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The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits
... The concept of Bottom of the Pyramid (BoP) refers to economically marginalized populations living on less than $8 per day (Prahalad, 2004). Inclusive business models have emerged as transformative approaches to integrate these communities into mainstream economic JOCW.ITTC.EDU.BD This research explores the intersection of transformational leadership and culturally diverse perceptions within inclusive business models, identifying how these factors influence the success and scalability of initiatives aimed at empowering BoP populations. ...
... They are particularly interesting in reaching the 4 billion individuals at the "Bottom of the Pyramid" (BoP). BoP populations, defined by Prahalad (2004) as individuals earning less than $8 per day, represent a substantial market opportunity while also embodying the pressing challenge of global poverty. Inclusive business models can, from a theoretical point of view, incorporate BoP communities as participants in the value chain. ...
... These barriers may include language differences, deeply rooted traditional practices, and resistance to external interventions perceived as culturally intrusive (Karnani, 2007). For instance, businesses that fail to account for cultural norms in product design or marketing strategies may encounter low adoption rates, as seen in cases where products designed for Western markets were poorly received in BoP settings due to cultural mismatches (Prahalad, 2004). Overcoming such barriers requires a deep understanding of JOCW.ITTC.EDU.BD local contexts and the ability to adapt organizational practices to align with community expectations. ...
The goal of the present study is to probe into the essential role of transformational leadership and diversity in culture for the successful implementation of business models aiming at the Bottom of the Pyramid (BoP).Inclusive businesses seek to alleviate poverty. This is done by integrating people from BOP backgrounds as consumers, suppliers, or distributors of companies producing goods; it cares for economic empowerment and social fairness. This research uses transformational leadership theory and cultural dimensions theory for its analysis. Leadership practices are measured, as well the impact of cultural sensitivity on ways in which people access goods and services, their level of employment or income. The results show that transformational leaderships significantly improve results: for example, transformational leadership's dimensions such as inclusiveness, innovation and transformation (enterprise). The study offers guidance to entrepreneurs and policymakers. It emphasizes the need for sustainable, scalable strategies in order to demonstrate that the economic and social impact of Inclusive business initiatives can be maximized to pay off.
... This perspective aligns with the essence of frugal innovation, which involves modifying and reconfiguring products using limited local resources to meet the unique needs of specific markets. Frugal innovation requires product localization, overcoming resource limitations, and reducing the cost of products to fit the target customers (Prahalad 2010;Zeschky et al. 2011). ...
... Social enterprises operating in resource-constrained environments should focus on simplifying their products to meet the demands of affordability and market acceptability. The standardization of components is essential for achieving this goal [Prahalad 2010;Kasturi Rangan & Thulasiraj 2007]. ...
... Similarly, agricultural social enterprises address food security challenges by blending indigenous farming techniques with modern innovations, illustrating how socio-cultural conditions influence innovation. These examples resonate with findings from other contexts, such as India and Kenya, where social enterprises leverage local resources to drive social change (Prahalad 2010). ...
Morocco faces various challenges, including environmental degradation, unemployment, and poverty. Social enterprises are positioned to address this because they solve social and environmental challenges through innovative solutions while producing economic and social values. Previous studies have identified innovation as an objective of most social enterprises, as it enables innovative solutions to manage challenging social problems, from community development to social exclusion, unemployment, and poverty reduction. Despite interest in innovation, few studies have considered its value in social entrepreneurship, making the field unclear and vague. Social problems are complex and multifaceted; no single innovative solution can solve them. This study aims to understand the implications of innovation in creating value in social enterprises. This study presents a qualitative analysis of social enterprises in Morocco and sheds light on the implications of innovation in creating value in social entrepreneurship. This qualitative analysis is based on interpretative phenomenological research to understand and explore the implications of innovation in social entrepreneurship because the essence of entrepreneurship emerges from real and true entrepreneurs who have lived experiences. The results show that innovation does not require advanced technology, knowledge, or investment. However, innovation based on simplicity, usability, and product standardization can lead to value creation. In other words, social enterprise innovation can increase value creation by focusing on product simplicity, usability, and standardization. In conclusion, the present findings indicate that the innovation of social enterprises does not require huge investments and can be a resource-saving innovation and that the choice of simplifying, standardizing, and improving the usability of products may impact this relation.
