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Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP)

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  • Virgilio Panapanaan
  • Tytti Bruce
  • Terhi Virkki‐Hatakka
  • Lassi Linnanen

Abstract

This study was conducted to analyze the shared and sustainable value creation (SSVC) of 33 energy companies selling energy solutions at the base of the pyramid (BoP) markets. SSVC by selling energy technology solutions directed to address the cooking and lighting needs of BoP consumers were the main focus of analysis. Result showed that achieving profitability and affordability is affected by the kind of energy solution that is offered as well as the investment and level of commitment required. However, companies that fulfilled the profitable and affordable solutions were also able to deliver social and environmental sustainability benefits. Social sustainability benefits point to the ability of alleviating poverty by improving productivity or offering cost‐savings. Environmental sustainability benefits point to the energy savings. The findings show that inclusive business strategy is not necessarily required to reach the poor people profitably but a suitable business strategy depends on the type of energy solution. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Virgilio Panapanaan & Tytti Bruce & Terhi Virkki‐Hatakka & Lassi Linnanen, 2016. "Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP)," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 293-309, July.
    • Handle: RePEc:bla:bstrat:v:25:y:2016:i:5:p:293-309
    DOI: 10.1002/bse.1866
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    References listed on IDEAS

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    3. Howell, Rachel & van Beers, Cees & Doorn, Neelke, 2018. "Value capture and value creation: The role of information technology in business models for frugal innovations in Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 227-239.
    4. Zviemurwi J. Chihambakwe & Sara S. (Saartjie) Grobbelaar & Stephen Matope, 2021. "Creating Shared Value in BoP Communities with Micro-Manufacturing Factories: A Systematized Literature Review," Sustainability, MDPI, vol. 13(18), pages 1-22, September.
    5. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    6. Migliavacca, Milena & Patel, Ritesh & Paltrinieri, Andrea & Goodell, John W., 2022. "Mapping impact investing: A bibliometric analysis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    7. Anton Shevchenko & Xiaodan Pan & Goran Calic, 2020. "Exploring the effect of environmental orientation on financial decisions of businesses at the bottom of the pyramid: Evidence from the microlending context," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1876-1886, July.

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