Eric Bellman, “All in the Family: $100 Billion,” Wall Street Journal, November 24, 2007.

Thomas S. Robertson, e-mail message to “the Wharton Community,” November 28, 2008; Times of India, “Day After, Mumbai Limping to Normalcy,” November 30, 2008; and Joe Nocera, “Mumbai Finds Its Resiliency,” New York Times, January 4, 2009.

Mark Landler, “Seeking Business Allies, Clinton Connects with India’s Billionaires,” New York Times, July 18, 2009.

Vikas Bajaj, “India Undertakes Ambitious ID Card Plan,” New York Times, June 25, 2009.

Anusha Chari, Wenjie Chen, and Kathryn M. E. Dominguez, “Foreign Ownership and Firm Performance: Emerging Market Acquisitions in the United States,” working paper, NBER, 2009.

China has become a useful source of new management principles as well, as seen in Tarun Khanna, Billions of Entrepreneurs: How China and India Are Reshaping Their Futures—and Yours (Boston: Harvard Business School Press, 2007); Robyn Meredith, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us (New York: W. W. Norton & Company, 2007); and Pete Engardio, Chindia: How China and India Are Revolutionizing Global Business (New York: McGraw-Hill, 2007).

James P. Womack, Daniel T. Jones, and Daniel Roos, The Machine That Changed the World: Based on the Massachusetts Institute of Technology 5-Million Dollar 5-Year Study on the Future of the Automobile (New York: Rawson Associates, 1990); James P. Womack and Daniel T. Jones, Lean Thinking: Banish Waste and Create Wealth in Your Corporation (New York: Free Press, 2003); James P. Womack and Daniel T. Jones, Lean Solutions: How Companies and Customers Can Create Value and Wealth Together (New York: Free Press, 2005); and Ceci Connolly, “Toyota Assembly Line Inspires Improvements at Hospital,” Washington Post, June 3, 2005.

Unless otherwise indicated, quotations from these business leaders are drawn from the authors’ interviews with them from 2007 to 2009.

Nick Kurczewski, “And Now, for Some Serious Belt-Tightening,” New York Times, June 28, 2009.

T. Surender and J. Bose, “I’m in a Lonely Phase of My Life: Ratan Tata,” Times of India, January 11, 2008.

Heather Timmons, “A Tiny Car Is the Stuff of 4-Wheel Dreams for Millions of Drivers in India,” New York Times, March 23, 2009.

Peter Cappelli, Talent on Demand: Managing Talent in an Age of Uncertainty (Boston: Harvard Business Press, 2008); P. Christopher Earley and Harbir Singh, eds., Innovations in International and Cross-Cultural Management (Thousand Oaks, CA: Sage Publications, 2000); Ravi Ramamurti and Jitendra V. Singh, eds., Emerging Multinationals in Emerging Markets (Cambridge: Cambridge University Press, 2009); and Michael Useem, Investor Capitalism: How Money Managers Are Changing the Face of Corporate America (New York: HarperCollins/Basic Books, 1996).

A host of books on business leadership, some by the business leaders themselves, have informed our commentary, including Gita Piramal, Business Maharajas (New Delhi: Viking, 1996); Geoff Hiscock, India’s Global Wealth Club: The Stunning Rise of Its Billionaires and Their Secrets of Success (Somerset, NJ: Wiley, 2007); Gurcharan Das, India Unbound: The Social and Economic Revolution from Independence to the Global Information Age (New York: Random House, 2000); Steve Hamm, Bangalore Tiger: How Indian Tech Startup Wipro Is Rewriting the Rules of Global Competition (New York: McGraw-Hill, 2007); Kishore Biyani, It Happened in India: The Story of Pantaloons, Big Bazaar, Central and the Great Indian Consumer (New Delhi: Rupa & Company, 2007); and Nandan Nilekani, Imagining India: The Idea of a Nation Renewed (New York: Penguin Press, 2009).

Daniel Yergin and Joseph Stanislaw, The Commanding Heights: The Battle for the World Economy (New York: Free Press, 2002).

Gurcharan Das, India Unbound: The Social and Economic Revolution from Independance to the Global Information Age (New York: Random House, 2000).

India in Business, “India’s Economic Reforms,” Economy page, http://www.indiainbusiness.nic.in/economy/economic_reforms.htm.

Ibid.

