scholarly journals Internationalisation of service firms through corporate social entrepreneurship and networking

2014 ◽  
Vol 31 (6) ◽  
pp. 576-600 ◽  
Author(s):  
Pervez Ghauri ◽  
Misagh Tasavori ◽  
Reza Zaefarian
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Social Entrepreneurship ◽  
Service Firms ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Sustainable Solutions ◽  
Social Value Creation ◽  
Bop Markets ◽  
Corporate Social

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.

scholarly journals Entering the base of the pyramid market in India

2016 ◽  
Vol 33 (4) ◽  
pp. 555-579 ◽  
Author(s):  
Misagh Tasavori ◽  
Pervez N. Ghauri ◽  
Reza Zaefarian
Keyword(s):  
Social Responsibility ◽  
Multinational Corporations ◽  
International Marketing ◽  
Empirical Support ◽  
Marketing Strategies ◽  
Support Network ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Market Expansion ◽  
Corporate Social

Purpose – The purpose of this paper is to shed light on the international market expansion of multinational corporations (MNCs) to the base of the pyramid (BoP). The authors employ the corporate social entrepreneurship (CSE) perspective to reveal how MNCs can enter this market, the key enabling factors and the benefits they can gain. CSE is related to entrepreneurial and marketing strategies that are inspired by social responsibility. Design/methodology/approach – An exploratory, qualitative multiple-case study has been employed. In-depth interviews were conducted with managers from three MNCs that have entered the BoP market in India. Findings – The findings of this research confirm that successful entry into the BoP requires the pursuit of social responsibility and the adaptation of marketing strategies. In addition, MNCs should identify the key environmental factors (demand conditions and socio-political actors’ expectations) and develop organisational characteristics (management support, network orientation towards non-governmental organisations and availability of financial resources) to match. The findings of this research show that engagement in CSE in countries with considerable BoP populations can bring firms legitimacy and sustainable profitability. Research limitations/implications – This research is based on interviews with a limited number of MNCs in India. Future studies could generalise the findings of this research to a larger number of corporations in other countries. Originality/value – This research brings new insights to the field of international marketing by integrating the corporate social responsibility, marketing and entrepreneurship disciplines. The findings of this research offer empirical support for CSE and its role in international marketing strategies.

Disruptive innovation at the base-of-the-pyramid

2018 ◽  
Vol 14 (2/3) ◽  
pp. 111-138 ◽  
Author(s):  
Abiodun Adegbile ◽  
David Sarpong
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Disruptive Innovation ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Business Context ◽  
Disruptive Innovations ◽  
African Context ◽  
Context Specific ◽  
Institutional Challenges

Purpose The authors aim to examine the potential opportunities and challenges multinationals operating in Africa are likely to encounter when they seek to pioneer disruptive innovations at the base of the pyramid (BoP) in African emerging markets. Design/methodology/approach Drawing on the extant literature on the BoP, disruptive innovation and the African business context, the authors explore the pioneering of disruptive innovations in the African socio-economic context. Findings This study develops various hypotheses to extend our understanding of disruptive innovations at the BoP. The authors also delineate potential managerial and institutional challenges multinational corporations (MNCs) are likely to encounter in their efforts to pioneering disruptive innovations for BoP customers in African emerging markets. Practical implications The authors develop some recommendations for MNCs on how to create and capture value from disruptive innovations in African emerging markets Originality/value The authors delineate African context-specific managerial and institutional challenges that MNCs might encounter when seeking to develop disruptive innovation at the BoP.

Bridging the divide between diaspora investment interest and action

2011 ◽  
Vol 1 (1) ◽  
pp. 1-13
Author(s):  
Liesl Riddle ◽  
Tjai M. Nielsen ◽  
George A. Hrivnak
Keyword(s):  
Emerging Markets ◽  
Social Entrepreneurship ◽  
Subject Area ◽  
New Venture ◽  
Graduate Courses ◽  
Content Type ◽  
Small Business Management ◽  
Governance Challenges ◽  
Successful Business ◽  
Human And Social Capital

Subject area Entrepreneurship, management and emerging markets. Study level/applicability Undergraduate and Graduate courses in Entrepreneurship, Managing in Developing Countries/Emerging Markets, Small Business Management, Social Entrepreneurship, International Business Case overview IntEnt is a business incubator that provides training and other support services to nascent entrepreneurs, helping turn their investment ideas into successful business ventures. But IntEnt focuses on a unique clientele: diasporas, or migrants and their descendants, who dream of establishing a new venture back in their country of origin.The incubator is well known and respected by policymakers and migrants alike. Despite these successes, Mr Molenaar has struggled to grow and diversify IntEnt's funding base. He also is under increasing pressure from the foundation's stakeholders to define and measure the foundation's performance. But Molenaar is committed to expanding IntEnt's operations and continue to bridge the divide between diaspora investment interest and action. Expected learning outcomes To understand and describe the financial-, human-, and social-capital challenges faced by transnational diaspora business ventures during the business development and launch phase.To explain how business incubators can provide solutions to the specific, unique problems that transnational diaspora entrepreneurs face, particularly in emerging markets. To discuss the governance challenges associated with operating a transnational business venture as well as those of an incubator aimed to support transnational entrepreneurship. Supplementary materials Teaching note.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

