wal-Mart in distribution and supply chain management.
It is suggested to apply the techniques such as process-flow-diagram, swim-lane-map,
process-chart and value-stream-map to identify the areas where innovations can be deployed.
To introduce the innovations in any of the stage mentioned above innovation need to pass
from different stages of its life cycle such as idea generation, evaluation, selection,
conceptualization, implementation, verification and further enhancement. Additionally feasibility
study and financial impact need to be analyzed.
Following three models are suggested to implement the designated innovations:
1. Plan, Do, Check, Act (PDCA) cycle to implement the innovative operation management
practices
2. Supply Chain Operations Reference (SCOR) is a model that integrates business
operations, people and performance to obtain sustainable results from innovations.
3. Define, Measure, Analyze, Improve and Control (DMAIC) model to ensure
sustainability of innovations.
Adopting the appropriate innovative approaches such as Total Quality Management (TQM),
Just in Time (JIT), Total Productive Maintenance (TPM), Quality Function Deployment (QFD),
Statistical Process Control (SPC), Business Process Reengineering (BPR), 5S, Six Sigma, Lean
Management, Automation and use of ERP is recommended as innovative operations management
practices.
Poka-Yoke is device is suggested to analyze the outcome of these innovative practices.
Therefore the task of implementing the innovations in operation management becomes
challenging yet vital.
74 Innovation in Management Practices for the Sustainable Development Goals

CONCLUSION
Systematic approach for generating, prioritizing, evaluating and validating the new ideas
specifically in Operations Management Practices improve the Organizational Productivity,
Performance and Sustainability.
REFERENCES
1. Chinchorkar, S. and Limay, S. (2017), “Product Design Deliberations for Circular SCM to
Promote Green SCM”, IMR (Indira Management Review), Vol. XI(1), pp. 67-75,
www.groupexcelindia.com
2. Danielsson, K. and Strigård, H. (2012), “Innovation Management – How Does It Work in
Practice in Different Organizational Structures?”, Ph.D. Thesis, 54.
3. David Burkus (2013),“Innovation Isn’t an Idea Problem”, Harvard Business Review.
4. Fadhilah, Z. and Ramayah, T. (2012), “Behind the Green Doors: What Management Practices
Lead to Sustainable Innovation?”, Procedia – Social and Behavioral Sciences, Vol. 65
(ICIBSoS), pp. 247-252, https://doi.org/10.1016/j.sbspro.2012.11.118.
5. Gary, H. (2006), “The Why, What and How of Management Innovation”, Harvard Business
Review, Vol. 84, Issue 2, pp. 72-84, https://doi.org/10.1080/09537320802557384.
6. Kalay, F. (2015), “The Impact of Strategic Innovation Management Practices on Firm Innovation
Performance”, Pressacademia, Vol. 2(3), pp. 412-429, https://doi.org/10.17261/pressacademia.
2015312989.
7. Kosieradzka, A. (2017), “Maturity Model for Production Management”, Procedia Engineering,
Vol. 182, pp. 342-349, https://doi.org/10.1016/j.proeng.2017.03.109.
8. Krugman, P. (1994), “Defining and Measuring Productivity”, Organisation for Economic
Cooperation and Development, http://www.oecd.org/std/productivity-stats/40526851.pdf.
9. Kuhlman, T. and Farrington, J. (2010), “What is Sustainability?”, Sustainability, Vol. 2(11),
pp. 3436-3448, https://doi.org/10.3390/su2113436.
10. Lopez, J. (2015), “Types of Innovation | Constant Contact Tech Blog”, in Constant Tech Blog,
https://techblog.constantcontact.com/software-development/types-of-innovation/.
11. Qureshi, T.M., Dar, I. and Khan, M.A. (2008), “Innovation Management: Types, Management
Practices and Innovation Performance in Services Industry of Developing Economies”,
Innovation and Knowledge Management in Business Globalization: Theory and Practice, Vols.
1 and 2, 1, pp. 1151-1164, http://www.ibimapublishing.com/journals/CIBIMA/volume1/v1n19.
pdf.
12. Sánchez, A., Lago, A., Ferràs, X. and Ribera, J. (2011), “Innovation Management Practices,
Strategic Adaptation, and Business Results: Evidence from the Electronics Industry”, Journal of
Technology Management and Innovation, Vol. 6(2), pp. 14-38, https://doi.org/10.4067/s0718-
27242011000200002
13. WoĨniak, J. (2015), Edited by Jerzy WoĨniak Innovation Management Theory and Practice,
https://www.pdfdrive.com.
14. Zhang, Y., Khan, U., Lee, S. and Salik, M. (2019), “The Influence of Management Innovation
and Technological Innovation on Organization Performance: A Mediating Role of
Sustainability”, Sustainability (Switzerland), Vol. 11(2), https://doi.org/10.3390/su11020495.
ƇƇƇ
 EVOLUTION OF THE RISK MANAGEMENT IN
9 BANKING SECTOR

Dr. Manish Sharma Ms. Akriti Srivastava

Assistant Professor, Scholar,
Institute of Engineering and Technology, Institute of Engineering and Technology,
Lucknow. Lucknow.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
This work is an attempt by the authors to have a deeper analysis on the evolution of risk
management in banking sector over the past years. Risk Management refers to the forecasting
and evaluation of financial risks together with the identification of procedures to avoid or
minimize their impact. In banking sector, risks include Credit Risk, Market Risk, Operational Risk
and Liquidity Risk. Management of risks is important in banks since their large size overexposes
to risk that can cause bank failure. Risk Management in banks is required to better understand
the drivers and dynamics of each type of risk. The ability of banks to manage risks greatly affects
investor’s decision.
The study used is Archival, data is secondary in nature and is analyzed well and the findings
concluded that the risk management in banks can experience even more sweeping change in the
next decade, the trends suggests that banks can take some initiatives for shortcoming results
while getting prepared for the upcoming changes. Furthermore, there are six trends involved in
changing the risk management in the banking sector: Regulation which will continue to broaden
and deepen, Customer expectations which are rising in line with changing technology,
Technology and advanced analytics which are evolving, New risks that are emerging, The risk
function that can help banks remove biases and The pressure for cost savings that will continue.
Keywords: Risk Management, Finance and Banking Sectors.

INTRODUCTION
Risk can be defined as of losing something of value or something which is weighed against
the potential to gain value of something. Risk Management is defined as the complete process of
identification, evaluation and prioritization of risks followed by coordinated and economical
applications of resources to minimize, control and monitor the probability of impact of
unfortunate events or to maximize the opportunities. Risk Management in banking sector is
theoretically defined as “the logical development and execution of a plan to deal with potential
loss.” Risk Management is important in banks since till now they have been working in a
regulated environment which is not much exposed to the risks but due to the increase of severe
competitions in banks, they are now exposed to such risky environment. The main objective of
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76 Innovation in Management Practices for the Sustainable Development Goals

Risk Management in banks is to manage the institutions exposure to losses or risk and to protect
the value of its assets. In the course of the operations in banks, they are faced with different types
of risks that may or may not have a potentially adverse effect on their business. The banks are
liable to form a risk management system that can always keep a check on the uncertainties
involved and the opportunities ahead. This Risk Management System in banks complaisance of:
Ɣ Risk management strategies and policies, including the risk identification procedures
and measurement that is a system for risk assessment and risk management
Ɣ Bank’s organizational structure that means the complete and appropriate internal
organization of the bank
Ɣ The process of covering all the risk the bank is exposed to or may potentially be
exposed to, which must be effective and efficient at operational level
Ɣ Adequate internal systems
Ɣ Appropriate information system
Ɣ Appropriate process of internal capital adequacy assessment

WHY IS IT IMPORTANT?
Till date banking sectors have been working in regulated environment and were not much
exposed to the risks but due to increase of severe competitions has been exposed to various types
of risks such as financial and non-financial risks.
Due to such increased competition and practice of risk management, banking efficiency has
increased as well as the practice of corporate governance has increased. Risk Management
model’s main aim is to minimize or reduce the risks of the products and services that are offered
by the banks. Thus, to mitigate the internal and external risks there is a need of efficient risk
management framework.
Due to increased global competition by the foreign banks, introduction of innovative
financial products and instruments management of risk is necessary.
Due to increased globalization and liberalization and the increased advancements leads these
banks to encounter risks. Since, the banks risk plays a major role in the earnings therefore higher
the risk, higher will be the returns.
Hence, it is essential to maintain equality between risk and return.

EVOLUTION OF RISK MANAGEMENT

Risk Management in the banking sector has been introduced in the past 25 years. And thus,
this has been categorized into three stages – Childhood, Adolescence and Adulthood.
This study is to investigate the evolution or the changes that has been made in the risk
management of banking sector in order to stabilize the banks and make them more aware of the
opportunities and upcoming threats.
The First Stage of the Risk Management – Childhood
The first stage or the childhood stage dates back to 20th century, and can be divided into two
halves first mid-50s and mid-80s. After the World War II, financial markets were developed and
the countries were more industrialized. The Financial Operators were responsible for management
Evolution of the Risk Management in Banking Sector 77

of securities and loan portfolios, which was called “Babel” of financial risk measures. In this
technique, each segment of the financial market presented its specific risk indicators which means
there was no common language for risk measurement, different segment was presented by
different indicator.
Stock market operators used the beta which was introduced in the CAPM theory that is the
Coefficient that measure the share in relation to the market. Credit market operators, used
gradings that linked the name of debtor or issuer with appraisal of creditworthiness and
probability of default.
Since, these risks were expressed in different units of measurement it was impossible to
capture and thus it failed to provide the information about the evolution of current market
situation and potential unexpected loss in case of negative variation in the risk factors.
The second half of the first sage that is 70s and 80s “derivatives” concept was used: futures,
swaps and options, that today is also represented ass the main instrument for hedging financial
risk. The contribution of Fisher Black is the most important at this stage. By laying the foundation
theory of the assessment of options and relative hedging techniques, he also proposed a model for
changes in interest rates and approached to financial portfolio management.
The Stage II of Evolution of Risk Management – Adolescence
In the second stage of the evolution of the risk management concept of Value at Risk (VaR)
was generated, which was a more effective and powerful idea than any other. It provided a risk
measure shared by different positions and risk factors. It allows for the aggregation in a single
number of all different types of risk of portfolio aside from quantifying the unexpected loss, it
contained useful information about the correlation probability and expressed in currency. 1994
was the period of rapid growth of risk measurement models and techniques that are still used in
various organizations. In parallel to the development of derivatives market, another market was
expanding called “debt securitization” further known as “originate and sell”. Further, in 2003,
a new regulation was passed by the supervisory authorities called Basel II accords, which enabled
banks to use their own internal models for the assessment of credits and market risk in order to
quantify the minimum capital requirements that hey should have.
The stage III of Evolution of Risk Management – Adulthood
Now, the banks have learned from their own mistakes and so the Chief Risk Officer (CRO)
is hired in almost every bank who coordinates various resources and administrates a budget of a
certain size.
With the introduction of Basel III accords in 2010, which made mandatory for the banks to
hold a higher net worth, especially with regard to market risk and the securities they hold. The
securitization market has undergone a spectacular slowdown which now has started to show
recovery. The derivatives contracts exchanged across banks instead of being completely stopped
have now evolved towards contractual forms that are more and more guaranteed by cash deposits
or exchanged via dedicated central Compensation Offices.

TYPES OF RISKS IN BANKING SECTOR

Banks are exposed to many risks during their operations. Various risks involved in banks are:
liquidity risk, credit risk (including residual risk, dilatation risk, settlement/delivery risk, and
counterparty risk); interest rate risk; foreign exchange risk and other market risks; concentration
78 Innovation in Management Practices for the Sustainable Development Goals

risk, particularly including risks of exposure of bank to one person or a group of related person;
bank’s investment risks; risks relating to the country of origin of the entity to which a bank is
exposed (country risk); operational risk particularly including legal risk; risk of compliance of the
bank’s operations; risk of money laundering and terrorist financing; and strategic risk.
1. Credit Risk: It is the adverse effects on the bank’s financial result and capital due to
debtor’s default to meet its obligations to the bank.
Involves borrower risk, industry risk and portfolio risk. Credit Risk is also known as
Default Risk which checks the inability of the industry, counterparty or a customer who
are unable to meet commitments of making settlement of financial transactions. Factors
affecting credit risks are both internal (lack of appraisal of borrower’s financial status,
inadequate risk pricing, proper loan agreement, etc.) and external (trade restrictions,
fluctuation in exchange rates and interest rates, fluctuations in commodities or equity
prices, tax structure, government policies, political system, etc).
Ɣ Counter-party credit Risk: It is a risk which arises from counterparty’s failure to
settle their liabilities in a transaction before final settlement.
Ɣ Concentration Risk: It arises directly or indirectly from the bank’s exposure to the
same or similar source of risk, or, some or similar type of risk.
Ɣ Industry Risk: It arises in account of smallest percentage of the currently held
financial positions which has to be sold or reinvested.
2. Market Risk: After the modernization and progress in banking sector, market risk
started arising such as fluctuation in interest rates, changes in market variables,
fluctuation in commodity prices or equity prices and even fluctuation in foreign
exchange rates, etc.
This entails foreign exchange risk, price risk on debt securities, price risk on equity
securities, and commodity risk.
Ɣ Interest Rate Risk: This risk arises in account of banking book items caused by
changes in interest rates.
Ɣ Liquidity Rate: Liquidity Risk occurs due to the bank’s inability to meet the due
liabilities caused by the withdrawal of the current sources of funding.
Ɣ Currency Forex Risk: Credit Forex Risk is involved in account of changes in
foreign exchange rates.
3. Operational Risk: It arises due to the modernization of the banking sector and financial
markets which gave rise to structural changes, increase in volume of transactions and
complex support systems. It involves risks related to business interruption or problem so
this could act as a trigger for the market or the credit risk.

HOW BANKS ARE MANAGING THE ABOVE RISKS?

Banks adopt different strategies to manage the various risks associated with banks. Different
Risks like credit risk, market risk and operational risk are managed and assessed through various
measures taken by the banks. In the survey, the following measures that banks take were found
out:
Evolution of the Risk Management in Banking Sector 79

Management of Credit Risk

Through credit rating or scoring the degree of risk can be measured.
The credit risk can be quantified through estimating expected and unexpected financial losses
and even risk pricing can be done.
Techniques includes credit approving authority, risk rating, prudential limits, loan review
mechanism, risk pricing, portfolio management, etc.
Management of Market Risk
Asset-Liability Management Committee are formed to maintain and manage the balance
sheet within the risk or performance parameters. The experts in this technique includes
economists, statisticians and general bankers.
Management of Operational Risk
Measurement of operational risk has no uniform approach. It requires estimation of the
probability of operational loss and also potential size of the loss. Banks also make use of
analytical and judgemental techniques to measure operational risk level. Risk of operations
include: audit ratings, data on quality, historical loss experience, data on turnover or volume, etc.

