Others

The Indian diagnostic services market has experienced significant growth over the years to become the potential investment field for players looking to venture in the country. Various factors such as rising prevalence of diseases, improving affordability of patients and increasing penetration of health insurance have contributed substantially to spur demand for diagnostic services in the country. With the continuous increase in demand, the market is estimated to post around 20% growth in 2009 over the previous year.

Contributed by Mr.Vikram Hoon, Knowledge Mentor

Big is better --- and safer. Conventional wisdom tells us so. It follows that building a career in a  big setup is better ---  and safer. Therefore, we saw the initial rush of job seekers towards the government and its agencies and undertakings. The limitations there diverted them towards the large enterprises in the private sector. The only alternative to these were petty businesses --- largely shops and trading, with some petty assembly and intermediate processing thrown in.

Small scale industry was given some space in the overall scheme for industrialization and economic development. But the fetters placed upon it ensured that it never grew in scale, size or technology or in adopting modern management principles and processes. Consequently, employment in this sector remained unattractive, both qualitatively and quantitatively.

Importance_Ethnic_Networks_Business_transactions.pdf

Abstract:

This paper explores the importance of ethnic networks in determining the outcome of business
transactions in Small and Medium Enterprises sector. In a situation of hold up1 the degree of trust
between the business parties will affect the willingness to enter into an agreement with each other.

If a wholesaler gets a product customized and then the buyer does not come back to collect the delivery; the value of the products becomes less than the market price. In our study, auditors from different ethnicity purchase either a customized or non-customized product for delivery at a later date. Auditors were asked to adhere to a script and a predefined bargaining process.

The analysis of the data shows that ethnicity plays a critical role in determining the fate of a business transaction. A match in the ethnicity of both the parties impacts the bargaining process and subsequently affects the contracted price. These results suggest that ethnicity of parties involved in a contract plays an important role in determination of the contractual features.