IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i7p1321-1333.html
   My bibliography  Save this article

Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors

Author

Listed:
  • Hahn, Rüdiger
  • Gold, Stefan

Abstract

Identifying, building, and maintaining partnerships with non-business actors are crucial challenges for multinational companies (MNCs) when implementing Base of the Pyramid (BoP) projects. Using a multiple-case study we analyze such partnerships through the lens of the relational view, focusing on resources generating inter-organizational value and on mechanisms for governing the partnerships. The cross-case analysis suggests that proficiency in identifying appropriate partners featuring non-tangible synergy-sensitive resources is vital for BoP ventures. MNCs compensate for their lack of local knowledge, contacts, and legitimacy by recruiting non-business actors for this consultancy and brokering function. Once a suitable network of partners has been identified, these resources need to be explored and exploited by developing personal relationships, communication routines, common goals, and partner-specific capacity building. Synergy-sensitive resources facilitate performance and long-term maintenance of BoP partnerships by establishing well-adapted and well-informed management practice and by creating a lock-in that works as an informal self-enforcing governance mechanism.

Suggested Citation

  • Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
  • Handle: RePEc:eee:jbrese:v:67:y:2014:i:7:p:1321-1333
    DOI: 10.1016/j.jbusres.2013.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296313003299
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2013.09.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Justin W. Webb & Geoffrey M. Kistruck & R. Duane Ireland & David J. Ketchen Jr., 2010. "The Entrepreneurship Process in Base of the Pyramid Markets: The Case of Multinational Enterprise/Nongovernment Organization Alliances," Entrepreneurship Theory and Practice, , vol. 34(3), pages 555-581, May.
    2. Miguel Rivera-Santos & Carlos Rufín, 2010. "Odd Couples: Understanding the Governance of Firm–NGO Alliances," Journal of Business Ethics, Springer, vol. 94(1), pages 55-70, July.
    3. London, Ted & Anupindi, Ravi & Sheth, Sateen, 2010. "Creating mutual value: Lessons learned from ventures serving base of the pyramid producers," Journal of Business Research, Elsevier, vol. 63(6), pages 582-594, June.
    4. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    5. Hildy Teegen & Jonathan P Doh & Sushil Vachani, 2004. "The importance of nongovernmental organizations (NGOs) in global governance and value creation: an international business research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 463-483, November.
    6. Rivera-Santos, Miguel & Rufín, Carlos, 2010. "Global village vs. small town: Understanding networks at the Base of the Pyramid," International Business Review, Elsevier, vol. 19(2), pages 126-139, April.
    7. Bertrand Moingeon & Muhammad Yunus & Laurence Lehmann-Ortega, 2010. "Building Social Business Models: Lessons from the Grameen Experience," Post-Print hal-00528385, HAL.
    8. Elaydi, Raed & Harrison, Charles, 2010. "Strategic motivations and choice in subsistence markets," Journal of Business Research, Elsevier, vol. 63(6), pages 651-655, June.
    9. Matanda, Margaret Jekanyika & Freeman, Susan, 2009. "Effect of perceived environmental uncertainty on exporter-importer inter-organisational relationships and export performance improvement," International Business Review, Elsevier, vol. 18(1), pages 89-107, February.
    10. Erik-Hans Klijn & Geert R. Teisman, 2003. "Institutional and Strategic Barriers to Public—Private Partnership: An Analysis of Dutch Cases," Public Money & Management, Taylor & Francis Journals, vol. 23(3), pages 137-146, July.
    11. M.-J. Avenier, 2010. "Shaping a Constructivist view of Organizational Design Science," Post-Print halshs-00554739, HAL.
    12. Gold, Stefan & Hahn, Rüdiger & Seuring, Stefan, 2013. "Sustainable supply chain management in “Base of the Pyramid” food projects—A path to triple bottom line approaches for multinationals?," International Business Review, Elsevier, vol. 22(5), pages 784-799.
    13. Dirk De Clercq & Harry J. Sapienza, 2001. "The creation of relational rents in venture capitalist-entrepreneur dyads," Venture Capital, Taylor & Francis Journals, vol. 3(2), pages 107-127, April.
    14. Glenn Hoetker & Thomas Mellewigt, 2009. "Choice and performance of governance mechanisms: matching alliance governance to asset type," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1025-1044, October.
    15. Sakarya, Sema & Bodur, Muzaffer & Yildirim-Öktem, Özlem & Selekler-Göksen, Nisan, 2012. "Social alliances: Business and social enterprise collaboration for social transformation," Journal of Business Research, Elsevier, vol. 65(12), pages 1710-1720.
    16. Prashant Kale & Harbir Singh & Howard Perlmutter, 2000. "Learning and protection of proprietary assets in strategic alliances: building relational capital," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 217-237, March.
