Abstract
There is a growing interest in examining the various entry strategies of firms in the previously under-served “base of the pyramid” (BoP) markets. Studies so far have investigated the factors that can help the firm to overcome the resource gaps between its existing resource bundles and the demands of the BoP markets, ex-post to their entry decisions. In this study, we investigate the heterogeneity in the BoP entry decisions of firms by examining the influence of flexible resources, namely, organizational slack, accumulated ex-ante to its BoP entry. We conduct the study using a unique hand-collected dataset comprising of the BoP market entry choices made by 316 Fortune 500 Global firms in the time period 2000–2014. The results of the study suggest that recoverable and potential slack, both provide options to the firm to exercise a range of strategies that can help the firm scale the entry barriers posed by demand uncertainty and resource constraints in the BoP markets.
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