IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v15y2018i04ns0219877018500359.html
   My bibliography  Save this article

Toward an Enterprise Growth Framework for Entering the Base of the Pyramid Market: A Systematic Review

Author

Listed:
  • Michael D. van der Merwe

    (Department of Industrial Engineering, Stellenbosch University, Joubert Rd, Stellenbosch, 7600, South Africa)

  • Sara S. Grobbelaar

    (Department of Industrial Engineering, Stellenbosch University, Joubert Rd, AND DST-NRF Centre of Excellence in Scientometrics and Science Technology and Innovation Policy (SciSTIP), Stellenbosch, 7600, South Africa)

  • Cornelius S. L. Schutte

    (Department of Industrial Engineering, Stellenbosch University, Joubert Rd, Stellenbosch, 7600, South Africa)

  • Konrad H. von Leipzig

    (Department of Industrial Engineering, Stellenbosch University, Joubert Rd, Stellenbosch, 7600, South Africa)

Abstract

Enterprise growth has long been viewed as a strong success indicator. The literature on enterprise growth is however fragmented. This paper determines the major factors identified in the literature that can be attributed for promoting enterprise growth, linking them to success criteria for for-profit enterprises operating at the base of the pyramid (BOP) market. The rationale behind enterprises entering the BOP is the simultaneous alleviation of poverty and generation of profits. Via a grounded theory (qualitative analysis) approach, 25 enterprise growth factors were identified and the internal, business strategy related, start-up phase influencing factors were applied to BOP oriented enterprises, culminating in an operational framework.