THE FUTURE OF BANK RISK MANAGEMENT

Risk Management in banking sector has seen a drastic change in the past years in response to
regulations that emerged from financial crisis. The change expected in the risk functions
operating model illustrates the magnitude. Today, about 50 per cent of the function’s staff are
dedicated to risk related operational processes, while 15 per cent work in analytics. A report on
the same suggests that by 2025, these numbers will be closer to 25 and 40 per cent, respectively.
No one can draw a blueprint of bank’s risk management in 2025. But the fundamental trends
do permit a broad sketch of what will be required of the risk function of the future.
Six trends can be listed as:
Trend 1: Regulation will continue to broaden and deepen.
While the magnitude and speed of regulatory change is unlikely to be uniform, future holds
more regulation – both financial and non-financial. The Government also has stated regulatory
actions that must be taken and properly followed by the banks in order to manage their risk.
Trend 2: Customer expectations are rising in line with changing technology.
Technological development and involvement has ushered a set of new competitors. Banks
can now have a direct customer relationship with the banks. The seamless and simple apps and
online services, bank’s responses to higher customer expectations with an automated: an instant
response has changed the customer’s experience and somehow has increased the trust on the
banks increasing competitions among them. Thus, it needs to have a seamless, instant component
of every key customer journey.
Trend 3: Technology and advanced analytics are evolving.
Technological innovations continuously emerge, enabling new risk management techniques.
Big Data, Machine Learning and Crowd sourcing can be a useful technique. These technological
innovations can further help in reduce risk cost and fines.
80 Innovation in Management Practices for the Sustainable Development Goals

Big Data: Faster, cheaper computing enables risk functions to use reams of structured and
unstructured customer’s information in order to help them make better credit risk decisions,
monitor portfolios for early evidence of problems, detect financial crime and predict operational
losses.
Machine Learning: This method improves the accuracy of risk models by identifying
complex, nonlinear patterns in large data sets.
Crowd Sourcing: Internet enables the crowd sourcing of ideas which many companies use
to improve their effectiveness.
Many of these technological innovations can reduce risk cost and fines, and can give a
competitive advantage.
Trend 4: New risks are emerging.
Undoubtedly, the risk function will have to detect and manage new and unfamiliar risks over
the next decade. Model risk, cyber security risk, and contagion risk are such examples of
emerging risks.
Model Risk: Bank’s increasing dependency on business modelling increases the occurrence
of Model Risk.
Cyber Security Risk: As banks store a large amount of data about their customers, the
exposure to cyber-attacks is likely further to grow. Since it requires requirement of greater
sources the management of cyber security risk is important.
Contagion Risk: Negative market developments can easily be spread which can impact the
potential performance of the banks. Banks need to measure and track their exposure to contagion
and its potential impact on performance. This negative development can cause the contagion risk.
Trends 5: The risk function can help banks remove biases.
Banks are too prone to biasness, anchoring is one such form of it. By anchoring, people tend
to rely heavily on the first piece of information they analyze when making decisions. A credit
officer might write on a credit application, the statement written might be very simply true but
can have a negative evidence. Marketing your policies in a better way is also a part of biasness,
the policies or insurances offered by the banks if reached the customers early and anchored in a
better way creates a biasness among the customers. This implies a calculated risk function can
help a bank reduce the risk associated with such biasing and anchoring.
Banks should think about this too.
Trend 6: The pressure for cost savings will continue.
The risk function may keep on playing a crucial role in cost cutting. Cost cutting is an
important key feature not only a bank but every business enterprise has to take care of while
formulating any strategy or any policy associated. Thus, cost cutting is an important key aspect
and no matter what risk management or risk controlling techniques are being adopted by the
banks, cost cutting will always be the priority and pressure. Thus, after exhausting traditional cost
cutting methods some new techniques have to be adopted like simplification, standardization and
digitization. A strong automated control framework can reduce human intervention, tying to
specific process break points.
Evolution of the Risk Management in Banking Sector 81

THE ROAD AHEAD – PREPARING FOR CHANGE

The six trends set a vision for high-performing risk function. Some of the initiatives can be
launched in order to manage and assess the risks involved or the six trends of the risks described.
Building a strong risk-management culture can be one of the major techniques that can be
adopted by the banks in order to reduce risks involved. A changed and strict working culture will
ensure that the employees make sure whatever steps are being taken by them has a pre-calculated
consequence and a predetermined risk is involved in it which is as minimum as possible.
Tightening supervision can also be an alternative of a changed culture of the bank, in a strict
supervision risk assessment and minimization would be easier.
This is a world of changing technology, every the whole banking sector and all the banks
included have now adopted the technology in order to make its use more effective and efficient
also customer friendly, but using technology without strong monitoring system can lead to
various issues and challenges for the banks as well as for the customers. Thus, using strong IT
monitoring system is an important approach in order to minimize the risks associated with the
banks.
Selecting different kinds of people is another change that can be brought. With automation
and more sophisticated analytical and technical capabilities, human intervention is needed to
ensure appropriate and ethical application.
In addition to this, building the right mix of talent is equally important. Risk managers will
have to become more trusted counsellors to the business areas.

CONCLUSION AND RECOMMENDATIONS

The study reveals that, banks were primarily not working in environment exposed to risks,
but now they function in an environment which is continuously changing and full of uncertain
situations following uncertain risks. Through the study, this can be seen that risk management and
banking supervision will go parallel hand in hand. If the banking sector have lived its adulthood
to the full, it will unravel peacefully among all the banking activities. Future risk management
will no longer be referred to as a separate discipline, instead reference will be made
indiscriminately to banking logic in which risk measurement and control grow spontaneously like
what fields ripen in summer.
To recommend, this can be seen that the banks, instead of, measuring and assessing the risks
involved in the banking sector, the study has revealed that a list of risks are involved in the
banking sector for the future ahead. And the banks should look and build a strong risk
management culture in the bank, talented and experienced employees must be hired at the
department of risk management in banks and this may be can reduce the risks involved and can
protect the banks from falling into uncertainty and unconditional situations.
Banks should form an effective and efficient risk management process covering all risks the
bank is exposed to or may potentially be exposed to in its operations; Adequate internal controls
system, Appropriate information systems, Adequate process of internal capital adequacy
assessment should be done properly. Banks should and must have a regular check on the process
and the measure taken and adopted by them to control risks. A proactive strategy should be
adopted in order to have an alternative course of action when any uncertain situation arises before
them or any uncertain risk occurs.
82 Innovation in Management Practices for the Sustainable Development Goals

By adopting such measures and following a proper, pre-planned strategy and process, banks
might be able to minimize the exposed or to be exposed risks.

REFERENCES
1. www.prometeia.it
2. Educba.com
3. Philip Harle, Andras Havas and Hamid Samandari, “The Future of Risk Management”,
McKinsey & Company.
4. www.nbs.rs

ƇƇƇ
 GREEN MARKETING – A WAY TO
10 SUSTAINABLE DEVELOPMENT: A STUDY ON
CONSUMER PERCEPTION TOWARDS
GREEN PRODUCTS
Dr. Kajal Maheshwari
Assistant Professor,
S.B. Patil Institute of Management, Pune.
E-mail: [email protected]

Dr. Swapnali Kulkarni Dr. Anuradha Phadnis

Associate Professor, Associate Professor,
S.B. Patil Institute of Management, Pune. S.B. Patil Institute of Management, Pune.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
The objective of this paper is to find the gap in the past research. Using the analysis, the
conceptual model is suggested after integrated factors product, prices, and brand image. The
conceptual framework needs to test. This research paper attempts to examine the level of
fondness towards Green Product and its conversion into buying decision. This study attempts to
find the factors affecting buying decision for Green Products. This studies find that people are
aware about ecological and environmental problems and most consumers perceive that green
product will reduce the same. The result of the study reveals that consumer’s fondness towards
the green product may not convert it in to buying.
Keywords: Consumer Awareness, Environmental Problems, Green Buying Behavior,
Conceptual Model.
INTRODUCTION
After the industrial revolution, humans are responsible irreparable damage to the planet.
They have altered ecosystem and exploited natural resources beyond their regenerative capacity.
According to some studies, thirty to forty per cent of current environmental degradation is due to
the consumption activities of private households (Grunert, 1993). Reports speak that this trend is
growing (Grant, 2000: 5).
Although the level of concern and consciousness about environment is proven to be high in
many countries, this does not translate automatically into pro-environmental behavior. A report
shows that there is inconsistency between consumer environmental concern and purchase
behavior. The impact of environmental consciousness on consumer purchasing behavior therefore
remains unclear.
(83)
84 Innovation in Management Practices for the Sustainable Development Goals

OBJECTIVES
1. The central objective of this research is to examine the models of Green Consumer
Behavior define by early researchers.
2. The objective of the current study is to examine the common determinants of
consumers’ pro-environmental behavior through studying the models proposed in the
past research.
3. The proposed conceptual model illustrates the determinants and the consequences of
environmental consciousness. Through this model, the link between environmental
consciousness, ecological buying behavior, and willingness to pay a higher price for a
green product will be clarified. These key concepts will also be defined accordingly.

METHODOLOGY
The objective of this paper to find the research gap, Library method is used.
Literature Review
The earliest attempts to characterize the green consumer can be traced to the 1970s, when
Webster (1975) published his work ‘Determining the Characteristics of the Socially Conscious
Consumer’. Following Kilbourne and Beckman (1998), the conventional approach refers to the
body of research within green marketing that is mainly concerned with the task of profiling the
green consumer by the use of methods and models originated from conventional marketing theory.
For several decades, social scientists have investigated the motivations of individuals who engage
in pro environmental behavior (PEB). Economists, for example, tend to examine the influence of
external conditions, such as income, price, and socio-economic characteristics, upon behavior.
Their approach is grounded in neoclassical economic theory, which presupposes that individual
decisions are based on a specific definition of rational self-interest. Other researchers have tried to
find the efficiency of demographic, socio-demographic and psychographic data as a means to
define green market-segments (Straughan and Roberts, 1999; Laroche et al., 2001).
Dimantopoulus et al. (2003) presented a thorough review on the use of socio-demographics as a
means to define the green consumer. Besides these studies on green market segmentation, another
significant number of research papers within this mainstream marketing approach seek to apply
cognitive models of decision-making in order to predict green consumer behavior by studying the
relationships between knowledge, specific beliefs, attitudes and behavior in relation to the
environment. In 1989, 67 per cent of Americans stated that they were willing to pay 5-10 per cent
more for ecologically compatible products (Coddington, 1990). By 1991, environmentally
conscious individuals were willing to pay between 15-20 per cent more for green products
(Suchard and Polonsky, 1991). An important challenge facing marketers is to identify which
consumers are willing to pay more for environmentally friendly products. It is apparent that an
enhanced knowledge of the profile of this segment of consumers would be extremely useful. The
closer we move to an understanding of what causes individuals to pay more for green products,
the better marketers will be able to develop strategies specifically targeted at these consumers.
Following Berkowitz and Lutterman’s (1968) study, Henion (1972) also thought that consumers
with medium or high incomes would be more likely to act in an ecologically compatible manner
due to their higher levels of education and therefore to their increased sensitivity to social
problems. However, the results did not support his hypothesis: environmentally friendly behavior
was consistent across income groups. Moreover, Sandahl and Robertson (1989) found that the
Green Marketing – A Way to Sustainable Development: A Study on Consumer Perception… 85

environmentally conscious consumer is less educated and has a lower income than the average
American. This brought them to conclude that income and education are not good predictors of
environmental concern or purchase behavior.
Early research identified the green consumer as being younger than average (Berkowitz and
Lutterman, 1968; Anderson and Cunningham, 1972; Van Liere and Dunlap, 1981). Surprisingly,
this trend has been reversed in the last decade and several recent studies identified the green
consumer as being older than average (Sandahl and Robertson, 1989; Vining and Ebreo, 1990;
Roberts, 1996). Although most findings about the impact of consumers’ demographic
characteristics on their environmentally conscious behavior are contradictory (Roberts, 1996), it
is clear that they exert a significant influence. However, most authors agree that demographics are
less important than knowledge, values and/or attitude in explaining ecologically friendly behavior
(Webster, 1975; Brooker, 1976; Banerjee and McKeage, 1994; Chan, 1999).
Model 1
This model is tested in china consumer express ecological affect and green purchase
intention. There is impact of cultural values on beliefs impacting on the behavior. The cultural
value largely formed and nurtured by interpersonal relationship and social orientation.
The framework asserts that cultural values can be classified into five dimensions:
1. Man-Nature Orientation
2. Man Himself Orientation
3. Past-time Orientation
4. Relational orientation
5. Activity Orientation
In the present study researcher try to find the relationship between cultural influences really
exist for buying the green product.
A Conceptual Model
A model is tested to depict the possible interrelationship between person’s Affect (Af),
Knowledge (Kn) relating to ecological issues significantly influence his intention to engage in
green purchase (IntP) to capture the possible impact of the “Man-Nature” orientation on green
purchase. In other words, though the direct impact on Af and Kn, MNO is believed to exert a
positive influence on green purchase intentions. The model is formulated:
The data proved the performance of the relevant (ActP). Both Af and Kn found to similar
degree of highly positive influence on Int. MNO only exhibited a significant influence on the
affective component (Af) but not on the knowledge component (Kn). So, there is favorable
ecological affect and green purchase intentions but their level of ecological knowledge and
commitment to green purchase are still low.
The finding says both ecological affect and ecological knowledge are important determinants
of consumers green purchase intentions which in turn provides important impetus for actual green
purchase.
86 Innovation in Management Practices for the Sustainable Development Goals

Fig. 1: Conceptual Model

Model 2
This model was developed by Yeonshin Kim, Daegu University Sejung Marina Choi, and
University of Texas at Austin in 2000.
Applying the conceptual framework of value-attitude-behavior relationship this study key
antecedents of green purchase behavior and develops a model for explaining their influence on
ecological consumption. This model investigated the relationship between, the effects of
collectivism, environmental concern and Perceived Consumer Effectiveness (PCE) on ecological
purchase through structural equation modeling.
This model explains the potential influences of consumer value orientation and general pro-
environmental concerns and beliefs on green buying behaviors.
Individualism is characterized by independence, self-reliance, freedom of choice, and a high
level of competition (Triandis, 1989), while collectivism emphasizes interdependence, in-group
harmony, family security, group-oriented goals, social hierarchies, cooperation, and a low level of
competition (Triandis, 1995). Perceived Consumer Effectiveness (PCE) refers to the extent to
which individuals believe that their actions make a difference in solving a problem (Ellen, Weiner,
and Cobb-Walgren, 1991). PCE, defined as “the evaluation of the self in the context of the issue”.
People who have a more collectivistic orientation also rate themselves higher on collectivist traits
including respectfulness, obedience, dutifulness, reciprocity, self-sacrifice, conformity, and
cooperativeness than those from individualistic cultures (Grimm et al., 1999). Thus, these
collectivistic individuals might expect other members to perform the same behavior and thus have
greater beliefs in making differences by engaging in the behavior at the aggregate level although
the behavior is performed individually.
Green Marketing – A Way to Sustainable Development: A Study on Consumer Perception… 87

Proposed Model

Fig. 2: Proposed Model

Findings
Collectivism, defined as an individual-level value orientation, appeared to positively
influence individuals’ tendency to buy green products, but only through their positive beliefs
about self-efficacy. Collectivistic individuals who value group goals and cooperation might be
highly motivated to make pro-environmental choices by having stronger beliefs that their
behavior would make a difference in mitigating environmental problems. Greater perceived self
efficacy directly influences the likelihood that consumers actually engage in green purchase
behavior. These findings seem to reflect the unique nature of pro-environmental behavior.
Environmental concerns also had a direct, positive influence on green purchase, suggesting
that consumers who possess strong environmental concern may be interested in consumption of
products that reflect that concern. However, environmental attitudes or concerns that reflect an
individuals’ orientation or belief toward the environment specifically appear to be not related to
their collectivistic tendencies at a more general level.
Fundamental values that individuals hold at an abstract level can motivate and drive behavior.
Model 3
This study was done in Canada by Michel Laroche Royal Bank Distinguished Professor of
Marketing, John Molson School of Business, Concordia University, Montreal, Quebec, Canada,
Jasmin Bergeron Concordia University, Montreal, Quebec, Canada Guido Barbaro-Forleo
Concordia University, Montreal, Quebec, Canada. This model investigates the demographic,
psychological and behavioral profiles of consumers who are willing to pay more for
environmentally friendly products. These factors can be classified into five categories:
demographics, knowledge, values, attitudes and behavior responsible to pay more.
88 Innovation in Management Practices for the Sustainable Development Goals

Fig. 3: Conceptual Framework

Findings
Among the eight demographic variables studied, only “gender,” “marital status” and
“number of children living at home” differentiated the two segments. Consumers willing to pay
more for green products reported that today’s ecological problems are severe, that corporations do
not act responsibly toward the environment and that behaving in an ecologically favorable
manner is important and not inconvenient. They place a high importance on security and warm
relationships with others, and they often consider ecological issues when making a purchase.
Conversely, consumers unwilling to pay more for green products reported that companies are
acting responsibly toward the environment and they admit (in average) that they do not consider
ecological issues when making a purchase. These consumers attributed a lower score to the
severity of ecological problems and to the importance of being ecologically friendly. These
findings imply many managerial implications for green marketers, which are discussed in the next
section.
Common Characteristics
After studying the above models the positive attributes that support the model of Green
Consumer Behavior.
Ɣ Knowledge is recognized in consumer research as a characteristic that influences all
phases in the decision process. Specifically, knowledge is a relevant and significant
construct that affects how consumers gather and organize information. Knowledge
about ecological issues is a significant predictor of environmentally friendly behavior
even found that individuals highly knowledgeable about environmental issues were
more willing to pay a premium price for green products
Ɣ Two major values, Individualism and Collectivism, implies cooperation, helpfulness,
and consideration of the goals of the group relative to the individual. Behavior of
collectivist people tend to be friendlier to the environment, while individualistic people
tend to be more unfriendly.
Green Marketing – A Way to Sustainable Development: A Study on Consumer Perception… 89

Ɣ The attitudes with respect to environmentally friendly behavior are importance and
inconvenience.
Ɣ Perceived level of self-involvement toward the protection of the environment. Many
individuals may have high ecological concern, but feel that the preservation of the
environment is the responsibility of the government and/or big corporations. We might
expect this attitude to impact the willingness of consumers to spend more for
environmentally friendly products.
Ɣ Among the demographic variables studied, only “gender”, “marital status” and “number
of children living at home” differentiated the two segments. It may be suggested that
these individuals are more inclined to think of how a ruined environment may
negatively impact not only on their partner, but on their children’s future.
Managerial Implications
Ɣ It is of primary importance for marketers to advertise why it is convenient to purchase
green products and to change consumer perceptions in a positive way.
Ɣ More and more companies educate consumers about the convenience of buying
ecologically safe products.
Ɣ Information cards, window displays, and videos are used throughout the store to inform
the public on the environmental and social impacts of their purchasing decisions.
Ɣ Marketers should communicate to the target audience that buying green products can
have a significant impact on the welfare of the environment. Through a properly
targeted advertising campaign, marketers can encourage positive attitudes and behaviors
held by ecologically friendly people.
Proposed Model
Overall, the combined results from the past research (model) portray some common variables
towards green behavior. Using the analysis, the conceptual model is suggested pertinent to
address integrated factors product, prices and brand image. This model is need to be tested.

