Bottom Of Pyramid Research Articles

Counterfeit conundrum: Insights into bottom of the pyramid consumer behavior in India

This study uses a phenomenological approach to examine consumption patterns of counterfeit goods by Bottom of the Pyramid (BOP) consumers in West Bengal, India. Forty-seven semi-structured interviews conducted with BOP consumers were subjected to thematic analysis. The study revealed four central themes for counterfeit consumption by BOP consumers: counterfeit purchasing patterns, brand recognition and purchase-point selection criteria, and counterfeit brand purchase criteria. Furthermore, this study contributes to the literature by revealing four counterfeit consumption patterns based on the awareness and willingness of BOP consumers. This study has critically analysed the role of neighbourhood retailers in counterfeit consumption at the BOP. Interestingly, this study also pioneered identifying the zone of awareness-indifference formed by normative influence and bounded rationality as coping strategies against vulnerability in the context of BOP counterfeit consumption. The implications of counterfeit consumption for marketers targeting the BOP have been discussed.

Evolving Organizational Models: Microfranchises and the BOP 4.0 Paradigm in Post-Conflict Colombia

ABSTRACT Microfranchises (MFs), as an innovative organizational model, aim to enhance the productive capacity of the base of the pyramid (BoP) population in diverse contexts. We provide original insights into the underexplored role of MFs in the socioeconomic inclusion of victims of the conflict and former combatants in conflict settings while advancing theory-building in overlooked areas. To bridge these gaps, we use grounded theory in exploratory analysis of the total population sampling of 17 Colombian social enterprises/seven MFs financed by the United Nations Development Program and Inter-American Development Bank. Our results suggest that MFs were the most adopted organizational model in post-conflict Colombia, promoting the inclusion of victims and ex-combatants who collaboratively create contextualized solutions and prioritize community well-being, which has led to the development of a new iteration of the BoP model – BoP 4.0 - closely aligned with MFs, an innovative sustainable business typology developed. Its focus on Colombian social enterprises in post-conflict settings delimited this research. Thus, generalizing these findings beyond this context should be approached with caution. This study marks a significant contribution by revealing the pivotal role of MFs in promoting socioeconomic inclusion for victims in conflict-affected regions. Furthermore, it introduces the innovative concept of BoP 4.0, representing an evolution in sustainable business typology within the BoP framework.

The Digital Lives of the Poor: Entertainment Traps and Information Isolation

Smartphones have enabled the delivery of life-improving information services to base-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 an unnoticed barrier to digital information access by the poor—data shortages. By 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. Our data reveal that under universally adopted monthly data plans, low-income individuals binge on YouTube and social media, resulting in data shortages and information isolation in the late-plan period. We offer a practical operational solution to this problem—shorter data-replenishment cycles—which serve as a commitment device to curb binge usage. We randomly assign participants to a “capped plan”—with daily data usage caps—or a standard (monthly) plan. 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 binge usage. Most participants (particularly those with low self-control and high fear of missing out) prefer the capped plan, even when costlier—clearly signaling demand. Because capped plans are inherently cheaper to provide, offering them could enable providers to increase BOP customer value and expand access. Our results suggest an opportunity to amplify the impact of life-improving services targeted at the poor by leveraging users’ interactions with smartphone technology. This paper was accepted by Victor Martínez de Albéniz, operations management. Funding: Financial support from The Wheeler Institute for Business & Development is gratefully acknowledged. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2024.4989 .

Brand Adoption by BoP Retailers

The article brings out the major factors that bottom-of-the-pyramid (BoP) retailers consider when adopting brands. It suggests that, besides the known variables of profitability, relationship and merchandise, these retailers attach importance to efforts that lead to reduced perceived risk. These include replacement and buyback facilities besides credit. They define the relationship with distributors/wholesalers not just as firm-firm business-based, but also as stemming from familial, social and ethnic dimensions. Based on 472 responses of acceptance or rejection from BoP retailers from rural India, the findings show a positive, significant relationship with brand characteristics. On the other hand, product-related factors showed a significant but negative relationship. The study found a significant but negative association between distributor relationship and probability of adoption, which should be considered in conjunction with credit, replacement and buyback facilities. The authors suggest that, while brand demand is a significant factor, strategies based on service-dominant logic would be more effective in sustained adoption of brands among small retailers.

