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What is unique about sustainable business models for the base of the pyramid?

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  • Eduardo Méndez‐León
  • René Díaz‐Pichardo
  • Tatiana Reyes‐Carrillo
  • María del Rosario Reyes‐Santiago

Abstract

Research on sustainable business models (SBMs) has been hindered by the use of traditional business model (BM) components indiscriminately applied to explain sustainable value (SV). Moreover, little has been done to reveal key components in BMs aiming to address the needs of the poor; that is, that part of the population referred to as the base of the pyramid (BoP). Following a case study methodology, we observe that conventional components are insufficient to clearly explain SV in SBMs for the BoP. The main contribution of this research is that it discloses that in SBMs for the BoP, activities (grouped into elements and components) are distinctively amalgamated to produce SV. This arrangement might be unique to SBMs for the BoP, and here we opt to present it in the form of a framework that articulates both a priori and emergent components and elements. In this framework, value adoption and value transmission are integrated as new components for analyzing this type of BM.

Suggested Citation

  • Eduardo Méndez‐León & René Díaz‐Pichardo & Tatiana Reyes‐Carrillo & María del Rosario Reyes‐Santiago, 2024. "What is unique about sustainable business models for the base of the pyramid?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2345-2366, March.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:3:p:2345-2366
    DOI: 10.1002/bse.3609
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    References listed on IDEAS

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