Arvind Panagariya, “India in the 1980s and 1990s: A Triumph of Reforms,” working paper WP/04/43, IMF, March 2004, http://www.imf.org/external/pubs/ft/wp/2004/wp0443.pdf.

Joe Nocera, “Mumbai Finds Its Resiliency,” New York Times, January 4, 2009; and Heather Timmons, “India Maintains Sense of Optimism and Growth,” New York Times, March 1, 2009.

KPMG, India Fraud Survey Report 2008 (New Delhi: KPMG, 2009), http://www.in.kpmg.com/TL_Files/Pictures/FraudSurveyReport_08.pdf.

The 1991 reforms and their aftermath are assessed in Montek S. Ahluwalia, “Economic Reforms in India Since 1991: Has Gradualism Worked?” Journal of Economic Perspectives 16 (2002): 67–88; Stephen P. Cohen, India: Emerging Power (Washington, DC: Brookings Institution Press, 2002); Gurcharan Das, The Elephant Paradigm: India Wrestles with Change (New Delhi: Penguin Books, 2002); Gurcharan Das, “The India Model,” Foreign Affairs 85 (2006): 2–16; Edward Luce, In Spite of the Gods: The Rise of Modern India (New York: Random House, 2007); Kishore Mahbubani, The New Asian Hemisphere: The Irresistible Shift of Global Power to the East (New York: Public Affairs, 2008); Robyn Meredith, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us (New York: W. W. Norton & Company, 2007); Organization for Economic Co-operation and Development, Economic Survey of India, 2007, OECD Policy Brief (Paris, France: Organization for Economic Co-operation and Development, 2007); Arvind Panagariya, “India’s Economic Reforms: What Has Been Accomplished? What Remains to Be Done?” ERD Policy Brief Series, Economics and Research Department, Asian Development Bank, 2002; Panagariya, “India in the 1980s and 1990s”; Ravi Ramamurti and Jitendra V. Singh, eds., Emerging Multinationals in Emerging Markets (Cambridge: Cambridge University Press, 2009); Jeffrey D. Sachs, Ashutosh Varshney, and Nirupam Bajpai, eds., India in the Era of Economic Reforms (New York: Oxford University Press, 2000); and Fareed Zakaria, The Post-American World (New York: W. W. Norton & Company, 2008).

Rajesh Chakrabarti, William Megginson, and Pradeep K. Yadav, “Corporate Governance in India,” Journal of Applied Corporate Finance 20, no. 1 (2008): 59–72; Reserve Bank of India, Report on Foreign Exchange Reserves, 2008, http://rbidocs.rbi.org.in/rdocs/AnnualReport/DOCs/86606.xls; and Jina Saha and Tarumoy Chaudhuri, “Rising Foreign Exchange Reserves: A Potential Source for Infrastructural Development in India?” February 10, 2008, http://ssrn.com/abstract=1266716.

BusinessWeek, “The Trouble with India: Crumbling Roads, Jammed Airports, and Power Blackouts Could Hobble Growth,” March 19, 2007; and Economist, “Battling the Babu Raj,” March 8, 2008.

Atul Gawande, Better: A Surgeon’s Notes on Performance (New York: Picador, 2008).

Martin J. Wiener, English Culture and the Decline of the Industrial Spirit, 1850–1980, 2nd ed. (Cambridge: Cambridge University Press, 2004).

See the Reserve Bank of India sources at http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/89876.pdf.

India Brand Equity Foundation, “Foreign Direct Investments,” September 8, 2008, http://www.ibef.org/economy/fdi.aspx; Lauren A. E. Schuker, “Spielberg, India’s Reliance to Form Studio,” Wall Street Journal, September 20, 2008; and Abhishek Bhattacharya and Vidhika Sehgal, “Money Magic: Market Cap Races Past GDP,” Economic Times, October 17, 2006, http://economictimes.indiatimes.com/articleshow/2181063.cms.

See the Reserve Bank of India sources at http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/89874.pdf.

Somnath Temple, http://en.wikipedia.org/wiki/somnath, and “Somnath—The Symbol of National Pride,” http://agmkonleave.sulekha.com/blog/post/2007/04/the-symbol-of-national-pride.htm.

David Kirkpatrick, “The World’s Most Modern Management—In India,” Fortune, April 14, 2006.

