Bottom Of Pyramid Research Articles

Entrepreneurship Trainings and Human Capital Endowment: When Learning from External Sources Does (Not) Increase Performance

Abstract Bottom-of-the-pyramid (BoP) entrepreneurs have few resources to draw on besides their human capital. We analyze the effects of a training program teaching lean management to BoP entrepreneurs in Zambia by comparing its performance effects across individuals with high and low levels of specific human capital. We find that participation in the entrepreneurship training program positively affects management practices related to lean management as well as cost reduction for all training participants. The program, however, has no uniform effect on profits. The effect is positive only for entrepreneurs equipped with specific human capital. Moreover, we observe that this effect is in particular strong for entrepreneurs with vocational education compared to work experience. This suggests that the value of entrepreneurship training programs is contingent on human-capital endowment and calls into question existing notions of what it means to offer such programs.

Reconceptualizing Franchisee Performance: A Configurational Approach in a Base‐of‐the‐Pyramid Context

AbstractThis paper proposes and tests a new conceptual framing for franchisee performance that draws on institutional complexity to explore the interaction of corporate, market, and relational logics of performance. Extant research draws on corporate and market logics to explain performance; however, this does not explain individual franchisee performance in complex institutional environments such as Base‐of‐the‐Pyramid (BoP) markets where relational logics may be more important, thereby limiting explanations of how franchisee outlets perform. Drawing on data from a network of 58 franchise outlets in the context of Kenya, we conduct a configurational analysis related to sales outcomes. We leverage fuzzy‐set qualitative comparative analysis (fsQCA) to map out the conditions under which franchisees exhibit higher sales performance. Results show that three distinct configurations can lead to increased sales performance. Our results paint a nuanced picture of combinations of factors that result in franchisee success with relevance to the BoP context and beyond.

Millet magic foundation: a social initiative for alleviating poverty of the indigenous tribes of Mayurbhanj

Research methodology The case study is based on a social entrepreneurial journey where the authors have used an interview method to get the insights from the protagonists and the employees. Rigorous interviews were conducted online and in person for deep analysis of the protagonist’s strategies and decisive dilemma. Secondary data was collected from company’s website for facts and figures. Case overview/synopsis This case study is a story of indigenous tribes of Odisha from the eyes of a woman who, with her co-founder, empathized with their vulnerable life and took on the challenge of creating sustainable livelihoods by establishing Millet Magic Foundation. The Millet Magic Foundation was established in 2021 by Shyama and her cofounder to uplift the indigenous tribe of Mayurbhanj by providing them livelihood through millet-based products. The foundation launched their millet-based snack products with the brand name WOWMOM. Millet Magic Foundation created social impact for the tribals by providing them with employment, fair wages, health care and social well-being. The specialty of the Millet Magic was reverse positioning and focusing on the bottom of the pyramid. The success of the Millet Magic Foundation relied on its mission to uplift the life of these indigenous tribal, especially the women, by overcoming the challenges with the strategies to establish Millet Magic as a social enterprise. Complexity academic level The case study is primarily suitable for postgraduate programme to teach the concept of social entrepreneurship in the entrepreneurship module. The case study can also be used for highlighting the role of social enterprise in sustainable economic development of emerging economies.

On tariff elimination, trade harmonization, and household well‐being: A study of the GST rollout in India

AbstractThe transformative research agenda encourages the pursuit of questions emphasizing societal welfare and well‐being outcomes rather than (just) focusing on narrow, incremental business‐related outcomes. This paper addresses that premise by examining those households at the social and economic bottom of the pyramid (BOP) that are intended to benefit most from the removal of trade barriers. The removal of these barriers should enable supply chains to yield commercial and welfare efficiency in terms of economic surpluses. The Goods and Services Tax legislation implemented in India in 2017 sought to do just that, serving as the experimental testbed for our investigation. Yet, as our analysis of more than 50,000 unique households in the Consumer Pyramids Household Survey data indicates, those at the social and geographic BOP see less benefit than others from the same policy intervention. This runs counter to the intended consequences of such policies. We employ a middle‐range theorizing approach grounded in the Theory of Customs Unions to inform and substantiate our hypotheses, which are tested using a stochastic frontier analysis and truncated regression. The results hold implications for policymakers and organizations seeking to elevate the efficacy of supply chains orchestrated by and serving BOP populations.

