Enhancing market exchanges at the base of the pyramid

2015 ◽  
Vol 32 (6) ◽  
pp. 762-782 ◽  
Author(s):  
Cheryl Nakata ◽  
Erin Antalis

Purpose – The base of the pyramid (BOP) is characterized by deep and wide poverty, which dampens market exchanges, or making/selling and buying/consuming activities. The purpose of this paper is to address the specific issue of how national culture distinguishes BOP markets in terms of exchange activities, and the broad issue of how market exchanges can grow and flourish by accounting for comparative differences across BOP markets. Design/methodology/approach – The study design is a conceptual framework drawn from the extant BOP literature and several theories such as Amartya Sen’s theory on poverty, and Anthony Bebbington’s concepts of human capital. The framework specifies research propositions for future empirical examination. Findings – The conceptual framework proposes that BOP poverty lowers or inhibits market exchanges but is countered by several factors: national culture (performance orientation), non-traditional assets (creative and social capitals), and transformative technologies (mobile telephony). Assuming these factors vary by BOP setting, greater performance orientation alongside higher social capital, creative capital, and mobile telephony directly and/or interactively increase market exchange activities. Research limitations/implications – Among research implications are the application of other culture theories to the BOP market exchange issue, and the need to examine the role of government and other non-traditional capitals in exchanges. Practical implications – Managerial implications include the targeting and selection of BOP markets and development of marketing tactics that leverage cultural, nontraditional, and technological assets. Originality/value – This paper explores how to counter the negative effects of BOP poverty on market exchanges by leveraging the distinctives and variations among BOP markets.

2016 ◽  
Vol 28 (12) ◽  
pp. 2675-2695 ◽  
Author(s):  
Ceridwyn King ◽  
Hyemi Lee

Purpose Adopting a social capital theoretical (SCT) lens, this study aims to propose a conceptual framework of effective internal communication (IC) for the hospitality industry. The study explores how to enhance current practices and the suitability of social media as an augmentation to traditional IC channels. Design/methodology/approach A qualitative research methodology, consisting of 20 semi-structured interviews with hospitality employees, was adopted. Following a “reduction” and “interpretation” process, 16 themes related to effective IC were identified which informed a conceptual framework. Findings Characteristics of effective IC were identified in addition to IC benefits at both employee and organizational levels. Considering the limitations of current practices, the applicability of social media was explored. Requirements of effective IC suggest that new channels (e.g. social media) should be adopted to build social capital. Research limitations/implications The study informs SCT from a meso-level (process) perspective. The articulation of an IC framework informs how social capital can be built through effective IC, providing a foundation for further empirical examination as to the impact of various channels on the IC process. Adoption of a case study design suggests that results and implications can only be generalized to similar environments. Practical implications The study details the characteristics of effective IC and its subsequent benefits, highlighting how social media can augment current IC practices in a hospitality organization. Originality/value Being a 24/7 labor-intensive operation makes employee communication to ensure service excellence challenging in the hospitality industry. Through the application of SCT and the exploration of social media in a workplace setting to enhance IC, significant theoretical and practical insights are realized.


2019 ◽  
Vol 26 (4) ◽  
pp. 546-566
Author(s):  
Raquel Orcos ◽  
Sergio Palomas

Purpose The purpose of this paper is to explore how national cultures contribute to explain the uneven diffusion of ISO 14001 across countries. The paper focuses on two of the cultural dimensions developed by the global leadership and organizational behavior effectiveness (GLOBE) project, namely, performance orientation and institutional collectivism. Design/methodology/approach A database containing information about the diffusion of ISO 14001 in 52 countries during the period 1999–2016 was built to carry out this research. The countries considered in this study represent about 90 percent of worldwide ISO 14001 certifications. The information was gathered from publicly available data sources: the ISO Survey, published every year by the International Organization for Standardization, the world development indicators of the World Bank, the cultural dimensions of the GLOBE project and the Index of Economic Freedom provided by The Heritage Foundation. Findings This research finds that both performance orientation and institutional collectivism influence the diffusion of ISO 14001. Whereas performance orientation slows down the diffusion of ISO 14001, institutional collectivism speeds it up. Additionally, this research shows that the slowing effect of performance orientation decreases in strength over time, while the accelerating effect of institutional collectivism becomes stronger. Originality/value The study adds to the understanding of the influence of national culture on the diffusion of environmental management standards, with an emphasis on ISO 14001. A key contribution of this research is that it explores how the influence of cultural dimensions change over time as a result of the development and maturation of ISO 14001.


