Inclusive Business Models Research Articles

Interview of Prof. Sourav Mukherjee, Professor of Organisation Behaviour and Dean, Alumni Relations IIMB and author of “Inclusive Business Models” (Cambridge UP, 2021) by Prof. Mousumi Padhi, XIM University and Prof. Gopal P. Mahapatra, IIMB

Interview of Prof. Sourav Mukherjee, Professor of Organisation Behaviour and Dean, Alumni Relations IIMB and author of “Inclusive Business Models” (Cambridge UP, 2021) by Prof. Mousumi Padhi, XIM University and Prof. Gopal P. Mahapatra, IIMB

Modelo de negocio inclusivo para Pymes en base a objetivos de RSE y la Agenda 2030, para el desarrollo sostenible

The demands of the world economy and the health contingency caused by the COVID-19 virus have led to the creation of more innovative business models to meet the needs of society and the demands of a more competitive market, where companies they have been forced to seek their continuity. The study analyzes the philosophy of Corporate Social Responsibility (CSR), within the framework of the Sustainable Development Goals (SDG) of the 2030 Agenda. In Mexico, in this sense, it has established alliances with the public and private sectors, where companies they participate in certifications for the CSR badge, which is evaluated based on the SDGs, but due to various factors they cannot maintain the badge for a long time. For this reason, the design of an inclusive Business Model based on the objective regarding economic impact is proposed in this research, which focuses on industry, innovation and infrastructure, the reduction of inequalities, consumption and responsible production, decent work and economic growth decoupled from environmental degradation. That is why the objective of the research is focused on determining the factors to achieve the premises of the 2030 Agenda through CSR. This research was carried out in the State of Sinaloa, Mexico, considering 326 certified companies from the agricultural, commercial and service sector, analyzing internal factors and problems, primarily highlighting the disarticulation of the strategy with the principles and dimensions of CSR: ethics, quality of life, environment and community, under this premise the research was focused with a qualitative approach. The level of the research was exploratory, thus opening the way to deepen the subject in future research, in the data collection the survey, interview and in-situ observation were applied. The results express that companies have multiple problems that must be solved by improving the mechanisms and culture of CSR, and must be assumed by the staff and the owners, proposing a model as an alternative to evaluate the economic, social and environmental situation. Environment in the short and long term, provide recommendations and restructure strategies to improve their actions and allow them to be active agents in fulfilling the SDGs in the new context for the development of their regions.

Gender-inclusive business models in livestock value chains in low- and middle-income countries: What can we learn from the literature?

Gender inequality is one of the key challenges of the twentyfirst century. Gender equality is one of the sustainable development goals (SDGs) and getting a more equal society is increasingly seen as supporting the achievement of the other SDGs. At the same time, the question remains: how to support gender equality in practice? This paper looks at gender-inclusive business models in the livestock sector. Such models can contribute to women's economic empowerment (an intermediate indicator toward gender equality) directly by addressing barriers to women's participation in livestock markets, or indirectly by involving them as implicit beneficiaries where such businesses provide services or products in circumstances where women face constraints such as poor access to inputs. A review of the literature was conducted to assess inclusive business models that are successful in increasing women's participation in livestock or livestock products marketing and its associated benefits and outcomes, focusing on low- and middle-income countries. The review included peer-reviewed publications, gray literature, and websites from non-government organizations that implement inclusive business models. A literature search was conducted using Google scholar and Research4Life databases for publications since 2010. Websites from development and international organizations implementing inclusive business models were also searched. Data from included records were extracted according to a pre-defined extraction form. A total of 29 studies were included. Results from the review show scarcity of literature and lack of research rigor in the few studies that document outcomes associated with inclusive business models. The few studies on gender-inclusive business models are mainly on collective action and contract farming to support women and men farmers to access markets, inputs, and services. Tangible benefits for women involved are reported, including women empowerment and change in gender norms to some extent.

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.

