Investigating the causal configurations of cost-efficient firms at the bottom of the pyramid |
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| Institution: | 1. Strategic Management Area, Indian Institute of Management Indore, Prabandh Shikhar, Rau - Pithampur Rd, Indore, Madhya Pradesh 453556, India;2. Leeds University Business School, Maurice Keyworth Building, University of Leeds, Leeds, LS2 9JT, UK;3. BO 1.16, 10 Chittaway Road, University of Newcastle, Central Coast Campus, Ourimbah, NSW 2258, Australia;4. Seven Stars Tower, 6th Floor, 603a, University of Nicosia, Cyprus;1. Athens University of Economics and Business, Department of Management Science and Technology, 12, Kodrigtonos Str., 112 57, Athens, Greece;2. University of Glasgow, Adam Smith Business School, Glasgow Scotland, UK College of Social Sciences, Gilbert Scott Building, R505e Level 5, UK;1. Gulf University for Science and Technology, College of Business, Mishref, Kuwait;2. University of Bradford, School of Management Bright Building, Bradford, BD7 1SR, United Kingdom;3. University of Birmingham, Business School, University House, 116 Edgbaston Park Rd, Birmingham, B15 2TY, United Kingdom;4. Public Services Company, Kuwait;5. Majan College University, Oman;1. Hamburg School of Business Administration, Willy-Brandt-Straße 75, 20459, Hamburg, Germany;2. Alliance Manchester Business School, Booth Street West, M156PB, Manchester, UK;3. School of Business, Society and Engineering, Mälardalen University, Sweden & Department of Strategy and Entrepreneurship, BI Norwegian Business School, Norway;1. International Business CIBUL, Leeds University Business School, University of Leeds, UK;2. Strategic Management Area, Indian Institute of Management Indore, India;3. Finance Fox School of Business, Temple University, USA;1. Texas A&M University, Dept. of Management, TAMU 4221, College Station, TX, 77843-4221, United States;2. Penn State University - Great Valley, School of Graduate Professional Studies, Malvern, PA 19355, United States;3. The University Of Texas - San Antonio, One Utsa Circle, San Antonio, TX 78249, United States;4. Penn State University – Berks, Reading, PA 19610, United States |
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| Abstract: | This study highlights how social and commercial enterprises with local and global presence, balance their economic and social goals, to sustainably serve the bottom-of-the-pyramid (BoP) markets, predominantly in emerging economies. Employing the lens of transaction cost economics and configurational theory, we propose that successful venturing into the BoP markets, sensitize firms to create appropriate governance mechanisms for reducing transaction costs, resulting in creation and capture of values. Further, these mechanisms enable those firms to attain cost efficiency and sustainability in the process of fulfilling their social objectives. To that end, we employed the case survey method to analyse 42 cases, from the Harvard Business School repository, on multinational enterprises (MNEs) in emerging economies. Further, we used qualitative comparative analysis to uncover the various causal governance configurations that enabled those firms to sustainably serve the BoP markets. |
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| Keywords: | Bottom-of-the-pyramid Transaction cost Social and commercial enterprises Causal configurations Fuzzy set qualitative comparative analysis |
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