Bottom Of Pyramid Research Articles

Serving rural low‐income markets through a social entrepreneurship approach: Venture creation and growth

AbstractResearch SummaryRural communities in developing countries often exhibit high poverty levels, lack of skilled labor, and limited infrastructure. Through an analysis of three social ventures serving rural low‐income markets in Latin America, we explore how social entrepreneurs create and grow their ventures. We advance a multilevel framework that incorporates three main levels within the creation and growth process of social ventures serving these markets. At the individual level, founders are continuously revising goals and acquiring new capabilities. At the community‐relations level, they engage in explicit efforts to ground business operations in the community. At the organizational level, they pursue innovative business models. These processes are dynamic and interdependent. This framework contributes to the research on social venture creation and growth in uncertain and resource‐constrained environments.Managerial SummaryPhilanthropy or base of the pyramid (BoP) initiatives by multinational corporations have sought to alleviate poverty in rural low‐income communities in developing countries. Social entrepreneurship constitutes an alternative mechanism to generate social impact by bringing products and services to this market segment in a financially sustainable way. However, the creation and growth of a social venture in this context pose multiple challenges given the socioeconomic conditions of its populations and the limited access to public infrastructure. Based on a comparative analysis of three Latin American enterprises, our research suggests the following takeaways for social entrepreneurs seeking to serve these communities: (a) be willing to change goals and acquire new capabilities (e.g., business training); (b) see the community not only as customers or beneficiaries but also as a source of useful resources to deploy in the venture's operation; and (c) innovate in business model components (e.g., distribution, marketing, human resource management) that, due to limiting conditions in these communities, require a different approach than in mainstream markets.

BoPCOVIPIP: Capturing the Dynamics of Marketing Mix Among Bottom of Pyramid Consumers during COVID-19

The behaviour of consumers mostly follows the guidelines derived from marketing theories and models. But under some unavoidable circumstances, the consumers show a complete deviation compared to their existing consumption pattern, purchase behaviour, decision-making and so on. Under similar circumstances, this study aims to capture both urban and rural Bottom of the Pyramid (BoP) consumers’ perceptions of various marketing mixes during the COVID-19 pandemic situation. With a sample size of 378 and 282, the perception towards different marketing mixes has been captured for Pre-COVID and During-COVID periods, respectively. The adopted quantitative analysis indicates a difference in perception towards marketing mix During COVID compared to Pre-COVID. Moreover, the selection of West Bengal, India, as an area of research fulfills the BoP literature’s existing prominent research gap. This study also comes with the potential to assist marketers and the Fast-Moving Consumer Goods (FMCG) industry in framing strategies to target BoP consumers.

Thin on the Ground: A behavioural Explanation for MNEs’ Entry into the Base of the Pyramid Markets

Research indicates that the Covid-19 pandemic can nullify decades’ worth of progress made on several developmental objectives including poverty alleviation. For the first time since the 2008 financial crisis, the GINI coefficient: an index for income inequality, worsened by 6 percent for developing countries and another 70 million people are likely to be pushed into extreme poverty. This impending developmental crisis, calls for renewed research and managerial focus on market-based approaches to poverty alleviation. Building on prior research, we argue that the decision of Multinational Enterprises (MNEs) to enter Base of the Pyramid (BoP) markets can have positive externalities for development and poverty alleviation. But only a small number of MNEs are able to overcome several external and internal challenges associated with BoP markets. Using a behavioural lens, we propose and highlight the importance of internally generated resources in facilitating innovations and BoP market entry. While constraints due to structures and processes remain, slack resources allows room for experimentation and even bypass some of these processes and demonstrate the power of the ideas, before formally following the structured innovation and entry processes. We empirically test this explanation with a unique dataset of innovations and BoP market entry. We conclude by drawing insights for research in BoP markets as well as managers and policymakers to incentivise MNEs to participate in regional development.

