A Review of Literature on E-commerce at the Bottom of the Pyramid: Its Past, Present and Future

PurposeThe 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/approachThe 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.FindingsThe 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/implicationsAll 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 implicationsFrom 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/valueThe 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.

PurposeThis paper aims to investigate whether and why the base of the pyramid (BOP) actors display passive innovation resistance because of which they reject service innovations without evaluation and forfeit potential to improve their well-being. The resourceness concept, referring to the outcome of how actors appraise and integrate resources in pursuit of a purpose at hand, is used as a theoretical lens to investigate the everyday consumption behaviour of BOP households and helps to investigate how and why passive innovation resistance occurs. The outcomes of the study help address important theoretical and practical considerations for the development of successful new service concepts at the BOP.Design/methodology/approachNarrative interviews with 29 households in Zambia provide data, from which patterns in how potential resources do or do not become real are identified and related to the concept of passive innovation.FindingsEconomic, social and other factors in the BOP context clearly influence non-random patterns of resource integration which are correlated with passive innovation resistance. This can lead to service innovations being ignored and/or misunderstood prior to evaluation for adoption. This is a risk to the potential positive impact of service innovation for poverty alleviation at the BOP.Practical implicationsService innovation at the BOP must begin with a deep understanding of “how” and “why” consumers typically appraise and integrate potential resources to achieve a beneficial outcome in their context. To overcome the barrier of passive innovation resistance, marketing education must stimulate an understanding of potential benefits and motivation towards the change associated with the adoption of service innovation.Social implicationsThe findings support more successful service innovation strategies for the BOP, which can provide vital infrastructure for the alleviation of poverty.Originality/valueThe application of a service-dominant logic perspective in the BOP context and the conceptual linkage between resourceness and passive innovation resistance is novel. Valuable insights are gained for service practitioners at the BOP and for further conceptual development of innovation resistance in the BOP context.

The phenomenon of purchasing second-hand products by the BOP consumers

Resulting from divergent business environments between actors, the integration of the base of the pyramid (BoP) into formal supply chain (SC) structures is often hampered by institutional voids, which can result in the emergence of paradoxical situations. This paper analyzes the potential of supplier development (SD) for addressing the BoP inclusion paradox. The study develops a framework based on the assumption that SD enables the development of capabilities and supplier performance, which is especially relevant when operating in BoP contexts. Seventy‐two semi‐structured interviews stemming from two case studies of (a) a local dairy and (b) an international certified pineapple SCs with BoP involvement provide empirical insights into the theoretical framework. Paradox resolution strategies (temporal separation, spatial separation, and synthesis) are related to (direct and indirect) SD practices. The proposed framework and results show that indirect SD can be used as temporal and spatial separation, but not as synthesis strategy. Contrastingly, direct SD can be used as temporal separation and synthesis. The BoP context needs direct SD to address two sustainability goals simultaneously: the social dimension of BoP inclusion and the economic dimension of formal and efficient SCs. This research extends the discussion on paradoxes in sustainability management to SCs, especially to BoP SCs. It is relevant to show that BoP inclusion is neither a sole win‐win nor trade‐off scenario. Resulting paradoxical situations can be addressed by SD, thereby moving to sustainable supply chain management (SSCM).

This study examines the determinants behind counterfeit consumption among Indian base of the pyramid (BOP) consumers, using social identity theory, compensatory consumption theory, and bounded rationality theory. Employing a quantitative method, the study used SEM to test a conceptual model with data collected from 306 BOP respondents. The findings indicate that BOP individuals’ intention to purchase counterfeit items is directly influenced by both informational and normative factors. Furthermore, a significant factor driving the buying intention of the BOP segment is the desire for aspirational products. This research enriches the prevailing knowledge on consumer behavior and enriches the comprehension of compensatory consumption theory, bounded rationality, and social identity theory within the context of counterfeiting, especially when viewed from the viewpoint of respondents of BOP. In practical terms, the study uncovers notable insights and recommendations for marketers and companies targeting low-income markets.

The bottom of the pyramid or base of the pyramid (BOP) provides a unique context in which to develop management practices and test out conventional management wisdom. Management paradigms such as lean production, just in time manufacturing, assembly line, business model innovation and others have very different impacts and consequences when applied in the BOP context. Newer paradigms such as shared resource use, group lending, risk pooling and reverse innovation have changed the landscape of management practice and business innovation for global multinational organizations. In this paper, I develop a framework for assessing management practices and identifying paradigm shifts that are emerging from the BOP. Based on this framework, I draw on several cases from a large repository of BOP cases to analyze such paradigm shifts in the emerging markets and compare them with practices in mature markets. Results from statistical analyses of the cases in the repository indicate that multi national corporations are more likely to be engaged in projects that involve new sources of contract, repurposing of western technology, use of new technology and new manufacturing processes. National and regional government organizations are more likely to be using innovations that improve infrastructure through extended communication and information and value chain innovations. Non-profit organizations are more likely to be involved in better managerial leverage and literacy projects. Implications for management research and practice are noted with some avenues for future research.

PurposeBased 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/approachThe 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.FindingsBased 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/valueThis 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.

