We demonstrate a negative relationship between pro-market reforms and the sustainability of superior profits in an emerging economy. The decline in sustainability of superior profits shows that pro-market reforms bring significant threats in addition to the various opportunities such as greater availability of production factors and greater freedom to enter and operate businesses highlighted in the extant literature. Our study thus contributes to a more complete conceptual understanding of the performance consequences of pro-market reforms in emerging economies. We also show that investment in research and development and greater investments in marketing and advertising are firm-level resources that provide a measure of protection against the erosion in sustainability of superior profits associated with pro-market reforms.
Publisher
WileyNotes
"This is the peer reviewed version of the following article: Chari, M. D., & David, P. (2012). Sustaining superior performance in an emerging economy: An empirical test in the Indian context. Strategic Management Journal, 33(2), 217-229., which has been published in final form at https://doi.org/10.1002/smj.949. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited."Handle
http://hdl.handle.net/1961/auislandora:63642