Demographics
Ɣ Age
Ɣ Gender Behavior
Ɣ Income Values Environmental
Ɣ Level of Education Knowledge Individualism Issue
Ɣ Employment status Collectivism Recycling
Ɣ Marital status Ecoliteracy
Buying
Ɣ Family size

Green Product Consumer Willingness to pay more for

Feature environmentally friendly product
Design
Package
Differentiation Perceived Brand Attitudes
Quality Image Ɣ Importance of being
environmental
friendly
Ɣ Inconvenience

Fig. 4: Proposed Model

90 Innovation in Management Practices for the Sustainable Development Goals

LIMITATIONS AND FUTURE RESEARCH

This study is based on qualitative analysis which limits the knowledge of the long-term
impact of the factors in above stated model. Some of the characteristics contradict many previous
studies.
The proposed model needs to be tested. Proposed Model is designed only on the secondary
information. Therefore, results must be used with caution. No quantitative data is collected.
Secondly, the research did not identify the green products; as a result the respondents’ response
might vary for different categories of green products. Future research should address this issue by
considering focused green products.
Do the results generated in this study apply to all types of ecological products? Would we
obtain the same results in India also? To answer these questions, researchers could eventually
study the factors that influence consumers’ willingness to spend more for ecologically compatible
products, but from a completely different angle. Customers claimed they wanted to buy
ecologically compatible products, but British supermarkets were overstocked with products that
the same consumers later explained were too expensive.

CONCLUSION
In conclusion, the major contributions of this study were the investigation of the major
common characteristics consumers want to buy environmentally friendly products and the
subsequent discussion of the implications for marketers.
This research being qualitative, the results are only taken for past research. The increase in
media coverage of ecological deterioration, the recent influx of environmentally compatible
products in the marketplace and the integration of ecological issues in both our educational and
political systems point to the need for more research on the environmentally conscious consumer.

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toward Green Consumer Behavior”, Psychologica Belgica, Vol. 45(4), pp. 217-239.
13. Wheale, P. and Hinton, D. (2007), “Ethical Consumers in Search of Markets”, Business Strategy
and the Environment Vol. 16, pp. 302-15, doi: 10.1002/Bse.484.
14. Williams, K. and Dair, C. (2007), “A Framework of Sustainable Behaviors that can be Enabled
through the Design of Neighborhood-scale Developments”, Sustainable Development, Vol. 15,
pp. 160-173, doi: 10.1002/Sd.

ƇƇƇ
 AN OVERVIEW OF AN INNOVATION IN
11 EDUCATION AND TEACHING

Ms. Archana Mhaske

Assistant Professor, BCA Department,
Foresight College of Commerce, Maharashtra, India.
E-mail: [email protected]

ABSTRACT
Teaching and learning in field of education are main elements. The biggest challenge for any
teacher is to get the students' engagement and keep the ideas in the classroom in such a way that
they stay with them for many days after leaving the class. To do this, the classroom experience
must be redefined and innovative ideas must be applied to make teaching-learning methods more
effective. So, here are some innovative ideas that will help teachers refurbish their innovative
teaching methods and make their classes interesting.
The use of innovative methods in educational institutions not only has the potential to
improve education, but also to enable people. The purpose of this paper is to providing innovative
teaching methods to provide easy knowledge to the students.
Innovation in the field of education represents an idea that transforms traditional culture
into new and creative ones. This step has been taken to provide a great platform for academic
and expert discussion to exchange knowledge and ideas.
Keywords: Innovation, Education, Innovative Teaching, Learning, Classroom.

INTRODUCTION
Today’s world is competitive. In this 21st century, people work hard to create new
educational environments and learn new creativity. The purpose of education is not just to teach
or learn a textbook, but to use that education to the last stage of life. The relationship between
teachers and students has been considered inseparable since ancient times. The main concept of
education is not only to teach books and make students understand but also to create a new
ideological capacity. Discovering new methods of teaching is an important skill. Research has
shown that specific methods and approaches can really enhance learning skills. Some innovative
methods of teaching could be the combination of various digital media types such as text, images,
audio and video, presentations into an integrated multisensory interactive application to the
audience. In learning, students engagement refers to the attention, curiosity, optimism, and
passion they show when learning or teaching, which motivates them to progress in learning.
When students are involved in the lesson being taught, they learn more and pay more attention.
Students involved in the work are more enthusiastic and more happy to complete the work. So,

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An Overview of an Innovation in Education and Teaching 93

they make their classes interesting. Here are some innovative ideas that will help teachers
redevelop their teaching methods and make their classes interesting

INNOVATIVE TEACHING AND LEARNING

Innovative teaching means the creativity and innovation of the teacher which changes the
style and methods of teaching. Educational institutions around the world are implementing new
ideas, methods, technology based innovations to enhance the knowledge of students. Students
need innovative learning for the present and future of education to reach their full potential.
Higher education must meet the long-term intellectual needs of the student. If the provision of
new techniques by teachers can give new insights and foresight to the student, then all teachers
need innovative teaching to meet the educational needs of the new generation. Innovation in
education encourages teachers and students to explore research and encourage all the tools to
discover something new. It has a different way of looking at problems and solving them. The
thought process that goes into it will help students develop their creativity and problem solving
skills.

METHODS OF INNOVATIVE TEACHING

1. Teachers should take up their favorite subject: Teachers can impart excellent
knowledge if they take up the subject of their interest. Teaching subjects without
repression or stress can make teachers more creative and motivated to work and eager to
experiment with new ideas.
2. Use AUDIO AND VIDEO TOOLS: Include audio-visual materials in your sessions,
not just detection or one-sided speech in the classroom. Use supplementary textbooks
with presentation, modules and illustrative materials, information graphics or other
intelligence mapping and brain mapping tools that can enhance their imagination. These
methods will not only develop the ability to listen but also help to better understand the
concepts. For example, you can get some oral history material, conduct live online
discussions, or make playback recordings of public lectures. There are many smart apps
for preschoolers that you can use to create great slide shows or presentations. Teachers
should create their own YouTube channels. Maximum video should be 10 minutes so
that the student can see the whole video without getting bored. Teachers can create their
own blog and give notes and question bank to the students. Those students are absent or
doing job can use YouTube and blog.
3. Brainstorm: Brainstorming is a group creativity technique. It is seeks to find a solution
to a specific problem by compiling a list of ideas that members have spontaneously
contributed to. Give time for brainstorming sessions into your classrooms. These
sessions are a great way to get creative. Brainstorming are the four rules are one is focus
on quantity, second is defer judgment, third is welcome far-fetched ideas and fourth is
build on the ideas.
When you focus on multiple thoughts in one thought, you are sure that numerous ideas
have come up and everyone will join the discussion. This session will be a good
platform to listen to the student without thinking whether he is right or wrong.
4. Classes outside the classroom: Subjects like biology, zoology should be taught in close
proximity to nature. Work experience course and environment awareness should be
94 Innovation in Management Practices for the Sustainable Development Goals

taught outside the classroom. It is necessary to create environmental awareness through

work experience and casual activities, as well as through productive activities.
Environmental protection and conservation awareness should be created. Subjects like
Computer and Chemistry should be taught in the laboratory.
While teaching the subject of Geography, a trip should be organized to show the Nehru
Planetarium to the students. Nehru Tarangan is a circular theater. The performance in
this circular theater involves sleeping in chairs and watching the sky. Children will find
it new and exciting and will quickly learn and remember what has been taught. Decide
according to the age of the student.
5. Need of cinema hall: School students should be shown historical films like Shivaji and
Tanaji. College students should be shown films like Uri: The Surgical Strike, Parmanu,
Super 30, The Secret and Wake Up Sid. They will get inspiration from the film.
6. Extend students’ artistic skills: Providing employment opportunities to the students by
organizing exhibitions like making paper bags, making rakhi, making sky lanterns for
Diwali and making candles. For example: Learn and earn.
7. Giving children extra-curricular knowledge: Students should be encouraged to do the
same by informing them about the course in addition to the textbook. Whitehat Jr. is a
Mumbai-based Edtech startup run by Karan Bajaj with an emphasis on teaching coding
to young children. The online platform teaches programming for children (ages 6 to 18)
and then encourages them to create games, animations and applications. The startup
works directly with the 1: 1 online teaching format and the entire course studied. The
program covers topics ranging from data structure, app and game development to
machine learning and space technology.
The Junior MBA program is a 12-week program designed to provide MBA-style
courses to elementary school students (ages 5 to 11). The core topics covered are
Entrepreneurship, Marketing, Finance and Accounting.
8. Role-play: A great way to help children relax and develop their personal skills is
through role-play. This method is especially useful when you are teaching literature,
history or true events. The role-playing approach will help students understand how
educational materials relate to their daily activities.
9. Welcome new ideas: An open mind can help you innovate new teaching methods. Even
if we think from the heart, sometimes most of us ignore new ideas. You are a teacher so
try to accept new ideas even if they seem strange at first.
10. Puzzles and games: Learning is fun where puzzles and games are part of learning.
When children are introduced to their lesson through games, they do not feel that they
are learning. Puzzles and games help children to think creatively and face challenges.
11. Refer books on creativity: To be a creative teacher, you need to do a little research on
creative ideas and techniques. There are many books on creativity. Choose some great
tasks and start learning. It will also be useful for your professional development.
12. Introduce lessons like a story: We can watch a movie on a favorite subject for three
hours. Similarly, if you teach a lesson to school children like an interesting story, they
will be able to listen for a long time without getting bored. Although the Knowledge and
Human Development Authority schools are focused on taking measures to improve the
An Overview of an Innovation in Education and Teaching 95

quality of teaching and learning, it is certain that these new teaching methods have been
made more effective.
13. Think about a new hobby: Sometimes, a busy job can affect your involvement in
teaching. If this happens to you, it is natural. You can take a few hours of rest and
engage in some other activities that interest you. It will revive you and you can return to
your work with more passion and interest. If you are bored, you should pursue your
favorite hobby. Create videos, blogs and vlogs on topics of your choice, which will also
generate income.
14. Work together as a team: As everyone knows, the end result of collaborative efforts is
always immense. Consider spending some quality time with your colleagues. Ask them
to share their thoughts on improving teaching methods, you can see many interesting
strategies in it. So, collaborate and introduce innovative teaching methods to motivate
the students to give presentations in the group. This will increase the morale of the
students.

INNOVATIVE LEARNING METHODS

1. Crossover learning: In informal settings, such as museums and after-school clubs,
educational materials can link to topics that are important to students learning in their
lives. These connections work in both directions. Experiences in daily life can enrich
learning in schools and colleges; Informal learning can be brought deeper by adding
questions and knowledge from the classroom. These connected experiences inspire
further interest and learning. An effective way to propose and discuss a question in the
classroom is to collect notes as questions or evidence for students learning during a visit
to a museum or on a field trip, then share their results or group answers to form
individually back in class. These crossover learning experiences both take advantage of
the power of the environment and provide genuine and attractive opportunities for
learners. Since learning occurs throughout life, experience in multiple settings.
2. Accidental learning: Accidental learning is learning unintentionally or unknowingly.
Can occur while doing an activity that is not related to what is learned. Early research
on this topic deals with how people learn in their workplace in their daily routine. For
many people, mobile devices have been integrated into their daily lives, with many
opportunities for casual learning supported by technology. Unlike formal education,
casual education training teachers do not take, or they do not follow a structured
curriculum or take formal certification. However, it can lead to self-reflection and can
be used to encourage re-learning what may be in different learning pieces as part of a
more consistent and long-term learning journey.
3. Sculptural teaching: Tangible learning involves the self-awareness of the body
interacting with the real or simulated world to support the learning process. While
learning new games, Physical movement is an obvious part of the learning process. The
goal in tangible learning is that the mind and body work together to strengthen the
process of learning physical feedback and action. Technology to support this includes
portable sensors that collect personal physical and biological data, a visual system that
tracks movements, and a mobile device that responds to actions such as bending and
movement. This approach can be used to explore aspects of physics such as friction,
96 Innovation in Management Practices for the Sustainable Development Goals

acceleration and force, or to explore simulated conditions such as the structure of

molecules.
4. Student has to be at the center of what happens in the classroom with activities:
Student have to be at the center of what happens in the classroom with activities focus
on their experience and growth. Students need to be actively involved in learning in
order to be able to control their emotions and motivations in the study process, to set
goals, to manage their study time properly and to be self-regulating students. Examine
their own learning process.
5. Assessment should be for learning, not of learning: The learning environment is very
clear about what is expected, what learners are doing and why. Otherwise, motivation
decreases, students are less able to fit different activities into a larger knowledge
framework, and they are less likely to become self-controlled learners. Evaluation of
form should provide standardized, regular and meaningful feedback. Also, feed the
individual learner back. This knowledge must be used to guide and practice in a learning
environment.
6. Stretching the students: Teachers need to identify individual differences and students’
needs. Thus, teachers should prevent them from overloading. Students need to
experience both academic success and the challenge of discovery.
7. Podcast in classroom: The classroom contains podcast serial recordings, regularly
posted online. Basically, creating a podcast is similar to technology-based oral lectures.
Lots of lectures and news have been shared with the audience who downloaded the files
online. The advantages of a podcast are its flexibility, its ability to reuse your lectures.
This is for the benefit of hearing students

CONCLUSION
This paper focuses on new teaching and learning methods in the classroom, giving students a
new way to train their skills. Encourage teachers to adopt new method technology in the
classroom and use multimedia to improve content. This will help teachers represent the lessons in
a more meaningful way. Students are encouraged to pay more attention and retain information
better by incorporating new methods. The main purpose of teaching is to convey information or
knowledge to the minds of the students. Successful teaching depends on the method of
communication. Innovative teachers and professors developers need each other. Informative
counselors at teaching reform centers are effective teaching models that encourage leaders and
empower those who innovate in their teaching innovative teachers are role model of effective
teaching.

REFERENCES
1. Dunn, Philip (2001), “Interpretation of Accounts”, UK, Student Accountant, January 2001.
2. Ryshke, R. (2012), “What Schools Can do to Encourage Innovation?”, Extracted from
http://rryshke.wordpress.com/2012/02/26/what-schoolscan-do-to-encourage-innovation/
3. Vaughan, T. (1998), “Multimedia: Making it Work”, 4th Edition, Berkeley, CA:Osborne/
McGraw-Hill.
4. https://www.edsys.in/16-innovative-ideas-make-teaching-methods-effective/
ƇƇƇ
 M&A – DRIVING FORCE FOR SUSTAINABLE
12 GROWTH IN COVID PANDEMIC

Ms. Komal Mishra Dr. Manish Sharma

MBA Student Assistant Professor,
Institute of Engineering & Technology,
Dr. A.P.J. Abdul Kalam Technical University,
U.P., Lucknow.
E-mail: [email protected]

ABSTRACT
This paper examines the adoption of strategies, involving inorganic mode of expansion, by
CEOs for the sustainable growth of their firms in the pandemic that devastated the economies
around the world. This paper studies the role of Innovation in building upon export
competitiveness by the firms, to tide over the pessimist scenario caused due to Covid that act as
threat for the survival and to maintain their financial figures in green. Globalization and fourth
Industrial Revolution have created new opportunities for everyone but in Indian context, results
suggests that trade openness, spending on infrastructure, adoption of ICT, etc. has been low.
Levels of protection of intellectual property a major factor in the implementation of innovations
are also unsatisfactory. India currently holds the 87th place in terms of protection of intellectual
property as per Global Competitiveness Index (GCI) 2019 report. This paper also summaries
impact of global pandemic COVID-19 on valuation of companies and stock which would assist in
merger and acquisition of various corporate in order to gain synergy which in turn would
increase corporate acceptance at global level as in case of cross border mergers and acquisitions.
This work analyzes the relationship between innovations adopted by companies and its impact on
their exports drawing upon the Enterprise Surveys from GCI compiled by WEF for India and has
adopted Descriptive and in-depth study to establish causal connection between these two.
Firms that are intensively involved in the innovation processes record the highest exports
intensity and the magnitude of the impact of innovation on export is sizeable. Despite the volatile
nature of the market and ill-effects of COVID-19 on economic activities, Reliance Industries
Limited an Indian corporation, has turned the adverse tides in their favor through their recent
acquisition of Alok Industries, an Indian textile manufacturer based in Mumbai mainly involved
in weaving, knitting, processing, home textiles, ready-made garments and polyester yarns by
focusing its textile setup in manufacturing PPE kit in entirety during COVID-19 has resulted
India in becoming the second largest producer of PPE kit in the world. This paper is an original
work of authors and includes content of management, economics and finance aspects and would
help in post graduate studies and planning.
Keywords: Management, Mergers, Finance, Export, Growth.

