Base Of The Economic Pyramid Research Articles

Inclusive diets within planetary boundaries

Inclusive diets within planetary boundaries

Supplementary Health System in Brazil: Business Model Not Threatened by Socioeconomic Crisis


 
 
 
 Objective: The performance of the supplementary health system (SSS) in Brazil depends on the country's ability to generate employment and income. Yet, on the other hand, even in the face of the economic crises that have hit Brazil in recent years and, more sharply, after the Covid-19 pandemic, the SSS ended 2021 with continuous growth in the number of beneficiaries. This perspective suggests possible causes to explain this contradiction while questioning the role of the State in providing a constitutional right for Brazilians.
 
 Theoretical framework: Brazilian health system can be divided into three segments: a public segment financed by the State (Unified Health System, SUS), a private segment, and a supplementary health segment, the latter two with public and private funding. The Supplementary Health System (SSS) represents a highly regulated area.
 
 Design/methodology/approach: The methodology of this work followed the rigor and steps to develop a current perspective on supplementary health in Brazil. Insights from this perspective shed light on the subject of supplementary health by providing insight into existing issues, concepts and prevailing notions about health systems.
 
 Findings: The healthcare system in Brazil is complex and combines market elements of public and social interest in a single environment. In this way, the question remains whether business models geared to the base of the economic pyramid (BoP) community have focused exclusively on making a profit by “selling to the poor” or whether they have brought a valuable commitment to social development in the country.
 
 Research, Practical & Social implications: This question deserves attention due to the de-prioritization of health on the political agenda in an election year and the critical post-Covid-19 pandemic situation. Social policies in Brazil need to go beyond guaranteeing access to credit compensating for the lack of public provision, at the risk of mortgaging the SUS as a sign of modernity and progress.
 
 Originality/value: This perspective suggests possible causes to explain this contradiction while questioning the role of the State in providing a constitutional right for Brazilians.
 
 
 

Beyond radical affordability in the base of the pyramid: The role of consumer self‐confidence in product acceptance

AbstractWhen developing products and services for base of the economic pyramid (BoP) consumers, it has been widely assumed that organizations must set extremely low prices that are dependent on substantial product acceptance and economies of scale. However, such pricing is often not feasible. Growing evidence suggests that more moderate price levels are needed for organizations to viably serve the needs of low‐income consumers. However, price sensitivity is less understood in low‐income contexts. To promote the success of social enterprises through fresh insight, we reexamine the extremely low‐price BoP assumption by investigating product acceptance among low‐income consumers using two experiments in Latin America. Results reveal that a belief in one's capabilities to make effective consumption decisions, consumer self‐confidence, helps explain the acceptance of moderately‐priced products. Discussion highlights directions for stimulating acceptance of socially beneficial products in low‐income contexts.

Formation of Social Entrepreneurial Intention: A Qualitative Grounded Approach at the Base of the Pyramid

While there have been some attempts at investigating and theorizing social entrepreneurial action at the base of the economic pyramid, our understanding of the processes contributing to the formation of social entrepreneurial intention in contexts of extreme poverty remain limited. In this study, we aim to address this gap by providing a better understanding of the formation of social entrepreneurial intentions of youths at the base of the economic pyramid. Drawing on a qualitative grounded approach, we highlight the role of self-confidence, perceived self-efficacy and social ascension beliefs as important drivers in understanding the formation of social entrepreneurial intention of youths at the base of the pyramid. At a practical level, our study suggests that besides developing entrepreneurship-specific knowledge, support mechanisms should also pay attention to the development of different self-related beliefs of youths to enable the formation of social entrepreneurial intention at the base of the pyramid.

The sharing economy at the base of the economic pyramid: How access‐based services can help overcome ownership risks

AbstractThe sharing economy provides short‐term access to products without the risks associated with ownership. While extant research primarily examined it in the context of affluent consumer segments, the sharing economy may offer opportunities for consumers at the base of the economic pyramid, where ownership risks prevent access to products that could create societal benefits. Drawing from risk perception theory, we examine how access‐based services, as an alternative to ownership, can mitigate perceived risk dimensions. An experimental study reveals that, in contrast to consumers with higher income, low‐income consumers perceive access‐based services to entail less financial risk, resulting in a greater inclination to access a good than to own it. In a second study, we explore these differences by comparing access with a risk mitigation strategy. We find that at the base of the pyramid, access is perceived to entail less financial risk than both ownership and ownership with a warranty. The results indicate the importance of the sharing economy for addressing the limited availability of resources for alleviating poverty. Based on our findings, we derive implications for consumers and service providers at the base of the pyramid, and discuss how the COVID‐19 pandemic may be detrimental to the identified opportunities.