An Assessment of an Inclusive Business Model (Ibm) in The Philippines: The Case of the Kalasag Farmers Producers Cooperative (KALASAG-FPC)

Purpose - This paper evaluated the inclusive business model (IBM) adopted by the KALASAG Farmers Producers Cooperative (KALASAG-FPC) in San Jose City, Nueva Ecija, Philippines. Specifically, the study assessed the Farmer Entrepreneurship Program (FEP) of Jollibee Foods Corporation (JFC) relative to KALASAG-FPC in order to describe how an IBM affected the farmers' lives and their business operations. By determining the perceived level of inclusiveness of the IBM from three perspectives, strategies were crafted to improve business model inclusivity. Design/Methodology/Approach - In discussing the activities in the business model and the business operations of the cooperative, the case approach, and the IBM principles and radar chart from the study entitled “Is Inclusive Business for you? Managing and upscaling an inclusive company: Lessons from the field” by Sopov et al. (2014) were used. Findings - The results showed that the business model was perceived by the farmers, program implementers, and the main researcher to be the most inclusive in three different areas, but least inclusive in one same area. Therefore, the discussion focused on what led to these perceptions, and what can be done to enhance the inclusivity of the business model. Research Implications - The recommendations focused on activities that promote the chain-wide collaboration of the IBM players in order to solve problems faced not only by the farmers but also by the program implementers and partners. The study’s contribution lies in demonstrating the application of the 2014 study framework on an IBM in the Philippine context.

Practice of Sustainability Leadership: A Multi-Stakeholder Inclusive Framework

Sustainability leadership aims at balancing short-term economic goals with long-term sustainable development goals by considering the interests of all stakeholders instead of just shareholders and focusing on a triple bottom line: people, planet, and profit. The existing research on sustainability leadership has mainly focused on the role of individual competencies without considering other meso and macro level factors that can impact the enactment of sustainable leadership. The studies that have considered these micro, meso, and macro levels have conceptualized these levels as stratified and discrete, assuming a hierarchical relationship between them. Such a conceptualization constitutes an impediment to the dynamic communication and engagement that is necessary to the achievement of sustainability goals. Drawing on stakeholder theory, this study investigates the key factors impacting the practice of sustainability leadership in a contextually relevant manner. More specially, we propose a multi-level, multi-stakeholder framework for sustainability leadership that is data driven and supported by evidence. This framework is meant to portray a holistic model that is dynamic and reciprocal in the manner in which micro, meso and macro factors impact each other. Qualitative research methods and purposive sampling were used for four stages of data collection, from 39 individuals with diverse profiles across the sustainable-engineering sector. The data collected were analyzed thematically, and the findings formed the basis of the dynamic inclusive business model for sustainability proposed in this paper, which challenges the traditional hierarchical business models. The data-driven, multi-level, multi-stakeholder framework proposed in this work extends the literature by providing insights on the key factors that impact the practice of sustainability leadership in the context of SMEs, operating in an emerging market. This framework demonstrates that the effective practice of sustainability leadership by SMEs is influenced by the interplay of factors at micro, meso and macro levels, as represented by individuals, organizations/firms, and governments.

Cultural norms to support gender equity in energy development: Grounding the productive use agenda in Rwanda

Changes to cultural norms as a result of electrification can promote gender equity. This paper contributes to the energy transitions literature addressing research complexity from investigating consumption behaviours and opportunities for behaviour change. We ask: how cultural norms influence productive uses of energy technologies and how norms may change as a result of electrification? A scoping and critical review of literature, and empirical study applying grounded theory analysis and the energy cultures framework suggests the value of exploring existing and emerging energy cultures, particularly the nature of material cultures, norms and practices. Qualitative methods used include key informant interviews, transect walks and observation. The application is in the Bugesera District of Rwanda. The main study finding is that there are relationships between mini-grids, fuels, values, beliefs and traditions that influence uptake and vice-versa. The emphasis on of productive use is revisited to suggest inclusion of norms such as Agakiriro — making wealth through small scale business enterprises; Ubudehe — mutual assistance welfare practice; new material realities of the modern Rwandan household; local and international technological innovations; old programs — One Laptop Per Child; imihigo – a tradition of goal setting translating to performance contracts, and Made in Rwanda — enhancing the domestic market through value chain development. Inclusion of gender concerns in the push for productive use of electricity and in renewable energy policy can promote sustainable value chain creation and inclusive business model development. Finally, we reflect on policy considerations for stakeholders working in energy development in Rwanda and elsewhere.

