The creation view of opportunities at the base of the pyramid

This research aims to understand how multinational corporations (MNCs) enter the base of the pyramid (BoP) by adopting the creation view of opportunities. We employ actor–network theory and explore the key actors, the process and the opportunity development that enable MNCs to tackle the relative poverty of the BoP market. Our qualitative exploratory case study illustrates that, at the BoP, MNCs have to involve beneficiary stakeholders such as non-governmental organizations and BoP communities. In this process, they should be open to modifying their business model continuously to build awareness about the product among the poor and ensure affordability, availability and acceptability. At the BoP, opportunities do not exist in the external environment and they should be developed by identifying and addressing the real needs of the poor, enhancing their quality of life and being patient about earning a profit. This research contributes to the entrepreneurship literature by expanding the creation perspective of opportunities and provides implications for the managers of companies targeting the BoP market.     

Bricolage,collaboration and mission drift in social enterprises

Abstract

Increasingly, social enterprises are relying on collaboration with partners to tackle the resource constraints that they face. In this research we focus on the strategy of bricolage to explore whether and how the different types of partner becoming involved may impact on the mission of social enterprises. Grounded in resource dependency and transaction cost theories, we explore how power asymmetry and the nature of involvement may impact on the outcomes of bricolage. Our findings demonstrate that in the more integrated relationships with high power asymmetry, more instances of mission drift might be observed compared to when social enterprises develop the more collaborative or complementary nature of partnerships with symmetrical power dependency, or when the partners’ involvements are mainly transaction-based.