Diverging Images of the Technoscapes in Developing Economies

In this article, we offer a set of predictions regarding alternate paths to achieve digital inclusion for those at the base of the economic pyramid. We recommend measures that will play a crucial role in the postpandemic context that may mitigate this global crisis?s disrupting nature.

Driving Inclusiveness from the Grassroots: The Tambunan Inventors

Reviews of recent studies indicated the growing importance of development and attainment of inclusive societies via inclusive innovations. This is especially relevant for addressing the disenfranchised or those at the base of the economic pyramid (BOP). Gaps in the literature pointed to; l) the need for understanding of inclusive innovation processes among small, medium and micro enterprises vis-à-vis among local entrepreneurs, ll) there is a lack of studies on inclusive innovation movement in Malaysia. Specifically under the SME Masterplan 2012-2020, there are a number of high impact programmes defined to drive numerous aims. Specifically, for driving inclusive innovation among Small and Medium Entreprises (SMEs) in Malaysia, the High Impact Programme 6 (HIP6) is designed with the focus on development of grassroots innovations. In order to get some insights, case studies were carried out among participants of the HIP6. Cases were recommended by the lead agency entrusted with the implementation of the initiative. Among the cases, a cluster in the area of Tambunan in the state of Sabah, Malaysia was identified. Thus, this paper presents the cases of the Tambunan grassroots inventors.

Weaving a strategy for a base‐of‐the‐pyramid market: The case of Grundfos LIFELINK

AbstractThis paper explores the development of strategies by multinational corporations (MNCs) for serving markets at the base of the economic pyramid (BoP). MNCs play an important role in meeting the Sustainable Development Goals (SDGs) formulated by the United Nations (UN), as they are responsible for one‐third of the total economic output and the majority of world trade. However, little is known about how MNCs contribute to meeting the UN SDGs. Through an in‐depth analysis of how Grundfos, a Danish MNC and a leading supplier of pumps, developed a solution for supplying fresh potable water to rural villages in Kenya, we investigate some challenges MNCs face and demonstrate the importance of intimate engagement with the context of strategic action. Tackling sustainable development issues in the context of BoP markets represents a distinctive challenge to MNCs, which often do not have a good understanding of BoP environments. Drawing on contrasting ideas of strategy as navigation or wayfaring, we highlight the dangers of trying to impose existing strategies and business practices in market contexts, which are fundamentally different from existing ones. We add to the existing research by exploring how such frameworks interact with strategizing processes in a novel environment for the operating firm. Specifically, we explore the interrelatedness between planned and emergent approaches to strategizing in BoP market environments.

Innovating to increase access to diabetes care in Kenya: an evaluation of Novo Nordisk’s base of the pyramid project

ABSTRACTBackground: The Base of the Pyramid (BoP) project is a public–private partnership initiated by Novo Nordisk that aims to facilitate access to diabetes care for people at the base of the economic pyramid in low- and middle-income countries (LMICs). In Kenya, the BoP, through a partnership model, aims to strengthen five pillars of diabetes care: increased awareness of diabetes; early diagnosis of diabetes; access to quality care by trained professionals; stable and affordable insulin supply; and improved self-management through patient education.Objectives: This study evaluates the extent to which BoP Kenya is scalable and sustainable, whether stakeholders share in its value, and whether BoP Kenya has improved access to diabetes care.Method: The Rapid Assessment Protocol for Insulin Access (RAPIA), an approach developed to provide a broad situational analysis of diabetes care, was used to examine health infrastructure and diabetes care pathways in Kenya. At the national level, the RAPIA was applied in a SWOT analysis of the BoP through in-depth interviews with key stakeholders. At individual and county health system levels, RAPIA was adapted to explore the impact of the BoP on access to diabetes care through a comparison of an intervention and control county.Results: The BoP was implemented in 28 of 47 counties in Kenya. Meru, a county where BoP was implemented, had 35 of 62 facilities (56%) participating in the BoP. Of the five pillars of the BoP, most notable progress was made in achieving the fourth (stable and affordable insulin supply). A price ceiling of 500KSh (US$5) per vial of insulin was established in the intervention county, with greater fluctuation and stock-outs in the non-intervention county. Despite reduced insulin costs, many patients with diabetes could not afford the additive expenses of monitoring, medicines, and travel. Less progress was made over the other pillars, which also faced challenges to sustainability and scalability.Conclusion: In the context of the rising prevalence of non-communicable diseases in LMICs, cross-sector approaches to improving access to care are increasingly needed. Public–private partnerships such as the BoP are necessary but not sufficient to ensure access to health care for people with diabetes at the base of the economic pyramid in Kenya.