Paradoxes of Inclusion: Adverse Effects of Inclusive Interventions in Northern Ethiopia

The involvement of smallholders in various inclusive business models (IBMs) is being widely promoted in Ethiopia. The inclusion, exclusion and distribution effects of IBMs must be better understood, however, in order to make them more impactful. This study, which was carried out in three districts in northern Ethiopia, employed a mixed methods approach. Our results show that inclusion and exclusion are both complex and multidimensional. A focus on transaction costs, productive resource endowments and chain governance is crucial for enhancing smallholders’ inclusion. Our results further indicate that income obtained from participation in IBMs is unequally distributed. The benefits of IBMs vary according to the underlying position of the smallholder. Hence, inclusive development interventions should acknowledge the various positions of smallholders and consider how their positions shape social relations locally. The paper thus reveals the various dimensions, contradictory tendencies, hidden costs and side effects of IBMs.

THE INCLUSIVE DEVELOPMENT OF THE REGION ACCORDING TO THE CURRENT ECONOMIC CONDITIONS

The study aims is to determine the components of the region’s inclusive development and its results through the analysis of population welfare. Methodology. To achieve the goal of the study, the general methods (analysis, deduction), methods of abstraction for building models, empirical methods (comparison, measurement, questionnaire) were used. Findings. Analyzing studies devoted to the inclusive development of the economy, the authors put forward a personal vision of the basis for the inclusive development of an industrial region, consisting of the economy of the region, the community living in a given territory and the environment, and their interrelationships, which made it possible to propose a conceptual model for the involvement of members of the territorial community in inclusive development. Originality. The author's inclusive business model for the development of the region is proposed. It is aimed at attracting investments through the existing positive image, brand of the territory and additional value, which, unlike the existing ones, does not focus on factor conditions (minerals, land) of economic development, but focuses on human resources, that constituted an element of scientific novelty of the study. One of the main prerequisites for the implementation and development of the inclusive business model – the well-being of the population – was detected. Therefore, a study, which assessed and compared the welfare of the population of different regions of Ukraine, based on clearly defined indicators of living standards and quality of life was conducted. The inequality of development of different regions of Ukraine was also assessed, and its causes were identified. The conducted research the principles of regional justice contributed to the formulation of recommendations for overcoming the gaps in the welfare of the population of the Ukrainian regions. Practical value. The results obtained can be used as a scientific substantiation of reforms in the internal regional, social, and economic policy of Ukraine aimed at ensuring qualitative structural changes in the domestic economy.

ІНКЛЮЗИВНІ МОДЕЛІ УПРАВЛІННЯ РЕСУРСНИМ ПОТЕНЦІАЛОМ АГРАРНИХ БІЗНЕС-СУБЄКТІВ

The current state and problematic aspects of management of the resource potential of agricultural business entities are disclosed in the article. The conducted studies showed that agricultural producers have certain difficulties in the process of resource potential management. The system of material and technical support of agricultural production needs complex modernization and staffing. Modern mechanisms for compensating part of their cost and financial leasing are quite effective management tools. But, they have significant limitations for their possible use for a significant number of agricultural producers. Dominating traditional business concepts in agricultural management are commercial oriented. They define the prevailing policy of resource management, according to which the demand for biological and eco-remedies remains insignificant, unstable and significantly limited by the price factor. The labor market of the agricultural sector is characterized by significant inclusive gaps. It remains the leader of informal employment with an outflow of labor potential from the industry and a low level of wages. Research has revealed that one of the main reasons for managing the resource potential of agrarian business entities is the lack of financial resources. Own capital remains the main source of financial support for agricultural production. In order to solve these problematic issues, an inclusive model of managing the resource potential of agrarian business based on the action of supply chains has been proposed. The inclusive model is built on mechanisms that provide for the possibility of realizing the interests of all participants in agrarian business, society and rural areas due to the creation of supply chains, the formation of new value and profitability. The implementation of an inclusive business model for managing resource potential should be complemented by the use of modern digital management tools that provide equal opportunities and access to resources. Among them are: professional and educational online platforms, digital HR policy products, crowd-drafting and credit digital, investment and innovation platforms, digital analytical products that will support management decisions. The implementation of an inclusive business model of resource potential management in agricultural management should be based on a deep understanding of the goals and priorities of inclusive development. The latter in a strategic perspective become life-supporting both for business and for future generations.