Negócios inclusivos liderados por mulheres empreendedoras: busca por avanços teóricos e empíricos

Abstract This study contributes with theoretical and empirical reflections on female entrepreneurs from the perspective of post-structuralist feminism and on inclusive business based on the academic literature on poverty and social exclusion. The study consisted of exploratory qualitative research based on the triangulation of the theoretical framework, content analysis of in-depth interviews, and secondary data obtained from documents. The results of this research corroborate previous studies regarding the characteristics of social entrepreneurs and offer complementary insights to the academic literature. The study shows that female entrepreneurs in inclusive businesses act based on building partnerships, valuing listening, and sharing decisions. They have a higher level of education, value learning opportunities, prioritize working with other women, and work in both formal and informal women’s networks. In addition, based on the type of business, the target public, and the way entrepreneurs understand their organizations, it was possible to identify four types of inclusive businesses: (i) inclusion of consumers from the base of the pyramid; (ii) inclusion of people through labor, service provision and suppliers in the value chain; (iii) inclusion through advocacy and guarantee of rights, and (iv) those aimed at self-inclusion. The last two areincipient in the academic literature and, at the same time, illustrate challenges and problems of social gender construction and structural issues in Brazilian society.

Testing the Economic Strength of a Sustainable Base of the Pyramid

The mining industry has abundant leverage points as well as the potential to contribute to all the 17 United Nations Sustainable Development Goals (SDGs). To date, significant efforts have been made to mitigate the negative impacts of mining and enhance its positive contributions, especially by large scale mining (LSM) houses. Nonetheless, a lot remains to be done in mining areas where people at the base of the pyramid operate. These areas are exploited by Artisanal and Small-Scale Mining (ASM) actors who constitute 80% of the global mining workforce. The ASM industry is responsible for widespread negative environmental, social, and economic impacts. A lot of research has been done in ASM, but sustainable development remains far from being realized. In this study, we apply the institutional complexity lens to investigate forces impeding sustainability in this sector. Furthermore, we avoid applying any existing method of analysis and rather try synthesis as a methodological path in search for the missing knowledge. The results include identification of leverage points for sustainable development in fields where no large-scale mining houses exist; development of suitable business models; and a methodological contribution of holism to cases of institutional complexity.

Is Capability Development the Right Supply Chain Continuity Strategy?

Smallholder farmers and micro-retailers are critical actors for the supply chain continuity in food and beverage industries. In developing economies these actors operate in the Base of the Pyramid. Global companies are aware of the risk the lack of capabilities of these actors represent for the supply chain continuity. Consequently, they are undertaking capabilities’ development programs. Previous research suggests that capability development is an adequate mechanism for poverty alleviation of these actors. Yet, there is little research on the assessment whether this type of programs achieve the development of productive capabilities. This research conducts two studies, one in the context of smallholder farmers and other in the micro-retailing sector to test whether capability development program enhance productive capabilities.

Capping Mobile Data Access Creates Value for Bottom-of-the-Pyramid Consumers -- Experimental Evidence

Smartphones have enabled the delivery of life-improving information services to bottom-of-the-pyramid (BOP) consumers. However, little is known about how the poor interact with the digital world. Through a novel app we developed to investigate real-time smartphone usage, we identify a heretofore unnoticed barrier to digital information access by the poor -- data shortages. We offer a practical operational solution to this problem, in the form of a commitment device that curbs data binge usage. Based on analyzing over 9.4 million minutes of smartphone usage data from 929 residents of a Mumbai settlement, we find that entertainment consumes 61% of their phone time. We randomly assign participants to a `capped plan' -- with daily data usage caps -- or a standard plan. Our data reveal that absent usage caps, participants binge on YouTube and social media, resulting in subsequent data shortages. Assignment to the capped plan increases late-plan access of invites to health camps sent via WhatsApp, increases attendance at these in-person camps by 27%, and reduces social media checking. Our results are consistent with users prioritizing entertainment even when data is scarce, or facing data stockouts. Most participants (particularly those with low self-control and high fear of missing out) prefer the capped plan, even at a higher price – a clear signal of demand. Because capped plans are also inherently cheaper to provide, offering such plans could enable providers to increase BOP customer value and expand access. Subsidizing capped plans could amplify the impact of life-improving services targeted at the poor.

