Addressing social sustainability on Base of the Pyramid markets through business model innovations

2020 ◽  
pp. 119-165
Author(s):  
Katja Beyer
2021 ◽  
Vol 13 (21) ◽  
pp. 12031
Author(s):  
Malobi Mukherjee ◽  
Jacob Wood

This study explores whether digitalisation of unorganised retail (UR) businesses in emerging markets have a positive socio-economic impact on the lives of the subsistence consumer–merchants who perform the dual role of being, not only consumers providing for themselves and their families, but also the managers of micro-UR businesses. We develop a framework for sustainable business model innovation at the base of the pyramid by undertaking content analysis of 65 newspaper articles (interviews with senior executives and founders of digital app-based platforms, expert analysis) as well as social media and YouTube testimonials of UR business users of these platforms in Vietnam, Indonesia, Malaysia and the Philippines. Using the Gioian coding structure of open and second order comparative coding, we develop a framework for sustainable business model innovation from the base of the pyramid perspective. The framework captures how digitalisation enables the UR businesses to circumvent resource shortages, consolidate procurement and inventory management and diversify product and service offerings, which leads to significant economic and social transformation for both the micro enterprises and their owners. Our framework contributes to the emergent literature on sustainable business model innovation and inclusive innovation in resource-constrained contexts. We conclude that sustainable business model innovations enable socio-economic transformations similar to those experienced by UR businesses in emerging Asian markets. Such developments can create local level pathways for local tropical countries seeking to achieve UN social development goals.


2020 ◽  
pp. 000765032097345
Author(s):  
Krzysztof Dembek ◽  
Jodi York

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.


2020 ◽  
pp. 000765032097518
Author(s):  
Jordis Grimm

Base-of-the-pyramid (BOP) business models aim to achieve profitability and poverty reduction by including poor people into corporate value chains. This goal duality creates tensions. Actors’ responses to these tensions are influenced by their cognitive frames of the phenomena building the tension. Applying a cognitive perspective, I investigate how corporate actors with different frames of poverty respond proactively or defensively to the poverty–profitability tension by adapting business model elements. I find that proactive and defensive responses differ for actors holding different cognitive frames of poverty. The responses have consequences for the poverty impact potential of BOP business models.


Author(s):  
Katja Schneider ◽  
Marlen Gabriele Arnold

The global textile industry offers huge potentials regarding the transformation towards sustainability. These improvements require a facilitation of business model innovations embedding shifting consumer demands. How can the textile industry drive responsible and sustainable business practices in terms of social sustainability? Tackling this question, a qualitative content-based analysis of current literature conducted highlights main themes and concepts on business model innovations, textile industry, and social sustainability. In addition, an exploratory multiple case study design was used. Results show social sustainability patterns are seldom and often linked to external pressures. This chapter proposes a reorientation towards stronger holistic and inclusive approaches for sustainability and reflects on socio-cultural aspects linked to sustainable textile business models. Progressing sustainability in the textile industry needs both a single consideration of environmental and social issues as well as an integrative and systemic perspective in academia as well as in practice.


2015 ◽  
Vol 19 (1) ◽  
pp. 103
Author(s):  
Myung Moo Lee ◽  
Kun Chang Lee ◽  
Yun Ho Kim

2017 ◽  
Vol 33 (1) ◽  
pp. 10-12 ◽  
Author(s):  
Heiko Gebauer ◽  
Caroline Saul ◽  
Mirella Halidmann ◽  
Sasha Kramer

Purpose This paper aims to illustrate how managing multiple business models can become a key factor for succeeding in base-of-the-pyramid markets. Design/methodology/approach Case study was conducted through an engaged scholarship approach. Findings The authors highlight that companies can manage multiple business models, if they are following these three steps: recognition of costs-and-benefits, improvement and growth and creation of synergies. Practical implications The study provides guidance on how to manage multiple business models. Social implications This paper discusses Sustainable Organic Integrated Livelihoods, a social enterprise, which provides basic sanitation in bade-of-the-pyramid markets. Originality/value Operating more than one business model could cause often strategic failures. Sustainable Organic Integrated Livelihoods explored the advantages of having multiple business models in following three steps: recognition of costs-and-benefits, improvement and growth and creation of synergies.


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