Supplying Cash-Constrained Retailers: Understanding Shopkeeper Behavior at the Bottom of the Pyramid

Problem definition: As the largest retail channel in the world, nanostores are the source of income for millions of shopkeepers in developing countries. Being cash constrained, nanostore shopkeepers face the challenge of deciding how much of their available cash to retain to support their families and how much to invest in acquiring products from their suppliers, who visit the nanostore with different frequencies and offer products with different margins. We study how shopkeepers deal with this challenge while seeking to make their nanostores financially sustainable. Methodology/results: We conduct an empirical study to explain how suppliers’ visit frequency influences shopkeepers’ ordering behavior. The study integrates more than 29 million orders placed with a multinational manufacturer. Results show that visit frequency adjustments by the supplier cause nanostores to experience a significant discontinuity in their orders such that reduced order frequency leads to significantly lower orders per unit of time. Building on this insight, we ran two experimental studies that make use of theoretical benchmarks to explore how shopkeepers’ ordering decisions are influenced by supplier visit frequency, product margin, and shopkeepers’ cash constraints. We analyze how and when shopkeepers deviate from the theoretical benchmarks and show how the available budget moderates the relationship between suppliers’ visit frequencies and shopkeepers’ order volumes, normalized by unit of time. Our results give support to the theory of diversification bias and show how this bias might bring additional benefits to suppliers offering low-margin products. Finally, we propose a behavioral model that explains how shopkeepers’ decisions might be driven by their preference toward inventory (i.e., leftover versus shortage aversion) and toward cash (i.e., liquidity preferences). Managerial implications: Our findings suggest that suppliers should deploy high-frequency visits to cash-constrained nanostores regardless of the margin that their products provide for shopkeepers. For low-margin suppliers, this mitigates shopkeepers’ tendencies to reduce the order volume per unit of time following a visit frequency decrease. For high-margin suppliers, high-frequency visits mitigate shopkeepers’ overdiversification bias and liquidity preference. Financial and digital schemes that reduce the need for high-frequency visits may lead to substantial efficiency gains. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0362 .

Navigating the Adoption of Islamic Banking in the Base of Pyramid Market of Pakistan

The purpose of this research paper is to examine the adoption of Islamic banking (AIB) in the Bottom of the Pyramid (BoP) Market of Pakistan. The study used theory of planned behavior to hypothesize the relationship of the attitude (ATT), subjective norms (SN), perceived behavioral control (PBC), and Islamicity of the Product (IoP) on adoption of Islamic Banking (IB). Exploratory research design was used with a total of 400 questionnaires were distributed using a multi-staged stratified sampling (random sampling within each stratum) approach of which 320 usable questionnaires were returned representing 80 percent response rate. Partial Least Square Structural Equation Modeling (PLS-SEM) approach was used to analyze the hypothesized relationship of the conceptual framework. Results indicated that attitude (ATT), subjective norms (SN), and Islamicity of product (IoP) explained notable effect on the adoption of Islamic banking comparatively the perceived behavioral control (PBC). The overall effect of ATT, SN, PBC, and IoP explained 39.3 percent on AIB within the context of BoP. The adoption of Islamic banking counts the aforementioned variables with their countable effects. The inclusive outreach and features explaining the Islamicity of the financial products can enhance the span Islamic banking market share. Islamic banking over the past decade has witnessed tremendous growth in Asian countries due to innovative financial offerings based on the Sharia Principles of Islam. This study contributed on how the Islamic financial products can be penetrated in the low-income markets like Pakistan with its specific focus in Southern region of the Punjab province. The theoretical framework of the study has demonstrated how the customer closely associated behaviors navigate the adoption of the Islamic banking.