Vineet’s Blog, Leading a Transformational Journey, “Destroying the Office of the CEO,” March 11, 2008, http://vineet.hclblogs.com/?p=51.

For a useful overview of the “employee first” model, see Kamalini Ramdas and Ravindra Gajulapalli, “HCL Technologies: Employee First, Customer Second,” Case UV1085-PDF-ENG (Boston: Harvard Business School, 2008).

Vijaya Murthy and Indra Abeysekera, “Human capital value creation practices of software and service exporter firms in India,” Journal of Human Resource Costing & Accounting 11, no. 2 (2007): 84.

This is the case for the most recent 2007 annual reports for the five biggest IT employers in the United States: IBM, Hewlett-Packard, Microsoft, Oracle, and Cisco. The closest statement to the India model is a reasonably generic sentence in Cisco’s shareholder letter, which says, “While we’re proud of the financial results we delivered,” we “are also very proud of our people, our culture, and the way Cisco operates as a company.”

David Hoyt and Hayagreeva Rao, “Infosys: Building a Talent Engine to Sustain Growth,” working paper, Stanford Graduate School of Business, Palo Alto, CA, 2007.

In addition to our own interviews and visits with Infosys, a description of company policies and those of other IT companies can be found in Jo Johnson, “How India Raises an Army; Runaway Growth in the Country’s IT Outsourcing Industry Has Pushed Human Resources to New Extremes,” Financial Times, May 22, 2007.

Dr. Reddy’s Laboratories, http://www.drreddys.com/careers/working_performance.html.

For further details on Yes Bank’s employment philosophy, see “Employee Value Proposition,” http://www.yesbank.in/evp.htm.

See Table 5 in U.S. Bureau of Labor Statistics, Economic New Release, http://www.bls.gov/news.release/sept.t05.htm. This data is from 1995, for employees in establishments with more than fifty employees. Large employers, like the Indian companies referred to earlier, no doubt do much more training in the United States.

Brian Caplen, “Technology: India’s Outsourcing Reinvention,” Banker, March 2008, 1.

William H. Whyte, The Organization Man (New York: Simon and Schuster, 1956).

Gurcharan Das, India Unbound: The Social and Economic Revolution from Independence to the Global Information Age (New York: Random House, 2000), 143.

Ibid., 266.

MindTree, About Us, “People Focused Innovation,” http://www.mindtree.com/aboutus/people_focused_innovation.html.

MindTree, About Us, “Integrity Policy,” http://www.mindtree.com/aboutus/integrity_policy.html.

For a description of the company and its practices, see “Single Status for All,” Express Computer, July 23, 2007. http://www.expresscomputeronline.com/20070723/technologylife04.shtml.

The Indian figure is from our survey; the U.S. figure is from Society for Human Resource Management, Strategic HR Management Survey Report (McLean, VA: Society for Human Resource Management, 2006).

Max Weber, The Protestant Ethic and the Sprit of Capitalism, trans. Talcott Parsons (New York: Scribner, 1958; originally published in German in 1905); Reinhard Bendix, Work and Authority in Industry: Ideologies of Management in the Course of Industrialization (Berkeley: University of California Press, 1974); and Mauro F. Guillén, Models of Management: Work, Authority, and Organization in a Comparative Perspective (Chicago: University of Chicago Press, 1994).

Thomas J. Peters and Robert H. Waterman, In Search of Excellence: Lessons from America’s Best-Run Companies (New York: Harper & Row, 1982); James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies (New York: HarperBusiness, 1994); and James C. Collins, Good to Great: Why Some Companies Make the Leap—and Others Don’t (New York: HarperBusiness, 2001).

C. K. Prahalad, The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits (Upper Saddle River, NJ: Wharton School Publishing, 2006).

Business Standard, “The Top 10 Business Bestsellers,” April 8, 2008, http://www.business-standard.com/india/storypage.php?autono=319288; and Wall Street Journal Online, “Wall Street Journal Book Index,” August 8, 2008, http://online.wsj.com/public/resources/documents/retro-BOOKLIST.html.

Graduate Program, Wharton School, August 8, 2008. The data include those who graduated from both the regular MBA program and the executive MBA program.

