Emergence of Indian Multinationals in Germany: An Analysis of Critical Success Factors - Results of a TUHH Study
22 Pages Posted: 12 Feb 2012
Date Written: December 1, 2009
This report is a part of our study “The Emergence of Indian Multinationals: An Analysis of Critical Success Factors”. The study was conducted under the aegis of our “Research Project Global Innovation” at the Institute of Technology and Innovation Management at Hamburg University of Technology. The study is unique in the sense that it has collected information on the presence of nearly all Indian companies in Germany along with identifying and analyzing the critical success factors of Indian corporate investments in Germany. Furthermore this study also incorporates the gathering of the experiences and challenges of Indian companies in the Federal Republic of Germany. The present report is a preliminary draft of the survey results.
The study shows that most Indian firms have performed well in Germany in general. The case studies involving financial benchmarking have shown that the right mix of strategic and operational strategies can be helpful in hedging the risks that an Indian firm might follow in Germany. This study provides unique insights into deriving a probable set of critical success factors which is quite unique in its nature. The study also shows the effects of the Global financial meltdown and the possible strategies that firms have taken up in order to sustain business in an uncertain environment.
Nonetheless, firms have also faced challenges and are still facing it. The challenges seem to have grown beyond just the ‘cultural issues barrier’ and ‘foreign language’ and challenges such as ‘integration to corporate headquarters’ and ‘local adaption of products’ seems to have crept in. The study shows the requirement of a more effective human resource strategy for the local German market and for the same alliances with local universities and other organisations to lock in employee’s right from the university and undergraduate level must be undertaken.
Since this study is based on a relatively small sample, the findings are of a tentative character. Nonetheless, there are strong reasons for the assumption which are in conformity with the existing expert opinions and available reports. These finding provide a useful base from the strategic to the operational level which encompasses the recommendations for the top and middle management for the right things to do at the right time in order to sustain their business in Germany.
Keywords: India, Germany, Outward FDI, Critical Success Factors, Foreign Direct Investments
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