Organizational Legitimacy, Corporate Social Responsibility, and Bottom of the Pyramid Consumers

Abstract

ABSTRACTIn recent decades, multinational corporations (MNC) have increasingly penetrated bottom of the pyramid (BOP) markets due to globalization and market liberalization. To gain legitimacy within these markets, MNCs have employed corporate social responsibility (CSR) strategies. This paper focuses on how BOP consumers perceive the CSR strategies of advanced country MNCs (AMNCs). Specifically, this study examines how BOP consumers' admiration of economically developed countries (AEDC) influence CSR strategy success in BOP markets. In doing so, this paper contributes to the literature on BOP strategies and BOP consumer psychology. With a sample of consumers from Madagascar, the results provide evidence that AEDC is a relevant construct that firms from developed countries should consider when implementing consumer-oriented strategies in BOP markets.