Rojiroti: innovative microfinance in India

Case overview Micro Finance Institution (MFI) named Rojiroti had been doing good work for weaker sections of the society and had brought about significant transformation in the lives of poor people, especially the Scheduled Castes, in villages of Patna district, the capital city of Bihar, India. Rojiroti was run by Centre for Promoting Sustainable Livelihood (CPSL) and had tested successfully a unique innovative model in micro financing which focused on helping the weaker sections by addressing their imminent needs which usually required very small loan amounts. With the various types of benefits people got from buying government subsidized ration to health and education in family to construct home or buy small livelihood assets. The beneficiaries developed high level of respect and trust for the MFI, Rojiroti. Rojiroti had received international recognition from universities such as University of Nottingham, UK; the University was not only researching on the model and its contributions to society, but also had supported it with funding to cater to its audience. Rojiroti did not believe in just providing finance to people like other microfinance institutions (MFI) or corporate social responsibility (CSR) funding by private and public sector organizations; its model focused more on creating capacities in the beneficiaries to sustain their livelihoods. However, after a decades time, Sunil, the protagonist in the case found himself in a situation where he had to decide for the future journey of Rojiroti after having reached a decent stage of growth The case discusses the journey of Rojiroti where the protagonist Sunil had a significant role to play and dwells upon the Rojiroti business model, its beneficiaries and value offerings to them, the changing environment outside and leaves the discussion open on the question of the choice of best road suited for Rojiroti. Teaching objectives The case is intended for the course on Strategic Management with a focus on business models topic. The case introduces the working of social cooperative business model and the nuances around it which is very much pertinent in today’s times where social enterprises have gained space in business and where businesses work around inclusive business models. The case is designed to provide supplemental support or discussion piece while dealing with business model / cooperative enterprise business model. This case provides opportunity to discuss strategic framework for an organization from the promoter’s perspective. The teaching notes is written from the perspective of the entrepreneur (the protagonist in this case, Sunil) who initiated the enterprise, with a learning goal to empathize and develop skills to have strategic decision making for a social enterprise. Leaning objectives The case is designed to provide supplemental support or discussion piece while dealing with business model / cooperative enterprise business model. This case provides opportunity to discuss strategic framework for an organisation from the promoter’s perspective. The teaching notes is written from the perspective of the entrepreneur (the protagonist in this case, Sunil) who initiated the enterprise, with a learning goal to empathize and develop skills to have strategic decision making for a social enterprise. Supplementary materials Teaching notes are available for educators only. Subject code CSS: 3 Entrepreneurship.

Analyzing and Designing Business Processes in the Ghana Cocoa Supply Chain for Supporting Inclusiveness

Ghana produces 20% of global cocoa output and is the second-largest producer and exporter of cocoa beans in the world. The Ghana cocoa industry is, however, challenged by a lack of adequate decision support systems across the supply chain. Particularly, cocoa farmers have limited access to information, which impedes planning, pricing, benchmarking, and quality management. In order to address this asymmetric access to information and ensure fair access to information that will allow the making of informed decisions, the supply chain stakeholders need to adapt their business processes. For identifying the requirements for better information flow, we identified the existing (as-is) processes through a systematic survey study in Ghana. We then identified the main problems and bottlenecks, designed new (to-be) business processes, and showed how IT systems support and enable inclusive business models in the Ghana cocoa industry. To enable inclusiveness, we incorporated IT solutions that improve information flows towards cocoa farmers. The results show that there are many opportunities (e.g., improving farmer livelihoods and a potential increase in export earnings) in the cocoa sector for Ghana and all stakeholders that can be utilized when there is chain-wide collaboration, equitable access to services, and proper use of IT systems.