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98 Innovation in Management Practices for the Sustainable Development Goals

INTRODUCTION
“Never let a good crisis go waste” Winston Churchill rightly remarked, In the current
scenario also when the whole world is facing the same turbulence, Merger and acquisition and
innovations could be the navigator to sail across. This research paper examine the role of digital
enablement revolution such as use of ICT, Blockchain, automation, AI, data analysis and
inorganic mode of expansion needed by organization to reconfigure and make them resilient and
stay competitive in the present crisis, this has been done by examining the strategy of a Big Bull
company RIL who have proved that adversities could be turned into opportunities and
remodelling and syndication are an effective tools to withstand it. We show that conducting such
experiments is a key to firm growth. It not only provides opportunities to capture the market in
high-end vertically differentiated products when successful, but also facilitates horizontal
differentiation of the firm’s products within its previous technical capabilities. Despite facing a
unknown adversity, boardroom have altered their priorities and are adapting their business models
according to the evolving situation. The ‘reconfigure’ phase is likely to include strategic
initiatives such as alliances and partnerships to augment capabilities, optimize operations and
supply chains, reconfigure distribution, and manpower skilling.

LITERATURE REVIEW
This research paper is also supported by the recent PwC COVID-19 survey which took the
opinion of more than 900 global CFOs, which reflects that M&A will feature in company’s
recovery strategy. The Global Competitive Index 4.0 by World Economic Forum reports India’s
rank 68th among the 141 countries included, compared to last year rank of 58th. On analyzing the
report, we found that despite of performing better, the country lost by 10 position the reason was
that the development pace was slow as compared to other developing countries be it in the area of
adoption of ICT, trade openness and protection of intellectual property rights. Survey of Invest
India, Livemint also reflects that three out of four respondents expect technology adoption to
accelerate competition which includes innovation of new products and services like as in case of
liquor manufacturing company is now moving to manufacture hand sanitizer, textile moving in
manufacture of PPE kit. Three manufacturing companies have begun to produce biodegradable
mask, an auto manufacturer introduced fogging and spraying electric vehicles for disinfecting
factories, malls and office premises and a leading FMCG player has expanded its body wash
portfolio to introduce multiple home and personal care hygiene products.
M&A – Driving Force for Sustainable Growth in COVID Pandemic 99

METHODOLOGY

Fig. 1: Global Investments

The strategy adopted by the big bull Reliance could be studied here as the tycoon has nearly
made his company an ideal for all. Jio’s success in building technology specifically for India and
its ability to proliferate across the country has attracted global technology leaders which shows
that early adaption of technology could make the company balance sheet strong.
Last year, they also announced partnership with Microsoft. The aim of these partnerships
was to enhance the adoption of leading technologies such as data analytics, Artificial Intelligence
(AI), cognitive services, Blockchain, Internet of Things (IoT), and edge computing among SMEs
to make them ready to compete and grow, while helping accelerate technology-led GDP growth
in India and driving adoption of next-gen technology solutions at scale.
On analyzing out the annual report, we found that the company has acquired voting rights in
six companies in F.Y 2019-20, in various field like sports, infra, power, gas and textile. The
diversified segments of RIL include refining, petrochemical, oil and gas, organized retail, digital
service, financial services, etc. Recently, the company has made announcement to acquire 60 per
cent stake in NetMeds with an investment of ` 620 crore which shows that the company is
continuing its diversification strategy amidst the pandemic situation.
Reliance is ushering in the Fourth Industrial Revolution (4IR) within the country. As a leader
in the space, Reliance has capitalized on the megatrends in the digital, physical and biological
sphere: Trends such as use of advanced technologies and equipment, global move from a physical
to a digital economy, advancements in biotech integrated within business, and a circular business
model that derives value from waste. More about how Reliance is enabling the 4IR is given below:
100 Innovation in Management Practices for the Sustainable Development Goals

Table 1: Key Technological Trends

KEY TECHNOLOGICAL TRENDS RELIANCE PRESENCE
Artificial Intelligence and Machine Facial recognition used to comply with DOT KYC
Learning norms while onboarding telecom customers.
Ability of a machine or a computer Haptik using AI for GOI’s official WhatsApp based
program to learn from available data helpdesk for COVID-19.
and use algorithms to effectively Embibe: AI based education analytics enabling
perform specific tasks relying on personalised education for every student for school and
patterns and inferences competitive exams.
Machli App by Jio: AI bridging the information
asymmetry gap for fishermen.
AI solutions for scrutiny in Letter of Credit and
Shipping instructions, improving efficiency and cycle
time in Petchem exports.
Machine learning solutions for prediction of process
health in manufacturing processes.
Cloud Computing and Big Data Jio operates one of the globally largest big-data lakes for
telecom
Large amount of data collected Jio in collaboration with Microsoft will set up data-
and stored over time pertaining centers in locations across India, consisting of next
to a particular activity or generation compute, storage and networking
business capabilities.
However, this is only an illustrative list. There are many technologies beside these this group
is using. Looking at the research and development expenditure, the company has reported an
increase in expenditure of 6.77 per cent as compared to previous year which shows that the
company is following a dynamic approach towards changing environment. On making the
comparative study of peer group of this group, it was found that in most of the segments the
group is working, it is performing far better than its competitors like in retail sector. On
comparing Reliance Retail with Avenue Supermarket Limited, the findings were far better than its
peer as illustrated in the snapshot:

Fig. 2: Retail Segment

M&A – Driving Force for Sustainable Growth in COVID Pandemic 101

Similarly, on analyzing the number of subscriber, Reliance Jio (38.7 crore) happens to be at
first position with Bharti Airtel lagging at 32.9 crore subscriber, In short span of time, it has
beaten years dominating company Vodafone, Bharti Airtel and has become the market leader, this
was due to agility of company to scale and adapt in orderly manner and affordable and simple
pricing plans have been the key to the large-scale adoption of Jio services.
Through its innovation and R&D initiatives, Reliance has contributed towards nation’s
intellectual capital as well as created products and services that deliver positive value to its
customers. A snapshot for the same is given below.

Fig. 3: Innovation and R&D Initiatives

VALUE CREATION THROUGH INNOVATION AND RESEARCH AND

DEVELOPMENT
As per FICCI, there will be increasing acceptance of blockchain technology by insurers as
well as the healthcare industry. It is expected that the use of blockchain for healthcare data
exchange will contribute the largest market share in the near future. Blockchain is a single,
distributed, immutable, write-only ledger of transactions that is updated when multiple,
decentralized actors achieve consensus on the validity of new entries by participants.
102 Innovation in Management Practices for the Sustainable Development Goals

As per PwC also, Blockchain is well suited to the health insurance sector as it involves
multiple stakeholders who continuously share data, update and verify information, and are
dependent on information flow and time-bound transactions for effective decision making.
SIDBI microfinance pulse report provides that Insurers partnering with blockchain-linked
businesses are already seeing impressive innovations in many developed healthcare systems. In
India, while the private health insurance industry has been witnessing robust growth, with gross
direct premium income underwritten by health insurance companies growing at 15 per cent year-
on-year to INR 449 billion for 2018-19.

CONCLUSION
On the basis of various survey findings mentioned in this report, it is quite evident that
innovations and diversification be it an inorganic mode would be a milestone achievement of the
organization in the long run for its survival in this atmosphere of uncertainty, as in case of
Reliance, it is quite evident that it had adopted many technology at an early stage which made it
resilience against this pandemic. So, in the near future, a type of revolution in technological
sphere is due to be seen because it is the need of time and also merger and acquisition transaction
would be also increasing as now the value of target company has become quite attractive for the
acquirer to invest and lastly, the increase of cyber threats will also push up the use of technology
at a great extent and hope in turn will make India rank higher in GCI Ranking next year.

REFERENCES
1. Annual Financial Report of Reliance Industries.
2. https://covid19.who.int/?gclid=Cj0KCQiA7qP9BRCLARIsABDaZziD0R3iVQ9WxiZd5fF_
41iezl2BhiI1b_JJod2EZkr83ETLUxCiy3caApbFEALw_wcB
3. https://www.pwc.com/gx/en/services/deals/trends.html

ƇƇƇ
 TO MEASURE THE EFFECTIVENESS OF
13 E-LEARNING IN INDIA WITH REFERENCE
TO MANAGEMENT STUDENT
Hitanshi Thakkar
Student,
GLS University, Ahmedabad.

Naitik Ghiya Prof. Devrshi Upadhyay

Student, Assistant Professor,
GLS University, Ahmedabad. GLS University, Ahmedabad.

ABSTRACT
As the world is going through COVID-19 pandemic, the education industry has got shattered.
To lift the economy and maintain the continuous process of education, many institutes have taken
a root of e-learning. This new process has been carried out using multiple online sources.
In e-learning systems, student data represent the only source through which instructors can
assess student performance and engagement. This paper will analyze the effect of e-learning on
management student. How effective online education is and will be it more beneficial if online
education will keep continuing for long period of time. The primary research is carried out
through questionnaire method and the data has been collected of 100 management students. How
much student is satisfied or adopting this new way of learning has been analyzed. Our objective is
to measure the effectiveness of e-Learning and to make a teaching model which can be used by
the students.
Keywords: Online Learning, Management Students, Effectiveness.

INTRODUCTION
Web-based learning refers to the type of learning that uses the Internet as an instructional
delivery tool to carry out various learning activities. It can take the form of: (1) a pure
online learning in which the curriculum and learning are implemented online without face-to-face
meeting between the instructor and the students, or (2) a hybrid in which the instructor meets the
students half of the time online and half of the time in the classroom, depending on the needs and
requirement of the curriculum. Web-based learning can be integrated into a curriculum that turns
into a full-blown course or as a supplement to traditional courses.
Non-face-to-face, using web technologies, is learning that occurs with lessons conducted via
the internet.
Higher Education sector has witnessed a tremendous increase in its institutional capacity in
the years since Independence. The number of Universities/University-level institutions has
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104 Innovation in Management Practices for the Sustainable Development Goals

increased 18 times from 27 in 1950 to 504 in 2009. The sector boasts of 42 Central universities,
243 State universities, 53 State Private universities, 130 Deemed universities, 33 Institutions of
National Importance (established under Acts of Parliament) and five Institutions (established
under various State legislations). The number of colleges has also registered manifold increase
with just 578 in 1950 growing to be more than 30,000 in 2011. Higher Education is the shared
responsibility of both the Centre and the States. The coordination and determination of standards
in institutions is the constitutional obligation of the Central Government.
According to the current report, the Indian e-learning market size was USD247 million,
contain 1.6 million learners in 2016. It is expected to have an 8X growth to reach USD1.96 billion
and the recent user base will increase at 44 percent CAGR to 9.6 million learners by 2021.
In fact, India’s e-learning market is the second largest after the US, which is predicted to
grow by 15.64 per cent and increased $48 billion by 2020.
The E-learning in India is changing at a rapid pace unsettled to the following factors:
Ɣ Growth in internet and smartphone.
Ɣ Cost of online education
Ɣ Digital friendly government policies
The online sources that give opportunity to get certified education are Udemy, Coursera, Edx,
Upgrade, Jigsaw, etc.
During this pandemic, the group learning portal business has increased tremendously. The
different portals like Zoom, Google Meet, Jio Meet, Webex, and now the university has started
adopting this online portal for delivering education to the management student.

LITERATURE REVIEW
1. Mushtaq Hussain (2018): Author in his title “Student Engagement Predictions in an
e-Learning System and their Impact on Student Course Assessment Scores” have used
machine learning to machine learning (ML) algorithms to identify low-engagement
students in a social science course at the Open University (OU) to assess the effect of
engagement on student performance. The output variable was the student level of
engagement in the various activities. Their study examined the relationship between
student engagement and the course assessment score.
2. Monica Trakru (2019): Author in her article “e-Learning Effectiveness in Higher
Education” mentioned difficult to preserve the standards of education because of
limitations of finance, infrastructure, and other resources including skilled and
experienced human power. Learning provided through Information Technology (IT), to
some extent ensures high quality learning by providing necessary information at a
convenient place and suitable time. She had observed that e-Learning emphasizes on
quality and effective presentation of information.
3. Partha Pratim Ray (2012): Author in her article “Web-based e-Learning In India: The
Cumulative Views of Different Aspects” mentioned that there is a great diversity in
India and because of that it is difficult to change background of students parents and
their economical conditions. Therefore, the only option left for us is to provide uniform
or standardize teaching learning resources or methods. Web-based e-Learning (WBeL)
concept in to the minds of young India along with various approaches taken or to be
To Measure the Effectiveness of e-Learning in India with Reference to Management Student 105

taken, associated to it till date besides of instructional design models, different course
developmental models, the role of technical writing and merit-demerit of WBeL till date.
4. Gaurav Chopra (2019): Author in his article “Effectiveness of e-Learning Portal from
Students’ Perspective: A Structural Equation Model (SEM) Approach” mentioned that
e-learning has become an increasingly prevalent learning approach in higher educational
institutions due to the fast growth of internet technologies in India. He have found that
information available on the website may not be very useful as it is a one-way mode of
communication. The researcher also found that the three dimensions (system quality,
service quality and information quality) of e-learning system contributes to user
satisfaction and net benefits. Students are satisfied with e-learning websites and intent to
continue to use it in future as well.
5. Dr. S. Radha (2019): Author in her article “Role of e-Learning and Digital Media
Resources in Employability of Management Students” mentioned that teaching is
sharing of knowledge, skill, and attitude by the older generation to the new generation
in the society. Also mentioned that the role of e-learning and digital media resources in
employability of management students in Chennai city. The survey was conducted
among 130 management students from thirteen higher education institutes which offers
MBA program.
6. Mohammad Zare (2016): Author in his article “The Impact of e-Learning on
University Students’ Academic Achievement and Creativity” mentioned the study
investigates the impact of e-learning on creativity and content knowledge of chemistry
students. The statistical population of the study included was 100 pure chemistry
students who were following two separate classes. He had concluded that e-learning is
effective for knowledge and creativity acquisitions among chemistry students and the
greater e-learning opportunities should be provided for wider audiences.
7. Shashi Kant Dhir (2017): Author in his article “E-learning in Medical Education in
India” mentioned that the study aims to introduce the concept of eLearning, and discuss
its need and scope in medical education in India. Experience shows that students and
faculty are mostly in favor of adopting e-learning side-by-side with traditional learning,
and the advantages far outweigh the likely discomfort associated with adoption of this
new method.
8. Nidhi Phutela (2020): Author in her article “A Qualitative Study of Students’
Perspective on e-Learning Adoption in India” mentioned that how e-learning is giving a
new shape to the education industry. Also, it will encompass the students' perspective
and experience of e-learning. Her findings have been grouped under two sections
referred to as “themes,” which include “drivers for e-learning adoption” and “inhibitors
which restrict the adoption of e-learning.
9. Nanigopal Kapasia (2020): Author in his article “Impact of Lockdown on Learning
Status of Undergraduate and Postgraduate Students during COVID-19 Pandemic in
West Bengal, India” mentioned the impact of lockdown amidst COVID-19 on
undergraduate and postgraduate learners of various colleges and universities of West
Bengal. They have found some data that during the lockdown period, around 70 per cent
of learners were involved in e-learning. Most of the learners were used Android mobile
for attending e-learning. Students have been facing various problems related to
106 Innovation in Management Practices for the Sustainable Development Goals

depression anxiety, poor internet connectivity, and unfavorable study environment at

home.
10. Sabrin Aftab Patel (2018): Author in her article “India’s Emerging Economy:
e-Learning: Challenges and Opportunities in Rural India” mentioned that e-Learning is
an revolution in education industry like other areas, in this case also, urban areas are
influenced to a greater extent than rural one. e-learning is learning, utilizing electronic
technologies to access educational curriculum outside of a traditional classroom. In
most cases, it refers to a course, program or degree delivered completely online. Their
objective is to understand the concept of e-Learning.