Graduate Management Admission Council, Asian Geographic Trend Report for Examinees Taking the Graduate Management Admission Test, 2002-2006 (McLean, VA: Graduate Management Admission Council, 2007); and Graduate Management Admission Council, Asian Geographic Trend Report for GMAT Examinees, 2003-07 (McLean, VA: Graduate Management Admission Council, 2008).

Robert J. House et al., Culture, Leadership, and Organizations: The Globe Study of 62 Societies (Thousand Oaks, CA: Sage Publications, 2004).

ISI Emerging Markets, “Western Business Model Cannot Be Replicated in India: Kamath,” Press Trust of India Ltd., May 23, 2008.

New York Stock Exchange, CEO Report 2007: Planning for Growth, Valuing People (Princeton, NJ: Opinion Research Corporation, 2006).

Lauren Baranowska, Growing Globally in an Age of Disruptions—How India’s Top Companies Are Meeting the Challenge (New York: The Conference Board, July 2007), File A-0241-07-EA.pdf.

Telecomm Regulatory Authority of India, “10.81 Million Wireless Subscribers Added in December 2008; Broadband Subscribers Reaches 5.45 Million Mark; Tele-density Reaches 33.23% Mark,” news release, January 21, 2009, http://www.trai.gov.in/WriteReadData/trai/upload/PressReleases/644/pr21jan09no11.pdf.

Robyn Meredith, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us (New York: W. W. Norton & Company, 2007), 44; Edward Luce, In Spite of the Gods: The Rise of Modern India (New York: Random House, 2007), 78–79; and Diana Farrell, Noshir Kaka, and Sascha Strüze, “Ensuring India’s Offshoring Future,” McKinsey Quarterly (Special Edition, 2005).

Edward Luce, “India to Dip into Forex Reserves to Build Roads,” Financial Times, October 16, 2004.

Bernard M. Bass and Ronald E. Riggio, Transformational Leadership (Mahwah, NJ: Lawrence Erlbaum Associates, 2005).

The MLQ survey is a proprietary instrument whose individual components cannot be reproduced here. For a description, see B. M. Bass and B. J. Avolio, Multifactor Leadership Questionnaire (Palo Alto, CA: Consulting Psychologists Press, 1993). The survey can be acquired from Mind Garden Inc., http://www.mindgarden.com.

The U.S. studies only use part of the MLQ. The data from the first study comes from David A. Waldman et al., “Does Leadership Matter? CEO Leadership Attributes and Profitability Under Conditions of Perceived Environmental Uncertainty,” Academy of Management Journal 44, no. 1 (2001): 134–143; and from the second study from H. L. Tosi et al., “CEO Charisma, Compensation, and Firm Performance,” Leadership Quarterly 15, no. 3 (2004): 405–420. Thanks to professor Vilmos Misangyi from Pennsylvania State University for making the latter data available to us.

Information on ICICI’s operation is available from many useful sources, including Datamonitor, “ICICI Bank Limited: Company Profile,” April 17, 2008, http://www.datamonitor.com.

Financial Express, “ICICI Aims to Be Among World’s Top 10,” January 14, 2008, http://www.financialexpress.com/news/icici-aims-to-be-amongworlds-top-10/261339.

Indrajit Gupta, T. Surendar, and Neelima Mahajan-Bansal, “How ICICI Bank Discovered Its New Leader,” Network 18 Business Magazine, December 24, 2008, http://ibnlive.in.com/news/how-icici-bank-discovered-itsnew-leader/81257-7.html.

James P. Womack, Daniel T. Jones, and Daniel Roos, The Machine That Changed the World: Based on the Massachusetts Institute of Technology 5-Million Dollar 5-Year Study on the Future of the Automobile (New York: Rawson Associates, 1990).

John F. Krafcik, “Triumph of the Lean Production System,” Sloan Management Review 30, no. 1 (1988); and F. K. Pil and J. P. MacDuffie, “What Makes Transplants Thrive: Managing the Transfer of ‘Best Practice’ at Japanese Auto Plants in North America,” Journal of World Business 34, no. 4 (1999): 372–391.

Luisa Kroll, “Special Report: The World’s Billionaires,” Forbes, March 5, 2008.

Wharton Graduate Program Office, December 22, 2008.

Alfred Dupont Chandler, Strategy and Structure: Chapters in the History of the Industrial Enterprise (Cambridge, MA: MIT Press, 1962).