Dreaming, designing, doing, developing, and innovation orientation: A case study of working in innovation Stanford style in remote rural Nicaragua

Objective: Since 2004, the author has worked in the cities of the Pacific Coast of Nicaragua in innovation and entrepreneurship. The message is innovation and the Stanford D School Design Thinking Model. In 2016, an invitation was received to work in the autonomous region of the Northern Caribbean Coast. This would be an opportunity to try the methodologies at the base of the economic pyramid in a remote rural location. Research Design & Methods: This is a case study, taking the innovation work started in the United States and continued in Universities in Nicaragua to a very rural area with the guidance and support of UNICAM. UNICAM is the Universidad en el Campo, or, the University of the Country, an innovation in education. The goal is to take University-level education to the rural communities. The town is at the entrance to the RAAN, the developing northern Caribbean Coast of Nicaragua. The challenges were many in this rural community! Who would attend? Where would it be held? What would be a relevant theme for this community? What activities would help participants through a workshop on innovation? This was not the typical academic group of faculty and students that the authors work with. Findings: The results showed that in this case study, you could take the theory and methodology directly to a rural population who did not have the advantages of a world-class education. They used the methodology of Design Thinking effectively. Contribution & Value Added: The contribution here is opening the minds of the academic community that perhaps the goal should be to take applied education to the students wherever, and not expect the students to come to the cloistered halls of academia.

Microfinance and entrepreneurship: An introduction

As microfinance gains increasing attention and application as a financing mechanism for entrepreneurs at the base of the economic pyramid, this Special Issue of International Small Business Journal aims to enhance scholarly understanding of how microfinance fosters entrepreneurial activity. Microfinance brings a range of financial services, including microcredit loans, savings, and insurance, within the reach of millions of poor households not served by traditional banks. This introduction summarizes the articles in this Special Issue of International Small Business Journal on ‘Microfinance’, which address a range of topics in this important domain of research and practice.

Entrepreneurial competencies of BoP entrepreneurs in Bangladesh to achieve business success

The objective of this study is to reveal required entrepreneurial competencies to achieve financial and non-financial performance of the BoP entrepreneurs in Bangladesh. This study includes 213 BoP entrepreneurs who signaled that opportunity competencies, commitment competencies and innovative competencies enhance financial and non-financial performance. On the other hand, strategic competencies and analytical competencies were found to be insignificant in this context. The study adds value to academia and policy-making, and to revamp and revitalise entrepreneurship among those who are at the base of the economic pyramid (BoP). Furthermore, this research will guide private and non-government organisations who intend to develop micro-entrepreneurship business through training for developing entrepreneurial abilities of BoP entrepreneurs.

‘A Caravan of Solidarity’

The globalizing economy is not only offering affluence to the elite but also a form of idolatry, in which the idol is ‘the golden calf of global capitalism’. In this article I attempt to inquire a God-talk which engages the challenge of global greed and stimulates solidarity for the people who make up the base of the economic pyramid — ‘a triune economy of gift’. I propose an Asian perspective of Trinitarian economy which explicates fragility, frugality, and solidarity as divine characteristics. In so doing, I explore some ecumenical documents and four different voices from Asia which assess structural evil: the theology of ajur-ajer of Father Mangunwijaya, the public theology of Felix Wilfred, the theology of God’s life and emancipation of Paul S. Chung, and the theology of multitude of Kwok Pui-lan. In this, I hope to contribute to global liberation theology.