RESEARCH METHODOLOGY
Objectives
Ɣ To understand effect of online learning on management student.
Ɣ To analyze the sustainability of e-learning in India.
Ɣ To measure the satisfaction level of online learning on management student.
Scope of the Study
Area: Ahmedabad, Gujarat
Sample Size: 100 management students.
Research Design: This research is descriptive because an observational study has been
carried out through cross-sectional study of e-learning and satisfaction level has been measured
by collecting the data of the management student.
Primary Data: The primary data is collected through questionnaire method. 100
management students are pursuing management degree from different B-Schools of Ahmedabad.
Expected Contribution
This study will benefit to different B-Schools to understand the importance of online learning
and its effect on student. This study will help them to analyze how much students adopting this
e-Learning teaching method.
To Measure the Effectiveness of e-Learning in India with Reference to Management Student 107

Data Analysis

We have categorized our research in 3 courses of management which includes MBA, PGDM
and IMBA in which 48 per cent of respondents are pursuing IMBA course. Out of which 48 per
cent of the student are doing PGDM and 35.6 per cent students are from IMBA.

By the research, we came to know that most of the institute uses Webex for online education
purpose, i.e., approx. 75 per cent of the institute uses Webex following to it 18 per cent uses other
application and 15 per cent uses Zoom. Hence, from the above chart, it can be estimated that
Webex is most popular amongst the educational institute.
108 Innovation in Management Practices for the Sustainable Development Goals

During the pandemic over 4 months, students are learning on web portals but still 49 per cent
of students are not sure that is it sustainable in India or not. As well 23 per cent students said yes
and 28 per cent students denied. Hence, from the above pie chart, it can be observed that the
suitability of web-based learning is still difficult as students do not adopt the technology and
teaching methodology easily.

Web-based educations have many perks as students can study on their own convenience. So,
almost 37 per cent of students think that this concept is flexible and 30 per cent students found
this option as a time-saving. 42 per cent of students found that it is flexible, cost saving as well as
To Measure the Effectiveness of e-Learning in India with Reference to Management Student 109

time saving. Hence, from the chart, it can be analyzed that online education is flexible, cost
saving and time saving.

We found one drawback that most of students (72.5 per cent) are not comfortable with the
teaching methodology of the institute and 47 per cent students are not comfortable by the
technology which institute use. Hence, from the above chart, it can be assumed that educational
institute should change their teaching methodology and should adopt easy technology for the
online education.

Most of the students attend online classes on the smartphones and laptops. There are 53 per
cent of the student using mobile for their online education whereas 45 per cent of them use laptop.
The rest of them prefer desktop for the online lectures.
110 Innovation in Management Practices for the Sustainable Development Goals

Students may face few problems like internet connectivity and audio or video cracking. So,
here, 47 per cent students face problems while having online lectures and 41 per cent students are
not facing any problem while having online lectures.

From the respondents, 37 respondents have moderate review and 31 students are satisfied
whereas 6 students are highly dissatisfied and 11 students are highly satisfied.
To Measure the Effectiveness of e-Learning in India with Reference to Management Student 111

From the research, we get to know that by online lectures 75 per cent of students can connect
more on same side by learning from e-books. Only 23 per cent students can connect.
Table 1: Rate Your Satisfaction Level of e-Learning. * Course * What is Your Specialization?
Crosstabulation Count

What is Your Specialization? Course Total

MBA PGDM IMBA
Highly satisfied 1 0 2 3
Satisfied 4 1 4 9
Rate your satisfaction
Moderate 4 4 3 11
Finance level of e-Learning
Not satisfied 5 4 5 14
Highly dissatisfied 2 0 1 3
Total 16 9 15 40
Highly satisfied 1 0 1 2
Satisfied 5 0 0 5
Rate your satisfaction
Moderate 16 0 5 21
Marketing level of e-Learning
Not satisfied 8 3 6 17
Highly dissatisfied 0 2 2 4
Total 30 5 14 49
Highly satisfied 0 0 1 1
Satisfied 0 0 2 2
Rate your satisfaction
Human Moderate 0 1 0 1
level of e-Learning
Resource Not satisfied 1 0 0 1
Highly dissatisfied 0 0 1 1
Total 1 1 4 6
112 Innovation in Management Practices for the Sustainable Development Goals

Moderate 1 2 2 5
Rate your satisfaction
Not satisfied 0 0 1 1
Other level of e-Learning
Highly dissatisfied 1 1 0 2
Total 2 3 3 8
Highly satisfied 2 0 4 6
Satisfied 9 1 6 16
Rate your satisfaction
Moderate 21 7 10 38
Total level of e-Learning
Not satisfied 14 7 12 33
Highly dissatisfied 3 3 4 10
Total 49 18 36 103
Crosstabulation is a method to quantitatively analyze the relationship between multiple
variables. Here, three major management courses have analyzed (MBA, PGDM and IMBA). Also,
with three major specialization fields we have analyzed (Finance, Marketing and Human
resources).
We have measured student satisfaction level according to their specialization field.
From the total 40 Finance students, only 3 students are highly satisfied with the e-Learning
method, 11 of them have moderate satisfaction level and 3 students are highly dissatisfied with
e-Learning method.
From the total 49 Marketing students, only 2 students are highly satisfied with the e-Learning
method, 21 of them have moderate satisfaction level and 4 students are highly dissatisfied with
e-Learning method.
From the total 6 Finance students, only 1 student is highly satisfied with the e-Learning
method, 1 of them have moderate satisfaction level and 1 student is highly dissatisfied with
e-Learning method.
Table 2: Do You Agree Web-based e-Learning is Better Substitute of Offline Learning * Course
Crosstabulation Count

Course Total
MBA PGDM IMBA
Strongly Disagree 2 0 6 8
Disagree 9 2 6 17
Do you agree web-based e-Learning
Neutral 24 6 11 41
is better substitute of offline learning
Agree 12 5 10 27
Strongly Agree 2 5 3 10
Total 49 18 36 103
Here, we have measured from the student’s perspective that is web-based e-Learning is better
substitute of offline learning from different management courses. We get to know that 10 students
are highly agree with the e-Learning method. 41 students have moderate opinion with the
e-Learning method, 8 students are strongly disagree with the e-Learning method.
To Measure the Effectiveness of e-Learning in India with Reference to Management Student 113

Table 3: Through Which Electronic Gadgets Do You Frequently Attain Your Lecture? * Course
Crosstabulation Count

Course Total
MBA PGDM IMBA

Through which electronic Desktop 0 2 0 2

gadgets do you frequently Laptop 18 6 23 47
attain your lecture? Smartphone 31 10 13 54
Total 49 18 36 103
By the research through which electronic gadgets do you frequently attain your lecture? So,
here, majority of students (54 students) attend from the smartphone and laptop (47 students).
Table 4: Chi-Square Tests

Value df Asymp. Sig.

(2-sided)
Pearson Chi-Square 9.327a 6 .156
Likelihood Ratio 8.134 6 .228
Linear-by-Linear Association .835 1 .361
N of Valid Cases 103
a. 3 cells (25.0 per cent) have expected count less than 5. The minimum expected count is .17.
Table 5: Symmetric Measures

Value Asymp. Std. Approx. Approx.

Errora Tb Sig.
Interval by Interval Pearson's R –.090 .093 –.913 .363c
Ordinal by Ordinal Spearman Correlation –.102 .097 –1.033 .304c
N of Valid Cases 103
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
Table 6: Statistics

Do You Agree Web-based Rate Your Satisfaction

e-Learning is Better Substitute Level of e-Learning
of Offline Learning?
Valid 103 103
N
Missing 0 0
Mean 3.14 3.24
Standard Deviation 1.058 1.024
114 Innovation in Management Practices for the Sustainable Development Goals

SUGGESTIONS
As per the data analysis, we came to know that 48 per cent of students are not comfortable
with the technology. So, as per our suggestion, institutes should adopt a better technology
platform. Institutes are conduction lectures online but with the lectures students also have to
submit and attend the quiz online which is not feasible on online platforms like Webex, Skype,
Zoom, etc. For that, institutes should use online platforms like Edmodo, Google Classroom,
Praadis Education, Schoology, etc., in which students get connected on one platform for all the
submission activities and also for online examinations. This way of submission and conducting
activities is more better than Mail activities.

CONCLUSION
From this study, it can be conclude that the satisfaction level of the students are way less in
the matter of online education. Hence, the sustainability of web-based learning is too far. The
technology and teaching methodology are the two key points university should focus on. With
this study, it can also be assume that online learning has a different effect on management
students.

REFERENCES
1. Chopra, G. (2019), “Effectiveness of e-Learning Portal from Students’ Perspective: A Structural
Equation Model (SEM) Approach“”
2. Dhir, S.K. (2017), “e-Learning in Medical Education in India”.
3. Dr. S. Radha (2019), “Role of e-Learning and Digital Media Resources in Employability of
Management Students”.
4. Hussain, M. (2018), “Student Engagement Predictions in an e-Learning System and their Impact
on Student Course Assesment Scores”, Vol. 21.
5. Kapasia, N. (2020), “Impact of Lockdown on Learning Status of Undergraduate and
Postgraduate Students during COVID-19 Pandemic in West Bengal, India”.
6. Patel, S.A. (2018), “India’s Emerging Economy: e-Learning: Challenges and Opportunities in
Rural India”.
7. Phutela, N. (2020), “A Qualitative Study of Students’ Perspective on e-Learning Adoption in
India”.
8. Ray, P.P. (2012), “Web-based e-Learning in India: The Cumulative Views of Different Aspects”,
Vol. 12.
9. Trakru, M. (2019), “e-Learning Effectiveness in Higher Education”, Vol. 6.
10. Zare, M. (2016), “The Impact of e-Learning on University Students’ Academic Achievement and
Creativity”.

ƇƇƇ
 PANDEMIC OUTBREAK: ENVIRONMENTAL
14 EDUCATION AS A KEY FACTOR FOR
SUSTAINABLE DEVELOPMENT
Urna Bhattacharjee Dr. Nandita Deb
M.Phil. Scholar, Department of Education, Assistant Professor and Head, Department of Education,
University of Calcutta, Shishuram Das College, University of Calcutta,
West Bengal. West Bengal.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
Now, COVID-19 pandemic spread rapidly across the world. Humans have faced the greatest
challenge since World War Two. It has potential to create devastating social, economic and
political crises as well as disrupt our education system. Due to COVID-19 condition, educational
institutions had been closed, and government quickly recommended shifting to “Online-
Learning.”. Environmental education is one of the important subjects at school level to higher
level of education. It provides students with the knowledge, skills, and experience is essential to
become a citizen not only our country but also the world, as well as making intelligent decisions
pertaining to the management of their natural resources. This study has focused on
Environmental Education as a key factor for Sustainable Development in this pandemic COVID-
19 outbreak. The study also includes challenges facing environmental education on light of online
learning, recommendations. To address these issues, a bold new view of online learning and
environmental education is needed.
Keywords: Unprecedented, Pandemic, Environmental Education, Sustainable Development,
Natural Resources.

INTRODUCTION
The COVID-19 pandemic has emerged as one the worst crisis of this century with no
immediate cure in sight. This pandemic has changed the people’s lifestyle. Impact of lockdown
for COVID-19 pandemic is improving the air quality in many cities across the globe and drop in
water pollutions in some parts of the world. Environmental education is an essential component
for sustainable development. Environmental education provides opportunities for students to
become engaged in real world issues that beyond classroom walls. They can see the relevance of
their classroom studies to the complex environmental issues confronting our planet and they can
acquire the skills they will need to be creative problem solvers and powerful advocates.
Sustainable Development Goals (SDGs) are such as food production, biodiversity conservation,
and climate change mitigation linked to one another. The concept of sustainable development
emerged as a response to a growing concern about human society’s impact on the natural
(115)
116 Innovation in Management Practices for the Sustainable Development Goals

environment. Through environmental education, students explore environmental issues, also

engage in problem solving, and take action to improve the environment. Students build
understanding of environmental issues and have the skills to make informed and responsible
decisions. The main components of environmental education for sustainable development are:
Ɣ Awareness and sensitivity to the environment and environmental challenges
Ɣ Knowledge and understanding of the environment and environmental challenges
Ɣ Attitudes of concern for the environment and motivation to improve or maintain
environmental quality
Ɣ Skills to identify and help resolve environmental challenges
Ɣ Participation in activities that lead to the resolution of environmental challenges

ENVIRONMENTAL EDUCATION AS A KEY FACTOR FOR

SUSTAINABLE DEVELOPMENT
Environmental Education is increasing literacy rates of citizens. It should also facilitate the
development of skills necessary for sustainable learning once formal schooling is complete such
as critical thinking and communication. Educational institutions had been closed a few months.
So, regular activity is stopped, online mode is the only delivering medium of this time. In this
condition Environmental education is very much important to our life. Teachers are building
environmental ethics in the students’ mind to cope up this situation. Environmental change also
has direct human health outcomes via infectious disease emergence, and this link is not
customarily integrated into planning for sustainable development.
Ɣ Through environmental education, students become active in their own learning and
involving them in decision-making. In this lockdown situation also, it will empower
students to make their online learning.
Ɣ Increases public awareness and knowledge of environmental issues.
Ɣ Does teach individuals critical thinking.
Ɣ Does enhance individuals’ problem solving and decision-making skills.
Ɣ Does not advocate a particular viewpoint.
Ɣ Knowledge and understandings about the environment:
Ƈ The nature and function of ecosystems and how they are interrelated their optimum
capacity is increasing during this pandemic situation.
Ƈ The impact of people on environment is few less for COVID. So, environment
would be clean and clear.
Ƈ The principles of ecologically sustainable development and career opportunities
associated with the environment in current scenario.
Ɣ Communicating environmental problems to peers, teachers in online mode.
Ɣ Growing up values and attitudes relating to the environment.
Ɣ Adopting behaviors and practices that protect the environment.
Ɣ Environmental education is beneficial to the cultural development as well as holistic
development of the students.
Pandemic Outbreak: Environmental Education as a Key Factor for Sustainable Development 117

Ɣ Good quality environmental education is an essential tool for achieving a more

sustainable world.
Ɣ Through environmental education, students enrich their knowledge, skills,
understanding, values and actions required to create a sustainable world, which ensures
environmental protection and conservation, promotes social equity and encourages
economic sustainability.
Ɣ The aim of environmental education is to enable people to make decisions and carry out
actions to improve our quality of life without compromising the planet.
Ɣ Students can address local as well as global issues in terms of pandemic situation.
Ɣ Look to the future, ensuring that the environmental education has a long-term
perspective and uses medium and long-term planning.
Ɣ Environmental education enriches human development on the natural environment and
its primary aim is the protection and conservation of the environment including natural
habitats and ecosystems.
Ɣ Through environment education, students are concerned about the reduction of poverty,
the promotion of social justice and the improvement of quality of life for people.
Ɣ People are the child of the nature. Development of environmental education focuses on
interdependence and interconnectedness between people on both a global and local
perspective but does not traditionally extend this to ecosystem interdependence or
specific environmental concerns.

