The Role of Cross-Sector Partnership Portfolios in the Inclusive Business Strategies of Multinational Enterprises

Abstract

Purpose – This chapter considers the question whether firms can contribute to poverty alleviation through engaging in ‘inclusive business’, thereby linking the macro concept of ‘inclusive growth’ to the micro concept of ‘inclusive business’. A key element in this approach is how to take so-called cross-sector partnerships into account. Partnerships are one way of bundling non-market resources in the internationalisation strategies of multinational enterprises (MNEs). Design/methodology/approach – This chapter is largely exploratory and primarily aimed at validating a general taxonomy of inclusive business. The creation of a multi-level taxonomy of business models of MNEs towards inclusive business takes into account the role of cross-sector partnership portfolios. The taxonomy makes it possible to come to a first comparison of the strategies of MNEs across national and cultural boundaries, distinguish some patterns and discuss determinants of strategies in which partnerships play a role in the inclusive growth strategies of MNEs. Findings – A first application of this taxonomy on the business and partnership models adopted by the first 100 Global Fortune companies shows that in general firms still adopt very reactive strategies when integrating inclusive business strategies in their cross-sector partnership portfolios. Originality/value of chapter – This chapter takes a company-specific level of analysis for the relationship between Foreign Direct Investment and development, which is habitually researched at the macro level of analysis. It documents business models as well as the related cross-sector partnerships. Cross-sector partnership portfolios of companies are not yet researched at any systematic level. They form the meso-level link between micro-level business models and macro-level national development strategies.