The Configurational Paths in BoP Rural E-Commerce Entrepreneurial Opportunity: A Fuzzy-Set Qualitative Comparative Analysis

Bottom of the pyramid (BoP) e-commerce entrepreneurship has emerged as a new phenomenon in China’s rural regions, but its origins have not been thoroughly explored. This study analyzed the shaping of entrepreneurial opportunity (EO) based on the entrepreneurial ecosystem theory as the study framework. A questionnaire survey was conducted among 213 rural e-commerce practitioners in Guangdong and Wuling Mountains, China, using the fuzzy-set qualitative comparative analysis approach to study the various factors and causal mechanisms affecting EOs. Our findings highlight the following: 1) there is no single necessary condition for high BoP rural e-commerce EO formation. However, low human capital leads to nonhigh BoP rural e-commerce EO formation; 2) the driving mechanisms for high BoP rural e-commerce EO are of three types (five paths): government-led, dual-interaction between government and potential subjects, and market-led; and 3) there is an asymmetry between the driving mechanisms of high and nonhigh entrepreneurship opportunity formation in rural e-commerce. The findings of this article contribute to the expansion of the entrepreneurial ecosystem theory’s application in rural e-commerce entrepreneurship and provide practical implications for the BoP population in effectively obtaining EOs in rural e-commerce.

Impact of climate change training intervention in savings groups

AbstractThis paper investigates the impact of integrating climate change interventions in informal community‐based institutions called savings groups. By integrating climate‐related activities into these groups, the aim is to simultaneously strengthen the group's financial activities as well as improve knowledge and investment capacity in climate adaptation. We find that the introduction of the training increases meeting attendance rate and average loan sizes, suggesting that members can access larger sums for investment to implement the knowledge acquired during the training. We provide evidence that there are opportunities for economies of scope and for a larger positive impact on the livelihoods of the populations at the bottom of the pyramid by combining financial services offered in the savings groups and climate‐related interventions.

Essential Capabilities for Successful Digital Service Innovation at the Bottom of the Pyramid

Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple-case method, this study inductively derives persuasion, co-creation, adaptation, and self-sustainability as essential capabilities. Cumulative maneuvering of these capabilities resulted in a sand cone model. Both established incumbents and digital natives benefit from this model, which enables them to safeguard their digital offerings while penetrating or expanding within BOP markets.

A Literature Review on Solid Waste Management and Disposal Behavior at the Base of the Pyramid

Abstract Consumer behavior in disposing of products has substantial consequences for the environment that affect all of us. Waste management is a major challenge faced by many developing countries, underlining the relevance of this literature review. Even when academia tries to shed light on this field, it often fails to consider that waste management must be approached differently in less developed countries, which differ dramatically from advanced countries, especially with regard to consumers’ behavioral characteristics. Further, limited effort has been made to systematize the existing literature by highlighting areas of interest in the scholarly discussion. This literature review contributes to the field by illuminating focal points in scholarly research on the background of solid waste management and the disposal behavior of people living at the base of the pyramid. It explores how scholarly research results can guide scholars and practitioners who are contributing to a positive shift in waste management practices. Its novelty arises from annotating scholarly theories and managerial approaches that promise to advance the understanding of sustainable waste management in developing countries. Additionally, the utilization of VOSviewer’s network visualization involving cluster building and keyword occurrences, contributes to the methodological originality of the study. Selective keyword research in the Web of Science database identified 124 pertinent articles for review. This underscores the importance of this literature review, especially in light of the significant increase in publications in this research domain, with approximately 70% (87 of 124 articles) published since 2019. The results show that knowledge, participation, and the active involvement of the local communities are key components in achieving sustainable waste management. Shaping individuals’ attitudes and awareness is vital for promoting pro-environmental behaviors in developing countries. The results also show a prominent focus on recycling behavior and an extensive use of the theory of planned behavior.

Stress and deformation characteristics of ultra-long bored pile in deep soft soil area

In view of the diverse geological conditions in China, ultra-long bored pile can effectively enhance the bearing capacity and stability of foundation. Due to the special geological condition in the Beijing-Tianjin-Hebei region, there are a large number of soft soil areas. Taking an elevated bridge in Xiongan-Daxing track construction project as an example, this paper uses finite difference method to study pile-soil interaction and failure mode of pile. With the increase of load, plastic failure occurs first at the top of the pile and then at the bottom of the pile. At the same time, the curve of the plastic failure zone of the soil layer presents a process of “gentle - rapid - gentle - steep rise”. When the load reaches a certain critical value, the plastic zone area changes abruptly. As the load increases, the funnel-like characteristics of the maximum and minimum principal stresses diminish, resulting in minimal stress difference throughout the soil layer.

