Indian Automobile industry is flourishing its twigs worldwide and is close to a fruition of triumph in the global competition. The spine of the industry is its suppliers of auto components and accessories which is also an exclusive industrial segment. Today auto industry is enjoying the benefits while the auto component sector is in its gloom despite of hard efforts of survival. The factors making the differences are unavailability of resources like skilled labour and technology, high cost of production due to inflation and Government policies of indirect taxes such as customs and excise. The paper highlights the challenges faced by Indian auto component industry in domestic and global market.

This article explores the vertical differentiation model in the insurance market. The main results are as follows. First, the equilibrium price differential is not a linear function of the highest quality valuation (accident probability) and the maximum and minimum quality differentials. Second, a high quality insurance firm does not always receive greater equilibrium expected profit, even if its average cost is the same as that of a low-quality insurance firm. Finally, a change in the highest quality valuation has an ambiguous effect on the equilibrium expected profit differential.

An incentive schemes can be a tool towards achieving organizational success of a small entrepreneur business. This study was conducted in a small scale pharmaceutical enterprise established in year 2000, located in Taloja industrial area, Navi Mumbai, India. It was found that monetary and non–monetary incentives schemes had a great impact in achieving organizational success. The present incentive schemes were studied on various parameters and were found satisfactory. The findings of study reveals the positive reflection of incentives on tangible determinants of organizational success like employee abse nteeism, accident rates and percentage wastage. This study also evaluates and identifies relationship between attitude towards monetary and non – monetary incentives with other non-tangible determinants of organizational success ,employee motivation and job satisfaction.

The advent of a credit risk market has profoundly altered the role of banking firms into one of asset originator and asset distributor rather than the asset holder. Banks have traditionally originated and held credit risk. It emphasis the different role of financial institutions from holders of credit risk to originators and distributors of credit risk. In this paper I aim to evaluate how the modularity and the standardization create the precondition for the creation of a credit risk transfer market in the banking industry. The intermediate market of credit risk transfer appears when the banking production processes have become more disintegrated. The vertical disintegration of the banking industry and the creation of a credit risk transfer market enables the shifting from a firm-based governance to a market-based governance. Furthermore, this paper proposes that modularity and standardization drives the creation and growth of credit risk transfer market. With the improvement of credit risk measurement methodologies and risk management practices the credit risk transfer market requires standardization and modularisation of bank lending value chain. Transaction cost economics, the dominant paradigm for understanding make or buy decisions, represents the starting point of my research. I argue that vertical integration in lending business is not only determined by transaction costs, but also by standards and modularity at product, process and industry level. I illustrate this thesis by examining how they work in mutually reinforcing ways. This perspective could open up some unexplored paths for research into economics of banking firms.