ENVIRONMENTAL EDUCATION IS FACING SOME CHALLENGES

DURING PANDEMIC CONDITION
Coronavirus cause large-scale mortality and morbidity disrupt all fields of human life as well
as education system. The current outbreak of a novel Coronavirus is once again keeping the world
on its toes just like SARS. Students are very fear, worried foe this condition. Environmental
education will be guaranteed within the regular education. The regular academic institutions
incorporate differentiated treatment and special attention for improvement for environmental
ethics within the student’s mind. But environmental education faces some problem on light of
online education.
Ɣ Socio-economic Barriers: Effective learning is basically influenced by the availability
of educational resources to meet the needs of all types of students any. India is a
developing country; there are inadequate numbers of learning materials and other
facilities to meet the educational needs of the large number of learners engaging in
online learning.
Ɣ Outdoor Education: Environmental education outdoor trip is resource for learning. It
connecting with the world around them and learning about nature and most of outdoor
education is conducted by residential outdoor science schools, nature centers, parks and
zoos, not in traditional classrooms.
Ɣ Inaccessible of Learning Materials-: To ensure that learners are active participants in
the learning and teaching process, environmental education on light of online education
must ensure that teaching and learning materials are evaluated to ensure fulfillment of
diverse learners need. During lockdown, all are not access electronic devices. The big
118 Innovation in Management Practices for the Sustainable Development Goals

issue of our country is financial problem. So, economically weaker section cannot
accommodate the electronic devices.
Ɣ Digital Divide: In this pandemic condition, Digital Divide is the gap creator between
the students who have or who have not and know to use of ICT. Poor technology
literacy especially, persons with disabilities, who are already facing neglect and
marginalization in academia due to limited accessibility. They cannot purchase
equipment’s and get training to use them. In this situation, the main aim for sustainable
development through environmental education cannot properly fulfill.
Ɣ Regional Barriers: Many Hilly areas, forest areas and rural areas do not have any
internet accessibility till date, particularly students from low-income families, that are
most likely to lose environmental education within their local school districts.
Ɣ Proper Training: Pandemic has transformed the centuries-old, chalk-talk teaching
model to one driven by ICT. Education has changed dramatically. So, proper training is
needed. Teacher will be unable to cope with this mode of teaching.
Ɣ Poor Internet Connectivity: Less internet connectivity of our country is facing many
problems.
Ɣ Evaluation: Through this online mode, how a teacher can arrange environmental
assignments for student according to the level. It is a big challenge towards the teacher.
Ɣ Disconnected from the Ground Realities: Environmental education is based on
ground realties. But in this time, it is not possible

RECOMMENDATIONS
Ɣ COVID-19 emergency lockdowns and stay-at-home restrictions have made ambient air
quality in all areas of the world significantly better than before condition. Therefore, it
is important to identify sustainable solutions through environmental education that
prevent pollution levels from rebounding or reaching higher levels after the crisis.
Ɣ Uptake of Sustainable Work styles and Lifestyles – Remote learning is being rapidly
introduced across the world. . Such practices may improve not only the environment but
also work-life balance, and should be maintained to the extent possible, even after the
emergency period ends.
Ɣ 1.5-Degree Lifestyles – Through the environmental ethics, students gain to reduce
lifestyle carbon footprints Academicians are creating more environmental awareness
among students who can appreciate a qualitative change in environmental health
through better lifestyle management.
Ɣ Through environmental necessity concept, teachers build a student to adept at managing
similar crises in the future, i.e., “build back better” after the crisis.
Ɣ Environmental education helps to create a resilient and sustainable society.
Ɣ Well-addressed disposable manner – A proper way of disposal to used mask, sanitizer,
surgical gloves, etc.
Ɣ Technology is enabling ubiquitous access and personalization of education even in the
remotest parts of the country in this crisis. Panchayat can help the deprived students in
this condition. They may be arranging assistive equipments for environmental education
for sustainable development.
Pandemic Outbreak: Environmental Education as a Key Factor for Sustainable Development 119

Ɣ Many inspirational districts have initiated innovative, mobile-based learning models for
effective delivery of online-learning.
Ɣ Required, to get the full benefit of environmental education during lockdown, there
needs to be a concerted effort to provide this structure and go beyond replicating a
physical class through video capabilities. Building a virtual collaborative environment
(VCE) and development of a website integrated with a virtual collaborative environment
(VCE).
Ɣ Participants are given online education in lockdown period, when they experience what
the good life is and then try to realize it in terms of these insights. Environmental
education is found in the ‘worldview-related’ approach to online education.
Ɣ Environmental well-being feelings has been inculcating to student’s mind.
Environmental well-being feelings are formed in interaction with the context.
Ɣ Develop environmental well-being feelings is that students learn to develop their
environment sensibility and to reinforce feelings.
Ɣ The teachers have initiated ‘shared values’ and like nation before community and
society before self; community support and respect for the individual; the family as the
basic unit of society.
Ɣ Co-curricular activities are also added to our online education process. It is focused and
effective sustainable citizenship training.
Ɣ Building the Environmental Education Collaboration network.
Ɣ Academic institutions are constantly texting and assigning tasks through social media
platforms to help students maintain a high educational morale and make them
understand the importance of staying engaged.
Ɣ Teachers give them to write a paragraph to this pandemic context.
Ɣ The curriculum planners have also been cognizant of the need to help pupils develop
reasoning and motivation appropriate for sustainable development.
Ɣ Community-based Services:
Ƈ Students can create a local support groups. They can support old man or women
who are living alone.
Ƈ Volunteering for the National Health Mission.
Ƈ Students provide food and moral support to the deprived human.
Ƈ Helping charities that help others.
Ɣ Teachers have also created Virtual Virtue of the month approach where students can
make an online bulletin or newsletter on COVID-19 pandemic situation.
Ɣ Teachers create active learning environment, where teacher is a facilitator, encouraging
students to participate and share their views and opinions to COVID-19 pandemic
situation and supporting students to take responsibility for their society. This is the
initial stage for sustainable development for the society.
Ɣ Academic institutions organize a debate completion it help students’ environmental
ethics development.
120 Innovation in Management Practices for the Sustainable Development Goals

CONCLUSION
The COVID-19 pandemic is spreading very quickly every day, and the number of people
putting on lockdown is increasing, to date more than 220,438 people have died across the globe
and there is a direct loss to the world environment. The spread of virus means lockdown impact
has been decreasing air and water pollution and probably even saved lives in this process
Sustainable Development aims to “ensure healthy lives and promote well-being for all at all
ages.” Reducing global infectious disease risk is part of this goal, alongside strengthening
prevention strategies to identify early warning signals. In this pandemic outbreak, Environmental
Education becomes a key factor for sustainable development of our society.
Establish a routine that factors in age-appropriate environmental education programmes that
can be followed online, on the television or through the radio. After that, students can encourage
open conversations to express their feeling on pandemic issues. Teachers find out how much they
already know and follow their lead. Discuss good hygiene practices. Drawing, stories and other
activities may help to open a discussion.

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ƇƇƇ
 IMPACT OF COVID-19 ON INDIAN
15 BUSINESSES AND REMEDIES

Dr. Abhinay Nirmal

Assistant Professor,
IIEBM, Pune
E-mail: [email protected]

ABSTRACT
The world is going through a pandemic of COVID-19. The countries are suffering from the
severe after-effects of the pandemic. The lockdown was essential for survival. But that caused
major problems for the economy. Only essential services flourished. Other businesses have
perished or on the verge of being perished. The reason can be numerous. But the major problems
are happening due to the lack of contingency funds. None of the businesses has ever suffered such
loss. COVID-19 will have a serious impact on the way we live, buy, sell and market products.
This effect is here to stay for at least a year till such time that the vaccine is made available. For
the primary weeks of COVID-19, it felt just like the end of the planet was indeed finally here. The
stock exchange was falling, companies were laying people off, people were forced to figure from
home, grocery shelves emptied, and, almost every country within the world had infections and
deaths soaring – there seemed to be no end in sight.COVID-19 is dramatically changing
consumer and business behaviors today. Undoubtedly, many of those behaviors will remain long
after the diminishment and defeat of the virus. Hence, business needs to rethink on their entire
business philosophy. This paper will cover the aspects of Business Transformations post-COVID-
19 scenario. Health is on the utmost priority. Rest everything comes later. This is the learning
from this pandemic to Indian business houses. The realignment in the operations is necessary.
Indian Business is on the tipping point. If they change and innovate in this tide, they will succeed.
Otherwise, they have to close their shutter. This paper will cover the problems caused by the
COVID 19 pandemic. Also, this paper will understand the challenge that lies ahead of this
troublesome time. And in this paper, we will try to give some recommendations. That will cover
long term and short-term perspective. Because, the survival is at the stake. Hence, a single
mistake will cause the loss of fortunes.
Keywords: COVID-19, Problems, Challenges.

INTRODUCTION
COVID-19 will change the way the planet works; a bit like the good depression, dot-com
bubble, and therefore the 2008 financial crash did within the past. The question on everyone’s
mind is, ‘Will things return to normal?’

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124 Innovation in Management Practices for the Sustainable Development Goals

It might be a mouthful but here is a glance at what’s to return within the immediate future.
Liquidity is predicted to stay tight because the cost of borrowing in real terms will jump upwards.
This is often despite central banks’ efforts to scale back interest rates. Banks and financial
institutions are going to be under immense pressure because the fear of NPAs, insolvency and
bankruptcies increase multifold. The government will specialize in meeting hyper demand for
essential goods while non-essential businesses will specialize in recovering their receivables/
outstanding money due from debtors. New strategic alliances or business partnerships won't
emerge during this era.
It is an irony to mention that our world has changed dramatically over the previous couple of
months. The novel corona virus pandemic has resulted in unimaginable loss to the worldwide
economy and therefore the loss of human lives has been unprecedented in an era of worldwide
peace.
Not only are the numbers alarming but, the speed at which the challenges have emerged is
intimidating. Governments and health professionals are constantly calibrating the response to the
present pandemic and frequent strategic adjustments are being done.

RESEARCH METHODOLOGY
As stated previously, this paper is aimed to assess the impact of COVID-19. To understand
this objective some extracts are drawn from the prevailing literature available on various sites of
internet within the sort of highlights of interviews of renowned economists, Chambers of
Commerce and Industry. The relevant information available in various forms and at various
sources was scanned and understood carefully while drawing a right conclusion for this text.

FINDING
Unfortunately, the impact on startups or small businesses are often much more brutal as they
have scarcer cash reserves and a smaller margin for managing sudden slumps. The ripple effect of
this shutdown will have a key impact on India’s economy, as all business sectors get affected
resulting in low revenue generation because of an eventual halt/slump on the sale of products
and/or services. It is expected that India’s rate of growth in FY20- 21 are getting to be right down
to 2 per cent from a spread of 4.7 per cent to -5.2 per cent as was predicted.

CONCLUSION
Infrastructure investments are an efficient due to boost economic activity and make jobs.
With major cities on lockdown, organizations have had no choice but to probe their business
continuity and contingency plans. Ever since the primary COVID-19 case was confirmed in India,
numerous companies have instituted a ‘work from home’ drill using critical resources to know
whether remote working conditions are feasible. Employee safety is that the need of the hour.
Still, with no experience of handling an epidemic that has the potential to spread rapidly, most
companies are ignoring their hands by asking employees to remain home.

REFERENCES
1. http://en.wikipedia.org/wiki/Economic_impact_of_the_COVID- 19_pandemic_in_India
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Impact of COVID-19 on Indian Businesses and Remedies 125

3. https://bfsi.eletsonline.com/covid-19-and-its-impact-on-indian-economy/
4. https://blog.smallcase.com/the-new-normal-analysis-of-covid-19-on-indian-businesses-sectors-
and-the-economy/
5. https://economictimes.indiatimes.com/markets/coronavirus-impact-on-economy
6. https://economictimes.indiatimes.com/news/coronavirus-impact-on-it-sector
7. https://economictimes.indiatimes.com/small-biz/hr-leadership/leadership/survival-strategies-for-
businesses-during-covid-19- lockdown/articleshow/75371157.cms?from=mdr
8. https://indianexpress.com/article/business/companies/covid-19-impact-over-4-4k-jobs-cut-by-5-
major-indian-cos-in-1-month-uber-lays-off-nearly-600-people- 6428756/
9. https://www.assocham.org/covid19/Untitled%20attachment%2000022.pdf
10. https://www.bloombergquint.com/business/strides-develops-favipiravir-antiviral-tablets-drug-
shows-positive-outcome-in-covid-19-treatment
11. https://www.businesstoday.in/opinion/columns/covid-19-coronavirus-lockdown-how-india-can-
get-back-to-work-indian-economy-gdp/story/402041.html
12. https://www.indiatoday.in/news-analysis/story/trade-in-the-time-of-covid-19-the-economic-
impact-of-coronavirus-on-india-and-beyond-1661118-2020-03-29
13. https://www.investindia.gov.in/bip/resources/measures-taken-government-india-aid-businesses-
during-covid-19-lockdown
14. https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-
business#
15. https://www.mckinsey.com/featured-insights/india/getting-ahead-of-coronavirus-saving-lives-
and-livelihoods-in-india#
16. https://www.mondaq.com/india/operational-impacts-and-strategy/936014/coronavirus-covid-19-
and-indian- economy
17. https://www.pwc.com/gx/en/issues/crisis-solutions/covid-19.html
18. https://www.sakaltimes.com/opinion/social-impact-covid-19-india-49313
19. https://www.statista.com/statistics/1098456/india-impact-of-coronavirus-on- business/

ƇƇƇ
 WORK-LIFE BALANCE: A THEORETICAL
16 PERSPECTIVE ON IMPERATIVE
STRATEGIES FOR BUSINESS

Dr. Iram Ansari

Assistant Professor,
S.B. Patil Institute of Management, Pune.
E-mail: [email protected]

Dr. Aishwarya Gopalakrishnan Dr. Lakshmi Jasti

Assistant Professor, Assistant Professor,
S.B. Patil Institute of Management, Pune. S.B. Patil Institute of Management, Pune.
E-mail: [email protected] E-mail: [email protected]

ABSTRACT
The notion of work-life balance has gained highly in importance during recent years. In this
context, developments and changes at the workplace such as advances in the information
technology and information overloads that require quick responses and changes at a fast pace put
increasing pressures on employees (Guest, 2002). Next to this, also developments and changes in
life outside work can be seen as source of a work-life imbalance. In particular, transformations in
the socio-economic environment and changes in technology opening possibilities regarding
where and when work is carried out cause an imbalance between work and home responsibilities.
Moreover, the shift away from the image of the “traditional family” towards an increasing
appearance of nuclear families, single parent families and the greater participation of women in
the labor force represent factors requesting a greater work-life balance among employees (Guest,
2002). Initiatives like work from home, flexible work schedule has blurred the boundaries
between work and non-work-life (Hill, 1997). Work-life balance is no longer only a women-
related issue, but an issue of today’s workforce itself. Men are equally finding it difficult to
balance their work and personal life. Therefore, though work-life balance was initially
recognized and construed as a concern for working mothers, it now includes all classes of
employees (Bird, 2006).
Keywords: Work-life Balance, Work-family Conflict, Family-work Conflict.

INTRODUCTION
Over the past two decades the issue work-family and work-life balance have received
significant attention from employers, workers, politicians, academics and the media. Concerns
about work-life balance have become salient for a number of reasons. Demographic and social
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Work-Life Balance: A Theoretical Perspective on Imperative Strategies for Business 127

changes have resulted in more women entering the workforce, working mothers becoming the
norm rather than the exception. Technological advancement (e.g., Tablets, smart phones, e-mails)
have made it easier for work demand to intrude into family and personal life. Furthermore, the
move towards global competition has increased pressure on organizations and individual
employees alike to be more flexible and responsive to change. However, it is in the context of
current skill shortages and the prospect of an ageing workforce that it is now imperative for
organizations to embrace work-life balance practices to attract and retain talent, For future
commercial sustainability, organizations need to ensure they not just encourage but mandate a
practical and workable work-life balance policy, benefiting and meeting the needs of both the
organization and its employees. And importantly, organizations not providing real opportunity for
employee work-life balance are opening themselves up to increasing numbers of dissatisfied and
unproductive employees and hence increased attrition rates. Merely creating a work-life policy
framework is not enough; fostering an organizational culture that supports the use of available
policies is also of great importance. In this climate, managing the boundary between home and
work is becoming more challenging. There is a need for employers and employees alike to find
flexible and innovative solutions that maximize productivity without damaging employees’ well-
being, their family relationships and other aspects of life. In addition, the provision of work-life
balance policies is likely to play a role in recruiting and retaining good quality employees and
maintaining a competitive edge in a demanding marketplace.

DEFINITION WORK-LIFE BALANCE

Work-life balance is defined as the harmonious and holistic integration of work and non-
work, so that men and women can achieve their potential across the domains—work, family,
personal life and community—in which they play out their life roles (Bailyn, Drago and Koshan,
2001). It can also be defined as a state of equilibrium in which the demands of both a person’s job
and personal life are equal.
Work-family conflict: the push and pull between work and family responsibilities.
Work-life balance from the employee viewpoint: the dilemma of managing work
obligations and personal/family responsibilities.
Work-life balance from the employer viewpoint: the challenge of creating a supportive
company culture where employees can focus on their jobs while at work.
Work-life balance, in its broadest sense, is defined as a satisfactory level of involvement or
‘fit’ between the multiple roles in a person’s life. Although work-life balance has traditionally
been assumed to involve the devotion of equal amounts of time to paid work and non-work roles,
more recently the concept has been recognized as more complex and has been developed to
incorporate additional components.
1. Time balance, which concerns the amount of time given to work and non-work roles.
2. Involvement balance, meaning the level of psychological involvement in, or
commitment to, work and non-work roles.
3. Satisfaction balance, or the level of satisfaction with work and non-work roles.

