scholarly journals Business Model Involvement, Adaptive Capacity, and the Triple Bottom Line at the Base of the Pyramid

Author(s):  
Ernst Verwaal ◽  
Martin Klein ◽  
Jefferson La Falce

AbstractAlmost two decades ago, Prahalad and Hammond [Harv Bus Rev, 80(9):48–59, 2002] introduced the base/bottom of the pyramid (BOP) approach to profitably serving the poor with business models adapted from developed markets while alleviating poverty. In response to disappointing results and ethical criticism, the BOP approach evolved from a just-for-profit approach with a passive role of the poor to an inclusive development approach that integrates the principles of the triple bottom line. A recent review of the BOP literature [Dembek et al., J Bus Ethics 165(3):365–382, 2020], however, reveals a lack of empirical evidence to support the sustainable BOP approach. In this paper, we specify the assumptions underlying the sustainable BOP approach and test them using structural equation modeling with clustered robust standard errors on a unique dataset of 212 firms. Our findings show that BOP business model involvement and adaptive capacity are significant drivers of the triple bottom line at the BOP; however, business model adaptive capacity does not guarantee an ecologically sustainable performance at the BOP. We find that there is a need for further extension of the ethical foundations of the sustainable BOP approach.

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.


2021 ◽  
Vol 4 (2) ◽  
pp. 827-845
Author(s):  
Edwin Joyo Hutomo ◽  
Yud Buana ◽  
Yohanes Jhony Kurniawan

The shift in shopping methods from physical (offline) stores to virtual (online) stores has crystallized even more. Gradually the shift allows consumers to feel easy and comfortable in respect to buying products by online methods. This earliness paradigm shift becomes interesting if it becomes a topic of the research regarding the possibility of its sustainability in the triple bottom line. The clarity of the consumer's perspective on brand sustainability in terms of the main three pillars is being tested to clarify the roots of the paradigm by becoming a hypothesis in this research. The hypothesis was tested using Structural Equation Modeling on the answers of 278 respondents to identify the significant path. The findings are quite surprising so that entrepreneurs require to put forward the sustainability side of their brand. Future research should be aimed at adding more detailed factors related to the need for the process of achieving sustainability.


2020 ◽  
Vol 41 (4) ◽  
pp. 501-517
Author(s):  
Muzhar Javed ◽  
Hafiz Yasir Ali ◽  
Muhammad Asrar-ul-Haq ◽  
Moazzam Ali ◽  
Syed Ali Ashiq Kirmani

PurposeDrawing on stakeholder theory and contingency theory, this study empirically investigates the relationship between responsible leadership (RL) and each dimension of triple-bottom-line (TBL) performance. Moreover, we tested the mediating effect of corporate reputation (CR) and innovation between RL and TBL performance.Design/methodology/approachPerceptual data were collected from 227 senior-level Pakistani managers using a questionnaire survey. Structural equation modeling (SEM) was used to test the direct and mediating effect hypotheses.FindingsThe results revealed that RL significantly and positively affects each dimension of TBL performance. Further, innovation mediated the relationship between RL and each dimension of TBL performance. However, CR did not mediate the relationship between RL and environmental performance.Originality/valueThis is maiden study to empirically investigate the effect of RL on meso-level outcome. Further, this study would be among the few ones to use TBL as a measure of corporate performance. Moreover, it will be the first study to test the mediating role of CR and innovation in the above-mentioned relationship and will also validate contingency theory.


2022 ◽  
Vol 25 (1) ◽  
pp. 89-106
Author(s):  
Dolores Gallardo-Vázquez ◽  
Luis Enrique Valdez Juárez