Application of Internet of Things Technology in the Construction of Bored Pile Foundation in a High Altitude Environment

In order to solve the problem that the current geophysical method is difficult to locate in the mud of bored piles, the problem of effective exploration of karst caves at the bottom of piles, the author puts forward the application of Internet of Things technology and sonar technology in the construction of bored pile foundation in a high altitude environment. Combined with the propagation characteristics of sonar stress waves, a sonar detection method for karst caves at the bottom of bored piles is proposed, and a sonar detector for karst caves at the bottom of piles (JL-SONAR) and signal analysis software (PBCA) are developed. The JL-SONAR detector realizes the emission and acquisition of onsite sonar signals, and the PBCA software completes the analysis and arrangement of the detection data. This technology makes full use of the mud conditions of bored piles, the development of karst caves within 10 m of the pile bottom can be tracked and detected in the process of hole formation, which has the advantages of low cost, high speed, and high precision. Experimental results show that Project A has been drilled in multiple directions at the bottom of the pile, the rock cores on the west side of the pile bottom are mostly fragmented, the rock quality index RQD is 15–30, and the quality of the foundation rock at the pile bottom is extremely poor, which verify the results of sonar detection. No slurry leakage occurred in Project B after drilling, and the cores were mostly short columns. The rock quality index RQD was 75 to 90, and the quality of the foundation rock at the bottom of the pile was good, which verifies the results of sonar detection. Conclusion. The research results provide a new solution for karst cave exploration in karst areas, especially in liquid environments.

Winning BOP consumers’ vote using effective political marketing communications within their social networks

ABSTRACTThis study examines how political marketers use the BOP social networks to make their political marketing communications reach and influence the voters at the BOP (Bottom of Pyramid). For this study, structural equation modeling was used to analyze the 1004 responses from BOP voters in West Bengal, India. Despite their strong networks and ties, the findings suggest that BOP communities do not vote for the political party helping (social capital) or representing (social representation) them. They do so while their social networks persuades them to engage in clientelistic and coercive pressures. The empirical model explaining the complex relationship of the need for social capital and representation, perceived persuasion, clientelism, and coercion will help stakeholders working with the BOP segment to get a more nuanced understanding of their voting behavior. This understanding will help them formulate programs and policies to improve the socio-economic conditions at the BOP.

A tetrahedral model of autobiographical memory research design.

The field of autobiographical memory can do more to be representative of global populations experiencing and recollecting diverse events across the lifespan. To inspire such work, I present a general model for designing autobiographical memory studies. The tetrahedral model (based on Jenkins, 1979) has at its vertices context (e.g., the situated environment, activated schema, or functional goal), outcomes (e.g., the content and phenomenology of remembering), participants (e.g., the demographic characteristics and traits of the individual), and events (e.g., the lived experiences that comprise an individual's autobiography). Further, the area of the base of the pyramid can represent the time frame under investigation (e.g., the wider the distance, the greater the delay between an experience and its retrieval) and the height of the pyramid can represent the sample size (e.g., nearly flat for a case study, increasingly taller for larger groups) being studied. After applying the model to describe how typical autobiographical memory research is conducted (and briefly identifying the limitations therein), representative models of particularly promising areas of research are highlighted. This article is categorized under: Psychology > Memory.

International Inclusive Innovation of Entrepreneurial Firms

Although inclusive innovation has been regarded as a process according to prior studies, this complex process remains relatively under-researched, particularly when the process is successfully completed by entrepreneurial firms from emerging economies. This paper therefore seeks to explore, from a holistically dynamic view, how inclusive innovation process of entrepreneurial firms evolves in the “Bottom of the Pyramid” (BOP) markets. Based on the multi-dimensional details of a Chinese entrepreneurial firms conducting inclusive innovation in African BOP market, this exploratory case study suggests that inclusive innovation information management consists of three important consecutive stages: BOP market gap identification, market cultivation, and intensive market developing. We also unexpectedly reveal that the key capabilities in these three stages are distinctive.

Managing New Product Development

Companies should embrace innovation and introduce new products to succeed in the competitive business environment. The objective of the study is to underline the importance of innovation and new product development for company growth and to analyze the different approaches adopted by companies in innovation. Companies should develop a culture of innovation. The different approaches to innovation include customer-centered innovation, team-based innovation, and systematic innovation. Companies should realize the necessity of investing more in innovation and new product development during turbulent times and to target individuals at the bottom of the pyramid with innovation. The discussions will equip both academicians and practitioners to understand the different approaches in innovation better. Practicing managers may implement effective strategies and initiatives in their organizations to do better innovation and to achieve business excellence.

