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1 – 10 of over 6000Heiko Gebauer, Caroline Jennings Saul and Mirella Haldimann
This paper aims to highlight how initial business models can be converted into a larger-scale solution for tapping into the emerging base-of-the-pyramid markets.
Abstract
Purpose
This paper aims to highlight how initial business models can be converted into a larger-scale solution for tapping into the emerging base-of-the-pyramid markets.
Design/methodology/approach
This study uses a qualitative, multi-case research design with 20 organizations tapping into the water market at the base-of-the-pyramid.
Findings
This paper explores three business models innovations: fostering value-in-context, allowing for modifiability and embracing organizational ambidexterity.
Research limitations/implications
Due to our qualitative research approach, generalizability of our findings is limited.
Practical implications
The description of the three business model innovations offers guidance for executives to make their business models financially more sustainable in base-of-the-pyramid markets.
Social implications
The water sector represents one especially interesting sector to examine business model innovations. For, among social goods, safe water remains a huge challenge to date where 700 million people remain without access to an improved water source.
Originality/value
Previous business model discussion in base-of-the-pyramid markets focuses on commercial goods. The authors focus on water as a social good. They demonstrate that the existing recommendations that business models in base-of-the-pyramid markets should be inclusive, complex, collaborative and scalable are mandatory, but not sufficient. In addition, business models should foster value-in-context, allow for modifiability and embrace organizational ambidexterity.
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Sadrita Deb and Subhojit Sengupta
Dubious investment schemes by unlisted companies are alluring individual investors at the base of the pyramid to invest money and lose them. The purpose of the abstract is…
Abstract
Purpose
Dubious investment schemes by unlisted companies are alluring individual investors at the base of the pyramid to invest money and lose them. The purpose of the abstract is to identify the factors that induce the people at base-of-pyramid (BoP) to invest in fraudulent schemes.
Design/methodology/approach
Open-ended interviews of people at the BoP from areas in and around Kharagpur town in West Bengal were conducted. Through open coding, codes, categories and themes were generated.
Findings
Interpersonal trusts form the central feature of investment fraud. The personal relationship among the community members helps these schemes thrive. False hopes of higher returns within a short span combined with constraints of accessing banking services is another motivation for the people at the base of the pyramid to fall prey to these schemes. With limited education, they find these investment avenues convenient providing scope to the perpetrators of fraud to exploit them. To curb these dubious schemes to flourish and exploit the people at the BoP, financial inclusion on a large scale is required. Moreover, the government should take steps to educate the mass at the base of the pyramid.
Originality/value
This study offers new insights on the victims of investment fraud in India those belonging to the economically weak groups and lower income groups comprising together as the BoP) of the society.
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Annor da Silva Junior, Priscilla de Oliveira Martins-Silva, Karina Santos Feu, Aline Chima Komino, Vitor Correa da Silva and Katia Cyrlene de Araújo Vasconcelos
This paper aims to investigate the viewpoint of undergraduate Management students at a Brazilian public university regarding the notion of corporate social responsibility…
Abstract
Purpose
This paper aims to investigate the viewpoint of undergraduate Management students at a Brazilian public university regarding the notion of corporate social responsibility (CSR). It theoretically articulates the notion of CSR and the formal education perspective to discuss managerial education.
Design/methodology/approach
Stude nts in the Management program were surveyed for their opinion on the notion of CSR. Data were collected through triangulation by combining the application of questionnaire and documentary research. There were 241 valid questionnaires, and this is the size of the sample. Data were analyzed by using the SPSS software (version 20), descriptive statistics and non-parametric tests.
Findings
Results reveal that, for undergraduate Management students, the most important CSR dimensions are, in hierarchical order, the philanthropic, the ethical, the legal and the economic. Thus, one can notice an inversion of the original CSR pyramid proposed by Carroll (1991).
Research limitations/implications
The main limitation is the conduction of research in the context of a single public university.
Practical implications
Results indicate a change in how CSR is understood, the philanthropic dimension becoming the main factor for the establishment of organizational goals.
Social implications
Considering that undergraduate Management students are the future members of the corporate world and decision-makers in society, these results indicate the stance these future professionals will take when confronted by dilemmas involving CSR.
Originality/value
This investigation is original in Brazilian context, for it identifies students’ opinion on CSR using a questionnaire whose development was based on the CSR pyramid.
