Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors |
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Authors: | Rü diger Hahn,Stefan Gold |
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Affiliation: | 1. Faculty of Business and Economics, Universität Kassel, 34109 Kassel, Germany;2. Faculty of Economics and Business, Production and Logistics Management, University of Neuchâtel, Neuchâtel 2000, Switzerland |
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Abstract: | Identifying, building, and maintaining partnerships with non-business actors are crucial challenges for multinational companies (MNCs) when implementing Base of the Pyramid (BoP) projects. Using a multiple-case study we analyze such partnerships through the lens of the relational view, focusing on resources generating inter-organizational value and on mechanisms for governing the partnerships. The cross-case analysis suggests that proficiency in identifying appropriate partners featuring non-tangible synergy-sensitive resources is vital for BoP ventures. MNCs compensate for their lack of local knowledge, contacts, and legitimacy by recruiting non-business actors for this consultancy and brokering function. Once a suitable network of partners has been identified, these resources need to be explored and exploited by developing personal relationships, communication routines, common goals, and partner-specific capacity building. Synergy-sensitive resources facilitate performance and long-term maintenance of BoP partnerships by establishing well-adapted and well-informed management practice and by creating a lock-in that works as an informal self-enforcing governance mechanism. |
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Keywords: | Base of the Pyramid Partnerships Business&ndash non-business collaboration Synergy-sensitive resources Governance Relational view |
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