Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid |
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Authors: | Tassilo Schuster Dirk Holtbrügge |
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Affiliation: | Department of International Management, School of Business and Economics, Friedrich‐Alexander‐Universit?t Erlangen‐Nürnberg, Nürnberg, Germany |
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Abstract: | In this paper we analyze whether cross‐sector partnerships enable companies to respond to the specific conditions at the base of the pyramid (BOP). We develop three hypotheses in which we argue how cross‐sector partnerships support companies to face unfamiliar conditions in these markets. We test the developed hypotheses against the data of 103 companies operating in BOP‐markets. The results show that companies rely on organizations from the civil society sector in order to meet customer needs. Partners from the business sector are supportive when responding to restrictive market conditions. Institutional partnerships should be considered when companies aim at responding to the regulatory environment. We outline theoretical and managerial implications and reflect some limitations of the study. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment. |
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Keywords: | base of the pyramid bottom of the pyramid cross‐sector partnerships economic development sustainable development global poverty |
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