Scaling inclusive business impacts at the Base of the Pyramid: A framework inspired by business model ecosystems research

Scaling the social impact of inclusive business models that provide solutions to basic needs of Bottom of the Pyramid (BoP) communities through firm-centric approaches has proven challenging. Researchers have proposed that scaling strategies at the BoP should go beyond firm-centric approaches by inclusive businesses and involve coordinated synergistic action of their entire ecosystem to overcome systemic challenges and create value for all ecosystem actors. However, current research on this topic remains abstract and difficult to implement. This paper presents an empirically validated scaling framework designed to overcome this weakness and documents its design process. The framework takes account of the fact that inclusive businesses must work out scaling strategies together with key ecosystem actors, and that implementing a scaling strategy will almost always require mutual adaptation of business models. The framework design process entailed an extensive literature review and practitioner interviews as a first step, followed by testing, evaluation and iterative improvement through a series of validation workshops with actors of four inclusive business initiatives in Africa and Asia. The results indicate that the framework helps workshop participants to expand their mental frame, encouraging them to adopt a broader ecosystems perspective on scaling. This leads to identification and exploration of valuable business model adaptations for scaling that can be achieved through collaboration and assessment of the practical feasibility of different scaling strategies.

Study on Thermal Disturbance of Frozen Soil Around Piles by Concrete Hydration Heat

In order to study the influence of the heat of hydration of concrete on the thermal disturbance of the frozen soil around the pile during the construction of cast-in-place piles in permafrost regions, a two-dimensional temperature field numerical model was established with non-steady state based on the heat conduction control equation and the freezing-thawing phase transition process. This model has been used to analyze and discuss the refreezing process of the concrete pile foundation, the heat flow transfer process between the pile foundation and the frozen soil, and the positive temperature curing process of the pile body. The research results have shown that the refreezing process of the pile foundation is a slow process. It took 28 days after the completion of the pile foundation construction that the negative temperature arose at the bottom of the pile. And 196 days after construction the temperature at the center of the pile dropped to negative. The heat brought by the cast-in-place pile is mainly released to the surrounding soil through the horizontal heat flow, and the thermal conductivity of the soil has a greater influence on this process.

FOOD SECURITY – RECOGNITION OF SELECTED ASPECTS BY ACADEMIC YOUTH

The meaning of food security is so obvious that it has not been assigned any clear, specific definition, which in turn allows a broad interpretation of the concepts that make up the scope of activities aimed at ensuring food security. Every definition of the idea is burdened with confirmation bias, emerging through the prism of a primary human feeling – satiety. A. Maslov considered this the most important human need, which is why he placed it at the base of the pyramid. Therefore, it is important to recognise the confirmation bias that we display when defining the next food security area. Food safety and food security are issues as old as human beings, and yet our decisions are dictated by heuristics. They function in our minds like automated processes: means by which we quickly make judgements. A well-filled body does not believe in hunger. In the globalised world, a new mind-set is needed in food distribution systems. This article concludes with pilot research in the area of knowledge, attitudes, and assessment of food security issues in a group of academic youths.

A transformative service research perspective on caste-based discrimination in microcredit lending in India

PurposeThis research aims to address the transformative service research (TSR) agenda by examining the issue of caste-based financial exclusion in microcredit lending services in India. To do so, it draws on statistical discrimination theory from labour economics to develop and test a multi-level prosocial service orientation framework.Design/methodology/approachSurvey data come from 238 loan officers and 250 lower caste loan applicants across 43 microfinance institutions (MFIs) in India. The data are analysed using hierarchical linear modelling, a method appropriate for investigating micro- and macro-level organisational variables.FindingsAt the micro level, the service orientation factors of social dominance orientation and algorithmic-driven lending decisions affect financial exclusion of lower caste bottom-of-the-pyramid (BoP) vendors. At the macro level, the service orientation mechanism of inclusive service climate reduces caste-based financial exclusion, while the level of lending risk to reduce discrimination receives no support.Research limitations/implicationsResearch in other contexts is warranted to confirm the prosocial service orientation model. Methodological challenges at the BoP also present avenues for insightful work.Social implicationsThe study shows the importance of an inclusive service climate and reassessment of algorithmic-driven lending decisions to eliminate caste-based indicators in lending decisions. It also recommends policy reform of caste-based affirmative action at the macro- and micro-levels of lending decisions.Originality/valueThis research extends the TSR agenda to include caste-based discrimination in prosocial services. It takes a multidisciplinary perspective on services research by incorporating statistical discrimination theory from labour economics to extend understanding of service orientation.