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Anthimia M. Batrinou and Anastassia Kanellou
The purpose of this paper is to evaluate how healthy food options recommended by the Mediterranean diet pyramid are actually consumed and advertised.
Abstract
Purpose
The purpose of this paper is to evaluate how healthy food options recommended by the Mediterranean diet pyramid are actually consumed and advertised.
Design/methodology/approach
Three types of food consumptions in Greece are compared, the diet recommended by the Mediterranean diet pyramid, the actual consumption as was presented by the Data Food NEtwortking project and the advertising expenditure spent in the food sector. Data are presented in the form of a “food advertising pyramid”, equivalent to the food choices pyramids.
Findings
Comparison of the “food advertising pyramid” with the Mediterranean food pyramid reveals that the two pyramids have a somehow reverse relationship, meaning that the recommended for frequent consumption “healthy” food categories of the Mediterranean diet pyramid (placed at the base of the pyramid such as cereals, fruits and vegetables) were the least advertised by the food industry, and the less “healthy” options (dairy and sugary products) were the most advertised. This trend was more evident in advertisements targeted to children. An exception was the high advertising of yoghurt, a probiotic product considered to be a healthy food option.
Originality/value
The findings of this paper could be useful to nutritionists and national health authorities who should take into consideration the impact of food advertisement upon their strategy for healthy nutrition and prevention of obesity in childhood.
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Paul N. Gooderham, Svein Ulset and Frank Elter
The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to…
Abstract
The purpose of this chapter is twofold. First, to investigate how multi-domestic, multinational corporations (MNCs) can develop business models that are appropriate to “Bottom-of-the-Pyramid” (BOP) settings. Second, to address how they can apply elements of BOP business models across their operations. We use the case of the entry of the Norwegian mobile telecom MNC Telenor into India as the empirical context. Prior to India, Telenor had operated successfully in Asian emerging economies by adapting its business model to local conditions. However, it had only operated in the upper income tiers of these countries. In India, its late entry meant that for the first time in its history it had to move beyond these upper income tiers and develop a business model suited to BOP. We apply an economic model terminology as a means to gauging the degree of business model innovation Telenor undertook. Telenor succeeded in its development of a BOP business model by working in close partnership with local firms. Although Telenor in India was operating at BOP, a number of the resultant innovations were deemed by Telenor to be transferable to top-of-the-pyramid operations across Telenor. In order to succeed in developing BOP business models MNCs must go beyond local responsiveness and engage closely with local partners. However, transference of elements of BOP business models to other parts of the MNC is contingent on there being a centralized integrating capability.
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Wasana Jayawickramarathna, Kaleel Rahman, Rajendra Mulye and Tim Fry
The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the…
Abstract
The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of there being a ‘fortune’ to make at the Bottom of the Pyramid (BoP) market that was an opportunity for both businesses and consumers. The notion of the BoP market has been widely studied using urban and rural contexts as distinct classifications; yet many argue that the opportunity does not in fact exist in the rural BoP markets. In this chapter the authors examine the prospects in the rural BoP in Sri Lanka through a qualitative study using insights provided by industry practitioners who operate at the BoP level. Findings show that a large percentage of the income of multinational companies is derived from rural BoP markets. Compared to the urban sector, the rural BoP market indicates relatively higher disposable income and is viewed as an attractive market segment by industry practitioners. The findings also show that rural BoP people have more resources and skills than their urban counterparts, although the former commonly have lower levels of education. Moreover, the youth segment in both the urban and rural BoP markets was found to heavily consume social media. The authors conclude their discussion by providing several key proposals for organisations looking to seize opportunities in this market.
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Manoj Kumar Paras, Daniel Ekwall and Rudrajeet Pal
This paper aims to propose a framework for evaluating the performance of reverse value chain activities in the clothing industry operating at base of the pyramid…
Abstract
Purpose
This paper aims to propose a framework for evaluating the performance of reverse value chain activities in the clothing industry operating at base of the pyramid. Specifically, the research explores firm and supply chain factors influencing clothing reverse value chain activities with a focus on developing economies.
Design/methodology/approach
The study adopted an explorative technique using direct observations and semi-structured interviews to collect information from eight companies and two traders. Internal resources and value chain capabilities were examined using theoretical underpinnings of resource-based view, transaction cost economics and base of the pyramid.