External boundary permeability and inclusive innovation: the moderating role of dual governance

ABSTRACT Inclusive innovation offers opportunities to improve the well-being of the bottom of the pyramid (BOP). However, our understanding of effective strategies to promote inclusive innovation remains limited. According to organisational information processing theory (OIPT), this study investigates the impact of external boundary permeability on firm inclusive innovation and examines the moderating role of dual governance. Using survey data from 217 Chinese manufacturing firms, we test our hypotheses. The results show that external boundary permeability has a positive impact on both symbolic and substantive inclusive innovation. Moreover, the joint effect of contractual and relational governance strengthens the positive impact of external boundary permeability on both forms of inclusive innovation. This study enriches the literature on inter-organisational collaboration and inclusive innovation by offering new insights into the role of external boundary permeability in facilitating inclusive innovation.

Fostering Community Empowerment: A Human-Centered Approach to Designing Clean Water Solutions in a Jakarta Slum

This article presents a case study of the application of human-centered design (HCD) as a codesign approach to address complex problems in slum communities in Jakarta, Indonesia. Through a review of relevant literature, we examine how the HCD methodology embraces a participatory framework but retains a certain degree of control not found in pure participatory approaches. We explain why HCD was selected for this study and describe the methods used, including sort cards, solution cards, in-depth interviews, focus group discussions, and product usability interviews. These methods were employed to generate a solution that addressed the issue of sourcing clean water in Jakarta’s slums, which was then prototyped, tested, and implemented. The study contributes to the development of a cohesive and applicable methodology by integrating codesign and HCD in designing solutions for people at the Base of the Pyramid.

Exploring the Reactions of Bottom of The Pyramid Consumers when Protecting Consumer Rights

Supposedly the popular belief that customers actively participate in market activity is not always the case. This is primarily due to marketers' poor consideration of consumer rights protection and a lack of awareness about the issue among both marketers and consumers. This is especially evident in developing-country markets like Sri Lanka, where certain consumer segments, such as those at the Bottom of the Pyramid (BOP), face limited consumption opportunities, making them vulnerable. As a result, the goal of this study is to investigate BOP customers' attempts to act against violations of consumer rights in an environment defined by constrained spending patterns. In-depth interviews were conducted with twenty participants from vulnerable populations in Sri Lanka's southern province. The participants were chosen using a non-probabilistic snowball sampling method, and the data was analyzed thematically. According to the study, there are two basic categories of attempts exhibited by the Bop population when acting against the violation of consumer rights. The expressive approach and the silent approach are the two approaches. Under each approach, sub-themes were identified. Although a consumer protection mechanism exists, it does not always provide adequate protection to consumers in the BOP sectors, adding to greater vulnerability and disparities in the marketplace. Keywords: BOP consumers, Consumer rights, Vulnerability

Storm in a teacup: implications of mobile phone literacy on sustainable smallholder agri-food supply chains in developing economies

PurposeThis study explores digital transformation in the tea supply chain within developing economies, with a focus on smallholder tea producers in Sri Lanka. Tea is one of the most widely consumed beverages in the world. Among the tea producers, smallholder tea producers account for a substantial portion of total tea production in several countries. Mobile phones play a significant role in providing smallholder producers with access to crucial agricultural information, markets and financial services.Design/methodology/approachThis study adopts a deductive approach, analysing mobile phone ownership, literacy, experience and perception among smallholder tea producers. The chi-squared test of independence and hierarchical clustering methods were used to test the hypotheses and address the research questions.FindingsThe study identifies four clusters of smallholder tea producers as Basic Tech Adopters, Digital Laggards, Skeptical Feature Phone Users and Tech-savvy Adopters based on their characteristics towards mobile-based technologies. Approximately 75% of the surveyed sample, which included both tech-savvy and basic-tech adopters, showed a positive attitude toward adopting mobile-based agricultural technologies.Practical implicationsThe study suggests developing targeted strategies and policies to enhance the productivity of the smallholder tea production process in developing economies. The study highlights the importance of awareness, access, affordability and availability when implementing digital services for businesses at the base of the pyramid, such as tea smallholdings in developing economies.Originality/valueThe present study aims to address the lack of data-driven empirical studies on the use of mobile phones in smallholder settings. The findings of this study enable the enhancement of entrepreneurship within the tea production supply chain, especially, within stakeholders who deliver digital transformation support services.