From NPO to social enterprise: the story of Schwab awardee, Sharanjeet Shan

2019 ◽  
Vol 9 (4) ◽  
pp. 1-23
Author(s):  
Kerryn Ayanda Malindi Krige ◽  
Verity Hawarden ◽  
Rose Cohen
Keyword(s):  
South Africa ◽  
Social Entrepreneurship ◽  
Social Enterprise ◽  
Social Entrepreneur ◽  
Financial Sustainability ◽  
Social Investment ◽  
Content Type ◽  
Corporate Social ◽  
Corporate Social Investment

Learning outcomes This case study introduces students to the core characteristics of social entrepreneurship by teaching Santos (2012) positive theory. The case allows students to transition from comprehension and application of what social entrepreneurship is, to considering how they operate. Druckers (2005) argument that social organisations will never have sufficient resources to do their work because they operate in an environment of infinite need is the catalyst for a conversation on resource dependency theory and the risks of mission drift. Students are introduced to the funding spectrum that can be used to understand the type of income that comes to an organisation, and to apply this to the case. By the end of their studies, students should be able to apply the Santos (2012) definition to social enterprises and social entrepreneurs, have insight into the complexity of operating in an environment of infinite need and able to apply the funding spectrum as a tool to manage to understanding financial sustainability. Case overview/synopsis The case tells the story of Sharanjeet Shan, a globally recognised social entrepreneur, and recipient of the Schwab Foundation’s Social Entrepreneur of the Year award in 2015. Shan moved to South Africa as the country moved into democracy, and has spent the past 20-plus years building the skills of Black African school children in mathematics and science through the organisation she leads, Maths Centre. But the country remains at the bottom of world rankings for the quality of its maths and science education, despite spending more per capita on education than any other country in Africa. Maths Centre has seen a dip in donations despite steady growth in the amount of money that businesses are investing in social change in South Africa through corporate social investment. But does Shan really need more donor income? Or are there other ways that she can build the financial sustainability of Maths Centre? Complexity academic level This case study is aimed at students of non-profit management, entrepreneurship, social entrepreneurship, women in leadership, corporate social investment, development studies and sustainable livelihoods. It is written at an Honours / Masters level and is therefore also appropriate for use in customised or short programmes. The case study is a good introduction for students with a background in business (e.g. Diploma in Business Administration / MBA / custom programmes) who are wanting to understand social enterprise and apply their learning's. Supplementary materials A list of supplementary materials is provided in the Teaching Note as Table I, which includes video's, radio interview recordings and a book chapter. Subject code CSS 3: Entrepreneurship.

scholarly journals Board and corporate social responsibility disclosure of multinational corporations

2019 ◽  
Vol 27 (1) ◽  
pp. 77-98 ◽  
Author(s):  
Hanh Thi Song Pham ◽  
Hien Thi Tran
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Board Independence ◽  
Content Type ◽  
Csr Reporting ◽  
The One ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the effects of board model and board independence on corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). Design/methodology/approach The authors developed an empirical model in which CSR disclosure is the dependent variable and board model (two-tier vs one-tier), board independence (a proportion of independent directors on a board) and the interaction variable of board model and board independence together with several variables conventionally used as control variables are independent variables. The authors collated the panel dataset of 244 Fortune World’s Most Admired (FWMA) corporations from 2005 to 2011 of which 117 MNCs use the one-tier board model, and 127 MNCs use the two-tier board model from 20 countries. They used the random-effect regression method to estimate the empirical models with the data they collated and also ran regressions on the alternative models for robustness check. Findings The authors found a significantly positive effect of a board model on CSR disclosure by MNCs. Two-tier MNCs tend to reveal more CSR information than one-tier MNCs. The results also confirm the significant moderating impact of board model on the effect of board independence on CSR disclosure. The effect of board independence on CSR disclosure in the two-tier board MNCs tends to be higher than that in the one-tier board MNCs. The results do not support the effect of board independence on CSR disclosure in general for all types of firms (one-tier and two-tier board). The impact of board independence on CSR disclosure is only significant in two-tier board MNCs and insignificant in one-tier board MNCs. Practical implications The authors advise the MNCs who wish to improve CSR reporting and transparency to consider the usage of two-tier board model and use a higher number of outside directors on board. They note that once a firm uses one-tier model, number of IDs on a board does not matter to the level of CSR disclosure. They advise regulators to enforce an application of two-tier board model to improve CSR reporting and transparency in MNCs. The authors also recommend regulators to continue mandating publicly traded companies to include more external members on their boards, especially for the two-tier board MNCs. Originality/value This paper is the first that investigates the role of board model on CSR disclosure of MNCs.

