Non-equity Alliances and the Performance of Indian Software Firms

N.S. Siddharthan () and Stanley Nollen ()

Working Papers from eSocialSciences

Abstract: The Indian software industry has grown very rapidly for more than a decade. In this study we report the results of a multivariate statistical analysis of the determinants of sales revenue growth and profit margins of Indian software firms. Based on original firm-level survey data, our SUR estimates show that both the firm’s growth and profits are greater if it has more foreign non-equity alliances. Firms enjoying higher labour productivity with experienced managers and holding quality certifications achieve higher growth while firms of recent vintage having greater interaction with non-resident Indians report higher profit margins.

Keywords: software industry; Indian software industry; SUR estimates; labour productivity; labor productivity; sales revenue of software firms; Economics; Indian Economy; Industry (search for similar items in EconPapers)
Date: 2006-06
Note: Institutional Papers
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