Inclusive business and partnerships: Enhancing value creation for producers in the global south

AbstractInclusive businesses (IBs) are promoted to alleviate poverty and contribute to sustainable development at the base of the pyramid (BOP). In the agri‐food sector, there is limited evidence regarding what types of partnerships enhance IBs' value creation potential for low‐income producers. This prevents policymakers from providing effective support to IBs and leveraging their full potential for sustainable development. To understand what types of partnerships are more effective for social value creation, this paper conducts a mixed‐method analysis of 46 cases from Tanzania and Ghana. It finds that transactional partnerships create efficient IB networks that require limited external support. Such IBs, however, generally undertake business‐as‐usual activities. In contrast, IBs adopt more innovative business models when their partners are integrated in decision‐making and strategic planning. Such IBs, however, often require tailored support to resolve their inter‐ and intra‐organizational challenges. This paper suggests practical considerations for designing IB partnerships to maximize impact potential.

Digitally enabled sharing economy models at the base of the pyramid

Digitally enabled sharing economy models at the base of the pyramid

Consumer Well‐Being at the Base of the Pyramid and Subsistence Marketplaces: A Review and Research Agenda

ABSTRACTA disparate collection of knowledge on the well‐being of low‐income consumers presents difficulties for both academics and practitioners. This review article addresses the critical need for a comprehensive synthesis of existing knowledge on well‐being of low‐income consumers. Focusing on Base of the Pyramid and Subsistence Marketplaces literature, we employed the SPAR‐4‐SLR protocol to structure our methodology and applied ADO–TCM framework for literature analysis. Our review uncovers conflicting evidence regarding the impact of conspicuous consumption, meeting basic needs and relative well‐being on consumer well‐being. Additionally, we highlight the diversity in conceptualisations of consumer well‐being, leading to inconsistent findings. We advocate qualitative methods, longitudinal studies and triangulation as potential research avenues. Our analysis underscores research gaps regarding the influence of culture, Western subsistence markets, alternative theoretical frameworks and under‐explored facets of consumer well‐being. We propose a set of research questions and objectives to guide scholars in this field.

The IT‐driven ridesharing economy at the base of the pyramid: Unravelling the impact of uncertainty reduction on drivers' engagement in ridesharing

AbstractDespite the potential benefits for drivers at the base of the pyramid (BoP) of IT‐driven ridesharing businesses, drivers are susceptible to uncertainty owing to their low education and incomes, potentially compelling them to engage less in ridesharing over time. Although this important sociotechnical phenomenon has garnered increasing attention, IS studies on this topic are scarce. Drawing on uncertainty reduction theory, we explored mechanisms for reducing BoP drivers' uncertainty and building their trust to enable them to engage in ridesharing. We identified three means of uncertainty reduction at three levels: trust in passengers, trust in ridesharing platforms, and the effectiveness of ridesharing institutional mechanisms. Using a sequential, triangulated mixed‐methods approach, we conducted 30 semi‐structured interviews to explore trust building with drivers and used data provided by 303 ridesharing drivers to quantitatively test the proposed research model. We found that perceived empathy and information congruity increased BoP drivers' trust in passengers, whereas effective escrow services, perceived justice, matching accuracy, and a high level of privacy control increased BoP drivers' perceived trust in ridesharing platforms, motivating them to engage more frequently with ridesharing platforms. Furthermore, the results indicated that increasing trust in both passengers and ridesharing platforms and improving the effectiveness of ridesharing institutional mechanisms can enhance BoP drivers' engagement in ridesharing. We conducted 30 follow‐up interviews with BoP drivers to corroborate the quantitative results and draw robust inferences.