Rebecca Buckman, “Outsourcing with a Twist: Indian Phone Giant Bharti Sends Jobs to Western Firms in a Multinational Role Switch,” Wall Street Journal, January 18, 2005.

Clay Chandler, “Wireless Wonder: India’s Sunil Mittal,” Fortune, January 17, 2007.

Ibid.

Steve Hamm, “Why Does Cognizant Grow So Fast? Part II,” BusinessWeek Online, August 14, 2007, http://www.businessweek.com/ globalbiz/blog/ globespotting/archives/2007/08/how_does_cogniz.html.

Niko Canner, “The Issue: For Cognizant, Two’s Company,” BusinessWeek Online, January 17, 2008, http://www.businessweek.com/globalbiz/blog/globespotting/archives/2007/08/how_does_cogniz.html.

Ibid.

United Nations Development Program, Human Development Report 2007/2008 (New York: United Nations Development Program, 2007–2008).

C. K. Prahalad, The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits (Upper Saddle River, NJ: Wharton School Publishing, 2006).

Business Roundtable, Principles of Corporate Governance (New York: Business Roundtable, 2005), 5.

Robert A. G. Monks and Nell Minow, Corporate Governance, 4th ed. (Hoboken, NJ: Wiley-Blackwell, 2008), chap. 3.

For an account of the scandals through the mid-2000s, see Jerry W. Markham, A Financial History of Modern U.S. Corporate Scandals: From Enron to Reform (Armonk, NY: M. E. Sharpe, 2006).

Spencer Stuart, Spencer Stuart Board Index (Spencer Stuart, 2008). http://content.spencerstuart.com/sswebsite/pdf/lib/SSBI_08.pdf.

Organization for Economic Co-operation and Development, “OECD Principles of Corporate Governance 2004,” http://www.oecd.org/dataoecd/32/18/31557724.pdf.; and World Bank Group, “Reports on the Observance of Standards and Codes (ROSC)” Program, http://www.worldbank.org/ifa/rosc_cg.html.

Niraj Sheth, Jackie Range, and Geeta Anand, “Corporate Scandal Shakes India,” Wall Street Journal, January 9, 2009; Heather Timmons, “India’s Enron Moment,” New York Times, January 8, 2009; and Joe Nocera, “In India, Crisis Pairs with Fraud,” New York Times, January 10, 2009.

B. Ramalinga Raju, “Memo to the Board of Directors, Satyam Computer Services Ltd.,” January 7, 2009, http://www.bseindia.com/xml-data/corpfiling/announcement/Satyam_Computer_Services_Ltd_070109.pdf.

Rajesh Chakrabarti, “Corporate Governance in India—Evolution and Challenges,” January 17, 2005, http://ssrn.com/abstract=649857; and Moody’s-ICRA, “Corporate Governance and Related Credit Issues for Indian Family-Controlled Companies,” October 2007, http://v3.moodys.com/sites/products/AboutMoodysRatingsAttachments/2007000000448489.pdf.

Tarun Khanna and Jan W. Rivkin, “Estimating the Performance Effects of Business Groups in Emerging Markets,” Strategic Management Journal 22, no. 1 (2001): 45–74; and Robert Lensink, Remco Van der Molen, and Shubashis Gangopadhyay, “Business Groups, Financing Constraints and Investment: The Case of India,” Journal of Development Studies 40, no. 2 (2003): 93–119.

Michael Useem, Investor Capitalism: How Money Managers Are Changing the Face of Corporate America (New York: HarperCollins/Basic Books, 1996); and Michael Useem, “Corporate Leadership in a Globalizing Equity Market,” Academy of Management Executive 12, no. 4 (1998): 43–59.

G. Epstein, ed., Financialization and the World Economy (Aldershot, England: Edward Elgar, 2005); and Vidhi Chhaochharia and Luc Laeven, “Corporate Governance Norms and Practices,” International Monetary Fund, CEPR, and ECGI, February 20, 2008, http://ssrn.com/paper=965733.

Darryl Reed and Sanjoy Mukherjee, Corporate Governance, Economic Reforms, and Development: The Indian Experience (New Delhi: Oxford University Press, 2004); and Randall K. Morck and Lloyd Steier, “The Global History of Corporate Governance—An Introduction,” working paper 11062, National Bureau of Economic Research, Cambridge, MA, January 2005, http://www.nber.org/papers/w11062.