... Halme et al. (2012) claim that over the past decade, developing countries have been asked to adopt strategies to fight poverty. Prahalad (2010) stresses the necessity of new strategies in combating poverty and doing business with underprivileged people worldwide. New social innovations are needed for these efforts. ...
... For Prahalad, this market involves the 4 billion people who earn less than $1500 per capita. The BoP sector, according to Prahalad (2010), offers huge possibilities for inventive solutions to the world's poorest. Most BoP customers live in emerging economies such as Asia, Latin America and Africa (Janda et al. 2021) and over 70 per cent of BoP consumers live in Asia (Kolk et al. 2014). ...
... Kolk et al. (2014) observe that in the past, the field of management studies primarily disregarded the possibility of firms collaborating with the impoverished in mutually advantageous ways, except for philanthropic endeavours. Nevertheless, Prahalad (2010) and his colleagues contested this viewpoint, asserting that MNEs might both enhance their profits and make a positive impact on reducing poverty by engaging in economic activities with impoverished individuals. They encouraged MNEs to access this specific group of people in the global population, commonly known as the 'bottom' or 'base' of the economic pyramid. ...
This study aims to explore the influence of non-government organizations (NGOs) on innovation and value creation at the bottom of the pyramid (BoP). We thoroughly examined numerous case studies. We chose six NGOs in India and collected data through interviews and secondary sources. The research findings indicate that NGOs operating in developing countries have a higher tendency to create sustainable business models that effectively empower communities at the BoP. In addition, these NGOs have the potential to enhance traditional rural clusters in order to promote inclusive growth, generate value at the BoP through innovation and develop the capacity of communities at the BoP. This study adds to the existing body of literature by examining the quadruple helix model in the context of BoP communities, specifically looking at the involvement of NGOs. In addition, we present a conceptual framework for examining the impact of NGOs on innovation and value creation at the BoP within the quadruple helix ecosystem.
... In his book "The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits," Prahalad introduced the concept of the bottom of the pyramid (BoP) (Prahalad, 2010). Pansera and Sarkar (2016) state that Prahalad's work puts forth the main argument that low-income consumers are not adequately served and form a significant untapped market. ...
... Hasan et al. (2020a, b) and Sinha et al. (2024) state that consumers in the BoP are frequently disenfranchised since they lack access to basic healthcare, adequate education, and a voice in public life through mainstream media, and in certain instances, they are also geographically isolated. Existing research also suggests that the BoP differs significantly from middle-class and upper-class consumers because of the numerous infrastructure obstacles, unstable political environments, and financial limitations (Prahalad, 2010;Verbeke et al., 2024). For Hasan et al. (2020a, b), innovations aimed at BoP consumers are often referred to as pro-poor innovations. ...
Purpose
This article aims to examine the pro-poor innovation diffusion models adopted by university intermediate organizations and their stakeholders at the bottom of the pyramid.
Design/methodology/approach
The study employed a qualitative case study approach. Between April 2021 and May 2022, 60 semi-structured interviews were conducted online and telephonically.
Findings
The study identified various models for promoting the diffusion of pro-poor innovations through university intermediary organizations (non-corporate organizations) and their stakeholders at the bottom of the pyramid. The study also identifies the priority stakeholders and classifies them based on the attributes they might possess.
Practical implications
Other developing economies can consider adopting the diffusion model outlined in our study as a potential working hypothesis to improve the productivity and quality of life for rural poor employed in the informal sector. Such studies advance our understanding of possible organizational methods and processes for diffusing innovation at the bottom of the pyramid.
Originality/value
The study brings a new perspective on how non-corporate organizations, such as university intermediaries, are involved in pro-poor innovation diffusion at the bottom of the pyramid. Additionally, the study brings valuable insights into how stakeholders’ theory can be utilized towards pro-poor innovation diffusion at the bottom of the pyramid.
... Mobile fintech services encompass financial technology solutions accessed through mobile devices like smartphones and tablets, including mobile payments, banking, wallets, and peer-to-peer platforms (Zou et al., 2023). For bottom of the pyramid consumers -those living below the USD 6.85 poverty line -these services are crucial not only for their well-being but also for broader market development (Prahalad, 2005;Arslan et al., 2022). Prahalad (2005) highlights that, despite their economic disadvantages and low literacy levels, this segment's collective purchasing power is estimated to surpass USD 5 trillion worldwide (Schoch et al., 2022). ...