    17. Petrick, Martin & Gramzow, Andreas, 2012. "Harnessing Communities, Markets and the State for Public Goods Provision: Evidence from Post-Socialist Rural Poland," World Development, Elsevier, vol. 40(11), pages 2342-2354.
    18. Doh, Jonathan P. & Teegen, Hildy, 2002. "Nongovernmental organizations as institutional actors in international business: theory and implications," International Business Review, Elsevier, vol. 11(6), pages 665-684, December.
    19. Matthew Murphy & François Perrot & Miguel Rivera-Santos, 2012. "New perspectives on learning and innovation in cross-sector collaborations," Post-Print hal-02313075, HAL.
    20. Rüdiger Hahn, 2009. "The Ethical Rational of Business for the Poor – Integrating the Concepts Bottom of the Pyramid, Sustainable Development, and Corporate Citizenship," Journal of Business Ethics, Springer, vol. 84(3), pages 313-324, February.
    21. Rivera-Santos, Miguel & Rufín, Carlos & Kolk, Ans, 2012. "Bridging the institutional divide: Partnerships in subsistence markets," Journal of Business Research, Elsevier, vol. 65(12), pages 1721-1727.
    22. Toby E. Stuart, 2000. "Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high‐technology industry," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 791-811, August.
    23. Stephan Duschek, 2004. "Inter-Firm Resources and Sustained Competitive Advantage," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 15(1), pages 53-73.
    24. Vachani, Sushil & Doh, Jonathan P. & Teegen, Hildy, 2009. "NGOs' influence on MNEs' social development strategies in varying institutional contexts: A transaction cost perspective," International Business Review, Elsevier, vol. 18(5), pages 446-456, October.
    25. De Vita, Glauco & Tekaya, Arafet & Wang, Catherine L., 2010. "Asset specificity's impact on outsourcing relationship performance: A disaggregated analysis by buyer-supplier asset specificity dimensions," Journal of Business Research, Elsevier, vol. 63(7), pages 657-666, July.
    26. Erik Simanis & Stuart Hart & Duncan Duke, 2008. "The Base of the Pyramid Protocol: Beyond "Basic Needs" Business Strategies," Innovations: Technology, Governance, Globalization, MIT Press, vol. 3(1), pages 57-84, January.
    27. Nielsen, Bo Bernhard, 2007. "Determining international strategic alliance performance: A multidimensional approach," International Business Review, Elsevier, vol. 16(3), pages 337-361, June.
    28. Lui, Steven S. & Wong, Yin-yee & Liu, Weiping, 2009. "Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?," Journal of Business Research, Elsevier, vol. 62(11), pages 1214-1219, November.
    29. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    30. Van den waeyenberg, Sofie & Hens, Luc, 2012. "Overcoming institutional distance: Expansion to base-of-the-pyramid markets," Journal of Business Research, Elsevier, vol. 65(12), pages 1692-1699.
    31. M. J. Avenier, 2010. "Shaping a Constructivist View of Organizational Design Science," Post-Print halshs-00881109, HAL.
    32. Murphy, Matthew & Perrot, Francois & Rivera-Santos, Miguel, 2012. "New perspectives on learning and innovation in cross-sector collaborations," Journal of Business Research, Elsevier, vol. 65(12), pages 1700-1709.
    33. Soekijad, Maura & Andriessen, Erik, 2003. "Conditions for Knowledge Sharing in Competitive Alliances," European Management Journal, Elsevier, vol. 21(5), pages 578-587, October.
    34. M.-J. Avenier, 2010. "Shaping A Constructivist View Of Organizational Design Science," Post-Print halshs-00526730, HAL.
    35. Kassarjian, Harold H, 1977. "Content Analysis in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 4(1), pages 8-18, June.
    36. Stephan Duschek, 2004. "Inter-Firm Resources and Sustained Competitive Advantage," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 53-73.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reiner, Gerald & Gold, Stefan & Hahn, Rüdiger, 2015. "Wealth and health at the Base of the Pyramid: Modelling trade-offs and complementarities for fast moving dairy product case," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 413-421.
    2. Wendy L. Tate & Lydia Bals, 2018. "Achieving Shared Triple Bottom Line (TBL) Value Creation: Toward a Social Resource-Based View (SRBV) of the Firm," Journal of Business Ethics, Springer, vol. 152(3), pages 803-826, October.
    3. ManMohan S. Sodhi & James Knuckles, 2021. "Development‐Aid Supply Chains for Economic Development and Post‐Disaster Recovery," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4412-4434, December.
    4. Kate Roll & Catherine Dolan & Dinah Rajak, 2021. "Remote (Dis)engagement: Shifting Corporate Risk to the ‘Bottom of the Pyramid’," Development and Change, International Institute of Social Studies, vol. 52(4), pages 878-901, July.
    5. Christiana Weber & Kathrin Weidner & Arne Kroeger & James Wallace, 2017. "Social Value Creation in Inter-Organizational Collaborations in the Not-for-Profit Sector – Give and Take from a Dyadic Perspective," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 929-956, September.
    6. Addisu A. Lashitew & Lydia Bals & Rob Tulder, 2020. "Inclusive Business at the Base of the Pyramid: The Role of Embeddedness for Enabling Social Innovations," Journal of Business Ethics, Springer, vol. 162(2), pages 421-448, March.
