Building competitive firms: incentives and capabilities by Ijaz Nabi, Manjula Luthria

By Ijaz Nabi, Manjula Luthria

'Building aggressive companies: Incentives and functions' explains how organizations develop into aggressive in language compatible for either technical and non-technical readers. an easy analytical framework integrates parts similar to pageant coverage, company governance, international direct funding, innovation readiness, highbrow estate rights, e-commerce and provide chain administration. those 'behind-the-border' parts are pivotal to shaping the funding weather in any kingdom and adorning the advantages of alternate liberalization. each one of those issues is mentioned intimately with a spotlight on coverage layout and overseas most sensible perform in implementation.

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It set up the Economic Development Board (EDB) in 1961 to coordinate policy, offer incentives to guide foreign investors mto targeted activities, acquire and create mdustrial estates to attract multinational corporations, and generally mastermind mdustrial policy. At times, it deliberately raised wages to accelerate technological upgrading, although in the mid-1980s a sharp rise in wages had to be modified to restore competitiveness. Over time, multinational corporations were drawn into the industrial pohcymaking process, and the EDB emerged as one of the world's most successful investment promotion agencies.

Although the government is now withdrawing from detailed industrial interventions, its early strategy clearly raised the technological capabilities of domestic firms to levels almost unmatched in other newly industrializing countries. The strategy was risky and costly, however, and very demanding of government skills and bureaucratic autonomy No other country with restrictive strategies on FDI (of which there were many, like India) has achieved comparable competitive success in technology-intensive activities.

Payments, credit, and working capital move from consumers to producers. * Technology and advanced techniques are disseminated among producers, packagers, and processors. * Ownership rights pass from producers to processors and ultimately to marketers * Information on current customer demand and product preferences at the retail level passes back from retailers to producers. BUILDING COMPETITIVENESS: A ROADMAP AND POLICY GUIDE 25 benefits and apportion risks among participants, thus enforcing internal mechanisms and developing chainwide incentives for ensuring timely production and delivery.

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