Confederation of Indian Industry, “Desirable Corporate Governance: A Code,” April 1998, http://www.acga-asia.org/public/files/CII_Code_1998.pdf.

In the 2003 SEBI report on corporate governance, Narayana Murthy observed, “Corporate governance is beyond the realm of law. It stems from the culture and mindset of management, and cannot be regulated by legislation alone.” N. R. Narayana Murthy, “Report of the SEBI Committee on Corporate Governance,” February 8, 2003, http://www.acga-asia.org/public/files/India_MurthyCtee_Feb03.pdf., section 1.1.3.

Tom Perkins, “The Compliance Board,” Wall Street Journal, March 2, 2007.

Rahul Bajaj, “Avoid Pessimism and Face the Recession,” Economic Times, December 26, 2008, http://economictimes.indiatimes.com/Features/Corporate_Dossier/Avoid_pessimism_and_face_the_recession_Rahul_Bajaj/rssarticleshow/3893077.cms.

Tata Council for Community Initiates, March 2003, http://www.tata.com/ourcommitment/articles/inside.aspx?artid=ZeYh3v7WOxB=.

Securities and Exchange Board of India, “Original Clause 49 Memo,” SMDRP/POLICY/CIR-10/2000, February 21, 2000, Asian Corporate Governance Association, http://www.acga-asia.org/public/files/IndiaClause49.doc. For an assessment of India’s corporate governance system in recent years, see Asian Corporate Governance Association (ACGA), “Country Snapshots—India,” http://www.acga-asia.org/content.cfm?SITE_CONTENT_TYPE_ID=11&COUNTRY_ID=264.

For a summary of Clause 49, see N. Balasubramanian, Bernard S. Black, and Vikramaditya Khanna, “Firm-Level Corporate Governance in Emerging Markets: A Case Study of India,” 2008, http://ssrn.com/abstract=992529.

Klaus Gugler, Dennis C. Mueller, and B. Burcin Yurtoglu, “The Impact of Corporate Governance on Investment Returns in Developed and Developing Countries,” Economic Journal 113 (2003): F511–539; and Rajesh Chakrabarti, William Megginson, and Pradeep K. Yadav, “Corporate Governance in India,” Journal of Applied Corporate Finance 20, no. 1 (2008): 59–72.

Y. R. K. Reddy, “When Non-Compliance Is Self-Defeating,” Financial Express, January 6, 2007; Balasubramanian, Black, and Khanna, “Firm-Level Corporate Governance in Emerging Markets”; and Arinam Gupta and Anupam Parua, “An Enquiry into Compliance of Corporate Governance Codes by the Private Sector Indian Companies” (paper presented at the Indian Institute of Capital Markets Conference, December 18, 2006). See also Rajesh Chakrabarti, “Foreign Exchange Markets in India,” January 17, 2005, http://ssrn.com/abstract=649858.

Derek Higgs, “Review of the Role and Effectiveness of Non-Executive Directors,” U.K. Department of Trade and Industry, January 2003, http://www.berr.gov.uk/files/file23012.pdf; and The Conference Board, “Corporate Governance Handbook 2007: Legal Standards and Board Practices,” Research Report R-1405-07-RR, http://www.conference-board.org.

Mauro F. Guillen, “Convergence in Global Governance?” Corporate Board 21, no. 121 (2000): 17; and Tarun Khanna, Joe Kogan, and Krishna Palepu, “Globalization and Similarities in Corporate Governance: A Cross-Country Analysis,” Review of Economics and Statistics 88, no. 1 (2006): 69–90.

Jeffrey A. Sonnenfeld, “What Makes Great Boards Great,” Harvard Business Review, September 2002, 106–113; and U.S. Senate, Permanent Subcommittee on Investigations of the Committee on Governmental Affairs, The Role of the Board of Directors in Enron’s Collapse, Report 107-70, July 8, 2002, http://fl1.findlaw.com/news.findlaw.com/hdocs/docs/enron/senpsi70802rpt.pdf.

Enron, “Code of Ethics,” July 2000, http://bobsutton.typepad.com/files/enron-ethics.pdf; John C. Coffee Jr., “Understanding Enron: It’s About the Gatekeepers, Stupid,” working paper 207, Columbia Law and Economics, New York, July 30, 2002, http://ssrn.com/abstract=325240, or DOI: 10.2139/ ssrn.325240; and Stuart L. Gillan and John D. Martin, “Corporate Governance Post-Enron: Effective Reforms, or Closing the Stable Door?” Journal of Corporate Finance 13, no. 5 (2007): 929–958.

