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Institutional quality and inclusive strategies at the base of the pyramid

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  • De Beule, Filip
  • Klein, Martin
  • Verwaal, Ernst

Abstract

Social enterprises can profit by creating social value at the base of the pyramid (BOP), thereby simultaneously helping the poor and enhancing financial performance. We submit that social impact has a positive influence on financial performance and that this relationship is positively moderated by institutional quality. We make a distinction between local and international social enterprises and investigate if international social enterprises perform better than local social enterprises and how institutional quality moderates this relationship. We collected a unique dataset of social enterprises operating in BOP markets with a broad range of institutional qualities and find support for our hypotheses.

Suggested Citation

  • De Beule, Filip & Klein, Martin & Verwaal, Ernst, 2020. "Institutional quality and inclusive strategies at the base of the pyramid," Journal of World Business, Elsevier, vol. 55(5).
    • Handle: RePEc:eee:worbus:v:55:y:2020:i:5:s1090951618300816
    DOI: 10.1016/j.jwb.2019.101066
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