This chapter outlines the base-of-the-pyramid (BoP) approach, emphasising the '12 Principles for Innovation’, as described by C. K. Prahalad. It focuses on three myths built into these innovation principles- the consumer education myth, the emptiness myth, and the scale and transferability myth-are confronted through detailed discussions showing how the assumptions behind them fail to address the realities of consumers, markets, enterprises and entrepreneurs in developing countries. The chapter deals with a synthesis of these analyses, comments about why BoP thinking is important to consider, and with recommendations about how BoP strategies might be transformed so that they more effectively contributes to sustainable development and poverty alleviation programmes. BoP thinking seeks to transform the relationships between multinational corporations and poor people in the Global South through a dramatic reframing of growth and innovation strategies at the corporate level. Innovation in BoP markets requires significant investments in educating customers on the appropriate use and the benefits of specific products and services.

PurposeThe access to high quality, a reliable and affordable basic healthcare service is one of the key challenges facing the rural and semi‐urban population lying at base of the pyramid (BoP) in India. Realizing this as a social challenge and an economic opportunity (shared value), there has been an emergence of healthcare service providers who have bundled entrepreneurial attitude and passion with available scarce resources to design and implement cost‐effective, reliable and scalable market solutions for the BoP. The purpose of this research paper is to understand the underlying operating principles of these self‐sustainable business models aimed at providing healthcare services to the BoP segment in India.Design/methodology/approachThe empirical context involves the use of case study research methodology, where the source of data is published case studies and the company websites of four healthcare organizations who have made a socio‐economic difference in the lives of the rural and semi‐urban population lying at the BoP in India.FindingsThe analysis and findings reflect the key operating principles for sustainable healthcare business ventures at the BoP. These include focus on 4A's (accessible, affordable, acceptable and awareness), local engagement, local skills building, learning by experiment, flexible organizational structure, dynamic leadership, technology integration and scalability.Research limitations/implicationsThis research study has focused mainly on the published case studies as source of data.Originality/valueThe intent is to understand and bring forth the learning and guiding principles, which act as a catalyst for the future researchers and business ventures engaged in BoP context.

Are consumers at the base of the pyramid willing to pay for nutritious foods?

Creating value for multiple stakeholders: Sustainable business models at the Base of the Pyramid

Interestingly it's innovation: Reviewing sustainability performance management in the base of the pyramid (BoP)

In 2015, the United Nations Sustainable Development Goals set an ethical imperative: end extreme poverty and hunger by 2030. Microfranchising can contribute to this critical effort by offering nonprofit organizations and businesses an opportunity to rapidly scale entrepreneurship within Base of the Pyramid (BOP) markets. However, while abundant literature exists on traditional franchising, we know little about how to leverage microfranchising in resource-scarce contexts to alleviate poverty. To address this gap, we report a longitudinal case study of a microfranchise network aimed at providing timely access to quality, affordable agricultural input, and services for millions of small-scale farmers in Bangladesh. Anchored in the BOP and microfranchise literature and drawing on innovation theory as an analytical lens, we provide a detailed account of how CARE—a global humanitarian and development non-governmental organization—developed and managed the network. We found that context played a strong role and that adaptability therefore was key to successfully recruiting and engaging BOP entrepreneurs and other business partners in the network. Moreover, as members joined the network with past ties and established practices, managing these path dependencies had important implications for network performance. Network sustainability in terms of financial and social impact was also a key theme that required careful consideration throughout network development. We combine these empirical findings with extant literature to discuss contributions to the theory and practice of microfranchising and innovation networking in the BOP context.

ABSTRACTEntrepreneurs are often resource-constrained from the beginning. Entrepreneurs at the base of the pyramid (BoP) face an additional challenge: the context in which they operate is also lacking in resources, at least strategic resources that contribute competitive advantage. Nevertheless, firms in a BoP context are urged to become socially embedded and build on the present resources and conditions. This implies a resource mobilization process and joint value creation. Using a single case study of an electricity firm operating in rural India, this research investigates how entrepreneurs can mobilize strategic, ordinary, and weak resources through social embeddedness at the BoP. The research discloses three new actions related to become socially embedded – enticing customers, selective attention, and supplier responsiveness. It thus contributes theoretically to the social embeddedness perspective and the BoP literature. Moreover, it contributes theoretically to the resource-based view (RBV) theory and the resource mobilization perspective in suggesting that there is more room to socially embed ordinary and weak resources. As a result, they become more valuable compared to strategic resources, which exhibit less room for becoming socially embedded and therefore become less valuable. Consequently, the findings challenge the RBV and the valuable, rare, inimitable, and non-substitutable (VRIN) labeling of resources.

The assumption that entrepreneurship is a critical factor in expanding employment, creating wealth and contributing to poverty alleviation at the base of the pyramid (BoP) in developing countries has led to the development of many initiatives to strengthen the entrepreneurial activities of poor people. Despite the fact that entrepreneurship is seen as a strategy in combatting poverty, the process that leads to entrepreneurial action in a BoP context is still unclear. In this paper, we illustrate the possibilities a multi-layered perspective offers to understand the complexity of entrepreneurship in poverty settings. Based on five focus group discussions and 36 in-depth interviews with vegetable farmers in Benin, we examined the entrepreneurship of poor people. We learned that entrepreneurial action is the nexus of individual and exogenous factors in complex relationships. Based on this, we elaborate on the characteristics of the process model of entrepreneurial action. We provide a process-based view of entrepreneurship at the BoP, suggesting a need for consistency between individual, behavioural strategies and contextual elements. We discuss the implications of our findings for BoP practice and provide a framing perspective that we hope will encourage a greater focus on the complexity of entrepreneurship phenomenon.