Inclusive innovation: getting more from less for more

In the age of consumerism, efforts at developing products and services have largely been focused on utilizing resources in addressing the wants and needs of people especially at the top of the economic pyramid. The products designed with sophisticated features lead to higher complexity and cost. These products do not satisfy the needs of the low-income consumers who live on an income that is less than $5 a day (Guerrant Foundation 2014). The consumers at the base of the economic pyramid live in environments which are geographically remote, with constrained financial resources, institutional void, and insufficient technological know-how. These contextual constraints can be turned into advantages through frugal innovation, leading to delivering quality services and products for low-income consumers. Frugal innovation helps in bringing down the cost of products without compromising on quality, by minimizing the consumption of resources during design, development, and production stages. The prosthetic limb “Jaipur Foot” which costs $45 is a classic example of frugal innovation. With Jaipur Foot, the wearers can squat, run, sit cross-legged, and climb trees (Bound & Thornton 2012, Hasib 2013). Due to low-cost and non-compromised quality, the Jaipur Foot has restored dignity and mobility for over 400,000 people in Afghanistan, India, and Iraq (Kanani et al. 2011). Science and technology are to be used judiciously for the benefit of all. Frugal products can provide greater functionality to a wider cross section of people by minimizing costs and resource consumption. Frugal innovation helps in repositioning the poor from passive recipients of donations to active consumers. People at the base of economic pyramid are “media dark.” They are denied access to services and products and are unaware of available alternatives and how to use them. Frugal innovation places affordable products and solutions in the hands of those at the base of the economic pyramid, leading to empowerment and improvements in their lives. The Aravind Eye Care System in India is one such solution that has touched millions of lives. About 80 % of cataract blindness cases are reported in developing countries (Thulasiraj & Rangan 2007). The social costs of blindness are high, with those affected often losing their livelihood and self-respect. Eye surgeries at private hospitals are costly, and the treatment is not affordable especially for those living at the base of the economic pyramid. The Aravind Eye Care System was founded by Dr. Venkataswamy, an Indian ophthalmologist, making cataract surgeries affordable and to eliminate the needless blindness. The Aravind eye care model performs 70 % of the surgeries free of cost and could reach out to the poorest of the poor (Bound & Thornton 2012). While the rich clients have the privilege of paying for personal rooms, the same quality eye care services are provided to the poor on a no frills basis (Bound & Thornton 2012). Aravind eye care doctors are able to perform 3000–4000 surgeries a year through their unique service-oriented model (Mehta & Shenoy 2011). Making products affordable by reducing the cost does not necessarily mean simply stripping off features. For truly meaningful in the user context, the products have to be redesigned innovatively while keeping in mind the user requirements. For successful consumer adoption, the product developers have to step into the shoes of the consumers to identify the needs of the users and, to understand in depth the operational environments and associated constraints. Interviews aid in understanding the needs that the users are aware of. For frugal innovation, it is essential to dive deeper to understand the contextual constraints which may not always be articulated by users. The contextual constraints could be associated with the cultural norms or society, the environmental constraints, and technical background. Ethnography is the technique utilized to identify user needs and requirements by observing the users in their socially established environments (Shahidi & Kasiun 2009).

Community marketing: serving the base of the economic pyramid sustainably

Purpose – The purpose of this paper is to acknowledge the importance of community networks in distribution of services and to present a conceptual framework outlining the antecedents and consequences of community marketing. Developing countries represent large untapped markets at the bottom of economic pyramid which is not serviced by conventional products using traditional marketing channels. Organisations are increasing looking at involving local community and broad range of partners called “Community Marketing” in this paper as a viable channel to expand their market by reaching out to this segment. Design/methodology/approach – The methodology for this paper involves in-depth study of the relevant literature on role of community networks and highlighting the noteworthy findings of other researchers. Although role of community networks has been widely studied in consumer goods, little has been researched on services. The study draws from cases of mobile financial services in India to develop a framework. Findings – The findings include the conceptual framework and the pre-requisites for adoption of community marketing for achieving business sustainability. Originality/value – This paper presents the framework and the steps pertaining to community marketing that can be adopted by organisations to reach out to a large under-served market at the base of economic pyramid. This paper synthesises extant knowledge on the subject and provides a foundation for future research by building a discussion on construct’s domain and developing research propositions.

