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Scaling the social impact of inclusive business models that provide solutions to basic needs of Bottom of the Pyramid (BoP) communities through firm-centric approaches has proven challenging. Researchers have proposed that scaling strategies at the BoP should go beyond firm-centric approaches by inclusive businesses and involve coordinated synergis...
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... 3, where action research is done with four cases to validate the conceptualized framework, facilitates inclusion of lessons learned after application in each case. In phase 4, a cross-case comparison is conducted to make the final improvements to the developed framework. The process, including the phases specific to our research, is visualized in Fig. 1. The remainder of this section describes each of the four phases and explains our data collection ...
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... Early research saw BoP as a niche market (Leposky et al., 2020), followed by a focus on BoP as consumers (Borchardt et al., 2018;Decker & Obeng Dankwah, 2022). The latest BoP approach integrates bottom-line principles, emphasizing mutual value creation, investment, and scaling strategies (Derks et al., 2022), which has spurred the development of a new iteration of the BoP model -BoP 4.0 -that aligns closely with MFs. ...
... Inclusive businesses (IBs), defined as entrepreneurial initiatives that benefit low-income groups while generating commercial returns for businesses, have attracted significant attention for their potential to alleviate poverty and facilitate sustainable and inclusive development (Derks et al., 2022;Lashitew et al., 2018). For many IBs, collaboration with supportive actors from government, civil society, and privatesector are an integral part of their operations (Calton et al., 2013;Lashitew et al., 2022;Nahi, 2018). ...
Inclusive businesses (IBs) are promoted to alleviate poverty and contribute to sustainable development at the base of the pyramid (BOP). In the agri-food sector, there is limited evidence regarding what types of partnerships enhance IBs' value creation potential for low-income producers. This prevents policymakers from providing effective support to IBs and leveraging their full potential for sustainable development. To understand what types of partnerships are more effective for social value creation, this paper conducts a mixed-method analysis of 46 cases from Tanzania and Ghana. It finds that transactional partnerships create efficient IB networks that require limited external support. Such IBs, however, generally undertake business-as-usual activities. In contrast, IBs adopt more innovative business models when their partners are integrated in decision-making and strategic planning. Such IBs, however, often require tailored support to resolve their inter-and intra-organizational challenges. This paper suggests practical considerations for designing IB partnerships to maximize impact potential.
... O alinhamento da motivação empresarial com o objetivo social, ações governamentais para moldar e cumprir as demandas de mercado, engajando a comunidade para a construção de legitimidade, são demandas do mercado de subsistência, pois o crescimento e manutenção de um modelo de negócio está ligado a satisfação e desempenho financeiro de todos os envolvidos (Aman & Seuring, 2022). Nesse contexto, diversos autores revelam que as parcerias são essenciais para a economia partilhada, a relevância das mesmas para os modelos de negócios voltados a BoP está relacionada a cocriação e entrega de valor entre todas as partes interessadas da rede (Bals et al, 2023, Thieme et al., 2010, Onsongo et al., 2023Borchardt et al., 2020;Derks et al., 2022;Dentchev et al., 2018;Ng et al., 2022;Raghubanshi et al., 2021;Kullak et al, 2022). Organizações não governamentais, ONGs, associações e demais representantes comunitários são capazes de mobilizar, interligar a comunidade com as organizações (Bals et al, 2023;Rosca & Bendul, 2019), mas é fundamental estabelecer redes confiáveis, para reduzir os riscos de comportamentos oportunistas (Aman & Seuring, 2022). ...
... For established businesses, circular business models may raise uncertainties about growth: will they scale or be held back by reliance on subsystems and certain inputs, and can they adapt to future changes in market preferences and technologies (Linder and Williander, 2017)? When ecosystem actors develop a shared understanding of sustainability issues and co-develop strategies to address them through sustainable business models, opportunities can arise to scale up (Derks et al., 2022). Such value possibilities should also thin the knowledge filter of established firms vis-à-vis CE opportunities. ...