Inclusive Business Models in Coffee Value Chain: Comparing Practical Evidence Between East Java and North Sumatera

This paper explores inclusive business practices by focusing on the relationship between investments for-profit and social impact for small-scale farmers. Value chain mapping was used and combined with business model canvas to enable fact-finding and linkage between profit-taking action and social impact in the coffee value chain. The study was performed in two regions: East Java and North Sumatra. The study interviewed 72 farmers from Bondowoso District, East Java, and 30 farmers from Mandailing Natal District, North Sumatra. The qualitative analysis revealed the role of local organization networks in supporting the extension and improving performance in value chain governance. The organization networks supported social issues and provided access to diverse resources and environments for companies to build commitments. Furthermore, the business model canvas modeled value propositions that were practically tackling the dimensions of profit and social impact to the organization's context. The coffee value chains in both regions were differ based on key features and elements of small farmers' inclusion in the coffee value chain. The findings show that the coffee business model in Mandailing Natal encouraged smallholder farmer inclusion better than in Bondowoso. Therefore, the study implies that a shifting from profit into social initiatives in inclusive business is needed. This study provides practical evidence of business model canvas in the coffee value chain cases, showing how to develop a mission social innovation in a profit organization. Keywords: inclusive business models, business model canvas, value chain, coffee

The Need for a Food Systems Approach in Smallholder Food and Nutrition Security Initiatives: Lessons from Inclusive Agribusiness in Smallholder Communities.

Inclusive business models dominate current development policy and practices aimed at addressing food and nutrition insecurity among smallholder farmers. Through inclusive agribusiness, smallholder food security is presumed to come from increased farm productivity (food availability) and income (food access). Based on recent research, the focus of impact assessments of inclusive business models has been limited to instrumental aspects, such as the number of farmers supported, the training provided, and immediate farm outcomes, namely revenue. Furthermore, the assessments limit their scope to participating smallholders, while overlooking other community members. With respect to food and nutrition security, there is no acknowledgement of the diverse household needs that compete with the food requirements with regard to the multi-dimensional nature of poverty. Focusing on recent studies and reviews on the contribution of inclusive business initiatives to smallholders’ livelihoods and food security, the present review adopts a food systems approach for broader knowledge and insight analysis. It re-emphasizes that a food systems approach that provides a systemic and broader way of thinking about and working on food issues is critical for development initiatives aimed at ensuring that every person can meet their food and nutrition needs.

Wecyclers roll out: Bilikiss Adebiyi-Abiola

Study level/applicability This case is appropriate for the following courses in undergraduate, graduate or executive programs. Subject area Sustainability, strategy, inclusive business, environmental sustainability and women in leadership. Upon completion of the case study discussion successful students will be able to: Case overview Bilikiss Adebiyi-Abiola brought to life Wecyclers, an urban waste management company in Nigeria that started as an idea during her MBA programme at MIT. Bilikiss served as its CEO from 2012 and mobilized efforts to sign up thousands of individuals, corporate bodies and agents who turn in waste to recycle. While waste management already had a lot of private sector participants (PSPs), there was no recycling company with a focus on community engagement as at the time Wecyclers came on board. The company went through several iterations to arrive at business model, develop its peculiar infrastructure, build partnerships and raise funds. The case study documents Wecyclers roll-out under the leadership of Bilikiss, whose work with Wecyclers has been shaped by her evolution as a professional woman with a background, education and network that has enabled her excel in the face of social norms which emphasize men as leaders. The case dilemma involves strategy cross-roads Bilikiss faced in mid-2017 as Wecyclers considered expanding its operation, pushed beyond waste collection, pushed by infrastructural weaknesses in the landscape which forced the company to consider vertical integration of its inclusive business model as a way forward to meaningfully serving its stakeholders – from communities, corporates to agents. Expected learning outcomes • Explore the strategic contexts of doing business in emerging markets;• understand the challenges and opportunities in inclusive business model for solving a social problem such as waste management; and • Examine the growth and evolution of women’s leadership, possibilities and hurdles, in a range of contexts. Supplementary materials Teaching notes are available for educators only. Social implications In this way, the case study contributes to the limited body of knowledge about strategic and pragmatic facing social enterprises in emerging markets, including funding, community engagement, infrastructure, etc. It also gives us a view of inclusive business models and the evolution of women’s leadership. Subject code CSS 3: Entrepreneurship.

