Cultural Governance in Indian Diamond Industry

Posted: 19 Jul 2017

See all articles by Indu Rao

Indu Rao

Nirma University; University of Twente; Indian Institute of Management (IIM), Ahmedabad; CEPT University India; Florida International University (FIU) - Department of Management & International Business; Gujarat Technological University

Date Written: June 29, 2017


Today, 95 percent of diamonds set in jewellery worldwide are cult and polished in India, and surprisingly, in a so-called in-organized industry supported by more than a million artisans, workers and entrepreneurs with minimal formal education. Further, it is noteworthy that the global hub of cutting and polishing of diamonds has shifted from Antwerp, Belgium (considered a developed nation) to Gujarat, India (considered an emerging economy). It has happened in the last two decades due to emergence of these new organizational forms.

This book traces the historical evolution of the Indian diamond industry and is a compilation of findings from systematic , scientific investigations of the cultural aspects of organizing of firms in this industry. It suggests that, in the so-called informal and in-organized Indian diamond industry, there exists a well-organized network of thousands of small and medium sized firms where shared values and a culture of trust and loyalty governs efficient and globally successful business. It challenges the western, modern business and management literature which suggests that formal strategy, structure and processes govern successful firms and industry. This qualitative study spans a decade of work with a high level of dedication to developing rich, thick description, from an insider-perspective with ethnographic immersion.

Keywords: cultural governance, indian diamond industry

JEL Classification: N15, B50, B59, P52, P59

Suggested Citation

Rao, Indu, Cultural Governance in Indian Diamond Industry (June 29, 2017). Available at SSRN:

Indu Rao (Contact Author)

Nirma University ( email )

Institute of Management
Ahmedabad, Gujarat 382481


University of Twente


Indian Institute of Management (IIM), Ahmedabad ( email )

Ahmedabad, Gujarat 380 015

CEPT University India

Ahmedabad, Gujarat 380009

Florida International University (FIU) - Department of Management & International Business ( email )

University Park
Miami, FL 33199
United States

Gujarat Technological University

Ahmedabad, Gujarat 382028

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