... For bottom of the pyramid consumers -those living below the USD 6.85 poverty line -these services are crucial not only for their well-being but also for broader market development (Prahalad, 2005;Arslan et al., 2022). Prahalad (2005) highlights that, despite their economic disadvantages and low literacy levels, this segment's collective purchasing power is estimated to surpass USD 5 trillion worldwide (Schoch et al., 2022). This underscores them as a significant high-growth market globally especially in developing countries. ...
Drawing on an extended Innovation Resistance Theory, this study examines how various barriers – namely, usage, value, risk, tradition, image, information, and privacy – affect the behavioral intention to use mobile fintech services among bottom of the pyramid consumers. Moreover, it investigates the moderating role of gender difference on these relationships using Multi-Group Analysis. Primary data were collected through a self-administered online survey and gaining 200 responses from low-income users in urban city in Indonesia who already have smartphones but possess minimal experience or knowledge of mobile fintech services usage. Data analysis was conducted using Structural Equation Modeling-Partial Least Squares, with assistance from SmartPLS 4.0 software. The findings indicated that five barriers (usage, value, risk, tradition, and privacy) had a significant negative impact on the intention to use fintech services, while the other two (image and tradition) showed no significant effect. Additionally, it is revealed that gender did not affect the impact of usage and risk barriers, whereas differences were identified for the other barriers. These insights highlight the importance of addressing gender-specific needs in designing mobile fintech solutions for low-income consumers in emerging economies. Acknowledgment We would like to acknowledge and thank the Balai Pembiayaan Pendidikan Tinggi (Center of Financing Higher Education) – BPPT, The Ministry of Education, Culture, Research, and Technology, Republic of Indonesia, and the Lembaga Pengelola Dana Pendidikan (Indonesia Endowment Fund for Education) – LPDP, Ministry of Finance Indonesia, for providing funding for this research publication.
... The first generation of the BoP businesses were attempts by MNCs to modify their value propositions and offer them at reduced prices to make them affordable to the BoP market. This was an attempt to eliminate the BoP penalty (Prahalad, 2008), a summation of various disadvantages suffered by the BoP due to deprivation of basic needs such as food and water, electricity, clothing, health, and sanitation. As such, the first generation of BoP businesses focused on modifying existing business models to create a fair market for people experiencing poverty. ...
... As such, the first generation of BoP businesses focused on modifying existing business models to create a fair market for people experiencing poverty. Therefore, models to eliminate the poverty penalty and achieve the 3As, i.e., accessibility, affordability, and availability (London & Hart, 2004: Prahalad, 2008, were applied with the view to raising the net income and standard of living of the BoP while opening opportunities for the MNC. By reducing prices and modifying value propositions, MNCs sought to make essential goods and services more accessible to the BoP. ...
In Zambia, cotton contract farming has faced significant hurdles in scaling, primarily due to the complexities involved in engaging with smallholder farmers at the Bottom of the Pyramid. Therefore, this study examined the determinants of contract farming adoption enabling scaling in the sector. A researcher-administered survey was employed, targeting distributors who are key stakeholders and serve as intermediaries between multinational corporations and smallholder farmers. Using binary logistic regression analysis, the results reveal that localization, focus groups, collaboration with NGOs, leveraging local networks, co-creation, capacity building, and cooperation with traditional leaders are significant predictors of the adoption of contract farming. The study’s comprehensive analysis underscores the critical factors and enablers driving contract farming adoption and scaling in the cotton sector. These findings offer valuable insights and practical implications for broader use by policymakers, MNCs,
NGOs and other stakeholders involved in the cotton value chain aim to inform more inclusive and effective strategies for scaling contract farming in Zambia and the Sub-Saharan region.
... The concept "Bottom of the Pyramid" was credited to the US president, Franklin D. Roosevelt who used it in 1932, as he talked about the often neglected poor people, since they occupy the base of the economic pyramid. Prahalad (1999Prahalad ( , 2002 popularized the idea of this unique segment as a profitable consumer base in his 2004 article, "The Fortune at the Bottom of the Pyramid," coauthored by Staurt Hart. Prahalad and Hart (2002) opined that including people at the base of the pyramid in formal markets, as entrepreneurs, producers and consumers, is likely to generate income and improve living conditions sustainably while at the same time increasing sales volume of firms. ...