THEORY OF WORK-LIFE BALANCE

There is vast research literature on the relationship between work life mostly termed as
work family. Edwards and Rothbard (2000), Zedeck and Mosier (1990) and O’Driscoll (1996)
128 Innovation in Management Practices for the Sustainable Development Goals

have reviewed this literature and have contributed to the understanding of this dynamic
association of work and family. These researchers have noted that there are five main
approaches also known as linking mechanisms (Edwards and Rothbard, 2000) to elucidate the
relationship between work and family. The last two approaches have individual contributors.
(i) Spillover: The spillover approach proposes that the experiences in one role affect the
experiences in second role. The behavior, mood, skills and values from one role can
spillover to the second role. Spillover may occur in two conditions. First, when there is
a similarity between work and any other domain (Edwards and Rothbard, 2000), e.g., an
individual is satisfied with the quality of work done on a particular day; this results in
satisfactory experiences at home. Second, spillover occurs as a result of transference
(Edwards and Rothbard, 2000), e.g., stress at workplace spills over to the family domain
and the individual displays irritable mood in the family. Thus, spillover can be both
positive and negative.
(ii) Congruence: The congruence approach is somewhat similar to spillover. Congruence
can be achieved through a positive linkage between work and family experiences;
wherein congruence is a result of a third factor that influences both work life and family
life (Edwards and Rothbard, 2000). For example, a negative influence of a third variable
on work and family relationship, that is negative affect as a personality characteristic
(Frone, Russell and Cooper, 1995). Similarly, positive work-family culture in the
organization may affect both work life (e.g., flexibility with working time) and family
life (ample leaves and child care facilities at work) positively; thus, congruence between
work and family is possible.
(iii) Compensation: The compensation approach refers to an attempt of making up for
shortcomings or deficits in one role through higher involvement in another role
(Edwards and Rothbard, 2000; Zedeck, 1992 and Lambert, 1990). These deficiencies
could be the demands or satisfactions that can be fulfilled in another role (Guest, 2002).
For example, an individual is highly engaged in the work life because of some negative
experiences in the non-work life. The sense of doing something worthwhile and gaining
positive energy in non-work life is achieved through higher engagement at workplace.
(iv) Segmentation: The segmentation approach posits that work and family are two
distinctive domains and there is no relationship between the two domains, indicating
that work and family are separate spheres; which may not influence each other
(Edwards and Rothbard, 2000, Zedeck, 1992, and Zedeck and Moiser, 1990). The early
conceptions of this approach proposed a natural separation of work and family domains
because both the roles involve distinct meaning, tasks and behaviors; therefore, maintain
a physical and a temporal separation (Blood and Wolfe, 1960). But as the research
developed a new perspective regarding segmentation approach emerged. This separation
is recently conceived as a boundary between work and non-work; which is thought to be
impermeable (Nippert-Eng, 1995).
(v) Integration: The integration approach hypothesizes that work and family domains can
be integrated and they are very closely associated as if woven together; therefore, it is
impossible to differentiate between the two domains. This approach is also called as
identity approach (Edwards and Rothbard, 2000).
(vi) Work-family Border Theory: In the light of segmentation being conceived as
boundary between work and non-work, another theory that partly shares the notion is
Work-Life Balance: A Theoretical Perspective on Imperative Strategies for Business 129

the work-family border theory. The difference between the border theory and the
segmentation approach is that in the border theory, Clark (2000) argues, that individuals
cross this border between work and non-work daily and they move in and out of the
border; whereas the classical conception of the segmentation approach was that the
boundary of work and family is impermeable. The work-family border theory postulates
that such a border is permeable and that work and family can indeed influence each
other (Guest, 2002).

A CONCEPTUAL PARADIGM OF WORK-LIFE BALANCE

Source- NHRD Network Journal, July 2009

1. The Environmental Factors

(a) Technological Environment: Technological progress has contributed to labor and
time-saving devices in many of the activities associated with shouldering family and
household responsibilities, ranging from cooking to washing and housekeeping to name
a few. Moreover, it has also contributed to emergence of virtual workplaces and flexi
work patterns which to some extent help cope with work life demands better than before.
Telework and telecommunicating are becoming increasingly common. While this
development can enhance Work-life Balance, it could have a differential impact that
lowers Work-family Conflict but increases Family-work Conflict.
The emergence of “extreme jobs” has contributed to workaholic symptoms such as the
increasingly blurred separation between work and home, so much so that even at home,
work appears to become the top priority. Other workaholic symptoms include over
commitment to work to the extent that one’s happiness is derived from ones work, work
130 Innovation in Management Practices for the Sustainable Development Goals

takes precedence over family and leisure time, no social life outside of work related
events.
(b) Economic Environment: Global competition and global production networks through
outsourcing have created relocation of jobs across international boundaries and
contributed to new ways of overcoming the human talent deficit. One of the major fall
outs of outsourcing is the increase in dual-income families in developing countries,
especially the emerging economies.
(c) Socio-cultural Environment: Research has shown that the attitude towards work, as
defined in terms of hours worked per annum, varies across countries. According to the
1998 Far East Economic Review, in general, urban Asians worked an average of 2150
hours per annum vis-à-vis 2068 hours for South Americans, 1898 hours for North
Americans and 1773 hours in Europe. Berlin, Germany, reported the lowest number of
work hours per annum at 1667, with the average worker getting 30 days off every year.
Research in Anglo countries has also found a stronger positive relationship between the
number of work hours and work-family stressors (Spector, Cooper and Poelmans, 2004).
Overall, the work-life balance issues confronting workers in the industrialized countries
differ from that in the developing economies.
2. Moderating Variables
The relationship between the environmental factors discussed above and work-life balance
are moderated by several variables including gender, marital status, size of the family, age of
children, social support, personality traits and industry/sector.
(a) Gender: With regard to gender, more men than women are engaged in “extreme jobs”.
Furthermore women than men reported strain based work-family conflict, and family
interference with work appears to pose greater problems for women than men (Lilly,
Duffy and Virick, 2006). Research shows that women tend to derive less benefit from
social support from their supervisors/colleagues in comparison to their male
counterparts (Van Daalen, Willemsen and Sanders, 2006).
(b) Marital status, family size and age of the children: Those who are single and those
with smaller families and/or with grown children generally experience less work-family
life tensions than those who are married, have larger families and young children (Tung,
1999).
(c) Social support: Social support can be categorized in usually of two types:
(i) Instrumental support comes from society and employers in terms of the provision of
family care facilities, long maternity/paternity leave, facilities for child care and home
for the aged to care for the ageing population. (ii) Emotional support comes from ones
family, managers or colleagues and is considered the most crucial factor in supporting a
health work-life balance.
(d) Personality traits: It can also moderate the relationship between environmental
variables and work-life balance. Lilly, Duffy and Virick (2006) found that those with a
high need for power and a high need for achievement typically experience more Work
Interference with family and not Family Interference with work; while those with a high
need for affiliation tend to experience more Family Interference with work.
(e) Industry/Sector: The nature of industry/sector also has an influence in work-family
conflict. Extreme jobs are more common in certain industries and sectors such as
Work-Life Balance: A Theoretical Perspective on Imperative Strategies for Business 131

Information Technology and Information Technology Enabled industries. Wilson (2003)

found that having children particularly early on, can severely damage the job prospectus
of women. In general, large companies and those in more modern/emerging sectors
(Information Technology and Information Technology Enabled industries in
comparison to the older industries like mining and construction) typical adopt more
family friendly policies that can moderate the level of tension between work and
life/family (Ferrer and Gagne, 2006).
3. Outcomes of the Above Factors of Work-life Balance
If left unaddressed, work family and family work conflicts could adversely affect the
employees’ career (Hewlett and Luce, 2006). Family issues including increased incidence of
divorce are common where work-family conflicts escalate. Work-Family conflict can have
disastrous consequences on the organization, both financial and non-financial wise. Research
shows that firms with better Work-life Balance practices enjoyed significantly higher productivity.
As far as non-financial aspects of organizational performance is concerned, research shows that
firms that adopt more enlightened Work-life Balance policies can improve the level of job
satisfaction and increase organizational commitment among their employees (Pratt, 2006).

THE GAP BETWEEN WORK-LIFE BALANCE POLICY AND PRACTICE

Empirical studies show that the mere availability of extensive and generous work-life
policies does not necessarily result in widespread utilization by employees or subsequent
improvements in work-life balance and reductions in work-life conflict. The low uptake in some
organizations appears to be related to different organizational environments, also known as
‘organizational work-life cultures’, which affect the extent to which flexible work options can be
utilized and work/life balance achieved. Four distinct aspects of work-life culture have been
identified from all of which should be considered by organizations when attempting to improve
employee’s work-life balance.
1. Managerial Support: Managers play an important role in the success of work-life
programmes because they are in a position to encourage or discourage employee’s
efforts to balance their work and family lives, where supervisors enthusiastically
support the integration of paid work and other responsibilities, employees will be more
likely to take up available work-life programmes.
It has also been found that even in ‘family-friendly’ organizations managers discourage
employees using available benefits and programmes contributing to increased work-
family conflict and vice versa. Hence, managers play a vital role in employee’s
decisions to use available benefits and programmes.
2. Career Consequences: Another strongly associated factor with the underutilization of
work-life policies, is the perception of negative career consequences. There is a negative
perception that employees who use family-friendly policies are seen as less committed
to work and the organization, overlooked for training, promotions, fringe benefits etc.
This shows why family-friendly policies tend to be underused. Importantly,
participation by managers themselves in work-family programmes challenges the
perception of work-life policy utilization and career progression as being mutually
exclusive paths within the organization.
132 Innovation in Management Practices for the Sustainable Development Goals

3. Time Expectations: The third factor that influences the use of work-life policies is
organizational time expectations the number of hours employees are expected to work.
A supportive work-life culture in terms of organizational time expectations has been
found to reduce work-family conflict, improve job satisfaction and increase productivity.
There is false impression that “If one is to succeed, one has to be at work, one has to be
there for long hours, and one has to continuously commit to work as a top priority.
Working long hours though, hinders the ability of employees to meet conflicting
responsibilities and subsequently forces some employees to choose between achieving
balanced roles and progressing in their careers. However, a move from the traditional
notion of long hours at the workplace as the primary measure of productivity to
performance-based assessment requires a significant paradigm shift for some
organizations. The shift to evaluating performance on the basis of outputs rather than
time spent physically at the workplace is however an essential part of developing a
culture that supports work/life balance.
4. Gendered Perceptions: Even though organizational work-life policies are generally
gender neutral and non-discriminatory, these policies have revolved historically around
facilitating the working conditions of women. Men’s uptake of alternative work options
has tended to be extremely low. Perceptions that work-life policies are developed only
for women are the fourth factor related affecting work-life policy. Some of the reasons
discouraging men’s usage of work-life programmes are organizational workplace and
the culture act as a barrier. Secondly the competitive business environment is thought to
discourage men from using work-life options. Finally, the domestic organization in
employees own homes often prevent men from taking up available work-life options,
focusing on the centrality of the father’s rather than the mother’s career. Organizations
should encourage men to use work-life policy. Some work-life provisions, such as
paternity leave, are intended specifically for men and aim to foster a greater sharing of
responsibilities between men and women.

ORGANIZATIONAL INTERVENTIONS THAT FACILITATE WORK-LIFE

BALANCE
Most interventions aiming to improve organizational work-life balance provisions focus on
four key changes in human resource policies:
1. provision of employee services such as health and fitness centers, on site childcare;
2. provision of employee benefits such as paid parental leave and spouse/partner benefits;
3. job restructuring such as part-time work and flexible work hours; and
4. organizational development initiatives such as supportive leadership development and
diversity training (Harrington and James, 2006).
In addition to the development of public policies supporting responsibilities outside of paid
employment, organizations have increasingly been developing formal policies that attempt to
facilitate the work-life nexus. Work-life balance strategies enhance the autonomy of workers in
coordinating and integrating the work and non-work aspects of their lives. Three broad types of
work-life strategies have been created to help employees balance their work and non-work lives:
flexible work options, specialized leave policies and dependent-care benefits. These include a
range of policies and practices like Compressed work week, Flextime, Job sharing, Home
Work-Life Balance: A Theoretical Perspective on Imperative Strategies for Business 133

telecommuting, Work-at-home programmes, Part-time work, Shorter work days for parents,
bereavement leave, Paid maternity leave, Paid leave to care for sick family members, Paternity
leave, On-site/near site company childcare, Company referral system for childcare, Programme
for emergency care of ill dependents, Childcare programmes during school vacation, Re-entry
scheme, Phased retirement, Sabbatical leave, Professional counseling, Life skill programmes,
Subsidized exercise for fitness center and Relocation assistance. These policies are generally
aimed at facilitating flexibility, supporting employees with childcare, elder care obligations and
alleviating the negative impact of interference between work and non-work commitments and
responsibilities.

OBSERVATION
It can be observed that techno-economic and socio-demographic changes have made it
crucial to consider work-life balance as a strategic concern for HR managers to recruit, engage
and retain talented employees. HR professionals in India now need to review their present
policies and practices towards work-life balance and redesign them accordingly. Organizations
134 Innovation in Management Practices for the Sustainable Development Goals

should note that they will benefit only when they will support employees’ needs for work-life
balance and effectively apply work-life balance policies. It has been seen that there are basically
three major factors of work that interferes with personal life: (i) unhappiness with the amount of
time for non-work activities, (ii) missing personal activities due to work and (iii) putting personal
life on hold because of work thus creating a rift in work-life balance issues resulting a lot of
employees quitting their jobs or taking career breaks. It has also been seen that there are work
related factors that interfere with personal life like easy access to the employees irrespective of
their location because of smart phones, tabs, etc. even after their normal working hours, or
holidays or vacations. Leaving less or limited scope for employees to enjoy their personal lives
without the interference of work related issues. The usage of work-life programmes like work
from home has dissolved the boundaries of work and life and thus creating a more turmoil
amongst employees to maintain a distance from work-related issues even at home. Work-life
balance must be supported by top management and encouraged at all levels of the organization.
Organizational culture must be developed in such a way that employees making efforts to have
healthy work-life balance will not be looked down upon. Only then in true sense will work-life
balance gain strategic recognition in India. Balancing work and non-work-life is going to remain
as one of the anticipated employee need in future. Hence, organizations should continue to look
for innovative ways to cater to this need in order to retain the key employees. Work-family
integration should not be seen as a parenting or dependent care issue only. To make work-life
balance policies successful, utmost care should be taken from their introduction to
implementation.

CONCLUSION
With increased concern by employees for managing the boundary and the interaction
between their work and non-work lives, the provision of effective work-life initiatives is fast
becoming a priority for organizations and for HRM practitioners throughout the corporate world.
Researches have shown that people are more attached to organizations that offer family-friendly
policies, regardless to the extent to which they might personally benefit from such policies
(Grover and Karen, 1995). In organizational terms, this translates into better talent attraction,
enhanced productivity, better talent management, reduced work stress, reduced absenteeism,
better motivation, employer branding and efficient work practices (Byrne, 2005). A mismatch
between work and non-work roles can be dysfunctional and disadvantageous for both the
employees and the employers. It is because of this reason that many organizations are
increasingly adopting work-life policies such as introducing greater work flexibility, providing
child-care facilities and offering emotional support (Lapierre and Allen, 2006). Organizations
should come up with effective and efficient work-life balance policies and programmes and foster
an organizational culture that supports the use of available policies. Thus in present scenario
organizations indeed have to rope in some innovative strategies to build a competitive advantage,
work-life balance strategies being one of them.

REFERENCES
1. Brough, P. and O’Driscoll M. (2010), “Organizational Interventions for Balancing Work and
Home Demands: An Overview”, Work and Stress, Vol. 24, No. 3, pp. 280-297.
2. Greenhaus, J.H., Collins, K.M. and Shaw J.D. (2003), “The Relation between Work-family
Balance and Quality of Life”, Journal of Vocational Behavior, Vol. 63, pp. 510-531.
Work-Life Balance: A Theoretical Perspective on Imperative Strategies for Business 135

3. Guest, D.E. (2001), “Perspectives on the Study of Work-life Balance”, A Discussion Paper.
4. Hayman, J. (2009), “Flexible Work Arrangements: Exploring the Linkages between Perceived
Usability of Flexible Work Schedules and Work-life Balance”, Community, Work and Family,
Vol. 12, No. 3, pp. 327-338.
5. Lehr D., Koch S. and Hillert, A. (2010), “Where is (Im)balance? Necessity and Construction of
Evaluated Cut-off Points for Effort-Reward Imbalance and Overcommitment”, Journal of
Occupational and Organizational Psychology, Vol. 83, pp. 251-261.
6. Russell, H., O’Connell P. and McGinnity F. (2009), “The Impact of Flexible Working
Arrangements on Work-life Conflict and Work Pressure in Ireland”, Gender, Work and
Organization, Vol. 16, pp. 73-97.
7. Scholarios, D. and Marks, A. (2004), “Work-life Balance and the Software Worker”, Human
Resource Management Journal, Vol. 14, No. 2, pp. 54-74.
8. Singh, A. (2010), “A Study on the Perception of Work-life Balance Policies among Software
Professionals”, The IUP Journal of Management Research, Vol. IX, No. 2, pp. 51-79.
9. Sujata, L.T. and Singh, S. (2011), “Work-life Balance Issues of Women at Call Centers: A
Study”, The IUP Journal of Management Research, Vol. X, No. 4, pp. 68-79.

