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1 – 10 of 68This paper aims to highlight differences between business and non-business literature regarding base of the pyramid (BoP) and subsistence contexts and reveal discourse’s powerful…
Abstract
Purpose
This paper aims to highlight differences between business and non-business literature regarding base of the pyramid (BoP) and subsistence contexts and reveal discourse’s powerful role in influencing goals, solutions and outcomes.
Design/methodology/approach
This paper uses critical discourse analysis to review a convenience sample of business versus non-business literature on the BoP and subsistence contexts.
Findings
Discourse used in business literature on the BoP is oriented toward hegemonic Western capitalist approaches that result in the depletion of resources, resource inequalities, poverty and increased consumption, dependence and environmental degradation and, therefore, cannot alleviate poverty.
Research limitations/implications
There are two primary limitations: the study relied on a convenience sample that was not random and comparatively, the business BoP literature is not as mature as the non-business subsistence literature and, therefore, the BoP field of study is not yet fully developed.
Practical implications
Discourse has a powerful role in revealing assumptions and guiding actions. A change in BoP discourse toward a strength-based approach can serve as a model of sustainability and can help powerful entities enact structural and systemic change.
Originality/value
This paper reveals the role of discourse in business BoP literature and how it perpetuates and even exacerbates the problems they were designed to alleviate: depletion of resources, resource inequalities, poverty and increased consumption, dependence and environmental degradation. The paper challenges researchers, economists and powerful guiding entities to reorient their discourse of the BoP to be more aligned with those of non-business researchers of subsistence markets.
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Driving economic development at the bottom of the pyramid (BOP) is an enduring global challenge. While the market-based approach places hope on entrepreneurship as a major impetus…
Abstract
Purpose
Driving economic development at the bottom of the pyramid (BOP) is an enduring global challenge. While the market-based approach places hope on entrepreneurship as a major impetus to drive the underdeveloped economy, the performance of entrepreneurial businesses and their impact on poverty reduction are sometimes below expectations. This paper seeks to examine the factors that may be hindering entrepreneurship within the BOP context. This paper presents preliminary answers and provides research suggestions related to this question.
Design/methodology/approach
In order to identify the reasons behind the underperformance of entrepreneurship at the BOP, a comprehensive literature review was conducted to see what is already known about this puzzle.
Findings
By reviewing extant literature, four clusters of factors were found to shape entrepreneurial activities at BOP: (1) Individual-level factors may be restraining entrepreneurial activities within BOP context, (2) gender inequality at BOP is hindering female entrepreneurship, (3) insufficient institutional support is holding back entrepreneurial activities in BOP and (4) business development initiatives are making multi-faceted impacts on entrepreneurial activities in BOP.
Originality/value
This paper contributes to theory in that it is the first comprehensive review of literature on constraints of entrepreneurship in the context of BOP. In investigating influential factors of entrepreneurial success in the BOP context, the authors recognize four major influential forces that are shaping entrepreneurial processes at the bottom of the pyramid and further propose three directions of future research that are worthy for further exploration.
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Marcela Maestre Matos, Jahir Lombana-Coy and Francisco J. Mesías
This study aims to identify informal institutions for bottom-of-the-pyramid (BoP) business models in the agricultural sector through the case study of banana growers’ cooperatives.
Abstract
Purpose
This study aims to identify informal institutions for bottom-of-the-pyramid (BoP) business models in the agricultural sector through the case study of banana growers’ cooperatives.
Design/methodology/approach
A case study of six banana cooperatives from Colombia was conducted. The research followed a mixed design, using both qualitative and quantitative data and the application of structural equations.
Findings
This study shows that social capital, networking and alliances are essential in BoP businesses.
Originality/value
Authors defined a model of informal institutional factors for the generation of economic and social value in inclusive business, using the new institutional theory and the conceptual development of BoP in agri-business.
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Eugenia Rosca, Guido Möllering, Arpan Rijal and Julia Christine Bendul
The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises…
Abstract
Purpose
The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains?
Design/methodology/approach
A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains.
Findings
The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.
Research limitations/implications
This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion.
Practical implications
The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities.
Originality/value
This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).
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Maria Alejandra Pineda-Escobar
This exploratory research aims to analyze sustainable innovation in the context of inclusive business in Latin America.
Abstract
Purpose
This exploratory research aims to analyze sustainable innovation in the context of inclusive business in Latin America.
Design/methodology/approach
The study performs a summative content analysis of 22 inclusive businesses (IBs) of current Business Call to Action (BCtA) members in Latin America. Codes were created to identify the modification or introduction of sustainable products/services/processes. Data were analyzed using NVivo 12.
Findings
Results show a prevalence of Colombian examples within Latin American inclusive business, and a more significant proportion in the agricultural sector, consistent with reports found in the literature. The authors found that sustainable innovation takes place when introducing new products/services/processes that respond to the needs of the bottom of the pyramid (BoP) population, or modifying existing processes and services to make them more sustainable.
Originality/value
As most sustainable innovation literature is product-oriented and technically dominated, these results contribute to the newer works adopting a more comprehensive conception of innovation, providing empirical evidence at the product, service and process levels. The results provide insights on how inclusive businesses make adaptations to improve the sustainability of their supply chains to bring their products/services within reach of isolated and disadvantaged communities. The findings also suggest that sustainable product innovation in an inclusive business goes beyond a cost reduction objective. Tailored design reveals a hybrid socioeconomic goal with a high degree of local context embeddedness and precise attention to nascent specialized demand. The results could be of practical use for organizations that want to operate an inclusive business in BoP markets.
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Michelle Greene and Allard Cornelis Robert van Riel
This paper aims to investigate whether and why the base of the pyramid (BOP) actors display passive innovation resistance because of which they reject service innovations without…
Abstract
Purpose
This paper aims to investigate whether and why the base of the pyramid (BOP) actors display passive innovation resistance because of which they reject service innovations without evaluation and forfeit potential to improve their well-being. The resourceness concept, referring to the outcome of how actors appraise and integrate resources in pursuit of a purpose at hand, is used as a theoretical lens to investigate the everyday consumption behaviour of BOP households and helps to investigate how and why passive innovation resistance occurs. The outcomes of the study help address important theoretical and practical considerations for the development of successful new service concepts at the BOP.
Design/methodology/approach
Narrative interviews with 29 households in Zambia provide data, from which patterns in how potential resources do or do not become real are identified and related to the concept of passive innovation.
Findings
Economic, social and other factors in the BOP context clearly influence non-random patterns of resource integration which are correlated with passive innovation resistance. This can lead to service innovations being ignored and/or misunderstood prior to evaluation for adoption. This is a risk to the potential positive impact of service innovation for poverty alleviation at the BOP.
Practical implications
Service innovation at the BOP must begin with a deep understanding of “how” and “why” consumers typically appraise and integrate potential resources to achieve a beneficial outcome in their context. To overcome the barrier of passive innovation resistance, marketing education must stimulate an understanding of potential benefits and motivation towards the change associated with the adoption of service innovation.
Social implications
The findings support more successful service innovation strategies for the BOP, which can provide vital infrastructure for the alleviation of poverty.
Originality/value
The application of a service-dominant logic perspective in the BOP context and the conceptual linkage between resourceness and passive innovation resistance is novel. Valuable insights are gained for service practitioners at the BOP and for further conceptual development of innovation resistance in the BOP context.
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