... Development literature is replete with debates on the appropriate purchasing power parity (PPP) threshold that best captures the size of the BOP population in a community. Different BOP authors have articulated different PPP lines from $1,500 or $2,000 per annum to $1 or $2 per day (Mendoza & Thelen, 2007;Prahalad, 2005). This of course portrays an inconsistency which according to Karnani (2007) had not gone unnoticed. ...
The study examined the living condition of oil palm farmers at the base of the pyramid (BOP) located around Presco nucleus estates in Edo and Delta States, Nigeria. A two stage sampling procedure was used to sample 242 oil palm farmers. Using an absolute poverty line of 2(N400) per day. About 76% did not have additional sources of income outside farming, and 15% accessed credit while only about 40% applied fertilizer on their farms. Those at first two income quintiles did not have savings; their per capita expenditures were in excess of per capita income by about 58% and 32% respectively. About 59% of the consumption was on food and non-alcoholic drinks. Moreover, about 58% the BOP oil palm farmers were food poor, with majority also poorly asset-endowed, implying that the cultivation of oil palm did not seriously improved the living condition of the growers despite its potential to enhance income and alleviate poverty. The findings have policy implications. First, BOP farmers not participating in the Presco out-grower scheme, not belonging to cooperative societies and/or not having accessed credit though such opportunities might have been available can be encouraged through their village heads to belong in order to access facilities capable of enhancing their productive capabilities and income. The large expenditure on food and non-alcoholic drinks provide marketing opportunity for products consumed by BOP farmers.
... In the context of inclusive networks, this often entailed enforcing accountability and personal responsibility and steering away from a paternalistic outlook, which gives away something for nothing. This finding is in line with CK Prahalad advice, urging businesses not to view the poor as objects of pity but as resilient and creative entrepreneurs and value conscious consumers (Prahalad, 2005). ...
... And this is not a trivial problem, as capturing economies of scale is essential both for social and economic reasons. It has been noted that BOP business model need to operate with thin margins per unit (Prahalad, 2005), which creates the imperative of reaching critical mass to generate profits. On the social side, it is clear only through scale will we be able to make a dent on poverty. ...
The idea that business can play a role in alleviating poverty has caught the imagination of academics and practitioners alike. An emerging consensus points to the critical importance of partnerships in market initiatives addressed to the base of the pyramid (BOP). But despite the calls for cross sector partnerships in BOP initiatives, our collective understanding of how these actually work has not advanced proportionally. This study attempts to address this issue by examining the dynamics at play in nine networks that integrated the BOP with mainstream markets in nine developing nations of North, Central, and South America. Our field-based analysis generated a number of tentative propositions structured around three broad issue-areas: alliance formation (drivers that compelled companies to engage in strategic partnerships), alliance implementation (choice of governance mechanisms, resources for enhancing trust and reciprocity between partners, and conflict-resolution mechanisms), and performance outcome (the extent to which an organization’s commitment to an alliance impacted its performance and its societal context).
... Cuatro de las cinco iniciativas implementaron modelos de precios escalonados o servicios gratuitos básicos. GovRight, por ejemplo, ofrece acceso universal a servicios públicos mientras se financia con funcionalidades premium (Prahalad, 2019). Las alianzas público-privadas también se destacaron, con una correlación significativa entre su presencia y la sostenibilidad (r=0.68, ...
Esta investigación analiza el impacto de soluciones tecnológicas digitales y emergentes en la reducción de brechas sociales y la promoción de la equidad. Se estudian cinco iniciativas tecnológicas innovadoras implementadas en diferentes contextos socioeconómicos, empleando una metodología mixta que combina análisis cuantitativo de datos de uso y acceso, entrevistas en profundidad, y evaluación de resultados sociales. Los hallazgos revelan que las soluciones tecnológicas más efectivas en promover equidad comparten características como diseño centrado en el usuario, desarrollo participativo con comunidades marginadas, modelos económicos inclusivos, escalabilidad adaptativa y estructuras de gobernanza colaborativa. La investigación evidencia que cuando estas soluciones tecnológicas se implementan considerando factores contextuales, culturales y estructurales, logran impactos significativos en educación, salud, inclusión financiera, acceso a servicios públicos y participación ciudadana. Se concluye que la tecnología, adecuadamente diseñada e implementada, constituye una herramienta poderosa para reducir desigualdades, aunque su efectividad depende de políticas complementarias que aborden causas estructurales de la inequidad.
