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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.

This study uses a qualitative, multi-case research design with 20 organizations tapping into the water market at the base-of-the-pyramid.

This paper explores three business models innovations: fostering value-in-context, allowing for modifiability and embracing organizational ambidexterity.

Due to our qualitative research approach, generalizability of our findings is limited.

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.

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.

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.

Recent development and democratization of digital technologies call for studying base-of-the-pyramid (BOP) consumers’ interactions with these technologies. This study aims to explore how BOP consumers interact with mobile information and communication technology (mICT) and improve their welfare.

Following an extensive literature review, content analysis of the reviewed articles and reports was conducted to build this article’s conceptual foundation.

This study has conceptualized five mechanisms in which mICT improves the lives of BOP customers through enhanced access and control of resources. In particular, the authors characterize a converging nature of mICT and related applications (social media, internet of things, artificial intelligence and sharing economy) as resources for social change. The authors find a striking contrast between BOP and affluent consumers regarding their motivations and barriers to adopting mICT-based applications. Implications to research, technology design and policymaking are discussed.

The intersection of mICT and BOP is under-researched. With this paper, we tried to address this research gap. Further, this study has brought out several important research questions in each application, serving as a springboard for future researchers.

This paper aims to develop frameworks to support implementation and competitive leveraging of distinct sustainable supply chain operations. This derives from conceptual definition of the dynamic capabilities required to support Hart’s (1995) natural-resource-based view resources in the supply chain.

This conceptual study uses qualitative content analysis to extract capabilities from review and analysis of literature related to natural-resource-based view (NRBV) and sustainable supply chain management. Intercoder reliability assessments support conceptual development of such capabilities into dynamic capability frameworks.

Specific interrelations between each NRBV resource and corresponding supply chain strategies are conceptualised. From this, capabilities are categorised to corresponding resources, dynamic capabilities activities and internal–external focus. This results in definition of 107 dynamic NRBV capabilities.

Contributions are threefold: distinct frameworks for competitive sustainable supply chain management is offered; the NRBV benefits from enhanced practical guidance via the definition of its dynamic capabilities, addressing the theory-practice gap; and understandings of dynamic capabilities and their role in both the NRBV sustainable supply chain management is advanced.

This paper offers four frameworks to allow firms to tailor sustainability strategies to suit their needs and guide competitive leveraging. Definition of capabilities offers practical guidance to operationalise NRBV resources.

This is the first holistic interpretation of NRBV capabilities and explicit application of dynamic capabilities. This forms the basis of a broader research agenda for the NRBV in sustainable supply chain management.

Base-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk and performance. This intersection will be analyzed in this paper.

This paper presents a systematic literature review of 94 BoP papers published between 2004 and 2019 in peer-reviewed, English-language journals available on Scopus. Drawing upon established frameworks for examining institutional voids, supply chain risks and BoP performance, frequency, and contingency analyses are conducted. Contingencies are established to provide insights into the associations between different constructs from the selected frameworks.

Supply chain risks are pervasive in the BoP discourse, especially when BoP markets are characterized by institutional voids. The frequency analysis of the constructs suggests that the key supply chain risks discussed in the BoP literature include social risk, credit risk, product market and operating uncertainties, knowledge and skill biases and decision-maker risks due to bounded rationality. The contingency analysis suggests that institutional voids are associated with supply chain risks that affect performance.

A theoretical framework aligning three research streams in the context of BoP calls for future studies to test the causality of highlighted constructs that are significantly associated. The analysis is confined to the constructs that are taken into account based on specific conceptual frameworks.

The study provides practitioners with a framework to manage supply chain risks in BoP-related firms to enhance firm performance. Managers can use key dimensions of supply chain risk, such as the product market, the input market and operating uncertainties, to evaluate performance in the BoP context.

Specifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance

Development of business models, base of the pyramid (BoP) markets.

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.

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.

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.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This article aims to propose a continuum of strategic engagement approaches to base‐of‐the‐pyramid (BOP) markets ranging from non‐profit and government aid to corporate social responsibility (CSR) programs and social entrepreneurship. A framework is presented to identify which approach to serving the BOP market makes the most sense under certain conditions, depending on availability of consumer resources to participate in the initiative, the infrastructure available for the initiative to leverage, and whether the focus of the initiative is to be self‐sustaining over time.

This is a conceptual article based on literature review and synthesis.

