Building boundary capabilities at the base of the pyramid

2015 ◽  
Vol 4 (1) ◽  
pp. 111-133 ◽  
Author(s):  
Stephen Mezias ◽  
Mohamad Fakhreddin

Purpose – Over the last 15 years, articles about the base of the pyramid (BOP) have begun to appear in scholarly business journals. Although attention was driven initially by claims that corporations could earn a fortune selling to these consumers, it became clear that this is difficult. The paper aims to discuss these issues. Design/methodology/approach – To move beyond this difficulty, the authors emphasize the iterative boundary capabilities built by local, for profit enterprises as the key to creating markets at the BOP. Findings – The authors argue that the evolution of the business models to permit firms to earn profits and have positive social impact requires building iterative boundary capabilities and support this claim by reviewing two cases of community based non-profits. Research limitations/implications – Future research should demonstrate that the process the authors observed in these two cases applies in other contexts. Scaling social impact will require sharing knowledge about iterative boundary capabilities and developing best practices that can help effective allocation of patient capital to share best practice and guide public policy. Practical implications – Social entrepreneurs can conceptualize their own enterprises in terms of iterative boundary capabilities. Social investors can use the framework to assess and advise enterprises in which they may or have invested. Policy makers can enact laws and other legal actions to facilitate the formation of iterative boundary capabilities. Social implications – The authors see the framework as part of a broader move toward business models that pursue both positive social impact and profits. Originality/value – The authors link a structuring approach with an institutional perspective to enhance business models that pursue profit and create positive social impact in BOP communities.

2018 ◽  
Vol 14 (3) ◽  
pp. 248-267 ◽  
Author(s):  
Kathryn Semcow ◽  
Jenny Knowles Morrison

Purpose This paper aims to explore an adaptation of the National Science Foundation Innovation Corps (I-CorpsTM) program, which uses the Lean Startup methodology to help STEM scientists commercialize their research. The adaptation, known as I-Corps for Social Impact (I-Corps SI), extends the for-profit canonical model to include mixed revenue and non-profit business models, to help researchers generate social impact. Design/methodology/approach A research team of policy and non-profit experts observed and adapted a canonical I-Corps process, then interviewed academics who are scaling and sustaining socially impactful solutions from their research, including past I-Corps participants, to validate research team learning. Findings The paper describes limitations of the I-Corps model and modifications required to enhance social impact. Practical implications While the field of social entrepreneurship has grown rapidly over the past few decades, social scientists have lagged behind in translating evidence-based research into solutions that can be scaled and sustained to achieve social impact. The paper presents an evidence-based case for a pedagogical tool to close this gap. Originality/value A focus on validated learning and business model development supports a paradigm shift within the social sciences, which can help spur greater social innovation from evidence-based research.


2015 ◽  
Vol 11 (1) ◽  
pp. 89-112 ◽  
Author(s):  
Sudheer Gupta ◽  
Stefanie Beninger ◽  
Jai Ganesh

Purpose – This paper aims to provide a detailed analysis of the key capabilities needed for social enterprises to succeed in the context of extreme poverty. Facilitating growth and alleviating poverty in the world’s most impoverished regions requires introducing innovative solutions to achieve social impact while generating financial returns. Design/methodology/approach – This paper studies two social enterprises operating in Africa. Semi-structured interviewers were conducted with co-founders of the organizations. The transcribed interviews were analyzed through an open coding process, iterated to overarching categories, and compared between the organizations using a grounded theory approach. Secondary archival data and respondent validation were used to triangulate these findings. Findings – This paper proposes a model that highlights five key capabilities social enterprises need to tackle complex societal challenges while overcoming resource constraints and institutional voids. The processes followed to develop and deploy these capabilities are delineated, and the necessity of hybrid mechanisms that blend non-profit and private-sector approaches is shown as a key enabler for social enterprises to meet their dual objectives. Research limitations/implications – This research is limited to two cases studies from two different industries in Africa. Future research would refine and extend the proposed model to increase generalizability. Originality/value – This paper addresses a gap in the literature on understanding innovation and entrepreneurship in Africa, and it proposes a model for innovation derived from data. This paper also offers insights to the growing community of social entrepreneurs looking to develop sustainable solutions to societal challenges.