(De-) Constructing Gender Power Asymmetry at the Base of the Pyramid - A Relational Approach

(De-) Constructing Gender Power Asymmetry at the Base of the Pyramid - A Relational Approach

Cream Skimming and Financial Inclusion at the Base of the Pyramid: A Resource Dependence Story

Cream Skimming and Financial Inclusion at the Base of the Pyramid: A Resource Dependence Story

ANALISIS KETERKAITAN LATAR BELAKANG KEHIDUPAN SPIRITUAL DALAM NOVEL TEMUKAN AKU DALAM ISTIKHARAHMU KARYA ADI RUSTANDI MENGGUNAKAN PENDEKATAN EKSPRESIF

A novel is a depiction of daily life that is found in a specific sastra. The novel originated in Italian, was known as a novella in Jerman, and was then translated into English before traveling to Indonesia. Novels are also described as prose-based short stories. “Temukan Aku dalam Istikharahmu” a novel by Adi Rustandi, is the only sacred work published in 2014 by Jakarta, Zettu Cetakan. This book draws inspiration from Tokoh Rengganis, which is explained throughout the novel. The authors not only expresses his feelings, but also offers ideas and solutions to the current problem. The authors in the story of his life expresses his private spiritual guidance through a tokoh of a devout old man who depicts his spiritual life and connects him to his spiritual community with his god. This study is being conducted to understand the life at the bottom of the pyramid.

Base of the chain (BoC) sourcing challenges: The role of institutional voids and social agency problems

Due to various factors, including the institutional context of suppliers, the successful implementation of sustainability initiatives remains a persistent challenge for purchasing and supply management (PSM) professionals. Sourcing from the Base of the Chain (BoC) requires buyers to be cognizant of and assess challenges inherent in engaging with the Bottom of the Pyramid (BoP) institutional context. Designing governance structures that facilitate the simultaneous pursuit of economic and social goals demands a thorough understanding of these challenges and their contextual antecedents. The literature has addressed institutional voids and incompatibilities between buyer-BoC supplier institutional contexts as critical factors informing interventions aimed at overcoming sourcing challenges. Drawing upon social agency theory, our study advances these debates. We argue that the broader institutional and social context serves as the contextual antecedents to principal-agent (P-A) relationships established between buyers and their BoC suppliers. This perspective provides a more enriched explanation for the antecedents of BoC sourcing challenges. We draw on a multiple case study incorporating 31 interviews and archival data of five BoC sourcing programs within the Australian agribusiness sector. Our findings shed light on how BoC institutional voids cause BoC sourcing challenges across supplier and product domains by inducing hidden information, hidden action, and hidden logic as social agency problems. Hidden logic, a new type of social agency problem identified in our study, refers to the agents' socially constructed sets of assumptions, values, beliefs, and traditions that are invisible to the principals. Consequently, we present insights into why governance structures addressing BoC sourcing challenges may vary across institutional contexts, providing practical guidance for buyers in developed economies concerning the subsequent design and execution of effective BoC sourcing strategies.

How can rural China achieve sustainable development through inclusive innovation? A tripartite evolutionary game analysis

Promoting inclusive innovation is crucial for achieving inclusive growth and sustainable development. This study investigated the decision-making behaviors and interaction mechanisms among the government, enterprises, and base of the pyramid (BoP) customers in the context of inclusive innovation in rural China by applying evolutionary game theory. A tripartite evolutionary game model was developed, and evolutionarily stable strategies along with their corresponding conditions were derived. Numerical simulations were employed to analyze the dynamic evolution process of stakeholders’ strategy choices under various scenarios and their sensitivity to key parameters. The findings suggest that the government plays different roles throughout the lifecycle of inclusive innovation in rural China, acting as an advocate in the initial stage, a promoter in the growth stage, and gradually diminishing its involvement as the market matures. Furthermore, the study reveals that low subsidies are not conducive to the evolution of optimal solutions for the three stakeholders, while high supervision costs reduce the government’s regulatory willingness, thereby hindering enterprises and the BoP customers from implementing and engaging in inclusive innovation in rural areas. Based on these insights, this research proposed some promotional mechanisms tailored to the different developmental stages of inclusive innovation, drawing from the industry life cycle theory. The insights and model developed in this study extend beyond rural China and offer a valuable framework for enhancing sustainable development in rural areas across other developing countries and regions.

