Establishing a Japanese transplant company in the Indian automobile industry: a qualitative study of cultural disrespect

This thesis analyses the operations of Toyota Kirloskar Motors (TMK) in India during the period 1997-2010. TKM is the Indian arm of Toyota’s production operations in India formed as a result of a joint venture between the company and the Kirloskar group of companies in India. Whereas Toyota has generally enjoyed harmonious industrial relations within its transplanted companies around the world it has experienced severe industrial unrest in India and has failed to achieve its ambitious production and market share forecasts in the country. Accordingly, this thesis sets out to answer the research question 'why has TKM experienced such a tumultuous journey since its establishment in 1999?' The thesis employs a qualitative methodology using the technique of conceptual ordering. Data has been obtained from personal interviews, document analysis, and observation. Several trips were undertaken to India to gather data. The thesis argues that disrespect shown towards traditional Indian cultural and social practices underlies the explanation for the industrial unrest during the period until 2006. During this period various types of disrespect have been identified as occurring in a continuous flow and overlaying each other in a sedimentary-type manner. This dynamic sedimentation of disrespect over a longitudinal time period was reacted to by various forms of retaliation from TKM workers creating a cause-consequence cycle of detrimental actions. It is also argued that TKM misunderstood the nature of protest in India and over-reacted to worker unrest on several occasions. This scenario changed drastically from 2007 when TKM introduced a new policy of reconciliation aimed at changing perceptions within the company. This attempt to salvage respect included a range of actions aimed at removing the causes of the ongoing unrest and which by their nature were directed at ensuring more respectful relationships within the plant. The research has implications for the manner in which multinational companies conduct their operations in host countries, especially when a pervasive alien corporate culture is introduced into a host nation with strong social and cultural sensitivities.