... Si le Cameroun et l'Ouganda peuvent globalement être considérés comme des pays pauvres, la faiblesse du pouvoir d'achat des populations n'effraie pas le « marché » qui au contraire considère la masse des individus à faibles revenus comme des opportunités pour des firmes. Les milliards de pauvres -bottom of the pyramid, sont ainsi un marché à conquérir (Prahalad, 2004). Cette classe flottante très vulnérable est juxtaposée avec les classes moyennes « traditionnelles », catégories hétérogènes apparentées à des classes de consommation (Berrou et al., 2019) attentives à des normes alimentaires spécifiques. ...
L’article s’intéresse à la mise en place de circuits d’approvisionnement alimentaire de la grande distribution importée et à l’articulation de ces réseaux avec l’économie alimentaire locale. Comment ces deux modèles de mise en marché cohabitent-ils à Douala et Kampala ? Cette question est traitée à partir de l’angle des produits maraîchers. L’analyse montre que la construction de circuits marchands spécifiques pour la grande distribution ne provoque ni disparition, ni homogénéisation de l’économie alimentaire locale. Au contraire, l’approvisionnement des supermarchés en produits maraîchers souligne la coexistence de différentes formes d’organisations marchandes ainsi que des complémentarités entre supermarchés et marchés. Issu d’enquêtes de terrain qualitatives, le propos s’organise en trois temps, il se situe d’abord à l’interface de débats sur l’approvisionnement, l’alimentation urbaine en Afrique, la « révolution » des supermarchés dans les pays des Suds et la géographie du commerce. Il présente ensuite la cartographie et la chronologie de l’établissement des chaînes des supermarchés importés. La troisième partie analyse l’approvisionnement et l’articulation des circuits. La conclusion souligne que la coexistence des modèles commerciaux finalement imbriqués s’inscrit dans une grande diversité de situations, au contraire d’une transition alimentaire homogénéisante.
... The technology acceptance model (TAM) (Davis, 1989) provides further insight, asserting that perceived usefulness and ease of use significantly influence individuals' adoption of new financial technologies, particularly in low-income and digitally excluded regions. Additionally, the bottom of the pyramid (BoP) theory (Prahalad, 2010) suggests that providing affordable and accessible financial products to the world's poorest segments can be both profitable and socially beneficial. ...
Purpose
The purpose of this article is to explore how FinTech is transforming financial inclusion in emerging markets through a detailed bibliometric analysis. The study identifies key research trends, themes and gaps, providing both theoretical insights and practical recommendations for policymakers and financial institutions. By integrating FinTech into established models of financial inclusion, the article highlights its potential to drive inclusive economic growth. Additionally, it proposes a future research agenda to address emerging challenges and opportunities, ensuring that the impact of FinTech on financial inclusion in developing regions is fully realized.
Design/methodology/approach
The study employs a bibliometric analysis to examine the existing literature on FinTech and financial inclusion in emerging markets. Using data from the Scopus database, the analysis focuses on identifying key trends, research themes and gaps within the field. The methodology includes performance analysis to determine the most prolific authors, institutions and countries, as well as science mapping to visualize the intellectual structure and thematic evolution. The combination of quantitative bibliometric techniques and qualitative content analysis provides a comprehensive overview of the research landscape and informs the proposed future research agenda.
Findings
The findings reveal that FinTech is significantly advancing financial inclusion in emerging markets, with research increasingly focusing on mobile banking, peer-to-peer lending and blockchain technologies. The analysis identifies China, the USA and the UK as leading contributors to this research. Key themes include the role of FinTech in reducing financial barriers and promoting economic development. However, gaps remain in understanding the long-term impacts of FinTech on financial stability and the specific needs of marginalized populations. The study highlights the need for more targeted research to fully leverage FinTech’s potential in driving inclusive growth in developing regions.
