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The creation view of opportunities at the base of the pyramid

Author

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  • Misagh Tasavori
  • Reza Zaefarian
  • Pervez N. Ghauri

Abstract

This research aims to understand how multinational corporations (MNCs) enter the base of the pyramid (BoP) by adopting the creation view of opportunities. We employ actor-network theory and explore the key actors, the process and the opportunity development that enable MNCs to tackle the relative poverty of the BoP market. Our qualitative exploratory case study illustrates that, at the BoP, MNCs have to involve beneficiary stakeholders such as non-governmental organizations and BoP communities. In this process, they should be open to modifying their business model continuously to build awareness about the product among the poor and ensure affordability, availability and acceptability. At the BoP, opportunities do not exist in the external environment and they should be developed by identifying and addressing the real needs of the poor, enhancing their quality of life and being patient about earning a profit. This research contributes to the entrepreneurship literature by expanding the creation perspective of opportunities and provides implications for the managers of companies targeting the BoP market.

Suggested Citation

  • Misagh Tasavori & Reza Zaefarian & Pervez N. Ghauri, 2015. "The creation view of opportunities at the base of the pyramid," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 27(1-2), pages 106-126, January.
    • Handle: RePEc:taf:entreg:v:27:y:2015:i:1-2:p:106-126
    DOI: 10.1080/08985626.2014.1002538
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    Cited by:

    1. Fregidou-Malama, Maria & Hyder, Akmal S., 2021. "Multilevel trust in international marketing of healthcare services: A five-country comparative study," International Business Review, Elsevier, vol. 30(6).
    2. Peter Rodgers & Peter Stokes & Shlomo Tarba & Zaheer Khan, 2019. "The Role of Non-market Strategies in Establishing Legitimacy: The Case of Service MNEs in Emerging Economies," Management International Review, Springer, vol. 59(4), pages 515-540, August.
    3. 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.
    4. Ghauri, Pervez & Fu, Xiaolan & Minayora, Amorettya, 2022. "Digital technology-based entrepreneurial pursuit of the marginalised communities," Journal of International Management, Elsevier, vol. 28(2).
    5. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    6. Mario Pansera & Soumodip Sarkar, 2016. "Crafting Sustainable Development Solutions: Frugal Innovations of Grassroots Entrepreneurs," Sustainability, MDPI, vol. 8(1), pages 1-25, January.

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