Suggested Citation

  • Michael D. van der Merwe & Sara S. Grobbelaar & Cornelius S. L. Schutte & Konrad H. von Leipzig, 2018. "Toward an Enterprise Growth Framework for Entering the Base of the Pyramid Market: A Systematic Review," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-34, August.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:04:n:s0219877018500359
    DOI: 10.1142/S0219877018500359
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219877018500359
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219877018500359?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. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Christopher Foster & Richard Heeks, 2013. "Conceptualising Inclusive Innovation: Modifying Systems of Innovation Frameworks to Understand Diffusion of New Technology to Low-Income Consumers," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(3), pages 333-355, July.
    4. Dani Rodrik, 2006. "Institutions for High-Quality Growth: What They Are and How to Acquire Them," Chapters, in: Kartik Roy & Jörn Sideras (ed.), Institutions, Globalisation and Empowerment, chapter 2, Edward Elgar Publishing.
    5. Robert E. Lucas, 2009. "Ideas and Growth," Economica, London School of Economics and Political Science, vol. 76(301), pages 1-19, February.
    6. Wilfred Dolfsma & Geert Duysters & Ionara Costa (ed.), 2009. "Multinationals and Emerging Economies," Books, Edward Elgar Publishing, number 13213.
    7. Robert M. Solow, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter.
    8. Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(1), pages 1-80, November.
    9. Delmar, Frédéric & McKelvie, Alexander & Wennberg, Karl, 2013. "Untangling the relationships among growth, profitability and survival in new firms," Ratio Working Papers 205, The Ratio Institute.
    10. Ramani, Shyama V. & SadreGhazi, Shuan & Duysters, Geert, 2012. "On the diffusion of toilets as bottom of the pyramid innovation: Lessons from sanitation entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 79(4), pages 676-687.
    11. Christopher Foster & Richard Heeks, 2014. "Nurturing user-producer interaction: inclusive innovation flows in a low-income mobile phone market," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 221-237, October.
    12. Philippe Aghion & Patrick Bolton, 1997. "A Theory of Trickle-Down Growth and Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 151-172.
    13. Simon Johnson & Jonathan D Ostry & Arvind Subramanian, 2010. "Prospects for Sustained Growth in Africa: Benchmarking the Constraints," IMF Staff Papers, Palgrave Macmillan, vol. 57(1), pages 119-171, April.
    14. Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
    15. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    16. Nicolas Dahan & Jonathan P. Doh & Jennifer Oetzel & Michael Yaziji, 2010. "Corporate-NGO Collaboration: Co-creating New Business Models for Developing Markets," Post-Print hal-00565517, HAL.
    17. Susan Cozzens & Judith Sutz, 2014. "Innovation in informal settings: reflections and proposals for a research agenda," Innovation and Development, Taylor & Francis Journals, vol. 4(1), pages 5-31, April.
    18. Mariano Fressoli & Elisa Arond & Dinesh Abrol & Adrian Smith & Adrian Ely & Rafael Dias, 2014. "When grassroots innovation movements encounter mainstream institutions: implications for models of inclusive innovation," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 277-292, October.
    19. Davidsson, Per & Achtenhagen, Leona & Naldi, Lucia, 2010. "Small Firm Growth," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 6(2), pages 69-166, May.
    20. Aghaei Chadegani, Arezoo & Salehi, Hadi & Md Yunus, Melor & Farhadi, Hadi & Fooladi, Masood & Farhadi, Maryam & Ale Ebrahim, Nader, 2013. "A Comparison between Two Main Academic Literature Collections: Web of Science and Scopus Databases," MPRA Paper 46898, University Library of Munich, Germany, revised 18 Mar 2013.
    21. Beth Cullen & Josephine Tucker & Katherine Snyder & Zelalem Lema & Alan Duncan, 2014. "An analysis of power dynamics within innovation platforms for natural resource management," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 259-275, October.
    22. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    23. Alex Coad, 2009. "The Growth of Firms," Books, Edward Elgar Publishing, number 13424.
    24. Davidsson, Per & Steffens, Paul & Fitzsimmons, Jason, 2009. "Growing profitable or growing from profits: Putting the horse in front of the cart?," Journal of Business Venturing, Elsevier, vol. 24(4), pages 388-406, July.
    25. James Stewart & Sampsa Hyysalo, 2008. "Intermediaries, Users And Social Learning In Technological Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 295-325.
    26. Aneel Karnani, 2006. "Mirage at the Bottom of the Pyramid," William Davidson Institute Working Papers Series wp835, William Davidson Institute at the University of Michigan.
    27. Daly, Herman E., 1990. "Toward some operational principles of sustainable development," Ecological Economics, Elsevier, vol. 2(1), pages 1-6, April.
    28. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    29. J.J. Voeten & W.A. Naud�, 2014. "Regulating the negative externalities of enterprise cluster innovations: lessons from Vietnam," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 203-219, October.
    30. Theo Papaioannou, 2014. "How inclusive can innovation and development be in the twenty-first century?," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 187-202, October.
    31. Madhu Viswanathan & Srinivas Sridharan & Robin Ritchie, 2008. "Marketing in Subsistence Marketplaces," Palgrave Macmillan Books, in: Charles Wankel (ed.), Alleviating Poverty through Business Strategy, chapter 0, pages 209-231, Palgrave Macmillan.
