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Globalization and convergence in corporate governance: evidence from Infosys and the Indian software industry

Author

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  • Tarun Khanna

    (Harvard Business School, Soldier's Field Rd., Boston, MA, USA)

  • Krishna G Palepu

    (Harvard Business School, Soldier's Field Rd., Boston, MA, USA)

Abstract

In contrast to the much-studied role of capital markets in fostering convergence in corporate governance practices worldwide, we argue that the globalization of product and talent markets has affected corporate governance of firms in the Indian software industry. We model several possible reasons why a particular firm, Infosys, has emerged as the exemplar of good corporate governance in India, traditionally a backwater of corporate governance practices. We further analyze the manner in which Infosys has attempted to shape corporate governance practices in India more generally, and why these attempts have had limited effects thus far. Journal of International Business Studies (2004) 35, 484–507. doi:10.1057/palgrave.jibs.8400103

Suggested Citation

  • Tarun Khanna & Krishna G Palepu, 2004. "Globalization and convergence in corporate governance: evidence from Infosys and the Indian software industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 484-507, November.
    • Handle: RePEc:pal:jintbs:v:35:y:2004:i:6:p:484-507
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