2020 ◽  
Vol 31 (4) ◽  
pp. 829-863
Author(s):  
Attique ur Rehman ◽  
Muhammad Shakeel Sadiq Jajja ◽  
Raja Usman Khalid ◽  
Stefan Seuring

PurposeBase-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.Design/methodology/approachThis 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.FindingsSupply 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.Research limitations/implicationsA 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.Practical implicationsThe 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.Originality/valueSpecifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance


2014 ◽  
Vol 31 (6) ◽  
pp. 576-600 ◽  
Author(s):  
Pervez Ghauri ◽  
Misagh Tasavori ◽  
Reza Zaefarian

Purpose – The purpose of this paper is to explore how employing corporate social entrepreneurship and developing a network of relationships with non-governmental organisations (NGOs) can support and contribute towards the internationalisation of service firms into the base of the pyramid (BOP) markets in emerging markets. Design/methodology/approach – This research adopts an exploratory approach employing qualitative multiple case studies. Three service firms that have targeted the BOP markets in India were studied. In total, 25 in-depth interviews were conducted with multinational corporations (MNCs) and their NGO partners. Data analysis was facilitated through pattern matching and systematic case comparison. Findings – The findings reveal that, by engaging in social entrepreneurship, these MNCs have focused on the neglected needs of the BOP population, developed sustainable solutions and empowerment, and started with social value creation and postponed value capturing. The pursuit of corporate social entrepreneurship has paved the way for them to establish relationships with NGOs. While the MNCs have mainly had the technical knowledge and financial resources required, collaboration with NGOs have allowed them to learn about the BOP’s specific needs and benefit from the NGOs’ knowledge, human resources and good relationships in this market. Originality/value – This research unravels how service firms can seize opportunities at the BOP. The authors build on social entrepreneurship theory and bring new insights to the field of international business. In addition, the authors broaden the network view and show how networking with social actors such as NGOs enables the mobilisation of resources, actors and activities in emerging markets.


Author(s):  
Wendy L. Tate ◽  
Lydia Bals ◽  
Donna Marshall

Purpose The purpose of this paper is to compile a set of articles tackling supply chain issues in BOP contexts that address both demand and supply. Solutions are needed for global sustainability problems from medical aid and food availability to the ability to participate in supply chains for the global poor. Design/methodology/approach The accepted articles in the special issue used a range of qualitative and quantitative methodologies to answer research questions in a variety of base of the pyramid (BOP) contexts. These approaches and results distinguish between demand (BOP market) and supply, or base of the chain (BOC), perspectives. Findings The findings in the eight accepted marticles are interesting and applicable across different BOP contexts. Compilation of the articles into the special issue and the accompanying editorial led to a comprehensive future research agenda that addresses demand-side issues by investigating the customers in BOP markets, and supply-side issues focusing on the suppliers and intermediaries (BOC) who supply BOP markets. Future research ideas include a focus on supply chain design issues situated at the intersection of the demand (BOP) and the supply (BOC) concerns that address the needs of the world’s poorest populations. Research limitations/implications All of the selected articleshave societal implications related to addressing the needs of BOP populations. Many of these articles also have economic and environmental implications, the other two pillars of the triple bottom line. The detailed future research agenda developed in this editorial presents implications for researchers working in emerging and BOP communities to push research forward and further develop the foundational literature in the BOP context. Practical implications From a practical standpoint, each of the eight articles presents ideas for businesses that help address the needs of the global poor while enhancing global sustainability performance. The editorial summarizes these implications and provides new directions and examples of success in the BOP context. Managers are provided with techniques to address the supply and demand side of these growing markets. Originality/value The overall conceptual framework and positioning of the final papers into the BOP market, BOC suppliers and a combination of the two is novel and helps provide guidance to both scholars and managers.


Author(s):  
Eugenia Rosca ◽  
Guido Möllering ◽  
Arpan Rijal ◽  
Julia Christine Bendul

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).


2018 ◽  
Vol 35 (8) ◽  
pp. 1568-1598 ◽  
Author(s):  
Bilal Ahmad Khan ◽  
Hummayoun Naeem

PurposeThe purpose of this paper is to present a new conceptual framework for service organizations to achieve sustainable business performance through strategic quality orientation and innovation capabilities on the basis of relevant literature review and integration of various innovation and business sustainability theories and models. The study tests if the strategic quality orientation enhances innovation capabilities in terms of exploitation and explorative innovation, which, in turn, can lead to sustainable business growth. Mediating impact of innovation capabilities between strategic quality orientation and sustainable business growth relationship is also examined.Design/methodology/approachA conceptual framework was developed to test and establish these relationships. Results were analyzed based on 442 questionnaires collected from five different service industries of Pakistan, and the structural equation modeling technique was used to empirically test the conceptual framework.FindingsThe results indicate that strategic quality orientation directly affects innovation capabilities and sustainable business growth and also indirectly impacts sustainable business growth through its effect on innovation capabilities.Practical implicationsThe study suggests service organizations can jointly implement quality and innovation using a structured approach, with strategic quality orientation as the foundation. In this way, they can leverage from their strategic quality management, supplier relationship, corporate quality culture, continual improvement and people management in order to ensure innovation and sustainability in their business growth.Originality/valueThe study integrates strategic quality orientation and innovation capabilities, and validates a new organizational framework through empirical examination which can be used by service organizations to ensure their sustainable business growth.


