International Organizational Behavior 2e Chapter 2 Activities Page 4
MAKING THE CASE FOR INTERNATIONAL UNDERSTANDING – Is a Culture of
Entrepreneurial Problem-Solving Key for India?
India is a complex and chaotic place with hundreds of millions of poor citizens and a
ramshackle infrastructure—particularly when compared to the gleaming new ports,
highways, and airports that China has been building in recent years. Moreover, India has
long been plagued by a notoriously inefficient, albeit democratic, government. But these
challenges and barriers have arguably produced something remarkable in India—a
problem-solving mentality that helps many Indians to quickly, cheaply, and cleverly invent
new products and new ways of doing things.
Interestingly, while China’s approach to growth has been, for the most part, government
driven, India’s successes are more connected to the collective efforts of its nearly 50 million
entrepreneurs. The unleashing of India’s underlying entrepreneurial culture has been
driven by several factors, including reforms that started 20 years ago (e.g., lower tariffs,
friendlier rules for investment, and less business red tape). Another factor is the domestic
market. While many Indian companies do a brisk export business in services, the local
market is large and demanding, with customers wanting cheap products that work well
from the start. And India’s “frugal innovators” provide them what they want. In fact, some
of what they have come up with is nothing short of mind-boggling. For instance, Tata
Chemicals has developed a water filter that costs less than $1, needs no power, and
provides 30 days of pure drinking water for a five-person family. And Indian scientists have
developed a new laptop they hope to bring to market—one that costs just $35!