    7. Jorge A. Rodríguez & Cristina Giménez Thomsen & Daniel Arenas & Mark Pagell, 2016. "NGOs’ Initiatives to Enhance Social Sustainability in the Supply Chain: Poverty Alleviation through Supplier Development Programs," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(3), pages 83-108, July.
    8. Scott, Inara, 2017. "A business model for success: Enterprises serving the base of the pyramid with off-grid solar lighting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 50-55.
    9. Raja Usman Khalid & Stefan Seuring, 2019. "Analyzing Base-of-the-Pyramid Research from a (Sustainable) Supply Chain Perspective," Journal of Business Ethics, Springer, vol. 155(3), pages 663-686, March.
    10. Rosca, Eugenia & Bendul, Julia C., 2019. "Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes," International Business Review, Elsevier, vol. 28(1), pages 162-176.
    11. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raja Usman Khalid & Stefan Seuring, 2019. "Analyzing Base-of-the-Pyramid Research from a (Sustainable) Supply Chain Perspective," Journal of Business Ethics, Springer, vol. 155(3), pages 663-686, March.
    2. Tassilo Schuster & Dirk Holtbrügge, 2014. "Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 188-203, March.
    3. Gold, Stefan & Hahn, Rüdiger & Seuring, Stefan, 2013. "Sustainable supply chain management in “Base of the Pyramid” food projects—A path to triple bottom line approaches for multinationals?," International Business Review, Elsevier, vol. 22(5), pages 784-799.
    4. Simon Joncourt & Heiko Gebauer & Javier Reynoso & Karla Cabrera & Ana Valdes & Katharina Greve, 2019. "Extending the Base-of-the-Pyramid Concept," Service Science, INFORMS, vol. 11(3), pages 241-261, October.
    5. Rosca, Eugenia & Bendul, Julia C., 2019. "Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes," International Business Review, Elsevier, vol. 28(1), pages 162-176.
    6. 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.
    7. Matthew Murphy & Daniel Arenas & Joan Batista, 2015. "Value Creation in Cross-Sector Collaborations: The Roles of Experience and Alignment," Journal of Business Ethics, Springer, vol. 130(1), pages 145-162, August.
    8. Christiana Weber & Helen Haugh & Markus Göbel & Hannes Leonardy, 2022. "Pathways to Lasting Cross-Sector Social Collaboration: A Configurational Study," Journal of Business Ethics, Springer, vol. 177(3), pages 613-639, May.
    9. Kumar, Avinash & Kumra, Rajeev & Singh, Ramendra, 2022. "Base of the pyramid producers’ constraints: An integrated review and research agenda," Journal of Business Research, Elsevier, vol. 140(C), pages 115-129.
    10. Scott, Inara, 2017. "A business model for success: Enterprises serving the base of the pyramid with off-grid solar lighting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 50-55.
    11. Angeli, Federica & Jaiswal, Anand Kumar & Shrivastava, Saumya, 2022. "Integrating poverty alleviation and environmental protection efforts: A socio-ecological perspective on menstrual health management," Social Science & Medicine, Elsevier, vol. 314(C).
    12. Murphy, Matthew & Perrot, Francois & Rivera-Santos, Miguel, 2012. "New perspectives on learning and innovation in cross-sector collaborations," Journal of Business Research, Elsevier, vol. 65(12), pages 1700-1709.
    13. Aman, Sadaf & Seuring, Stefan, 2022. "Interestingly it's innovation: Reviewing sustainability performance management in the base of the pyramid (BoP)," Technovation, Elsevier, vol. 112(C).
    14. Reiner, Gerald & Gold, Stefan & Hahn, Rüdiger, 2015. "Wealth and health at the Base of the Pyramid: Modelling trade-offs and complementarities for fast moving dairy product case," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 413-421.
    15. Stefan Gold & Ilma Nur Chowdhury & Fahian Anisul Huq & Kristin Heinemann, 2020. "Social business collaboration at the bottom of the pyramid: The case of orchestration," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 262-275, January.
    16. Raphaël Maucuer & Alexandre Renaud, 2019. "Company’s Business Models and NGOs: Inputs from the Partnerships Portfolio [Business models de l’entreprise et ONG : contributions du portefeuille de partenariats]," Post-Print hal-02062146, HAL.
    17. Thomas André, 2014. "Corporate Social Responsibility Boosts Value Creation at the Base of the Pyramid," Working Papers hal-00989791, HAL.
    18. Raphaël Maucuer & Alexandre Renaud, 2019. "Company's Business Models and NGOs: Inputs from the Partnerships Portfolio," Post-Print hal-02403835, HAL.
    19. Sommeno, Tigist Woldetsadik & Mersland, Roy & Randøy, Trond, 2024. "The impact of liability of foreignness on performance in hybrid organizations," Journal of International Management, Elsevier, vol. 30(2).
    20. Daniel Arenas & Pablo Sanchez & Matthew Murphy, 2013. "Different Paths to Collaboration Between Businesses and Civil Society and the Role of Third Parties," Journal of Business Ethics, Springer, vol. 115(4), pages 723-739, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:7:p:1321-1333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.