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 17 MSMEs: REDEFINED FOR SUSTAINABILITY

Dr. Amarish Padma

Assistant Professor,
PCET’s S.B. Patil Institute of Management, Pune.
E-mail: [email protected]

ABSTRACT
Micro, small and medium enterprises (MSMEs) are amongst the strongest drivers of the
economy with a vast network of about six crore enterprises, contributing about 45 per cent to
manufacturing output, 50 per cent to exports, around 30 per cent to GDP, and creating
employment for about 11 crore — second only to agriculture. This sector mirrors the diversity in
the economy in terms of the size of these enterprises, the variety of products and services, and the
levels of tech employed. MSMEs have been inordinately affected by the COVID-induced
lockdown, transport disruptions, severance of supply chains, social distancing measures owing to
their dominant presence in economic sectors like retail, trading and services. This disruptive
effect has been compounded due to their limited financial resources and borrowing capacity. The
government has introduced a slew of legislative, regulatory and financial measures to support the
MSME sector amidst this unprecedented crisis unleashed by the pandemic. The area of review
mainly focuses of MSME and sustainable development of MSMEs. The paper was also trying to
focuses the new definition toward MSMEs sustainable development.
Keywords: MSME, Sustainability, Issues of MSME.

INTRODUCTION
On 26th June 2020, the Ministry of Micro, Small and Medium Enterprises notified certain
criteria for classifying enterprises as micro, small and medium enterprises (MSMEs) and
specified the form and procedure for filing the applicable memorandum (the Udyam registration),
with effect from 1st July, 2020. The change in the classification of MSMEs is a part of the relief
package offered to the MSME sector amid the COVID-19 outbreak. This reclassification has been
well received across sectors as it will help MSMEs to increase in size without losing their entitled
benefits. The expanded ambit now allows a larger pool of enterprises to get the benefits of the
MSME Act and pandemic-induced reforms Micro, small and medium enterprises (MSMEs) are
amongst the strongest drivers of the economy with a vast network of about six crore enterprises,
contributing about 45 per cent to manufacturing output, 50 per cent to exports, around 30 per cent
to GDP, and creating employment for about 11 crore — second only to agriculture. This sector
mirrors the diversity in the economy in terms of the size of these enterprises, the variety of
products and services, and the levels of tech employed.
(136)
MSMEs: Redefined for Sustainability 137

MSMEs have been inordinately affected by the COVID-induced lockdown, transport

disruptions, severance of supply chains, and social distancing measures owing to their dominant
presence in economic sectors like retail, trading and services. This disruptive effect has been
compounded due to their limited financial resources and borrowing capacity. The government has
introduced a slew of legislative, regulatory and financial measures to support the MSME sector
amidst this unprecedented crisis unleashed by the pandemic.

IMPORTANCE OF MSMEs FOR INDIAN ECONOMY

Ɣ Employment: It is the second largest employment generating sector after agriculture. It
provides employment to around 120 million persons in India.
Ɣ Contribution to GDP: With around 36.1 million units throughout the geographical
expanse of the country, MSMEs contribute around 6.11 per cent of the manufacturing
GDP and 24.63 per cent of the GDP from service activities.
Ɣ MSME ministry has set a target to up its contribution to GDP to 50 per cent by
2025 as India becomes a $5 trillion economy.
Ɣ Exports: It contributes around 45 per cent of the overall exports from India.
Ɣ Inclusive growth: MSMEs promote inclusive growth by providing employment
opportunities in rural areas especially to people belonging to weaker sections of the
society.
For example: Khadi and Village industries require low per capita investment and
employ a large number of women in rural areas.
Ɣ Financial inclusion: Small industries and retail businesses in tier-II and tier-III cities
create opportunities for people to use banking services and products.
Ɣ Promote innovation: It provides opportunity for budding entrepreneurs to build
creative products boosting business competition and fuels growth.
Thus, Indian MSME sector is the backbone of the national economic structure and acts as a
bulwark for Indian economy, providing resilience to ward off global economic shocks and
adversities.

MSME REDEFINED
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018 proposes
to reclassify all MSMEs, whether they are manufacturing or service-providing enterprises, on the
basis of their annual turnover.
138 Innovation in Management Practices for the Sustainable Development Goals

Ɣ The bill was introduced in the Lok Sabha and further referred to the Standing
Committee which tabled its report on 28th December, 2018.

BENEFITS OF PROPOSED RECLASSIFICATION

Ɣ The new classification would eliminate the need for frequent inspections which was
earlier required to check the investment in plant and machinery.
Ɣ It would be a non-discriminatory, transparent and objective criterion.

FACTORS WHICH LED TO GROWTH OF MSMEs

Ɣ Campaigns like Skill India, Startup India, Digital India and Make in India aim to
provide MSME players with a level playing field and a definitive push towards
enhanced productivity.
Ɣ Digitization – Increasing internet penetration, customer’s familiarization with digital
payments fuelled by B2C ecommerce players facilitate MSME sector growth.
Ɣ Tie-ups with new-age non-banking finance (FinTech) companies allowed access to
timely collateral free finance to MSMEs.
Ɣ Changing employment patterns – Younger generation shifting from agriculture towards
entrepreneurial activities creating job prospects for others.
MSMEs: Redefined for Sustainability 139

ISSUES FACED BY MSMEs AND STEPS TAKEN TO IMPROVE THEIR

CONDITION

Issues and Challenges Steps Taken

Access to Credit
Ɣ 90 per cent of the MSMEs are Ɣ Launch of the 59 minute loan portal to enable easy
dependent on informal access to credit for MSMEs.
sources for funding Ɣ 2 per cent interest subvention for all GST registered
Ɣ Lack of sufficient collateral MSMEs, on fresh or incremental loans.
and high working capital Ɣ Trade Receivables e-Discounting System (TReDS)
needs to enable access to credit from banks, based on
their upcoming trade receivables from corporate and
other buyers.

Access to Markets
Ɣ Low outreach and non- Ɣ Union Government announced to launch an
availability of new markets. e-commerce platform on the lines of “Amazon and
Ɣ Lack of skilled manpower Alibaba” to sell products from MSMEs and the
and ineffective marketing Khadi and Village Industries Commission.
strategy Ɣ Public sector companies now compulsorily procure
Ɣ Difficult for MSMEs to sell 25 per cent, instead of 20 per cent of their total
products to government purchases, from MSMEs.
agencies Ɣ More than 40,000 MSMEs registered
Ɣ Competition from MNCs and on Government e-Marketplace (GeM) portal. It
other big industries provides transparency in procurement and facilitates
MSMEs to directly reach out to the buyers.

Technology Access
Ɣ Limited human resources and Ɣ 20 hubs and 100 spokes in the form of tool rooms
weak financial standing will be established across the country. This
Ɣ MSMEs, particularly in the will facilitate product design and easy access to
unorganized sector, show latest technology to MSMEs.
lower adaptability of new Ɣ Financial assistance is provided for implementation
technology and innovation of lean manufacturing techniques to enhance the
manufacturing competitiveness of MSMEs.

Quality and Export Issues

Ɣ Low quality products impact Ɣ Financial support to MSMEs in ZED (Zero Defect
export competitiveness Zero Effect) certification to improve quality of
Ɣ Inadequate access to quality products.
raw materials Ɣ Government provides subsidy towards the
Ɣ Use of traditional machines expenditure incurred by enterprises to obtain the
causes low productivity product certification licenses from national and
international bodies.
140 Innovation in Management Practices for the Sustainable Development Goals

Ease of Doing Business

Ɣ Cumbersome government Ɣ The return under 8 labor laws and 10 Union
procedures and rules for regulations must now be filed only once a year.
establishing new units Ɣ Computerized random allotment for inspector
Ɣ Bureaucratic delays in getting visits to the establishment.
clearances Ɣ Environmental Clearance under air pollution and
Ɣ Poor litigation system in the water pollution laws, have been merged into
country one. Also, the return will be accepted through self-
certification.
Ɣ For minor violations under the Companies Act, the
entrepreneur will no longer have to approach the
courts, but can correct them through simple
procedures. This signifies simplification of
government procedures and instilling confidence
among entrepreneurs.

GOVERNMENT SCHEMES TO PROMOTE MSMEs

Ɣ Udyami Mitra Portal: Launched by SIDBI to improve accessibility of credit and
handholding services to MSMEs.
Ɣ MSME Sambandh: To monitor the implementation of the public procurement from
MSMEs by Central Public Sector Enterprises.
Ɣ MSME Samadhaan: MSME Delayed Payment Portal will empower Micro and Small
entrepreneurs across the country to directly register their cases relating to delayed
payments by Central Ministries/Departments/CPSEs/State Governments.
Ɣ Digital MSME Scheme: It involves usage of Cloud Computing where MSMEs use the
internet to access common as well as tailor-made IT infrastructure
Ɣ Prime Minister Employment Generation Programme: It is a credit-linked subsidy
program under Ministry of MSME.
Ɣ Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI):
It organizes traditional industries and artisans into clusters and make them competitive
by enhancing their marketability and equipping them with improved skills.
Ɣ A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship
(ASPIRE): It creates new jobs and reduce unemployment, promotes entrepreneurship
culture, facilitates innovative business solution etc.
Ɣ National Manufacturing Competitiveness Programme (NMCP): To develop global
competitiveness among Indian MSMEs by improving their processes, designs,
technology and market access.
Ɣ Micro and Small Enterprises Cluster Development Programme (MSE-CDP): It
adopts cluster development approach for enhancing the productivity and
competitiveness as well as capacity building of MSMEs.
Ɣ Credit Linked Capital Subsidy Scheme (CLCSS): It is operational for upgradation of
technology for MSMEs.
MSMEs: Redefined for Sustainability 141

OTHER RECENT INITIATIVES TO PROMOTE MSMEs

Ɣ In June 2019, RBI Committee headed by former SEBI Chairman UK
Sinha suggested a ` 5,000 crore stressed asset fund for the MSME sector to provide
relief to small businesses hurt by demonetization, GST, and an ongoing liquidity crisis.
Ɣ It has also recommended doubling the cap on collateral-free loans to ` 20
lakh from the current ` 10 lakh extended to borrowers falling under the Mudra
scheme, self-help groups, and MSMEs.
Ɣ MSME Ministry announced in June 2019 to lift the ban on entry of corporates and
private players in the MSME sector to pave way for the formation of 700 clusters to
reduce dependence on imports as well as for job creation.
Ɣ MSME Ministry is also planning to set up enterprise facilitation centres across the
country to make smaller businesses more competitive and help them integrate with big
enterprises.
Therefore, the government should continue to put concerted efforts for holistic development
of MSMEs in key areas like human capacity development, knowledge services, access to
finance, technology, infrastructure, market access, and ease of doing business.

INTERNATIONAL EXPERIENCES
Ɣ According to World Bank, formal SMEs contribute up to 60 per cent of total
employment and up to 40 per cent of national income (GDP) in emerging economies.
Ɣ 600 million jobs will be needed in the next 15 years to absorb the growing global
workforce, mainly in Asia and Sub-Saharan Africa. In emerging markets, most formal
jobs are generated by SMEs, which also create 4 out of 5 new positions.
Ɣ However, access to credit remains a major problem to the MSME sector globally.
142 Innovation in Management Practices for the Sustainable Development Goals

In globalized world, it is imperative to enable MSMEs to adapt and thrive in a more open
environment and participate more actively in the digital transformation, to boost economic growth
and deliver a more inclusive globalization.
Way Forward
Ɣ Today, enterprises need to adopt best practices and follow international standards to go
forward for offering innovative solutions.
Ɣ Focus should be on transfer of information and skill development to effectively use the
transferred technology.
Ɣ There is an urgent need to upgrade infrastructure utilities (like water, power supply,
road/rail) for any enterprise to run its operations successfully.
Ɣ Entrepreneurs need to develop quality conscious mindsets embedded in the
organizational culture.
Ɣ Sensitization and handholding of MSMEs at different and upgraded level of certification
is the need of the hour.
Finally, as recommended by India MSME Report 2018, we need an entitlement approach
that can have the potential of compelling all related stakeholders to work on a common national
agenda and solutions under a scientifically structured framework. This approach demands the
identification and analysis of major security threats to the MSMEs, and entrepreneurship at the
grass root level.
In light of this new classification criteria and definition of an MSME, all MSMEs in India
will now be known as an ‘udyam’ since that term aligns more closely with the meaning of an
enterprise. The new definition of an MSME has resulted in the enhancement of the investment
and turnover limits, which in turn has led to the reversal of the traditional policy bias in favour of
units staying small in order to qualify for benefits.
At a time when India’s economy is experiencing unprecedented effects due to months of a
nationwide lockdown to prevent the spread of COVID-19, the new definition of MSME is a major
step towards recovery on both the domestic and export fronts.

COMPOSITE FORMULA
A major structural reform, in this direction, has been undertaken by the government by
adopting a new composite formula of classification for manufacturing and service units in the
MSME sector with effect from 1st July, 2020. India defined Small Scale Industry (SSI), first in
1950s, as an industry with investment of up to ` 5 lakh in fixed assets and employment of 50-100
people with or without power.
By the 1960s, the employment criterion was dropped and the investment ceiling thereafter
was constantly increased. The MSMED Act in 2006, last laid down the definitions based on
investment limits for ‘micro and small’ and added a definition of ‘medium’. A static investment
limit for a period of 13 years led to an increasing demand for change from many sectors where
MSMEs have substantial share such as pharmaceuticals, auto-component, food processing,
among others.
The investment-based definition gave an undue ‘first-mover’ advantage to older
enterprises vis-à-vis new enterprises and discouraged investments in new technology. It also
required certification from authorities on the value of plant and machinery creating a window for
MSMEs: Redefined for Sustainability 143

‘rent-seeking’. Under the new definition, an enterprise qualifies as an MSME depending upon the
broadened thresholds of amount of investment made with respect to: (i) plant and machinery in
case it undertakes manufacturing; or (ii) equipment in case it provides services (see Graphic). In
addition to this existing investment conditionality, a new criterion for turnover has been
introduced.
The turnover details of enterprises are being captured by Goods and Services Tax Network
(GSTN) and enables MSMEs to reduce the burden of record keeping for compliance or for
availing themselves of benefits. The distinction between manufacturing and services industries
has been done away with and is likely to benefit retailers and contractors. The provision of
excluding the exports from counting of turnover will encourage the MSMEs to increase their
exports without the fear of losing the benefits of an MSME unit.
The change in the definition of MSME is one of the most significant enabling changes made
to the legal regime governing MSMEs, since the enactment of the MSME Act, 2006. The
expanded ambit of the MSME Act has now allowed the larger pool of enterprises to get the
benefits of the Act as well as of the reforms introduced by the government for the MSME sector
during the pandemic, without any additional tax liability. It is likely to improve the ease of doing
business in operation for MSMEs, and in the process make it easier for them to attract
investments and create more jobs.
A series of reforms undertaken across sectors also creates suitable circumstances for the
MSME sector to grow. The two laws on agriculture sector issued recently aim at deregulating
agriculture markets and foster robust farm-firm linkages towards a robust supply chain. This
reform is set to open the window of opportunity for processors, aggregators, large retailers and
exporters who can now build long-term mutually rewarding relations with farmers. It will enable
the agro sector to move up the value-added chain and create wealth for themselves and the
economy. An agro-MSME policy is under progress, with a focus on entrepreneurship
development in rural, tribal agriculture and forest areas for manufacturing products using local
raw materials.
144 Innovation in Management Practices for the Sustainable Development Goals

FOUR CODES
The government has also been working extensively to simplify, amalgamate and rationalize
44 Central Labor Laws into broad four codes — wages, industrial relations, social security, and
operational safety, health and working conditions. The Wages Bill was enacted last year and the
other three codes have been passed by the legislature. This is another step which will go a long
way in promoting ‘ease of doing business’ and instil investor confidence in the MSME sector as it
intends to reduce the burden of compliance of labour regulations.
The government has taken various complementary steps in designing a policy ecosystem for
MSMEs to enable them to grow and contribute more effectively to the economy. The need is to
support MSMEs to tide over this crisis and benefit from the enabling framework to give impetus
to their and the economy’s growth.

CONCLUSION
MSME significantly contributes to the economic and social development of Indian economy
by fostering entrepreneurship development employment generation. The available literature and
data show that this sector is continuously growing the passage of time and promoting employment
opportunities for the youth. Government of India has taken many new initiatives and makes
policies for the development of MSMEs with sustainability, the advancement of technology and
the upgradation of small business keeping in mind the future of the Indian economy.

REFERENCES
1. Annual Report of MSMEs 2019-20.
2. Lahiri, I. and Banerjee, M. (2018), “Brand Sustainability and Brand Development: Critical Issues
for Micro, Small and Medium Enterprises in India”, International Journal of Entrepreneurship
and Innovation Management, Vol. 22(3), pp. 298-316.
3. Ministry of Micro, Small and Medium Enterprises. Government of India, 2018.

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