Author(s):  
Valeria Varga ◽  
Eugenia Rosca

Purpose The purpose of this paper is to answer the following research question: how can intermediaries contribute to social impact creation through their interventions at different levels of distribution networks in the base of the pyramid (BoP) markets? Design/methodology/approach The paper adopts an embedded case study of an intermediary organization. The analysis focuses on the intervention of the intermediary on the distribution stages of supply chains in four different projects in the food sector in Ethiopia, Benin, Nigeria and Bangladesh. Findings The embedded case study reveals essential formal and informal roles undertaken by the intermediary organization to develop decentralized distribution networks based on local micro-entrepreneurs. The study proposes that efforts undertaken by the intermediaries toward knowledge sharing and capacity building among partners can enable the adoption of pro-poor strategies across the supply chain. Moreover, hybrid intermediaries can act as “guardians” of the mutual value creation approach since one of their key roles is to advocate the needs of the BoP. Research limitations/implications Important implications for improving nutrition and food security in the BoP markets are developed based on the empirical findings. The findings open avenues for further research into the antecedents of retention rates in distribution networks based on local micro-entrepreneurs. Practical implications Findings have implications for different types of BoP initiatives by highlighting how intermediary organizations intervene to develop distribution models with a special focus on social impact. Originality/value This paper fills an important research gap by discussing social impact aspects in BoP supply chains by adopting the perspective of intermediary organizations.


2018 ◽  
Vol 6 (2) ◽  
pp. 187-202 ◽  
Author(s):  
Nicholas R. Prince ◽  
J. Bruce Prince ◽  
Rüediger Kabst

Purpose The purpose of this paper is to investigate the influence of national culture on the adoption of four different incentive pay bundles (incentive maximizer, contingent rewarder, profit rewarder, and incentive minimizer) using GLOBE national culture dimensions in 14 countries. It uses incentive pay bundles derived by Prince et al. (2016). Design/methodology/approach The study adopted multilevel random-intercept logistic modeling using firm incentive practice usage from the CRANET database and country culture scores from the GLOBE study. Findings Evidence suggests that in-group collectivism is associated with increased use of the incentive maximizer approach, in which firms use a combination of high levels of individual, team, and profit sharing incentives, and decreased use of the incentive minimizer approach (where firms minimally employ incentives) and the individual and team bonus focused contingent rewarder configuration. Higher uncertainty avoidance is linked to increased use of the profit rewarder approach (where only profit sharing is emphasized) and decreased use of the contingent rewarder approach. Performance-orientation cultures appear to support using the incentive maximizer and avoiding the incentive minimizer bundles. Originality/value This study investigates incentive practice bundles that firms use verses separate analysis of practices and use the GLOBE culture metrics. It utilizes multilevel modeling, which has been lacking in past studies of culture and incentives.


2020 ◽  
Vol 24 (2) ◽  
pp. 277-302
Author(s):  
Shellyanne Wilson

PurposeThe purpose of this paper is to examine the role of Government via its industrial policy aimed at building competitiveness in apparel manufacturing in a developing country.Design/methodology/approachA conceptual framework that proposes the causal relationships between policies and competitiveness is applied to the apparel manufacturing sector in Trinidad and Tobago. The study utilises primary data from interviews and observations, and secondary data sources inclusive of industry and fashion companies reports. Data analysis of four vertical policies is performed via the use of system dynamics modelling and simulation.FindingsThe four vertical policies were found to impact three interrelated elements in the apparel manufacturing sector: the market, apparel products and productive resources. Policies that intentionally focussed on improving market attractiveness benefited wide segments of the industry. However, policies that focussed on product and resource attractiveness that were designed as direct support for selected firms had a lower impact on overall industry competitiveness than those that had an industry-wide focus.Research limitations/implicationsA single industry in a small developing island state limits the generalisability of the research findings. Additionally, non-reporting of export data and aggregation of industry data limits the conclusions that can be drawn regarding the impact of the vertical policies on the apparel industry. 10; 10;Practical implicationsPolicy-makers should consider the scope of the vertical policies in terms of the number of firms in the industry to benefit, and the need for complementary horizontal policies for creating enabling environments for competitiveness.Originality/valueThe paper proposes a conceptual framework to capture relationships between vertical policy and competitiveness.


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