Error Analysis and Condition Estimation of the Pyramidal Form of the Lucas-Kanade Method in Optical Flow

Optical flow is the apparent motion of the brightness patterns in an image. The pyramidal form of the Lucas-Kanade (LK) method is frequently used for its computation but experiments have shown that the method has deficiencies. Problems arise because of numerical issues in the least squares (LS) problem minAx−b22, A∈Rm×2 and m≫2, which must be solved many times. Numerical properties of the solution x0=A†b = (ATA)−1ATb of the LS problem are considered and it is shown that the property m≫2 has implications for the error and stability of x0. In particular, it can be assumed that b has components that lie in the column space (range) R(A) of A, and the space that is orthogonal to R(A), from which it follows that the upper bound of the condition number of x0 is inversely proportional to cosθ, where θ is the angle between b and its component that lies in R(A). It is shown that the maximum values of this condition number, other condition numbers and the errors in the solutions of the LS problems increase as the pyramid is descended from the top level (coarsest image) to the base (finest image), such that the optical flow computed at the base of the pyramid may be computationally unreliable. The extension of these results to the problem of total least squares is addressed by considering the stability of the optical flow vectors when there are errors in A and b. Examples of the computation of the optical flow demonstrate the theoretical results, and the implications of these results for extended forms of the LK method are discussed.

From strategy to impact: how MNCs innovate their business models for social value in BoP contexts?

PurposeThis article examines the strategic actions of multinational corporations (MNCs) in creating social value at the base of the pyramid (BoP), providing insights into novel business models (BMs) and tactics employed for poverty alleviation.Design/methodology/approachThis conceptual article links three relevant pieces of literature – creating shared value (CSV), the three-value creation logic and the three core values of social development – to analyze the current research and real-world examples of MNCs implementing the BoP BMs.FindingsThe article identifies four strategies and 11 tactics used by MNCs to adapt BMs elements (value proposition, value constellation and value capture) and generate social value at the different levels (coverture of basic needs, self-esteem and freedom from servitude) by following the distinct value creation logics (chain, shop and network).Originality/valueThis article provides a conceptual framework that links relevant literature and sheds light on the strategic actions that MNCs apply in their BMs to tackle the multidimensionality of poverty in the BoP markets.

A mixed methods UTAUT2-based approach to understanding unified payments interface adoption among low-income users

The Unified Payments Interface (UPI) represents a revolutionary advancement in mobile payment systems and has been primarily embraced by the middle and high-income segments of the Indian population. Its uptake among the low-income or those at the bottom-of-the-pyramid (BOP), characterized by individuals with an annual income less than USD 3,175, remains notably low, necessitating prompt investigation. This study endeavors to explore and validate contextual determinants influencing the development of behavioral intention to use UPI among BOP users. Under the mixed method approach, 26 interviews with active UPI users were conducted in the first phase. The collected data were subjected to deductive thematic analysis and the resulting factors were fused with the Extended Unified Theory of Acceptance and Use of Technology (UTAUT2) model to adapt it to the BOP requirements. In the second phase, responses from 423 potential UPI users were collected and scrutinized using structural equation modelling. The data analysis unveiled that the path coefficients for social influence (0.527), performance expectancy (0.242), perceived security risk (–0.166), knowledge (0.138), price value (0.123), facilitating conditions (0.119), and social benefits (0.096) were statistically significant in impacting user intentions. The model fit measures of the structural model fell within an acceptable range, and collectively, these factors elucidated 52% of the variance in behavioral intentions. It is recommended that marketers should leverage the interconnected nature of BOP communities to enhance awareness on functionality, subjective utility, social benefits, word-of-mouth, and security issues. This strategy aims to overcome barriers and boost UPI adoption among the BOP.

Unpacking Qalb Behavioral Traits through the Lens of Maqasid al-Shariah: A Pathway to Foster Inclusive Entrepreneurial Intentions in the Muslim Community

