Resources, capability and coordination: strategic management of information in Indian information sector firms

Coordination of capability and information amongst firms is a strategic objective. This cannot be solved only by innovation in information sector firms but through strategic management of information (SMI) received from outside or structurally generated internally. Firms need to undertake a new kind of SMI, which is dependent on generating information on the other firms, technology, standards, logistics and customer base. This generative aspect is solved by firms in the information sector resorting to a practice of sustaining high manpower turnover. Job-switching individuals act as an 'intermediate good'. Job-switches thus act as an information-generating activity and a firm's SMI can be based on that in order to serve strategic coordination. This inter alia solves some riddles pertaining to theories of strategic capability and the resources view of strategy. Examples from Indian job-switches are discussed to substantiate the argument.

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