2018 ◽  
Vol 13 (4) ◽  
pp. 1190-1209 ◽  
Author(s):  
Daniela Staicu ◽  
Oana Pop

Abstract The goal of this research is to acknowledge the elements which hinder or facilitate the transition from linear to the circular economy in the textile and apparel sector in Romania by identifying current and desired interactions among the ecosystem’s stakeholders. Two strands of literature, one on circular economy and one on the textile and apparel sector, provide the theoretical background for this research. Currently, the way we design, produce, and use clothing has drawbacks that are becoming increasingly clear. The circular economy principles have the potential to transform the way textiles are produced, consumed and disposed of. More and more social entrepreneurs are pioneering the future of the apparel industry by offering sustainable solutions to tackling systemic problems. However, their efforts have to be elevated and amplified, as such to pave the way for creating business models that allow for both economic performance and social impact. A comprehensive mapping of ongoing activities and stakeholders in the textile and apparel sector in Romania is required to understand the roadblocks to industry transformation in the context of moving toward circular economy and to implement envisioned sustainable solutions. In the paper we used a database of 27 stakeholders, developed by applying the snowball method, to investigate current and future interactions between the main actors who operate in the textile and apparel sector. To meet its research objectives, the paper employed a phenomenological research design and built upon a workshop activity. First, we designed an online survey to understand the profile and knowledge of the circular economy of the stakeholders included in our database. Second, we employed the world café method to understand in depth the level of knowledge of the actors who attended the workshop on the circular economy in the textile and apparel sector. Third, we used the structural systemic constellations method in assessing the stakeholders’ current and future desired interactions. Last, we formulated conclusions and recommendations about future research needed to deepen the understanding of the circular economy in the textile and apparel sector. Findings showed that there is a vicious circle of different actions feeding isolation and preventing collaboration among stakeholders. Also, we found that there is a lack of collaborative spaces where stakeholders can meet, connect and explore the various opportunities to collaborate, and a lack of general awareness on “circular economy and textile and apparel” and its mechanisms. The intended audiences of the research are decision-makers and practitioners in the textile and apparel sector, as well as researchers focused on the circular economy.


Author(s):  
Henrik Sternberg ◽  
Andreas Norrman

Purpose The Physical Internet (PI) is an emerging concept that applies the Digital Internet as a design metaphor for the development of sustainable, interoperable and collaborative freight transport. With the aim of aiding researchers and policy makers in their future efforts to develop efficient logistics systems, the purpose of this paper is to present a review of the existing literature on the PI, to critically discuss the concept and to outline a research agenda. Design/methodology/approach The literature review investigates scientific papers, project reports, specifications and other publications related to PI. In total, 46 publications were finally analyzed. The approach used in this paper is technology adoption by firms. The authors examine the PI based on four factors: organizational readiness (technological blueprints), external pressure (promised effects), perceived benefits (business model) and adoption. Findings A growing number of strategies, blueprints and specifications have been developed for PI, yet there are no currently developed models that illustrate how the move from the entrenched logistics business models to the PI could ensue. There is a lack of understanding of the business models needed that can involve critical actors and promote the adoption of the PI concept. Research limitations/implications While using the internet as a metaphor for reimagining physical transports is certainly exciting, this review and analysis suggest that several research questions need to be addressed before further PI blueprint work is carried out. Practical implications The “grand challenge” of sustainability in logistics needs to be addressed and improved, but the authors’ analysis suggests that, to some extent, it is uncertain how the PI will contribute to improving sustainability, and why logistics service providers should engage in PI. Policy makers and practitioners are provided with critical issues to consider in the practical development and adoption of the concept. Originality/value This paper provides an outsider and technology-adoption perspective of PI research, as well as important implications for policy makers and researchers.