Corporate social responsibility and service innovation on customer loyalty

2015 ◽  
Vol 33 (6) ◽  
pp. 823-839 ◽  
Author(s):  
Ying-Pin Yeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Relationship Quality ◽  
Customer Loyalty ◽  
Service Innovation ◽  
Service Firms ◽  
Content Type ◽  
Wealth Management ◽  
Relationship Value ◽  
Corporate Social

Purpose – Customer loyalty is crucial for firms to generate positive returns. Creation of customer loyalty is a challenge for service firms because switching service firms can represent a risk. The purpose of this paper is to examine how wealth managers select and implement corporate social responsibility (CSR) and service innovation strategies to influence customer loyalty. Design/methodology/approach – A review of the related literature indicated that scant studies have determined the meanings and outcomes of CSR and service innovation. Therefore, the roles of CSR and innovation were examined in this study to evaluate how these factors affect customer loyalty in a wealth management context. The authors evaluated customer advocacy, relationship quality, and relationship value as mediating variables, and formulated six hypotheses. Data were collected using a questionnaire survey distributed to wealth management customers in Taiwan. All the hypotheses were verified using a structural equation model and data collected from the respondents. Findings – The results indicated that relationship quality and value are positively related to customer loyalty, and customer advocacy is positively related to both relationship quality and value. In addition, CSR and service innovation are positively related to customer advocacy. Research limitations/implications – This research was limited to collecting data related to specific service providers, and therefore consumers in other countries should be examined to test the robustness of the theoretical model. The results of analyses conducted on other industries and in other countries might differ. Practical implications – In the wealth management service context, CSR and service innovation capabilities contribute to customer advocacy, which can achieve superior relationship quality, relationship value, and customer loyalty. Originality/value – This paper contributes to investigations on the effect of CSR and service innovation on customer loyalty by adopting customer advocacy, relationship quality, and relationship value as mediators.

Ethical values in the evaluation of corporate social performance

2016 ◽  
Vol 31 (2) ◽  
pp. 180-196 ◽  
Author(s):  
Monte Wynder ◽  
Kirsty Dunbar
Keyword(s):  
Decision Making ◽  
Multinational Corporations ◽  
Undergraduate Students ◽  
Balanced Scorecard ◽  
Local Community ◽  
Ethical Decision Making ◽  
Corporate Social Performance ◽  
Ethical Values ◽  
Content Type ◽  
Corporate Social

Purpose – This paper aims to explore two factors that may moderate the relation between an individual’s ethical values and their evaluation of competing ethical and financial outcomes. It is argued that distance (i.e. low proximity) attenuates moral intensity, thereby inhibiting ethical decision-making (EDM). In contrast, it is argued that presenting outcomes in a separate social and environmental perspective in the balanced scorecard (BSC) increases EDM. Design/methodology/approach – In an experiment, participants evaluated social outcomes presented in a BSC. Proximity and scorecard format were manipulated in a 2 × 2 factorial design. Findings – The results indicate that physical and social proximity increase the extent to which performance evaluation is influenced by the ethical values of the evaluator. Contrary to expectations, BSC format did not influence the EDM of the evaluator. Research limitations/implications – Participants were undergraduate students which may limit the generalisability of the results. Further research should be conducted with practicing managers. The study focused on a particular ethical issue, hiring and training from the local community. Further research is necessary to consider the effect of personal ethical values on other aspects of corporate social responsibility (CSR). Practical implications – This study indicates that ethical values will be less salient when the outcomes relate to distant locations. There are important implications for multinational corporations seeking to avoid the liability of foreignness in their distant operations. Originality/value – Previous CSR research has focused on the institutional level. The focus of the authors on the individual’s decision-making process increases our understanding of the biases that can affect EDM.

The impact of institutional voids on risk and performance in base-of-the-pyramid supply chains

2020 ◽  
Vol 31 (4) ◽  
pp. 829-863
Author(s):  
Attique ur Rehman ◽  
Muhammad Shakeel Sadiq Jajja ◽  
Raja Usman Khalid ◽  
Stefan Seuring
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Product Market ◽  
Base Of The Pyramid ◽  
Institutional Voids ◽  
Supply Chain Risk ◽  
Content Type ◽  
And Performance ◽  
Bop Markets ◽  
Supply Chain Risks

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

Innovation capabilities for global R&D projects in subsidiaries

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Structural Equation ◽  
Emerging Market ◽  
Process Innovation ◽  
Equation Modeling ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis. Findings The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities. Practical implications The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies. Originality/value In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.

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