... Crucially, circular resource flow requires integrating production processes through interlinkages and, ultimately, loops so that one firm creates value from another's waste (Mathews et al., 2018). Hence, circular business models demand that firms reassess the value of both waste and continuous collaboration or coordination, often on several levels and, according to scholars such as Derks et al. (2022), among various actors. This multi-actor, multilevel approach departs from a firm-centric approach, a point already reflected in EE literature. ...
Transitioning from a linear economy to a circular economy (CE) supports the realisation of societal values towards more sustainable development. This article identifies mechanisms by which circularity can be embedded in entrepreneurial ecosystems (EEs) through the flow of relevant knowledge and values. It presents a dynamic model that illustrates how reverse knowledge spillovers from entrepreneurs can complement traditional technological knowledge spillovers from incumbents, ultimately advocating for CE values and validating circular knowledge. The validated circular knowledge, in turn, alters the knowledge filter of incumbents, leading to shifts in their research and development (R&D) focus and their willingness to embrace new knowledge. This symbiotic relationship of knowledge spillovers between circular start-ups and incumbents can significantly enhance the motivation of participants in EEs to adopt CE values and leverage circular knowledge. Overall, the article shows how knowledge spillovers can facilitate a wider adoption of circular knowledge and CE values within EEs.
... The commonalities among the studied cases suggest several noteworthy trends in IB development in the agri-food sector. First, the importance of partnerships cannot be overstated, confirming the broader trends among hybrid businesses in the BOP (Derks et al., 2022;Han & Shah, 2020). All IB types are associated with a high level of intermediary drivenness and presence of cross-sector partners, pointing to the important roles played by development actors as architects, financiers, brokers, and/or service providers. ...
Inclusive businesses (IBs) resonate with policymakers seeking to leverage private capital in support of poverty alleviation and sustainable development. In the agri‐food sector, which represents the largest segment of the base‐of‐the‐pyramid (BOP) market and a key source of livelihood for the rural poor, there is limited evidence on their diversity and social value creation mechanisms. This prevents practitioners from identifying impactful IB types and design features. A statistical analysis of 46 cases in Tanzania and Ghana identified four IB types: (1) self‐reliant agribusinesses, (2) domestic plantation companies, (3) social enterprises, and (4) locally‐embedded Small and medium‐sized enterprises (SMEs). Our findings suggest that socially‐driven and localized IBs hold high impact potential but require significant external support, while more self‐sufficient IBs adopt less socially innovative designs. This study demonstrates the utility of a data‐driven approach to capture the complexity of real‐world IBs, which yielded practical insights for more effective poverty alleviation through business means.
... Considering IB scaling more specifically, diverse strategies have been identified: market penetration, market development, product development and diversification (Bocken et al., 2016). However, scaling strategies at the BoP should go beyond firm-centric approaches taken by inclusive businesses and involve the coordinated synergistic action of their entire ecosystem to overcome systemic challenges and to create value for all ecosystem actors (Derks et al., 2022). In addition, Gradl, Sobhani, Bootsman, and Gasnier (2017) call for a move from IBs to IB ecosystems to overcome the institutional barriers of scaling. ...
... In the following table, we identify the qualitative characteristics of the Indian cooperative business models that go along with each process, while the last line, corresponding to the core contribution of this article, elaborates a quantitative approach to inclusiveness. Indeed, most of reviews on business inclusiveness remain abstract and lack operationality (Derks et al., 2022). Here, as will be detailed in Section 3 we consider quantitative variables about Indian dairy cooperatives as proxies for their scaling out (market access granted through the cooperatives' replication) or scaling up (changes in the dairy ecosystem while building processing capacities upstream and downstream and the development of collective capacities at the village level). ...
... Dentchev et al. (2022) state that BOP 1.0 (where multinational companies could benefit due to the existing potential market in the BOP); BOP 2.0 (the co-creation of products and services was possible in the BOP) and BOP 3.0 (focuses on the entrepreneurial activity of businesses in the BOP), the microfranchising is aligned with BOP 2.0 and 3.0. A first generation research focused on the BOP as a market-niche only (Kuo et al., 2018;Leposky et al., 2020;Sengupta et al., 2020); a second one considered BOP as consumers (Borchardt et al., 2020;Decker & Obeng Dankwah, 2022;Ladd, 2017;Leposky et al., 2020), and a third BOP approach that integrates the principles of the bottom line (Geels, 2014;; focusing on mutual value creation (Dembek et al., 2018); investing requirements at the BOP (Dembek & York, 2022); and scaling strategies at the BOP (Derks et al., 2022). ...