In Malaysia, a worrisome trend is emerging as an increasing number of individuals find themselves trapped within the poverty bracket and the Base of the Pyramid (BoP) socioeconomic groups. To address the economic and social challenges faced by these marginalized communities and to contribute significantly to poverty reduction and overall well-being, inclusive entrepreneurship has emerged as a pivotal strategy. This study delves into the critical imperative of inclusive entrepreneurship, which often eludes existing quantitative measurements of societal well-being. These measurements frequently overlook the fundamental dimensions of social and psychological well-being inherent to inclusive entrepreneurship. Drawing from the Islamic framework of Maqasid al-Shariah, which elucidates the objectives of Islamic law, we introduce a unique concept—Qalb-based Entrepreneurial Traits. These traits are rooted in moral values and ethics, forming a bridge between Islamic principles and entrepreneurial intentions. Using a quantitative approach, we explore the determinacy of these Qalb-based entrepreneurial traits in conjunction with three key antecedents derived from the theory of planned behavior. Our study specifically focuses on assessing the entrepreneurial intentions of Muslim students enrolled in Malaysian institutions of higher learning (IHLs). Our survey encompassed 287 respondents, and we conducted a rigorous multiple regression analysis using PLS-SEM to scrutinize the relationships between these variables. Our findings leave no room for doubt—Qalb-based behavioral traits exert a significant influence on inclusive entrepreneurial intentions (IEI) among Muslim youth in Malaysia. Furthermore, we uncover that gender plays a moderating role in the relationships between Darurriyyat and Tahsiniyyat Qalb behavioral traits and inclusive entrepreneurial intentions, shedding light on the nuanced dynamics of these determinants. In essence, this study offers valuable insights into the pivotal role of Islamic ethical principles in shaping inclusive entrepreneurship. Beyond theoretical contributions, it provides practical implications for policymakers and stakeholders dedicated to addressing the pressing challenges of poverty and social well-being within the Muslim community in Malaysia.

Scaling Social Ventures under Institutional Fragility

Inclusive growth, driven by social venture, is the most critical factor in alleviating poverty at the bottom of the pyramid. How do institutional changes influence the growth of social ventures? We develop the concept of institutional fragility to emphasise the mutual conflict and contradictions among multiple dimensions of institutions. The empirical analysis uses the Microfinance Information Exchange dataset to analyse the scaling growth of 3,241 microfinance institutes (MFIs) across 81 countries in the industry emergence period. Our findings reveal that institutional fragility significantly curtails the expansion of social ventures. Additionally, institutional fragility negatively affects the dynamic between the borrowing community and MFIs’ growth, as well as the relationship between a gender-focused approach and MFIs’ growth.

Emerging economy firm technological catch‐up through a dual innovation ecosystem framework

Research has identified two principal mechanisms for emerging economy (EE) firms to technologically catch up with advanced economy (AE) firms: absorbing knowledge spillovers from AE subsidiaries and internationalizing R&D into AEs. Prior technological catch‐up research has assumed EE firms are merely trailing their AE counterparts on the technological frontier when in fact the research on the bottom of the pyramid, as well as other research streams, have recognized that the different consumer demands in EEs and AEs drive different R&D activities in EEs and AEs. We submit that technological catch‐up requires both the upgrading of technological capabilities and the shifting of R&D activity from solving EE demand problems to solving AE demand problems. Utilizing patent data, we investigate the relative efficacy of AE knowledge spillovers and internationalizing R&D in AEs on technological catch‐up within a dual innovation ecosystem framework. We find that knowledge spillovers affect technological catch‐up through a process that initially decreases the technological capabilities of EE firms before increasing such capabilities as EE firms shift R&D activity towards the AE innovation ecosystem. However, we find that internationalizing R&D in AEs yields a significant positive effect on EE firms' technological capabilities and shifts their innovative activities towards solving AE demand problems.

The Bottom-of-the-Pyramid (BOP) Market: Why and How Does Serving the Impoverished Segment Promote Radical Innovation?

This article examines a counter-intuitive phenomenon that radical innovation can be developed in bottom-of-the-pyramid (BOP) market. Applying the path of least resistance theory and integrating it with the attention-based view, we develop a theoretical framework that links the firm capability of BOP market commitment to radical innovation through architectural and modular knowledge search strategies and highlights the contingency of the choice of knowledge search strategies on the two pillars of strategic orientation – customer orientation and technology orientation. Based on a survey among managers in China, one of the largest BOP markets in the world, we find that while both architectural and modular knowledge search strategies act as the operating mechanisms that drive the positive effect of BOP market commitment on radical innovation, customer orientation strengthens (weakens) the positive effect of BOP market commitment on architectural (modular) knowledge search strategy. In contrast, technology orientation weakens (does not change) the positive effect of BOP market commitment on architectural (modular) knowledge search strategy. The research results make substantial contributions to multiple research streams, including the BOP literature, studies on creativity and innovation under constraints, research on strategic orientation, and studies on radical innovation.