Potential of Mushroom technology as a social enterprise – The way forward

Mushroom cultivation began in India in 1952. Since then this industry has been oscillating between the myths of earning millions overnight and the ground realities of growing a non-conventional crop. The concept, which branched off as a lesser-known shoot of mycology, has taken unusually long to establish itself in India. Although mushroom science has the inherent subjective capability of a great impact on nutrition, agricultural waste management and environment cleansing; yet has been immensely underexploited in India. Social entrepreneurship is a novel movement gaining momentum around the world. It is a novel concept of modern business model which can find sustainable solutions to social, economic and environmental issues. It is a concept which believes in engaging in profitable commercial activities for mutual social and community gain. It works on the principle “Together wewin”, hence community takes precedence over individuals. Social enterprises have a strong character of creating jobs and making a socially just and inclusive business model. This is the ultimate objectiveof any scientific organization or scientific technology more so of public institutions like ICAR. Mushroom technology can be a very successful social enterprise in the Indian context where agricultural crop residues to the tune of 98 million tons/annum is burnt, where millions of youth are unemployed, where there is rampant undernourishment and ever increasing threat of climate change. A majority (53%) of social enterprises in India are focussed on skill development, followed by 30% on education, 28% in agriculture-related activities, 26% in financial and clean energy,22% in healthcare, 17% on farm livelihood, 16% food & nutrition and 14% sanitation & water.There is a need to initiate mushroom technology based social enterprise which can reduce air pollution by using crop residues to grow mushrooms rather than burn, can create employment in rural unskilled sector, can help in enhancing nutrition, bring diversity to food plate and empower women. Although sporadic examples are available in India, there is a need to increase the number of such enterprises, integrate it with government programs and develop a model in partnership with public institutions who are the technology generators.

Reimagining Corporate Social Responsibility in the Era of COVID-19: Embedding Resilience and Promoting Corporate Social Competence

The debate over corporate objectives and how companies deal with amplified existing societal inequalities and vulnerabilities has received increasing attention in recent years, especially in the wake of the COVID-19 crisis. The pandemic encouraged companies and policy makers to consider ways to develop a more enabling institutional environment, not only to tackle the ongoing crisis but also to prepare for similar future tests. Against this backdrop, the purpose of this paper is to focus on the significance and effectiveness of ex ante corporate social responsibility (CSR) law approaches in tackling the challenges brought by the pandemic. We investigate the uniqueness of the sustainable development challenges in the era of the pandemic, and introduce “corporate social competence” as a compliance principle in response to the need for forward-looking approaches to risk management and strategic planning. We use two ex ante legislative approaches in company law, namely mandatory CSR policy and legally recognised inclusive business models, as examples to illuminate the contribution of company law to navigate the pandemic beyond philanthropic CSR actions.