This article discusses the potential of microfranchises as an inclusive, scalable, and sustainable business model to help vulnerable groups, such as women, ex-combatants, and indigenous people, overcome poverty and unemployment in Latin America. The authors argue that social entrepreneurship, which focuses on creating social value rather than profit, can play a meaningful role in incorporating the social component of assisting and empowering the poor. However, external and internal barriers to the scalability of business models still remain challenging. The authors suggest that more initiatives should value the bottom of the pyramid (BOP) as entrepreneurs and co-inventors, adapting to each country's conditions while generating economic, social, and environmental benefits. The paper examines microfranchises for vulnerable groups in Latin America and how microfranchises can scale to provide a higher impact on society. The authors argue that microfranchising is aligned with BOP 2.0 and 3.0, which focuses on the co-creation of products and services and the entrepreneurial activity of businesses in the BOP. The article highlights the importance of context in the adaptability of entrepreneurs in BOP 3.0 and the positive correlation between the spatial distribution of the microfranchising and the growth of its network of interest groups in the BOP 3.0.
... Rather than firm-centric organizational growth, circular start-ups focus more on ecosystem growth to generate value for a broader group of stakeholders or beneficiaries (Derks et al., 2022). From a transition perspective, circular start-ups can challenge the existing dynamic of the socio-economic regime by introducing more disruptive, sustainable alternatives (Horne, 2019). ...
The scaling of circular initiatives is vital to the transformation towards circular businesses. However, empirical research on how circular start-ups scale is lacking. Circular start-ups are distinct from traditional start-ups, which are solely based on a growth-centred scaling logic. This study aims to understand how circular businesses scale up. A three-step flexible pattern matching approach is used to synthesize a new perspective on scaling formed with extant literature and empirical data. We found circular start-ups scale through both commercial and impact activities. This means their strategic aims to scaling are not limited to revenue generation, but also include system-level changes such as influencing new regulations. Based on 22 interviews with innovators from 19 circular start-ups, we observed three strategies to scaling: 1) commercial, 2) phased and 3) synced. Additionally, we identified generic commercial and impact scaling initiatives organized into the eight elements of the business model canvas. This study contributes to the current circular innovation literature in three ways. We contribute to the understanding of circular start-ups and their growth in two ways: 1) by identifying how circular start-ups scale, and 2) how the type of start-up influences scaling behaviours. Beyond the theoretical contribution, this study can guide practitioners in their scaling efforts to help accelerate the circular transformation.
... Reducing the consumption of raw materials, contribution to responsible consumption and production, promotion of fair trade and focus on local development are clear benefits to the environmental dimension (Bovea and Pérez-Belis, 2012). The economic dimension is served by tackling scarcity of resources and producing more with less, promoting the local economy and income generation while reducing poverty (particularly extreme poverty), fostering innovation and local entrepreneurship (Derks et al., 2022). In the technological dimension, product and process design were adapted to meet local community needs who also participated in the product design and development process through the adoption of the available low-cost technological solutions (Rosca et al., 2017). ...
The world faces significant challenges, particularly in low‐income countries, where cross‐sector partnerships strive to create positive social change. Operating under severe uncertainty, these partnerships encounter various disturbances threatening their progress. Despite these challenges, our study explores the resilience strategies that these partnerships use to foster positive social change, an area previously underexplored. Our study uses a qualitative multiple‐case study of four cross‐sector partnerships in sub‐Saharan Africa. Specifically, we collected data via interviews, workshops, and archival sources and used thematic analysis to uncover key resilience strategies. Our findings reveal a cyclical process where, when facing disturbances, cross‐sector partnerships respond with resilience strategies that help them mitigate disruptions, adapt to changing conditions, and continue expanding their positive impact. In doing so, they drive positive social change through core activities within their socio‐ecological system. This research expands existing theories of organizational resilience by highlighting how cross‐sector partnerships in low‐income contexts can not only survive, but also expand their impact of positive social change, through resilience.