2018 ◽  
Vol 10 (2) ◽  
pp. 249-276 ◽  
Author(s):  
Karen Panum ◽  
Michael W. Hansen ◽  
Elder Davy

Purpose Based on six case studies of self-proclaimed social enterprises (SEs) in Kenya, this paper aims to critically assess the “SE” concept in a base of the pyramid (BoP) context. Design/methodology/approach The paper draws on multiple case studies to challenge traditional notions of SE. Six SEs operating at the BoP in Kenya are analysed. Interviews are conducted with entrepreneurs from each enterprise, during which the enterprises’ business models are mapped and scrutinised. Findings Based on the six case studies, the paper argues that the SE concept is challenged in a BoP context: the six Kenyan SEs viewed social and commercial orientation as equally important and mutually supportive; viewed social orientation as a competitive advantage; and did not consider social objectives as harmonious. These findings corroborate key claims of the BoP literature, e.g. that it is not possible meaningfully to distinguish social and commercial missions at the BoP as they are intertwined; that any company succeeding at the BoP will have a social impact; and that the pursuit of some social objectives may undermine the achievement of other social objectives. The overall conclusion of the paper is that in BoP environments, the concept of SE becomes illusive. Originality/value This paper adds perspective to existing literature on SE at the BoP and provides empirical evidence that can help shape the understanding of social business activities in East Africa. The paper demonstrates that in BoP environments, the boundaries between social and commercial enterprise become illusive.


2017 ◽  
Vol 23 (6) ◽  
pp. 866-879 ◽  
Author(s):  
Ieva Zebryte ◽  
Hector Jorquera

Purpose The purpose of this paper is to address the question of how social entrepreneurs achieve the desired impact-based model of business. Design/methodology/approach Qualitative research design included semi-structured in-depth interviews with entrepreneurs of three Chilean Tourism B Corporations (B Corps), participant observation of the Latin American B Movement, and print, digital and social media clippings. Findings This research unearths the practices by which entrepreneurs implement their aspirations of balancing profit and social impact obligations within their business models. Research limitations/implications Though an intentional sample is not representative in quantitative terms, the employed research design allowed the authors to deepen the understanding of the processes which are taking place in Chile, Latin America, and on the Global scale. The authors concluded that social benefit commitment guides innovation in business models of Chilean entrepreneurs seeking to have a broader positive impact on vulnerable communities and the society at large. Practical implications This research shows that traditional businesses have the possibility of hybridizing management, combining the necessary organization that defines its mission with social or environmental purposes. The latter is likely to open up new markets for traditional businesses. Social implications Social entrepreneurship is the principal means for new generations of entrepreneurs to make changes in businesses and in vulnerable local communities through global aspirations. But the need for more open political discussion within the B Movement is clear, especially regarding the nexus between the “negative externalities” of the traditional economy and social or environmental problems which the B Corps intend to solve. Such debate would allow companies and the movement to more easily identify new courses of action. Originality/value This study gives account of regional nuances of social entrepreneurship and social innovation phenomena. In particular, there has been a surge of impact-oriented rather than profit-oriented innovation initiatives in neoliberal-oriented Latin American states, such as Chile. These initiatives offer us a wealth of empirical information about the development of alternative business models.