Impact of political marketing strategies on the BOP voters in India

PurposeThis article aims to examine political marketing strategies adopted by the politicians operating in base of the pyramid (BOP) areas and their impact on the BOP voters using the tenets of the social influence theory.Design/methodology/approachThe authors resorted to a qualitative phenomenological inquiry for this study. The responses obtained from two qualitative studies were subjected to thematic analysis. Two thematic maps were integrated into a conceptual model.FindingsStudy 1 indicates that the politicians operating at the BOP resort to vote-bank segmentation, clientelism, mobilizing opinion leaders, short guerilla war against opposition and communication bombarding. Study 2 has elaborated on how poor voters perceive these strategies and form their opinions towards the party/candidate.Social implicationsThe findings of this study highlight the need for essential policy formulation to protect BOP consumers from deceptive political tactics.Originality/valueThis study develops a model of the effectiveness of voting strategies at the BOP. It also contributes to the literature on social influence theory by indicating how the three social influence processes (compliance, identification and internalization) result in different ways of accepting political influence.

Role of Academic Initiatives for Technology Management at the Base of the Pyramid: Empirical Evidence From India

Technological interventions are adopted in emerging economies to enable sustainable development and empower marginalized communities at the Base of the Pyramid (BoP). Emerging economies are becoming significant contributors in BoP development with the active initiatives from academia-driven organizations engaging in rural development. However, the technological development practice is fragmented and requires unified technology management practices to analyze salient features that lead to a sustainable rural transformation. This study adopts a case-study methodology and obtains primary and secondary data from two distinctive centers of an academia-born organization. The findings enfold three intrinsic characteristics of the technology development process targeted for the BoP sector: the emergence of demand-driven technology, inclusive innovation practices leading towards self-reliance and trends of sustainable green technology. The formative contribution of this research enriches the management of technologies at BoP by connecting the developer’s perspective for innovation practice inclined towards knowledge sharing, inclusiveness, empowerment and sustainable development, thus creating a roadmap for effective policy development focusing on the sustainability of BoP technologies in emerging economies.

Innovative New Product Adoption of Renewable Energy Mobility Products at the Bottom of the Pyramid The Case of Hamba, an Integrated Community-Driven Solution

Current decision-making models do not cover the processes bottom of the pyramid consumers go through when selecting mobility solutions to address access challenges they face. We investigate the process these consumers go through in their complex context in adopting a community-based renewable energy mobility solution and developing a decision-making framework. Findings indicate the positive social, environmental, and economic impact of the mobility initiative on the livelihoods of the BOP consumers. The findings offer critical theoretical contributions specifically for decision making for the adoption of renewable energy-based mobility solutions for marginalized BOP consumers and social connectedness literature.

Multi Criteria Decision Making based Approach to Assist Marketers for Targeting BoPs Regarding Packaging Influenced Purchase during Covid-19

This study has a novel approach to capture the attitude of Bottom of the Pyramid (BoP) consumers towards Packaging Influenced Purchase (PIP) during the Covid-19 crisis. Over the years, BoPs consumers have established themselves as an emerging market with ample growth and opportunities. The authors suggested a Multiple-Criteria Decision-Making (MCDM) based framework to assist marketers in targeting both urban and rural BoP consumers regarding PIP. Packaging elements and influence of family, extended family, peers have been included in the framework for gaining in-depth understanding. With a sample size of 100 from West Bengal, this focus group-based study can fulfil the BoP literature’s existing prominent research gap. Results indicate the difference in attitude for urban and rural BoPs towards PIP during this crisis. The fusion of MCDM based approach and relevant machine learning-based technique aims to assist marketers in identifying, formulating, and redefining an action plan.