IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00771299.html
   My bibliography  Save this paper

Organizational Challenges of Multinational Corporations at the Base of the Pyramid: An Action-research Inquiry

Author

Listed:
  • François Perrot

    (X - École polytechnique - IP Paris - Institut Polytechnique de Paris)

Abstract

To what extent and how does a multinational corporation adapt its strategy and organizational capabilities in order to address markets at the Base of the Pyramid? This paper builds on the results of a three-year action-research program conducted with Lafarge, a global building materials company and introduces a strategic framework which opposes two types of approaches of such markets: a licence-to-operate approach, and a business opportunityseeking approach. The article analyzes how the company moved from the first to the second approach and discusses the implications in terms of organizational capabilities of with each approach.

Suggested Citation

  • François Perrot, 2013. "Organizational Challenges of Multinational Corporations at the Base of the Pyramid: An Action-research Inquiry," Working Papers hal-00771299, HAL.
  • Handle: RePEc:hal:wpaper:hal-00771299
    Note: View the original document on HAL open archive server: https://hal.science/hal-00771299
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00771299/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Diane-Laure Arjaliès & Jean-Pierre Ponssard, 2010. "A Managerial Perspective on the Porter Hypothesis: The Case of CO2 Emissions," Post-Print hal-00575584, HAL.
    2. Sidney G. Winter & Gabriel Szulanski, 2001. "Replication as Strategy," Organization Science, INFORMS, vol. 12(6), pages 730-743, December.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    5. 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.
    6. Patricia Crifo & Jean-Pierre Ponssard, 2010. "Corporate Social Responsibility: From Compliance to Opportunity?," Post-Print hal-00512337, HAL.
    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. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.
    2. Thomas André & Jean-Pierre Ponssard, 2015. "Managing Base of the Pyramid as a Business Opportunity : A Longitudinal Field Study," Working Papers hal-01221651, HAL.

    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. François Perrot, 2017. "Multinational Corporations’ Strategies at the Base of the Pyramid: An Action Research Inquiry," Journal of Business Ethics, Springer, vol. 146(1), pages 59-76, November.
    2. Centobelli, Piera & Cerchione, Roberto & Esposito, Emilio & Shashi,, 2019. "Exploration and exploitation in the development of more entrepreneurial universities: A twisting learning path model of ambidexterity," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 172-194.
    3. Luciana D’Adderio, 2014. "The Replication Dilemma Unravelled: How Organizations Enact Multiple Goals in Routine Transfer," Organization Science, INFORMS, vol. 25(5), pages 1325-1350, October.
    4. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    5. TINA M. Jose Vega & Dennis M. López, 2012. "Evaluating The Effect Of Industry Specialist Duration On Audit Quality And Audit Fees," Working Papers 0023, College of Business, University of Texas at San Antonio.
    6. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    7. Jia, Ning, 2018. "Corporate innovation strategy and stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 53(C), pages 155-173.
    8. 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.
    9. Qing Cao & Likoebe M. Maruping & Riki Takeuchi, 2006. "Disentangling the Effects of CEO Turnover and Succession on Organizational Capabilities: A Social Network Perspective," Organization Science, INFORMS, vol. 17(5), pages 563-576, October.
    10. Cynthia A. Lengnick-Hall & Robert J. Griffith, 2007. "Knowledge Resources, Exploration, and Exploitation: A New Perspective on the Interplay Between Innovation and Application," Working Papers 0027, College of Business, University of Texas at San Antonio.
    11. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    12. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    13. Stefano Elia & Surender Munjal & Vittoria G. Scalera, 2020. "Sourcing Technological Knowledge Through Foreign Inward Licensing to Boost the Performance of Indian Firms: The Contingent Effects of Internal R&D and Business Group Affiliation," Management International Review, Springer, vol. 60(5), pages 695-721, October.
    14. Ming Piao & Edward J. Zajac, 2016. "How exploitation impedes and impels exploration: Theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1431-1447, July.
    15. Maryann P. Feldman & Serden Ozcan & Toke Reichstein, 2021. "Variation in organizational practices: are startups really different?," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 1-31, January.
    16. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    17. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Introduction to the Special Issue on Managing Knowledge in Organizations: Creating, Retaining, and Transferring Knowledge," Management Science, INFORMS, vol. 49(4), pages 1-1, April.
    18. Wang, Xinchun & Dass, Mayukh, 2017. "Building innovation capability: The role of top management innovativeness and relative-exploration orientation," Journal of Business Research, Elsevier, vol. 76(C), pages 127-135.
    19. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    20. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.

    More about this item

    Keywords

    Base of the Pyramid; Multinational Corporation; Action-research;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hal:wpaper:hal-00771299. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.