Infosys Technologies Ltd., Annual Report 2007–2008. This annual report and others are available at http://www.infosys.com/investors/reportsfilings/annual-report/default.asp.

Ibid.

See Infosys, Awards, “Financial Reporting,” http://www.infosys.com/about/awards/about-awards-financial.asp.

The third author served as an independent director of Infosys from 2000 to 2003.

Justin Doebele, “CEO Pay: The Softest Pillow,” Forbes.com, September 2, 2002, http://www.forbes.com/global/2002/0902/036.html; and Tarun Khanna and Krishna Palepu, “Globalization and Convergence in Corporate Governance: Evidence from Infosys and the Indian Software Industry,” Journal of International Business Studies 35, no. 6 (2004): 484–507.

Pitabas Mohanty, “Institutional Investors and Corporate Governance in India,” Research Initiative Paper 15, National Stock Exchange of India, May 12, 2003, http://ssrn.com/abstract=353820, or DOI: 10.2139/ssrn.353820.

There is a long literature on the attributes of the U.S. model as well as a separate literature, more developed outside the United States, on the spread of U.S. practices abroad. One of the seminal works in this area is M. Djelic, Exporting the American Model: The Postwar Transformation of European Business (Oxford: Oxford University Press, 1993).

Whether there was real convergence toward the U.S. model continues to be the subject of debate. For the convergence view, see Moses Abramovitz, “Catch-up and Convergence in the Postwar Growth Boom and After,” in Convergence of Productivity: Cross-National Studies and Historical Evidence, eds. William J. Baumol, Richard R. Nelson, and Edward N. Wolff (Oxford: Oxford University Press, 1994). For the view that the process was more about learning and adapting, see J. Zeitlin and G. Herrigel, eds., Americanization and Its Limits: Reworking U.S. Technology and Management in Postwar Europe and Japan (Oxford: Oxford University Press, 2000).

Alexis de Tocqueville, “How the Americans Combat Individualism by the Principle of Self-Interest Rightly Understood,” in Democracy in America (New York: Alfred A. Knopf, 1976; originally published in 1835).

George Soros, “The Capitalist Threat,” Atlantic Monthly, February 1997.

See, for instance, J. Williamson, “Democracy and the Washington Consensus,” World Development 21 (1993): 1329–1336.

A. Greenspan, “Statement to Congress, May 21 (Asian Financial Crisis),” Federal Reserve Bulletin, July 1998, 536–537, http://www.federalreserve.gov/boarddocs/testimony/1998/19980521.htm.

E. Potter and J. Youngman, Keeping America Competitive: Employment Policy for the 21st Century (Lakeland, CO: Glenbridge Publishers, 1994).

A. L. Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, MA: Harvard University Press, 1994).

G. Epstein, ed., Financialization and the World Economy (Aldershot, England: Edward Elgar, 2005).

R. Dore, “Financialization of the Global Economy,” Industrial and Corporate Change 17 (2006): 1097–1112.

Brian J. Hall and Kevin J. Murphy, “The Trouble with Stock Options,” Journal of Economic Perspectives 17 (Summer 2003): 49–70.

Klaus Gugler, Dennis C. Mueller, and B. Burcin Yurtoglu, “The Impact of Corporate Governance on Investment Returns in Developed and Developing Countries,” Economic Journal 113 (2003): F511–539.

General Accounting Office, Financial Statement Restatements: Trends, Market Impacts, Regulatory Responses, and Remaining Challenges, GAO-03-138 (Washington, DC: General Accounting Office, 2002).

John C. Coffee Jr., “A Theory of Corporate Scandals: Why the USA and Europe Differ,” Oxford Review of Economic Policy 21 (2005): 198–211.

The National Bureau of Economic Research determines recessions based on trends in a complex set of economic variables. Interestingly, unemployment is not one of those variables, although it is the measure most frequently associated with recessions. U.S. unemployment in 1982 peaked at 10.8 percent and stands in December 2009 at 10.0 percent. See Bureau of Labor Statistics, “Labor Force Statistics from the Current Population Survey,” http://www.bls.gov/cps/.