2017 ◽  
Vol 36 (1) ◽  
pp. 97-108 ◽  
Author(s):  
Sandeep Goyal ◽  
Bruno S. Sergi ◽  
Amit Kapoor

Purpose The purpose of this paper is to analyze and understand the business logic of the for-profit social enterprises targeting the basic needs of the base of the pyramid (BoP) segment. A case study of an organization offering clean energy solutions to the BoP segment has been used to illustrate the socio-economic business model of the for-profit social enterprises, which can serve the underserved needs of the BoP segment using an inclusive approach. Design/methodology/approach This paper analyses Selco, a social enterprise offering energy solutions to the low-income population in rural India. The qualitative case-based research involves the secondary data inputs from the online sources and primary data inputs from the field interviews with the different stakeholders at Selco. Findings The research findings recommend the following strategic choices for the social enterprises – focus on segmentation; field-based experimentation, innovation and prototyping; local skill-building and engagement; hybrid organizational setup; systemic behavior change orientation; customized value offerings; last-mile delivery and support; and collaboration with non-traditional stakeholders. Practical implications The lessons learnt through the analysis of Selco provide tools and strategies to enable the social enterprises to better understand their business model and make informed decisions resulting in the effective social interventions while remaining sustainable. The paper offers an actionable framework for creating an inclusive formal market ecosystem that is sustainable, scalable and socially relevant. Originality/value This study is an original contribution to the field of social entrepreneurship. It undertakes a field study of the social enterprise delivering inclusive energy solutions to the BoP segment in India. The study of Selco brings out the learnings regarding the key strategic actions, which can lead to sustainable business models for targeting the BoP segment in developing countries like India


2016 ◽  
Vol 17 (1) ◽  
pp. 148-167 ◽  
Author(s):  
Mariachiara Barzotto ◽  
Giancarlo Corò ◽  
Mario Volpe

Purpose – The purpose of this paper is twofold. First, to explore to what extent being located in a territory is value-relevant for a company. Second, to understand if a company is aware of, and how it can sustain, the territorial tangible and intangible assets present in the economic area in which it is located. Design/methodology/approach – The study presents an empirical multiple case-study, investigating ten mid-/large-sized Italian companies in manufacturing sectors. Findings – The results indicate that the sampled manufacturing companies are intertwined with the environment in which they are embedded, both in their home country and in host ones. The domestic territorial capital has provided, and still provides, enterprises with workers endowed with the necessary technical skills that they can have great difficulty in finding in other places. In turn, companies support territorial capital generation through their activities. Research limitations/implications – To increase the generalisability of the results, future research should expand the sample and examine firms based in different countries and sectors. Practical implications – Implications for policy makers: developing effective initiatives to support and guide a sustainable territorial capital growth. Implications for managers and investors: improving managerial and investors’ decisions by disclosing a complete picture of the enterprise, also outside the firm boundaries. Originality/value – The study contributes to intangibles/intellectual capital literature by shedding light on the importance of including territorial capital in a company’s report to improve the definition of the firm’s value. Accounting of the territorial capital would increase the awareness of the socio-economic environment value in which companies are located and its use.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Monika Jedynak ◽  
Wojciech Czakon ◽  
Aneta Kuźniarska ◽  
Karolina Mania

PurposeThe purpose of this paper is to identify the development of the digital transformation literature and to the systematic literature review methodology.Design/methodology/approachThe authors run a systematic literature review, followed by a rigorous thematic analysis of both academic and grey literature dataset, in order to develop a conceptual map of organizations' digital transformation. The authors aggregate the concepts and topics identified across the literature to find that they overwhelmingly tackle digital business models. At the same time, the authors identify a major blind spot resulting from ignoring the organization itself as a unit of analysis.FindingsThe findings show that developing a digital theory of the organization or the theory of digitally transformed organization is a major challenge to management researchers. The analysis exposed numerous research gaps that can be helpful for future research directions.Originality/valueDigital transformation research enjoys an increasingly rapid rise to recognition across many academic disciplines and strongly impacts the management domain. adopt the view that published documents reflect the collective understanding of a phenomenon. This paper contributes to filtering the digital transformation literature, clarify complex relation between digital transformations of organizations and identify the key blind points.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raghu Nandan Chawla ◽  
Praveen Goyal

PurposeUbiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis.Design/methodology/approachBy performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM, this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software.FindingsThe study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain.Research limitations/implicationsThe study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams.Practical implicationsFor the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently.Originality/valueThis study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.


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