FORMATION OF INCLUSIVE BUSINESS THROUGH THE SOCIAL RESPONSIBILITY OF INNOVATIVE ENTERPRISES

In modern conditions, the problem of progressive socio-economic development, which provides a real increase in quality of life as a key indicator of the country's development and its competitiveness in world markets, becomes one of the priorities for the country as a whole and for enterprises in particular. The task for innovative enterprises is to choose such an optimal business model that would allow them to make a profit and at the same time act for the benefit of society while enterprises adhere to the basic principles and directions of corporate social responsibility. Inclusive business models (business models of social entrepreneurship) can act as such a business model for innovative enterprises. The aim of the article was to study the logic of inclusive business formation based on corporate social responsibility and models of social entrepreneurship and to develop the main directions of inclusive development of innovative enterprises. Research has shown that inclusive business empowers people living in poverty by adapting their core business or part of their core business to their needs. The introduction of inclusive business models can help to quickly introduce elements of corporate social responsibility or compliance with social and environmental standards by the company and support the population at the bottom of the social pyramid. The existing inclusive business models are analyzed and classified according to six features: innovation; applicability; inclusion of vulnerable populations; profitability; obtaining social and environmental effects. Because all variants of inclusive business models are innovative for enterprises, it was appropriate to identify the main areas of inclusive development of their innovation activities by four main types of innovations in their areas of use: process, product, technology and complex. To eliminate the possible destructive consequences of innovations, their negative impact on the environment, inaccessibility to remote areas and to enable the inclusion of all segments of the population in the innovation process, we have outlined the range of social responsibility of innovators. Thus, the introduction of inclusive business models will allow all parties involved to benefit from each other. Achieved synergy between the state, business, and the population, will lead to sustainable solutions, innovation, competitive advantage, better reputation, expanding market share, etc. And inclusive business, because of a developed corporate culture based on elements of compliance and corporate social responsibility, will be an effective tool for socio-economic progress both at the state level and at the business level, which can improve the quality of life.

Inclusive Business for Smallholders’ Household Food and Nutrition Security: Disconcerting Results from an Analysis of a French Bean Agri-investment in Kenya

Inclusive business is regarded as having the potential to improve food security status in the Global South. Despite increased popularity among governments, donors and other development stakeholders, little is known about the approach’s impact on smallholder farmer communities. As such, the above-mentioned inclusive business promise on food security status largely rests on assumptions. This article scrutinises a case of smallholders’ French bean production for export market in Tharaka Nithi County, Kenya. The business model adopted in the initiative is termed inclusive and is intended to enhance food and nutrition security in the community. The empirical findings show that several contextual factors—in particular, access to land and water resources—limit the participation of the majority of farmers in the community. This leads to a notable level of exclusion. Moreover, the company risks negatively influencing local food security when food crops are substituted for an export crop that is not consumed locally. Results of this article demonstrate that while private sector-led development might contribute to higher economic productivity and access to food of better quality, it rarely changes the structural causes of food and nutrition insecurity, which are oftentimes related to access to production resources. We plead for increased scrutiny of the contextual factors when designing and implementing inclusive business models.

Financial Inclusion in Emerging Markets Through Mobile Money – A Configurational Analysis

In the last decade, mobile money has financially included millions of unbanked people in emerging countries. However, neither country-level institutions nor firm-level strategies alone offer satisfactory explanations for mobile money’s successful and widespread adoption. We therefore analyze which combinations of firm- and country-level factors explain the successful adoption of mobile money services? We perform a fuzzy-set Qualitative Comparative Analysis on a sample of 96 mobile money deployments in 43 emerging countries. Our findings reveal four distinct recipes for success: ‘Oligopolists’, two variations of ‘Enabling Environments’, and ‘Fintechs’. Oligopolists can be successful irrespective of enabling institutions, if institutional voids are large. Two variations of enabling environments suggest that in most cases either enabling regulation or sufficient mobile and educational infrastructure are key for success. Lastly, a small group of fintechs are successful despite relatively developed financial services sector because the offer technologically sophisticated use cases. These findings provide recipes of how financial inclusion is most achievable in various combinations of firm- and country-level factors and they offer insights for policy makers regarding the necessary institutional framework. Furthermore, we contribute to theory by mobilizing institutional theory to demonstrate the ambiguous nature of institutions for firms with an inclusive business model.