C. Dougherty and K. Bennhold, “Russia and China Blame Capitalists,” New York Times, January 28, 2009.

Economist, “American International Group: Cranking Up the Outrage-O-Meter,” March 21, 2009, 77–78.

Government Printing Office, National Intelligence Council, Global Trends 2025: A Transformed World, GPO Stock #041-015-00261-9 (Washington, DC: U.S. Government Printing Office, 2008).

For a thorough history and critique of the financialization approach and its effects on business and society, see Gerald F. Davis, Managed by the Markets: How Finance Re-Shaped America (New York: Oxford University Press, 2009). Justin Fox describes the intellectual history behind this approach and how ignoring caveats in the original ideas behind modern financial models led to this extreme version; see Justin Fox, The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street (New York: HarperBusiness, 2009).

Jonathan Doh et al., “How to Retain Talent in Fast-Moving Labor Markets: Some Findings from India,” excerpted in MIT Sloan Management Review 50 (Fall 2008).

Michael E. Porter and Klaus Schwab, The Global Competitiveness Report 2008–2009 (Geneva, Switzerland: World Economic Forum, 2008), and prior World Economic Forum annual reports going back to 1999, available at http://www.weforum.org.

Time, “Engine Charlie,” October 6, 1961, http://www.time.com/time/magazine/article/0,9171,827790,00.html.

Hindustan Times, “21st Century Will Be India’s: Mukesh Ambani,” March 8, 2009.

Jean Strouse, Morgan: American Financier (New York: Harper, 2000); and Jean Strouse, “When the Economy Really Did ‘Fall Off a Cliff,’” New York Times, March 23, 2009.

Sebastian Raisch et al., “Organization Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance,” Organization Science 20 (2009): 685–695.

The Economist Intelligence Unit had forecast GDP growth in India in 2008–2009 of 5.6 percent, and in 2009–2010 of 5.2 percent. For assessments and prognostications pointing toward continued rapid growth, see Martin Wolf, “What India Must Do If It Is to Be an Affluent Country,” Financial Times, July 7, 2009; Centennial Group for the Emerging Markets Forum, India 2039: An Affluent Society in One Generation (Manila, Philippines: Asian Development Bank, 2009); Vikas Bajaj and Keith Bradsher, “Investors in Developing Markets See Optimism,” New York Times, June 4, 2009; Heather Timmons, “India Feels Less Vulnerable as Outsourcing Presses On,” New York Times, June 3, 2009; Jackie Range and Neelabh Chaturvedi, “India’s Economy Grows 5.8%,” Wall Street Journal, June 1, 2009; and Peter Wonacott, “India Defies Slump, Powered by Growth in Poor Rural States,” Wall Street Journal, April 10, 2009.

Anthony J. Mayo, Nitin Nohria, and Laura G. Singleton, Paths to Power: How Insiders Shaped American Business Leadership (Boston: Cambridge University Press, 2006).

Nine additional companies opted to respond anonymously to the survey.

Ramachandra Guha, India After Gandhi: The History of the World’s Largest Democracy (New York: Ecco, 2007).

While the government did talk about developing human resources for the economy, in practice those efforts were limited to basic education. See T. V. Rao, “Human Resource Development as National Policy in India,” Advances in Developing Human Resources 6 (2004): 288–297.

Gurcharan Das, India Unbound: The Social and Economic Revolution from Independence to the Global Information Age (New York: Random House, 2000).

Suresh Gopalan and Joan B. Rivera, International Journal of Organizational Analysis 5, no. 2 (April 1997): 156.

S. Agarwal, “Influence of Formalization on Role Stress, Organizational Commitment, and Work Alienation of Salespersons: A Cross-National Comparative Study,” Journal of International Business Studies 24 (1993): 715–739; J. B. P. Sinha, “Power in Superior-Subordinate Relationships: The Indian Case,” Journal of Social and Economic Studies 6 (1978): 205–218.

Robert J. House et al., Culture, Leadership, and Organizations: The Globe Study of 62 Societies (Thousand Oaks, CA: Sage Publications, 2004).

M. Javidan, P. W. Dorfman, M. S. de Luque, and R. House, “In the Eye of the Beholder: Cross-Cultural Lessons in Leadership from Project GLOBE,” Academy of Management Perspectives (February 2006): 67–90.

Ibid.