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This monograph aims to analyze the economic and business history of colonial India from a corporate perspective by clarifying the historical role of institutional developments based on archival evidence of a representative enterprise. The perspective is distinctively unique in that it highlights the salience of corporate-level institutional responses to explain the causes of colonial India’s industrial growth, in addition to two renowned perspectives focusing on government economic policy or factor endowment.

One of the driving forces of India’s high growth rate since the 1980s is the expansion of modern business corporations whose origins date back to the colonial era in the mid-nineteenth century. This monograph explores the historical foundation of the growth of such corporations in colonial India, guided by a substantial collection of documents of Tata Iron and Steel Company, whose rich records have not received the due attention they have long deserved. As clarified by numerous economic and business historians of leading industrialized countries since the works of Douglass North and Alfred Chandler, this study as well proposes that the development of modern business corporations in colonial India was broadly supported by the reciprocal evolution of economic institutions and corporate organizations. Adding a new perspective to the business and economic history of colonial India, the analysis also provides an important case study of the development of corporate business in the non-Western world to the study of global business history.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract
The determining factors and process of the growth of modern business corporations are two of the most salient topics for historians studying the development of modern economies. Corporate growth requires that transformations occur in such areas as technology, production equipment and facilities, human resource skills and knowledge, managerial capacity, marketing networks, as well as, relationships among upstream and downstream industries; and the overall success of these transformations leads to impressive rises in the productivity of individual firms, which forms the backbone of the development of modern economies.
Chikayoshi Nomura

Chapter 2. The Development of the Modern Business Corporation in 19th Century India: Building the Foundations for the Emergence of TISCO in the 20th Century

Abstract
The development of the colonial India ’s modern business corporation during the “Victorian” era was conditioned by governmental policy frameworks, institutional settings and private initiatives , thus preparing the preconditions for founding Second Industrial Revolution business enterprises like the Tata Iron and Steel Company (TISCO), founded in 1907. In this chapter, we will detail those conditions in three parts.
Chikayoshi Nomura

Chapter 3. TISCO During the Decade of the 1900s: The Formation Period

Abstract
Growing market integration , improving institutional setting, and changes in government economic policy during the 19th century were important developments in the founding of the first full-fledged iron and steel maker in colonial India , the Tata Iron and Steel Company (TISCO) . This chapter will cover TISCO during its formation in the first decade of the 20th century by focusing on the two aspects of the procurement of necessary inputs and the realization of corporate structure .
Chikayoshi Nomura

Chapter 4. Initial Failure to Produce Competitive Steel, Capitalization Problems and the Institution of an Internal Financing System

Abstract
With the help of steadily progressing institutional settings and government assistance , the Tatas were able to establish India’s first indigenous capital -financed iron and steel enterprise during the first decade of the 20th century.
Chikayoshi Nomura

Chapter 5. Labour Unrest and the Introduction of a Direct Labour Management System

Abstract
The First World War and the Great Extension Scheme (GES) jointly provided the opportunity for the Tata Iron and Steel Company (TISCO) to improve labour productivity based on an unprecedented enlargement of its plant and equipment; but it would turn out that the additional production capacity alone was insufficient to attain the desired goals. According to the growth accounting analysis for the interwar period presented in Table 1.​1, the rise in TISCO’s capital growth rate of 28% per annum during the period 1917/18–1922/23 was nearly cancelled out by negative total factor productivity (TFP) growth of −17% per annum during that same period, resulting in a low productivity growth rate of just 5% annually. Because TFP is linked with management efficiency , negative TFP growth suggests that TISCO suffered from severe managerial inefficiency after the implementation of GES. This means that TISCO could only have enjoyed the fruits of that internally financed Scheme if supplemented by significantly large improvements in managerial efficiency .
Chikayoshi Nomura

Chapter 6. The Financial Crisis of the 1920s, the Introduction of Tariff Protection and “Imperial Commitment”

Abstract
The 1920s were a harsh and difficult decade for the Tata Iron and Steel Company (TISCO) in terms of not only continuous labour unrest , the topic of the previous and next chapters, but also severe price deflation that began in 1921, the latter, the subject of the present chapter, marked by a worldwide decline in prices after the post-war economic boom, which became more pronounced in the Indian context.
Chikayoshi Nomura

Chapter 7. Continuing Labour Unrest, Efficiency Enhancing Schemes and Improvements in Labour Productivity During the Late 1920s

Abstract
While the Government of India ’s decision to adopt tariff protection in the mid-1920s provided the Tata Iron and Steel Company (TISCO) with an opportunity to stabilize its financial situation, the same decision required the company to further reorganize its labour management system in order to improve labour productivity , but the subsequent efforts at the same led to the company’s worst bout with labour unrest ever, beginning in 1927.
Chikayoshi Nomura

Chapter 8. The 1930s: Failure in Export-Oriented Development and Conservative Attitudes Towards Further Expansion

Abstract
The previous chapters have showed how the Tata Iron and Steel Company (TISCO) made every attempt to resolve the nagging problem of low labour productivity from the 1910s on, the most important of which were institutional reforms and internal financing during the 1910s and switching to a direct labour management system during the 1920s, all enabling TISCO to raise labour productivity and competitiveness on the domestic market beginning in the mid-1920s, as shown by the total factor productivity (TFP) figures in Table 1.​1.
Chikayoshi Nomura

Chapter 9. Conclusion

Abstract
After a clear shift towards economic liberalization became apparent in national policy in the early 1980s, India started lifting its economic growth rate from the notorious 3% “Hindu growth rate ” to over 6%. Domestically, this rise in per annual growth has helped improve the standard of living of over one billion people, while, globally, providing profitable market opportunities for world manufacturers and investors.
Chikayoshi Nomura

Backmatter

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