Supporting entrepreneurial business success at the base of pyramid through entrepreneurial competencies

Purpose – Large private organisations (LPOs) creating entrepreneurship opportunities for people at the base of the economic pyramid (BoP) is a thought-provoking issue for researchers. The main purpose of this paper is to empirically explore the influence of support from LPOs on entrepreneurship business success among the BoP segment through entrepreneurial competencies. Design/methodology/approach – The paper follows a quantitative research approach. Data were collected from a sample of 134 BoP entrepreneurs in Bangladesh using a structured survey instrument. Partial least square has been employed as a statistical technique to analyse the data. Findings – The influence of support provided by LPOs, in terms of technical and training, increased entrepreneurial competencies among the BoP entrepreneurs. Further, entrepreneurial competencies contribute to the proliferation of the BoP entrepreneurship business success and play a mediating role to achieve business success as long as technical and training supports are provided. Practical implications – It is expected that business organisations can embrace this framework as a business model and contribute to the social initiatives. Originality/value – This paper invokes research on the entrepreneurship domain particularly focusing on the BoP segment of the society. The significant relationship between support of LPOs and success of small-scale entrepreneurship business can be viewed as a novel contribution in BoP domain.

A Corporate Social Entrepreneurship Approach to Market-Based Poverty Reduction

ABSTRACTIn this article, we aim to conceptualize a market-based approach to poverty reduction from a corporate social entrepreneurship (CSE) perspective. Specifically, we describe some market-based initiatives at the base of the economic pyramid and relate them to the social entrepreneurship literature. We refer to the entrepreneurial activities of multinational corporations that create social value as CSE. We then conceptualize CSE according to the corporate entrepreneurship and social entrepreneurship domains and shed light on how corporations can implement CSE. Finally, by reviewing relevant literature, we propose some of the factors that can stimulate CSE in organizations and some of the benefits companies can gain by implementing CSE.

Expansion of e-Commerce Coverage to Unreached Community by using Micro-Finance Infrastructure

Most people at the BOP (base of the economic pyramid, the largest but the poorest community in the world comprising 69% of world population) do not have access to e-commerce services. The way e-commerce is designed and practiced today does not enable their participation. The reasons are: their purchasing power is low, they do not have any means to make online payments, and there is no infrastructure to deliver the purchased items to their doors. To enable the participation of the people at BOP, we propose an e-commerce framework by engaging MFI resources and our recently developed ePassbook system. This paper shows how the BOP community can enjoy the benefits of the e-commerce service by using the proposed model. The advantages of making e-commerce available to the BOP are discussed, in addition to the challenges involved in implementing the model.

Modelling the diffusion of manual irrigation pumps in lower income countries with the Bass model

The Bass model is a popular tool for modelling the diffusion of a new product targeted for consumers in economies above the poverty line. In this paper, the authors show that the Bass model is also appropriately used to model sales of products to consumers at the base of the economic pyramid. Specifically, the authors consider data from the sales of manual irrigation pumps (MIPs) to lower income consumers in Bangladesh, Tanzania, and Kenya. Fitting the cumulative sales data for MIPs in these economies with the Bass model provides insight about the market potential of MIPs as well as effective marketing strategies in these economies and supports the use of the Bass model to describe product sales to base of the pyramid consumers.

The Gatekeeping Function of Trust in Cross‐sector Social Partnerships

AbstractHunger and deprivation, lack of education, sanitation, and health care are only a few pressing issues related to poverty in developing countries. Addressing such complex social issues requires pooling complementary resources of the civil, public, and private sector. Over the last decade, stakeholders tried to cocreate innovative solutions in cross‐sector social partnerships (CSSPs) at the base of the economic pyramid (BoP), but collaboration proved to be very challenging. Practitioners become increasingly frustrated with operational differences, intransparency, and mismatched goals in partnerships. This study unravels the black box of collaboration and delivers empirical insights on trust and power inCSSPsbased on social exchange theory. Structural equation modeling (SEM) enables us explore relationships beyond case‐based insights. Our rigorous empirical analysis covers 207 interorganizational relationships and outlines a crucial gatekeeping function of trust inCSSPs. Findings provide strong empirical support for conceptual works calling for an “integrative orientation” inCSSPs. Furthermore, we pinpoint the role of intermediates and draw implications for future research.