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Institutional quality and inclusive strategies at the base of the pyramid
Affiliation:1. KU Leuven, Faculty of Economics and Business, Korte Nieuwstraat 33, 2000 Antwerpen, Belgium;2. Changeroo.com, Rotterdam, Netherlands;1. Department of Organization Sciences, Free University, Amsterdam, the Netherlands;2. School of Business, College of Management Academic Studies, Israel;3. ESSEC Business School and THEMA, France;4. Fox School of Business, Temple University, USA;1. Faculty of Economics and Business, KU Leuven University, Korte Nieuwstraat 33, 2000 Antwerpen, Belgium;2. Faculty of Economics and Business, KU Leuven University, Belgium;1. Department of Management and Marketing, School of Business, Southern Illinois University Edwardsville, Edwardsville, IL 62026, USA;2. Department of Management, Faculty of Business and Economics, Monash University, Caulfield, Vic 3145, Australia;1. College of Business, Arkansas State University, Jonesboro, AR 72401, United States;2. Strome College of Business, 2137 Constant Hall, Old Dominion University, Norfolk, VA 23529, United States;3. Merrick School of Business, University of Baltimore, Baltimore, MD 21201, United States;4. Strome College of Business, 2030 Constant Hall, Old Dominion University, Norfolk, VA 23529, United States;1. Department of International Business, Marketing, Strategy & Law, School of Business, MacEwan University, 10700-104 Avenue, Edmonton, Alberta T5J 4S2, Canada;2. Montpellier Business School, France
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.
Keywords:Social entrepreneurship  Base of the pyramid  Social impact  Financial performance  Institutional theory  Institutional void  Institutional support  International social enterprise
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