Event: 2nd AIM-AMA Sheth Foundation Doctoral Consortium, January 5-7, 2014
Session: Bridging Research Perspectives II – Emerging Market, International & Cross Cultural Research
Speaker: Dr. Ramanathan Subramaniam, Professor of Marketing, IIMA
Dr. Ramanathan Subramaniam talks about a working paper that studies impact of innovation and technological advancement on how products collapse. Events such as the BP oil spill in the US, nuclear reactor failure in Japan and coal mining accidents in China led him to question why incidents of product failure were being reported from technologically advanced countries.
During the course of his research Dr. Subramaniam finds that factors such as as the firm’s cost structure, price, product positioning, technology used by the competitor, type of market in which the firm operates (monopoly/competition based), quantity competition, price competition, market where the competition is based (developed/emerging) and pressure from shareholders to cut costs and give more value per dollar all affect a firm’s decision on investment in technology.
Although, the research is still in progress, Dr. Subramaniam says that when compared to firms in emerging markets, firms in developed markets experience diminishing returns on investment at a higher rate.