Findings
The paper identified multiple benefits of offshoring reverse value chain activities to the developing countries (at the base of the pyramid). Low operation cost, skilled manpower, business knowledge and location are found to be internal success factors. While favourable government legislation and domestic recycling markets are important external factors contributing to the success. Developing economies such as India contribute to firm performance by integrating, transforming, acquiring and co-creating the resources at base of the pyramid. Further, it was found that to achieve higher assets specificity, a few companies have opened their own shops in African countries, while others have opened sourcing branches in Canada or the USA to ensure good quality of raw materials. Collaboration and coordination among different value chain partners minimise cost and increases profitability. Innovation in the process such as clothes mutilation for recycling has created new business opportunities.
Research limitations/implications
Information was collected from only eight organisations and two traders from India. Future scholars may extend the research to generalise the findings by documenting similar phenomena.
Practical implications
The proposed framework can serve a basis for the practitioners to evaluate firm performance, and the insights can be used to achieve sustainability by engaging producers, employees, consumers and community using base of the pyramid approach.
Originality/value
The study provides unique insights into the prevalent export and re-exports phenomena of used clothing. The resource-based view, transaction cost economics and base of the pyramid strategy underpinned together to develop a framework for understanding reverse value chain activities of clothing.
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Explains the concept of the Disciplinary Pyramid and its importance. The pyramid is used as a framework for identifying what disciplinary handling skills need to be…
Abstract
Explains the concept of the Disciplinary Pyramid and its importance. The pyramid is used as a framework for identifying what disciplinary handling skills need to be developed in organizations. Much attention is often paid to the issue at the top of the pyramid (i.e. dismissal) but most disciplinary action is, or needs to be, at the base where action such as counselling and informal warnings may be what is required. Training which is provided is often heavily oriented around the law and more appropriate for personnel specialists than line managers. Focuses on the need to clarify responsibilities at the base of the pyramid, the nature of the skills line managers need, the way these skills can be developed and the preventive aspects of discipline. Identifies and explains, the crucial skills and categorizes them as process skills.
Details
Keywords
Development of business models, base of the pyramid (BoP) markets.
Abstract
Subject area
Development of business models, base of the pyramid (BoP) markets.
Study level/applicability
This study can be used at Bachelor as well as on Master's level courses to reflect activities and practices within corporate sustainability, base of the pyramid and international expansion of MNEs.
Case overview
This is a case study of Grundfos LIFELINK's development process, relating to the successful development of a business model for serving base of the pyramid (BoP) markets for potable water. Grundfos LIFELINK is a turnkey water solution that encompasses a solar-driven pump facility, a GPS-based monitoring system, and charges based on digital payments of water credits. Together, they represent the business model of Grundfos LIFELINK. At the same time the modules represent a business architecture that can be mixed and matched to match the skills and ensure the adaptive involvement of local partners in BoP markets. Since its cautious start in 2009, Grundfos has successfully expanded its operations to 30 villages in Kenya and LIFELINK systems will operate in 70 villages in Kenya within the next two years.
Expected learning outcomes
In an international business/international management context, especially the first and the last part of the case could be used as a showcase of the current transformation efforts multinational companies (MNCs) in the developed world are pursuing. Pressured by the cost advantages of Dragon multinationals from Asia, India and Brazil, MNCs search for new ways to provide value and at the same time utilize their existing knowledge. The Grundfos LIFELINK case shows some of the important consequences and challenges that multinational organizations are facing, once such business models needs to be integrated in the current MNC activities.
Supplementary materials
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This paper seeks to provide an interview with Professor Stuart Hart discussing how multinational corporations can be a catalyst for a truly sustainable form of global…
Abstract
Purpose
This paper seeks to provide an interview with Professor Stuart Hart discussing how multinational corporations can be a catalyst for a truly sustainable form of global development, solving social and environmental problems while prospering in the process.
Design/methodology/approach
This paper uses an interview technique to reveal Stuart L. Hart's views on how multinational corporations can be a catalyst for a truly sustainable form of global development.
Findings
Explains the focus of the base of the pyramid or BOP protocol which emphasizes the need for multinational corporations (MNCs) to acquire a “native capability” in order to understand developing markets and identify and respond to local needs and requirements. Puts forward an argument for forging unconventional partnerships in developing countries and stresses the importance of finding the right local partners and building businesses from the ground up.
Originality/value
This paper provides some useful views on multinational corporations.
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