Eight different approaches to engage with BOP markets are recommended under different combinations of three underlying conditions: consumer resources, infrastructure availability and self‐sustainability goals.

The paper presents a continuum of strategic engagement approaches to BOP markets.

The aim of this paper is to analyze which sustainable supply chain management (SSCM) arguments are addressed in the base of the pyramid (BoP)-related research. BoP projects address how companies contribute to fulfilling the needs of the poorest populations; increasingly, academics are applying theory to explain these projects. The need for integrating the BoP population into value-adding activities is widely acknowledged, but this is not yet reflected in supply chain management (SCM)-related concepts. The links to SSCM are frequently mentioned but in a scattered manner.

The paper presents a structured literature review of BoP papers published between 2000 and 2014 in peer-reviewed, English-speaking journals available on Web of Science. A content analysis of BoP papers is conducted based on SSCM constructs from the framework presented by Beske and Seuring (2014).

The frequencies of SSCM constructs identified in the BoP papers indicate the prevalence of SSCM arguments in the BoP discourse. Technological integration emerges as the core SSCM practice frequently identified and is contingent with a number of other practices. Further, SSCM practices including long-term relationship development, partner development, joint development, enhanced communication, learning, stakeholder management and innovation have regularly been referred to and are considered important by respective BoP scholars. The contingency analysis shows significant correlations among various pairs of categories and allows us to point to major lines of related arguments.

The paper offers insights into the potential links between the SSCM and BoP research streams and sets ground for further theoretical exploration of the subject. Limitations are the uptake of one particular conceptual framework, the selection of BoP papers for the review process and the interpretation of the frequency and contingency analysis. The paper offers a foundation for developing a research stream where BoP-related issues are integrated into research on (S)SCM.

SCM has many practical applications, which help to establish and improve supply chain design and operations. This would benefit BoP projects and should improve their practical outcomes. The relevance of technological integration seems straightforward, but needs a lot of effort to be implemented in each single project.

BoP-related research has gained increasing attention in recent years and should help drive the global sustainable development agenda further in the respective geographic locations. Establishing capable supply chains that deliver sustainable outcomes will be at the core of such projects. This paper highlights fundamental practices for firms targeting BoP markets with an effort to alleviate poverty.

The paper applies SSCM theory to analyze BoP issues and thereby interlinks the two research streams. Until now, research amalgamating the two concepts has been disconnected. Therefore, by providing an overview of existing publications, more focus for future studies is created, which is valuable and necessary for advancing both fields. Additionally, assessing BoP-type projects in low-income countries will allow the SSCM agenda to look beyond what is so far typically researched.

This case uniquely challenges students by introducing the history of how LIXIL transformed its corporate social responsibility (CSR) program to create shared value within the global sanitation sector by launching the SATO business unit as a social enterprise. SATO is a “self-sustaining social business that establishes a local Make, Sell, Use cycle in the community – creating jobs and allowing local manufacturers and stakeholders to continue the business independently” (LIXIL, 2019). From 2012 to 2021, NGOs helped the company design and market the SATO toilet pan and other products that form the SATO business unit. The SATO business unit must balance its social mission of improved sanitation with the need to gain a profit and become a sustainable business – the ongoing challenge of social entrepreneurship.

After completing this case study, students will be able to meet the following objectives: understand the difference in corporate strategy between CSR and ventures that create shared value; understand the sometimes-competing goals of social enterprises and analyze how they can balance both economic and social objectives; understand that developing and emerging markets are different from each other; explain how corporations can decide which markets to pursue, and how they can meet the needs of the diverse BOP markets; understand how the pursuit of the Sustainable Development Goals can create economic opportunities for corporations; and (optional: suggested for post-graduates) identify activities and challenges of MNC market entry in developing country contexts. Analyze institutional voids in developing country contexts and explore how partnerships can help to address these voids.

This case is most appropriate for the study of international business, corporate social responsibility, and social entrepreneurship students at both the undergraduate and post-graduate levels. The case may be used for undergraduate students to illustrate corporate social entrepreneurship, creating shared value, NGO partnerships, and marketing to the base of the pyramid (BOP) consumers. An optional section on BOP market entry is presented for early- and late-stage post-graduate students, illustrating the concepts of the liability of foreignness and institutional voids.

Teaching notes are available for educators only.

CCS 3: Entrepreneurship.