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Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors

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  • Hahn, Rüdiger
  • Gold, Stefan

Abstract

Identifying, building, and maintaining partnerships with non-business actors are crucial challenges for multinational companies (MNCs) when implementing Base of the Pyramid (BoP) projects. Using a multiple-case study we analyze such partnerships through the lens of the relational view, focusing on resources generating inter-organizational value and on mechanisms for governing the partnerships. The cross-case analysis suggests that proficiency in identifying appropriate partners featuring non-tangible synergy-sensitive resources is vital for BoP ventures. MNCs compensate for their lack of local knowledge, contacts, and legitimacy by recruiting non-business actors for this consultancy and brokering function. Once a suitable network of partners has been identified, these resources need to be explored and exploited by developing personal relationships, communication routines, common goals, and partner-specific capacity building. Synergy-sensitive resources facilitate performance and long-term maintenance of BoP partnerships by establishing well-adapted and well-informed management practice and by creating a lock-in that works as an informal self-enforcing governance mechanism.

Suggested Citation

  • Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:7:p:1321-1333
    DOI: 10.1016/j.jbusres.2013.09.002
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    4. 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.
    5. Reiner, Gerald & Gold, Stefan & Hahn, Rüdiger, 2015. "Wealth and health at the Base of the Pyramid: Modelling trade-offs and complementarities for fast moving dairy product case," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 413-421.
    6. Wendy L. Tate & Lydia Bals, 2018. "Achieving Shared Triple Bottom Line (TBL) Value Creation: Toward a Social Resource-Based View (SRBV) of the Firm," Journal of Business Ethics, Springer, vol. 152(3), pages 803-826, October.
    7. ManMohan S. Sodhi & James Knuckles, 2021. "Development‐Aid Supply Chains for Economic Development and Post‐Disaster Recovery," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4412-4434, December.
    8. 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.
    9. Christiana Weber & Kathrin Weidner & Arne Kroeger & James Wallace, 2017. "Social Value Creation in Inter-Organizational Collaborations in the Not-for-Profit Sector – Give and Take from a Dyadic Perspective," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 929-956, September.
    10. Addisu A. Lashitew & Lydia Bals & Rob Tulder, 2020. "Inclusive Business at the Base of the Pyramid: The Role of Embeddedness for Enabling Social Innovations," Journal of Business Ethics, Springer, vol. 162(2), pages 421-448, March.
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