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This paper aims to study how multinational enterprises (MNEs) can best integrate legitimacy concerns into their new product-launching strategy to successfully introduce high-value hi-tech innovations in emerging countries.

Theoretical constructs on the role and process of legitimacy construction for the introduction of a new product are built upon the existing literature. Then they are validated and refined through the formulation and analysis of case studies of the launch of genetically modified cotton seeds by Monsanto in India and a HIV/AIDS drug cocktail by Merck in Brazil.

Legitimacy construction can serve MNEs to face challenges successfully while launching high-value hi-tech products in emerging countries. Challenges to MNEs are likely to be founded on a combination of four types of uncertainties: technological, commercial, organizational and societal. Expected challengers are public agencies and actors representing civil society. An MNE can prepare itself through legitimacy construction along three dimensions: redesign of technology, revision of marketing strategy and non-market investments. To implement the aforesaid, MNEs can engage in outreach in the form of strategic patience, market transaction, business collaboration, compromise and/or confrontation with diverse carefully chosen stakeholders.

The authors limited ourselves to tracing only the formal interactions of MNEs, while it is well-known that many informal and backdoor activities can also accompany their growth in emerging economies.

Legitimacy construction can help MNEs face challenges successfully while launching high-value hi-tech products in emerging countries. This calls for an evaluation of the systemic uncertainties followed by the formulation of a strategy for legitimacy construction and implementation through outreach to diverse systemic actors. Strategic patience can yield positive returns. Market transactions can serve as economic anchors. Collaboration can be pursued with parties who can share the costs of legitimization construction and/or reduce technological and marketing uncertainties. Confrontation should be the last choice. Compromise is the most probable but not the only outreach strategy possible after a confrontation.

Legitimacy implies product acceptance not only from the targeted consumer but also other societal stakeholders concerned with the safety and equity of the consumption in the emerging country, especially when regulations are not well-defined and/or implemented. The two kinds of societal stakeholders which are likely to monitor MNEs are public agencies and civil society groups. Public agencies will be concerned about the quantity, quality, technology or price of the innovation to be introduced. Civil society and NGOs may help the MNE act as citizen watchdogs for the environment and vulnerable communities.

Theoretical constructs have been developed in this paper on the sources of challenges in new product introduction, the types of challengers and the components of the firm’s legitimacy construction strategy and its implementation through an outreach strategy.

Agri-biotech multinational enterprises (MNEs) are persisting to push genetically modified plant varieties (GMV) worldwide including emerging countries as a technological solution for sustainable development. However, in emerging countries, the structure and effectiveness of regulation and compliance measures to ensure human and environmental safety are much less developed. There are three types of concerns: the economic risks faced by farmers while using existing low-yielding conventional seed varieties, in the face of inadequate institutional mechanisms and safety nets, the long-term environmental risks, and finally, risks posed by other possible externalities. In an attempt to provide some insight on the aforementioned debate, this chapter focuses on a commercially successful GMV—namely genetically modified cotton, also referred to as Bt cotton. The literature on adoption of Bt cotton is first examined, and its findings are confronted with the reality of the introduction and diffusion of Bt cotton in India to derive inferences on how MNE and emerging countries’ governments can manage coexistence. Our findings indicate that in order to be successful, MNEs have to establish the sociopolitical legitimacy of GMV through investment in outreach with regulatory authorities, government departments dealing with the environmental and bio safety, farmer groups, and nongovernmental organizations (NGOs). MNEs also have to keep in mind that pricing and high technology fee can become an impediment for the legitimization of technology. Finally, MNEs can partner with NGOs to educate and accompany farmers to maximize their livelihood, while preserving the ecological sustainability of their farm lands.

Governments worldwide have adopted the Sustainable Development Goals (SDGs) and are committed to attain them by 2030. Moreover, they recognize that they cannot mobilize the necessary resources and capabilities for this purpose alone. Hence, they have called for cooperation from all stakeholders including multinational enterprises (MNEs) to assume responsibility and strive to contribute to the SDGs. However, since co-partnering with the state for inclusive development is outside the traditional mandate of MNEs, this chapter explores the ways in which policy can nudge MNEs to contribute to the first pillar of sustainable development, namely SDG1—to end poverty in all its forms everywhere. A two-stage methodology is applied to address the research queries. First, a conceptual framework on impact of MNE interventions on SDG1 is developed. Second, the framework is validated through a meta-analysis of the abstracts of articles selected via a scoping review of the economics and management literature. This leads to an in-depth understanding of policy design features that can nudge MNEs to make positive contributions toward poverty alleviation. Four distinct pathways foreign direct investment (FDI), public–private partnerships (PPP), corporate social responsibility (CSR), and knowledge transfer are identified for nudging MNEs toward SDG1. Nevertheless, the potential impact may not be realized due to the inappropriate strategies of the MNE, the drawbacks of the policies of the host government, and/or systemic challenges of the host country context. This chapter further explores the positive and negative impact on these pathways as a step toward exploring how MNEs can contribute to all the SDGs.

The case study is based on a social entrepreneurial journey where the authors have used an interview method to get the insights from the protagonists and the employees. Rigorous interviews were conducted online and in person for deep analysis of the protagonist’s strategies and decisive dilemma.

Secondary data was collected from company’s website for facts and figures.

This case study is a story of indigenous tribes of Odisha from the eyes of a woman who, with her co-founder, empathized with their vulnerable life and took on the challenge of creating sustainable livelihoods by establishing Millet Magic Foundation. The Millet Magic Foundation was established in 2021 by Shyama and her cofounder to uplift the indigenous tribe of Mayurbhanj by providing them livelihood through millet-based products. The foundation launched their millet-based snack products with the brand name WOWMOM. Millet Magic Foundation created social impact for the tribals by providing them with employment, fair wages, health care and social well-being. The specialty of the Millet Magic was reverse positioning and focusing on the bottom of the pyramid. The success of the Millet Magic Foundation relied on its mission to uplift the life of these indigenous tribal, especially the women, by overcoming the challenges with the strategies to establish Millet Magic as a social enterprise.

The case study is primarily suitable for postgraduate programme to teach the concept of social entrepreneurship in the entrepreneurship module. The case study can also be used for highlighting the role of social enterprise in sustainable economic development of emerging economies.