IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i2p920-d724684.html
   My bibliography  Save this article

Legitimacy Contexts of BoP Markets: Characterization and Implications for Supply Chain Functions

Author

Listed:
  • Maryam Zomorrodi

    (Faculty of Business Administration, Memorial University, St. John’s, NL A1C 5S7, Canada)

  • Sajad Fayezi

    (Faculty of Business Administration, Memorial University, St. John’s, NL A1C 5S7, Canada)

Abstract

An important market that is receiving increasing attention by firms relates to the poorest at the Base of the Pyramid (BoP). BoP businesses contribute to the first UN Sustainable Development Goal that calls for an end to poverty in all its manifestations. BoP businesses are regarded as financially and socially beneficial for both participating firms and poor communities. It is, however, understood that success in BoP markets cannot (and should not) be assumed, as it demands a profoundly different view towards managing supply chains. Focusing on this issue, our conceptual study contributes to the emerging debates in BoP and supply chain management research by elaborating the notion of legitimacy contexts (LCs) at BoP. We draw on institutional theory to characterize the LCs in BoP markets and discuss their implications for key supply chain functions. We argue that firms often design their supply chain functions for BoP business using their own LCs as opposed to those of BoP actors. This implies ignoring the institutional distance between BoP markets and firms and reveals a key culprit in the failure of BoP projects. We offer practical implications for firms intending to engage in BoP business.

Suggested Citation

  • Maryam Zomorrodi & Sajad Fayezi, 2022. "Legitimacy Contexts of BoP Markets: Characterization and Implications for Supply Chain Functions," Sustainability, MDPI, vol. 14(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:920-:d:724684
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/2/920/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/2/920/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Kolk, Ans & van Tulder, Rob, 2010. "International business, corporate social responsibility and sustainable development," International Business Review, Elsevier, vol. 19(2), pages 119-125, April.
    3. Bucher, Silke & Jäger, Urs & Prado, Andrea M., 2016. "Scaling private health care for the base of the pyramid: Expanding versus broadening service offerings in developing nations," Journal of Business Research, Elsevier, vol. 69(2), pages 736-750.
    Full references (including those not matched with items on IDEAS)

    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. González-Rodríguez, M. Rosario & Díaz-Fernández, M. Carmen & Simonetti, Biagio, 2015. "The social, economic and environmental dimensions of corporate social responsibility: The role played by consumers and potential entrepreneurs," International Business Review, Elsevier, vol. 24(5), pages 836-848.
    2. Ron Bird & Francesco Momenté & Francesco Reggiani, 2012. "The market acceptance of corporate social responsibility: a comparison across six countries/regions," Australian Journal of Management, Australian School of Business, vol. 37(2), pages 153-168, August.
    3. Riikkinen, Rilana & Kauppi, Katri & Salmi, Asta, 2017. "Learning Sustainability? Absorptive capacities as drivers of sustainability in MNCs’ purchasing," International Business Review, Elsevier, vol. 26(6), pages 1075-1087.
    4. Sjauw-Koen-Fa, August R. & Omta, S.W.F. (Onno) & Blok, Vincent, 2018. "Constructing a Multinationals’ Inclusive Sourcing Indicator for Impacting Farmer Business Models: Application in Cocoa Cases," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(3), June.
    5. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    6. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    7. Ivan Montiel & Junghoon Park & Bryan W. Husted & Andres Velez-Calle, 2022. "Tracing the connections between international business and communicable diseases," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1785-1804, October.
    8. Elisa Giuliani, 2016. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," Journal of Business Ethics, Springer, vol. 133(1), pages 39-54, January.
    9. Santangelo, Grazia D., 2018. "The impact of FDI in land in agriculture in developing countries on host country food security," Journal of World Business, Elsevier, vol. 53(1), pages 75-84.
    10. Yingqi Wei & Sasa Ding & Ziko Konwar, 2022. "The two faces of FDI in environmental performance: a meta-analysis of empirical evidence in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(1), pages 65-94, January.
    11. Patrick Velte & Martin Stawinoga, 2017. "Empirical research on corporate social responsibility assurance (CSRA): A literature review," Journal of Business Economics, Springer, vol. 87(8), pages 1017-1066, November.
    12. Kristin Hah & Susan Freeman, 2014. "Multinational Enterprise Subsidiaries and their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies," Journal of Business Ethics, Springer, vol. 122(1), pages 125-136, June.
    13. Karthik Balasubramanian & David F. Drake, 2015. "Service Quality, Inventory and Competition: An Empirical Analysis of Mobile Money Agents in Africa," Harvard Business School Working Papers 15-059, Harvard Business School, revised Oct 2015.
    14. Andreea-Angela ?EULEAN (VON?EA), 2019. "Cause-Related Marketing Under The Lens Of Fundraising Methods," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(2), pages 5-13, June.
    15. Görg, Holger & Hanley, Aoife & Hoffmann, Stefan & Seric, Adnan, 2016. "When Do Multinational Companies Consider Corporate Social Responsibility? A Multi-Country Study in Sub-Saharan Africa," KCG Working Papers 1, Kiel Centre for Globalization (KCG).
    16. Christian Schwens & Marcus Wagner, 2019. "The role of firm-internal corporate environmental standards for organizational performance," Journal of Business Economics, Springer, vol. 89(7), pages 823-843, September.
    17. Monika Spychalska-Wojtkiewicz, 2020. "The Relation between Sustainable Development Trends and Customer Value Management," Sustainability, MDPI, vol. 12(14), pages 1-18, July.
    18. Giang N. T. Nguyen & Tapan Sarker, 2018. "Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-17, December.
    19. Monika Klein & Monika Spychalska-Wojtkiewicz, 2022. "The Role of Design Management in Creation of Sustainable Business Models," Energies, MDPI, vol. 15(15), pages 1-17, July.
    20. Lasse Torkkeli & Susanne Durst, 2022. "Corporate Social Responsibility of SMEs: Learning Orientation and Performance Outcomes," Sustainability, MDPI, vol. 14(11), pages 1-12, May.

    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:gam:jsusta:v:14:y:2022:i:2:p:920-:d:724684. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.