Corporate social responsibility (CSR) strategies have become an important research topic in recent years as they can generate numerous benefits for organizations, especially when an adequate market orientation (MO) has been defined. In this sense, several research questions arise: do companies have enough CSR information to implement appropriate strategies? Does the information that they have gathered allow them to define a complete set of CSR activities (response) based on the triple bottom line approach? And, once they have carried out their initiatives, do these companies ensure adequate dissemination of the results to stakeholders?. In order to answer the above questions, this study sought to examine companies’ CSR orientation from a MO perspective. Working with data on a sample of 165 firms in Spain, during January 15th and February 15th, 2017, structural equation modeling was used to test a set of research hypotheses. The results reveal an important link between information, response, and diffusion and help extend the MO strategy concept. CSR information has a positive, direct influence on the development of initiatives covering three dimensions (economic, social and environmental). In addition, a direct relationship exists between the development of social and environmental initiatives and CSR disclosure. This research’s findings contribute to the literature on interest groups and business sustainability. Also, they confirm that the development of social and environmental initiatives contributes positively to CSR dissemination and to the generation of competitive advantages. This way, collecting CSR information constitutes a valuable asset. With respect to the limitations of the study, the answers reflected each SME leader’s subjective opinion, the variables’ measurement was dealt with through reflective models using the PLS technique based on variance and only Spanish companies already oriented toward CSR participated in the study. Las estrategias de responsabilidad social corporativa (RSC) se han convertido en un tema de investigación importante en los últimos años, ya que pueden generar numerosos beneficios para las organizaciones, especialmente cuando se ha definido una orientación adecuada al mercado (OM). En este sentido, nos surgen varias preguntas de investigación: ¿disponen las empresas de suficiente información de RSC para implementar adecuadas estrategias? ¿la información que poseen les permite definir un conjunto de actividades de RSC (respuesta) basadas en el enfoque del triple bottom line? Y, una vez que han llevado a cabo sus iniciativas, ¿estas empresas aseguran una adecuada difusión de los resultados a los grupos de interés?. Con el fin de dar respuesta a las anteriores cuestiones, este estudio buscó examinar la orientación de la RSC de las empresas desde una perspectiva OM. Trabajando con datos de una muestra de 165 empresas en España, durante el período comprendido desde el 15 de enero al 15 de febrero de 2017, se utilizaron los modelos de ecuaciones estructurales para probar un conjunto de hipótesis de investigación. Los resultados revelan un vínculo importante entre la información, la respuesta y la difusión y ayudan a extender el concepto de estrategia de OM. La información de RSC tiene una influencia positiva y directa en el desarrollo de iniciativas que cubren las tres dimensiones (económica, social y medioambiental). Además, existe una relación directa entre el desarrollo de iniciativas sociales y ambientales y la divulgación de la RSC. Los hallazgos de esta investigación contribuyen a la literatura sobre grupos de interés y sostenibilidad empresarial. Además, confirman que el desarrollo de iniciativas sociales y ambientales contribuye positivamente a la difusión de la RSE y a la generación de ventajas competitivas. De esta manera, la recogida de información de RSE constituye un activo valioso. Con respecto a las limitaciones del estudio, las respuestas reflejaron la opinión subjetiva de cada líder de las Pymes, la medición de las variables se trató a través de modelos reflectivos utilizando la técnica PLS basada en la varianza y solo las empresas españolas ya orientadas hacia la RSE participaron en el estudio.


2018 ◽  
Vol 9 (1) ◽  
pp. 30 ◽  
Author(s):  
Ana Galeano Revert ◽  
José P. García-Sabater ◽  
Cristóbal Miralles Insa

<p class="Abstract">The present work aims to analyse and identify a triple bottom-line business model of food retailing, in order to show a sustainable, replicable and non-scalable model in the agri-food sector, and to facilitate the development of a feasible market for small size producers-sellers. The methodology used for the business model identification analyses and relates elements and strategies, providing a design graphic for the model, as well as evaluating each triple sustainability dimension. All this following a protocol derived from the methodology of case study research. The case study shows a sustainable, replicable and non-scalable business model that emerges from a strategy defined by a responsible consumption group from a university. Using digital technology for the distribution and sale of products, and sharing capacity with a WISE, a business model is achieved that shortens the food products commercialization channel between producers and consumers, improving economic, social and environmental sustainability. The application of this methodology provides a tool that facilitates the replicability of sustainable business models in the agri-food business context, and allows identifying the level of their sustainability. The incorporation of this business model can contribute to the development of a triple bottom-line food market, whose purpose is to improve the survival of small size producers-sellers given the increasing centralization and globalization of the agri-food economy distribution.</p>


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Telma Mendes ◽  
Vítor Braga ◽  
Aldina Correia ◽  
Carina Silva

