Resource Strategy and Signals to Resources Market in Indian Software

Abstract

Resource dependence of strategies of firms in software have mostly been studied from an internal perspective. However, because large manpower turnover takes place across most firms and because quality of resources is uncertain, firms value the functioning of the market of software personnel. Signals based on which transactions in such a market take place appear through advertisements for jobs. This paper has studied 1,615 advertisements for software jobs in India and abroad. It is observed that signals that appear in advertisements are vague. It appears that firms benefit by concealing from competitors information about its resources, although vagueness of information raises fixed cost.

Employing Quality of Manpower to Leverage Emergent Strategy: The Case of Indian Software Firms

“…Resources transfers across firm boundaries are logically disallowed then. However, Banerjee (2003a) observed that resources transfers across firm boundaries do take place for strategy coordination.…”