Co-creation: An Exploratory Study of MSMEs & Large Banks in India
Published: 2012
Author(s) Name: Prashant Salwan |
Author(s) Affiliation: faculty, Strategic Management, Indian Institute of Management, Indore
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Abstract
The major factor which reduces the
profits of Indian banks relates to the
policies of Government of India.
The government has rules which
mandated banks operating in India
to help the priority sectors which
included Medium and Small Enterprises
(MSMEs). The lending rules
to MSMEs increased the Non Performing
Assets (NPAs) as MSMEs
did not adopt the best management
practices and there was no strategic
planning. As a strategy banks
converted this regulatory issue into
an opportunity by using co-creation
of intangible resources such as Customer
Relations with corporate, Information
Technology implementation
and Best Management Practices
dissemination. They used these intangible
resources to reduce risks
and NPAs, increase profits and help
MSMEs to be contemporary, thus
creating value through partnership.
Keywords: N.A.
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