PurposeDrawing on the resource-based view (RBV) and knowledge-based view (KBV) theories, this study contributes to deepen the knowledge that corporate social responsibility (CSR) exerts on firms' innovation, considering the role played by cooperation. The research also seeks to ascertain the factors that influence the development of business cooperation.Design/methodology/approachThe database used is the Community Innovation Survey (CIS, 2014) applied in the European Union (EU) during the time period 2012–2014. A sample of 7083 Portuguese firms were analyzed through the partial least squares structural equation modeling (PLS-SEM).FindingsThe results suggest that CSR positively relates with firms' innovation, and business cooperation partially mediates this relationship. The outcomes also reveal that investing in certain types of innovation activities increases the firms' willingness to cooperate.Originality/valueThe findings contribute to encourage an open innovation strategy as an easy and effective way to cope with rapid trends and changes, since it demonstrates the complementary between innovation and cooperation, as sources of value creation. From a triple bottom line (TBL) perspective, it also highlights that CSR must include social, economic and environmental initiatives, and should be a part of the firms' innovation strategy. As a result, managers who intend to contribute for society in the long term should plan, monitor and manage all CSR dimensions.


2020 ◽  
Vol 6 (3) ◽  
pp. 294-301
Author(s):  
Sreenivasan Jayashree ◽  
Chinasamy Agamudainambi Malarvizhi ◽  
Mohammad Nurul Hassan Reza

This study contributes to the current literature by analyzing the role of Industry 4.0 technologies on its effective implementation towards achieving Triple Bottom Line (TBL) sustainability. Several hypotheses are presented to evaluate the relationship, considering the role of Industry 4.0 technologies that may be played to determine TBL sustainability and effective implementation of Industry 4.0 as a mediating variable. Because there has been little focus on financial, ecological and societal sustainability and the role of Industry 4.0 technology on these dimensions in the current literature, this study aims to analyze the connection among the variables in relation to Malaysian SMEs. The statistical analysis will be performed through the employment of the Structural Equation Modeling (SEM).


2021 ◽  
Vol 13 (13) ◽  
pp. 7379
Author(s):  
Chao Wu ◽  
Shuling Liang ◽  
Weijiong Wu ◽  
Yuxiang Hong

Green residence is the future of urban development, it is also an attempt to implement the green business model in the residential business field. The key to the success of a green business model is that a wide range of customers can accept its green value proposition and react to it through their purchase decisions. This study aims to develop a theory of a planned behavior (TPB) research model to predict individuals’ intention to purchase green residence. This study took steel structure residence as an example, which was widely recognized as one emerging type of green residence. The samples were selected in Baotou city of Inner Mongolia, P.R. China. Data analysis was performed using the structural equation modeling (SEM) with data obtained from a survey of 208 respondents using SPSS19.0 and AMOS17.0. The results found that the individuals’ intention to purchase green residence was significantly affected by attitude, subjective norm, and perceived behavioral control. Moreover, the empirical evidence showed that these influences differed between different gender groups. Specifically, women responders had a stronger effect on the path attitude impact on purchase intention than men. These findings can provide implications for practicing the green business model of real estate enterprise.


2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Falkenreck ◽  
Ralf Wagner

Purpose Until today, scholars claim that the phenomenon of “co-creation” of value in an “interacted” economy and in the context of positive actor-to-actor relationships has not been adequately explored. This study aims to first to identify and separate the accessible values of internet of things (IoT)-based business models for business-to-business (B2B) and business-to-government (B2G) customer groups. It quantifies the drivers to successfully implement disruptive business models. Design/methodology/approach Data were gathered from 292 customers in Western Europe. The conceptual framework was tested using partial least square structural equation modeling. Findings Managing disruptions in the digital age is closely related to the fact that the existing trust in buyer-seller relationships is not enough to accept IoT projects. A company’s digitalization capabilities, satisfaction with the existing relationship and trust in the IoT credibility of the manufacturer drives the perceived value of IoT-based business models in B2B settings. Contrastingly, in B2G settings, money is less important. Research limitations/implications Research refers to one business field, the data set is of European origin only. Findings indicate that the drivers to engage in IoT-related projects differ significantly between the customer groups and therefore require different marketing management strategies. Saving time today is more important to B2G buyers than saving money. Practical implications The disparate nature of B2B and B2G buyers indicates that market segmentation and targeted marketing must be considered before joint-venturing in IoT business models. To joint venture supply chain partners co-creating value in the context of IoT-related business models, relationship management should be focused with buyers on the same footing, as active players and co-developers of a personalized experience in digital service projects. Originality/value Diverging from established studies focusing on the relationship within a network of actors, this study defines disruptive business models and identifies its drivers in B2B and B2G relationships. This study proposes joint venturing with B2B and B2G customers to overcome the perceived risk of these IoT-related business models. Including customers in platforms and networks may lead to the co-creation of value in joint IoT projects.


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