Social innovation at the bottom of the pyramid: Effects of informality and sustainable affordable innovation

AbstractUntil now, the theoretical exploration of informal entrepreneurship's role in driving social innovation has remained largely unaddressed. This study fills this gap by investigating the impact of informal entrepreneurship on social innovation performance through the mediating mechanism of affordable innovation. Using time‐lagged data collected from 264 firms in Vietnam, we find that (1) informal entrepreneurship positively relates to affordable innovation, (2) affordable innovation mediates the relationship between informal entrepreneurship and social innovation performance, and (3) bottom‐of‐the‐pyramid orientation bolsters the relationship between affordable innovation and social innovation performance. These findings contribute to advancing both informal entrepreneurship and social innovation literature.

Can regulated technological FOMO be used to enhance technology adoption at the bottom of the pyramid?

Can regulated technological FOMO be used to enhance technology adoption at the bottom of the pyramid?

Love and Organizing in the Context of the Base of the Pyramid: An Integrative Justice Perspective

This paper provides an overview of the Integrative Justice Model (IJM) for impoverished populations that was introduced in the marketing literature in the year 2009. The IJM was developed as a normative ethical framework to guide the growing corporate interest in the base of the pyramid (BoP) market to be fair and just to all parties but particularly the impoverished customer. In an impersonal marketplace that often exploits the less advantaged participant, the IJM provides five characteristics of “just” market situations. These are an authentic non-exploitative engagement, value co-creation, investment in future consumption, stakeholder interest representation and long-term profit management. At the heart of the IJM is love that flows from a recognition of the inherent dignity of those at the BoP and the need to respect and uphold that dignity in the marketplace. The hope is that as companies embrace the IJM in their functioning it will result in a marketplace that is fair, just, humanistic and loving.

The Contrasting Footprint of Labour and Capital in Post‐colonial India

ABSTRACTIndia's struggle for independence held the promise of an end to poverty and redemption from the communal‐cum‐class‐based inequality which had kept the peasant economy backward. But the planned substitution of the agrarian‐rural fabric for an industrial‐urban way of life failed to materialize. Casualization and contractualization of waged work indicated that labour had become thoroughly commodified in a state of ongoing footlooseness. It was a proletarianization which did not allow for the collective action precondition to raise and settle the social question. The onslaught of neoliberal capitalism in the last quarter of the 20th century ended the brokerage of the nation state to secure the interests of labour next to those of capital. Less than 10 per cent of the workforce has continued to enjoy formalized occupational engagement, mainly in the downgraded public economy. Corporate capital in collusion with statist autocracy has not only effectuated the deregulation of employment but also abandoned the legal code of formality. The outcome is a state of lawlessness for the people at the bottom of the pile. Besides big business, politics and governance are identified in this reconfiguration as stakeholders in a brutal regime of informality, erosive of equality, democracy, welfare and civil rights.

Behavioural intention to adopt mobile wallets at the bottom of the pyramid: a developing economy perspective

PurposeThe study aims to investigate the factors influencing the behavioural intention of bottom-of-the-pyramid (BOP) consumers in developing economies, such as India, to adopt mobile wallets, drawing upon the framework of the uses and gratification theory. Furthermore, the study also examines the moderating effect of gender.Design/methodology/approachTo achieve the objective, primary data were collected from a sample of 220 respondents using the survey method. The reliability and validity of the survey instrument were demonstrated through confirmatory factor analysis. Subsequently, structural equation modelling (SEM) was used for hypotheses testing.FindingsThe study revealed that only convenience and social influence have a positive significant influence on the behavioural intention to adopt mobile wallets whereas, innovativeness, trust and compatibility have no significant relationship with behavioural intention to adopt mobile wallets among the BOP consumers. Further, gender moderates the relationship between compatibility and behavioural intention to adopt mobile wallets in India.Originality/valueThis study contributes to the underexplored area of research concerning the behavioural intention to adopt mobile wallets among BOP consumers in a developing economy. It introduces a novel approach by using the uses and gratifications theory to uncover the underlying motivations behind adoption behaviour.