    32. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    33. 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.
    34. 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.
    35. Kees Swaans & Birgit Boogaard & Ramkumar Bendapudi & Hailemichael Taye & Saskia Hendrickx & Laurens Klerkx, 2014. "Operationalizing inclusive innovation: lessons from innovation platforms in livestock value chains in India and Mozambique," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 239-257, October.
    36. Richard Heeks & Christopher Foster & Yanuar Nugroho, 2014. "New models of inclusive innovation for development," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 175-185, October.
    37. Barringer, Bruce R. & Jones, Foard F. & Neubaum, Donald O., 2005. "A quantitative content analysis of the characteristics of rapid-growth firms and their founders," Journal of Business Venturing, Elsevier, vol. 20(5), pages 663-687, September.
    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. Michael D. van der Merwe & Sara S. Grobbelaar & Isabel A. Meyer & Cornelius S.L. Schutte & Konrad H. von Leipzig, 2020. "A Framework of Key Growth Factors for Small Enterprises Operating at the Base of the Pyramid," Sustainability, MDPI, vol. 12(22), pages 1-33, November.
    2. Mariana Voros Fregolente & Marly M. Carvalho, 2023. "Exploring BoP Generations through Business Model Innovation Lens: A Review and Framing," Sustainability, MDPI, vol. 15(17), pages 1-37, August.
    3. 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.
    4. Frederick Robert Peter Edlmann & Sara Grobbelaar, 2021. "A Framework of Engagement Practices for Stakeholders Collaborating around Complex Social Challenges," Sustainability, MDPI, vol. 13(19), pages 1-35, 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. Michael D. van der Merwe & Sara S. Grobbelaar & Isabel A. Meyer & Cornelius S.L. Schutte & Konrad H. von Leipzig, 2020. "A Framework of Key Growth Factors for Small Enterprises Operating at the Base of the Pyramid," Sustainability, MDPI, vol. 12(22), pages 1-33, November.
    2. Haenssgen, Marco J., 2018. "The struggle for digital inclusion: Phones, healthcare, and marginalisation in rural India," World Development, Elsevier, vol. 104(C), pages 358-374.
    3. Mario Pansera & Fabien Martinez, 2017. "Innovation for development and poverty reduction: an integrative literature review," Post-Print hal-02887777, HAL.
    4. 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.
    5. Gupta, Suraksha & Kanungo, Rama Prasad, 2022. "Financial inclusion through digitalisation: Economic viability for the bottom of the pyramid (BOP) segment," Journal of Business Research, Elsevier, vol. 148(C), pages 262-276.
    6. Yunhui Zhao & Zhimin Wang & Taiwen Feng & Ting Kong & Qiansong Zhang, 2022. "Organizational unlearning and inclusive innovation: The moderating role of green control ambidexterity," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 539-555, August.
    7. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 293-327, February.
    8. Alex Coad & Stjepan Srhoj, 2020. "Catching Gazelles with a Lasso: Big data techniques for the prediction of high-growth firms," Small Business Economics, Springer, vol. 55(3), pages 541-565, October.
    9. Yuji Honjo, 2018. "Do profitable start-up firms grow faster? Evidence from Colombia," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 727-754, March.
    10. Ndege, Nora & Marshall, Fiona & Byrne, Rob, 2024. "Exploring inclusive innovation: A case study in operationalizing inclusivity in digital agricultural innovations in Kenya," Agricultural Systems, Elsevier, vol. 219(C).
    11. Florian Leon, 2019. "The elusive quest for high- growth firms in Africa: The (lack of) growth persistence in Senegal," Working Papers hal-02493326, HAL.
    12. Vavilov, Stanislav & Manning, Stephan, 2024. "How entrepreneurial ecosystems support the formation of international base-of-the-pyramid ventures: The case of Boston," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    13. Alex Coad & Marc Cowling & Josh Siepel, 2017. "Growth processes of high-growth firms as a four-dimensional chicken and egg," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 537-554.
    14. Amavilah, Voxi Heinrich, 2014. "Human Knowledge and a Commonsensical Measure of Human Capital: A Proposal," MPRA Paper 57670, University Library of Munich, Germany.
    15. Mario Pansera & Soumodip Sarkar, 2016. "Crafting Sustainable Development Solutions: Frugal Innovations of Grassroots Entrepreneurs," Sustainability, MDPI, vol. 8(1), pages 1-25, January.
    16. Lee, Neil, 2023. "Inclusive innovation in cities: from buzzword to policy," LSE Research Online Documents on Economics 117818, London School of Economics and Political Science, LSE Library.
    17. 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.
    18. Amavilah, Voxi Heinrich, 2014. "Knowledge = Technology + Human Capital and the Lucas and Romer Production Functions," MPRA Paper 58847, University Library of Munich, Germany.
    19. Sorin Celea & Petre Brezeanu & Ana Petrina Păun, 2013. "Fiscal Discipline within the EU: Comparative Analysis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(2), pages 23-30.
    20. Florian Léon, 2022. "The elusive quest for high-growth firms in Africa: when other metrics of performance say nothing," Small Business Economics, Springer, vol. 58(1), pages 225-246, January.

    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:wsi:ijitmx:v:15:y:2018:i:04:n:s0219877018500359. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    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.