Originality/value
This study provides a unique contribution by offering a comprehensive bibliometric analysis of FinTech’s role in financial inclusion, specifically within the context of emerging markets. Unlike previous studies that focus on individual technologies or regions, this research systematically maps the global research landscape, identifying key trends, gaps and future research opportunities. The involvement of Dr Petterson Ozili, an expert from the Central Bank of Nigeria, adds significant value, ensuring the analysis is both relevant and informed by practical expertise. This paper serves as a valuable resource for researchers, policymakers and practitioners aiming to leverage FinTech for inclusive economic growth.
... Indian market studies support this. According to Prahalad (2004), rural consumers are willing to invest in brands that offer value for money and long-term benefits rather than instant gratification. The National Council of Applied Economic Research (NCAER, 2022) reported that rural demand for FMCG goods is growing faster than in urban areas, especially for personal care and packaged foods. ...
Rural India is changing, and so are its consumers. While affordability remains a key factor, rural buyers are becoming more brand-conscious, influenced by rising incomes, better education, and greater exposure to media. However, brands still face challenges in reaching these markets, including limited distribution, infrastructure gaps, and affordability concerns. This study explores how brands penetrate rural markets, focusing on FMCG and consumer durables. The findings show that FMCG brands have a stronger presence, as their products are affordable and frequently purchased, while consumer durables face slower adoption due to higher costs. Education, income, and occupation play a crucial role in shaping brand preferences. Based on a survey of 250 rural households, this research highlights the need for localized strategies, affordable product sizes, and better rural outreach. To succeed, brands must leverage digital platforms, build trust through local influencers, and create products tailored to rural lifestyles.
... Over time, economic enfranchisement has been associated with increased market access, access to financial instruments, and the generation of market opportunity. In the view of Prahalad (2006), it is possible to ensure that the rural poor are empowered and engage in markets to come from passive recipients of assistance to proactive contributors to the economy. Banerjee and Duflo's (2011) findings show that education is, basic markets and relevant financial resources go a long way in eradicating poverty and offering human beings economic means of sustaining themselves. ...
This research explores the impact of ODOP as a policy intervention in view of economic enabler and socio cultural sustainer in the context of Shrawasti which is one of the aspirational district of Uttar Pradesh, India. The study examines how Odop skill development and cultural diplomacy of the program help in the socio-economic transformation of the target groups. This shows how the ODOP enhances the craft business by coupling the conventional handicrafts with the contemporary vocational training, thereby promoting income generating activities whilst promoting the cultural heritage. Accordingly, the presented research findings prove that such an integrated approach complies with India’s vision for a Viksit Bharat by 2047 because it combines the country’s economic growth with the enhancement of the local culture. The study also shows that ODOP can enable local people to enhance their skills as well develop cultural values that support sustainable development in the long run. However the study recommends a closer look at the impact of infrastructure, access to hi-tech inputs and networks as they may offer other possibilities of economic enfranchisement. Therefore, the findings of this study stress the significance of the pursuit of intervention such as ODOP to advance India’s developmental goals and indicate the significance of sustaining the investment in both the economic and cultural development of the country in realizing the vision of economical and autonomously developed India.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
The Aokian interpretation of contract farming as frictional equilibria and its operationalization in analyzing contract farming as component stages acknowledges that farmers and firms learn, adapt and respond to their experience with contracting over time. These changes in decisions can happen at the margin, wherein the contract farming scheme itself remains largely unchanged, but such changes can also alter the essential character of the arrangements or thwart its survival if they exceed a threshold. This chapter dwells on the dynamics of contract farming schemes, drawing on empirical evidence globally and from India that suggests that firm and farmer strategies and contexts could evolve over time, with possible implications for the survival of the contract farming scheme itself.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
Across developing countries, a chief problem with contract farming schemes stems from challenges in enforcing the contract. Weak public institutions for enforcement give latitude to both farmers and firms to renege on the contract and parties inevitably resort to various forms self-regulation and other private means of enforcement to maintain transactional relationships. This significant reliance on self-regulation shapes the very nature of contract farming and its trajectories in different contexts. This contested space where farmers and firms fashion the terms of their relationship is viewed variously as relationship maintenance or everyday forms of resistance by farmers. The chapter highlights that contractual relationships may be viewed more as relationships than as contracts, even as there are limits to how much self-regulation and relationship maintenance can support contractual performance.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
The emergence of corporations as enthusiastic contractors of produce has as much to do with their desire to control labor on farms (both household labor of farmers and of the workers they may hire) and resources such as land (as a more acceptable form than land grabbing) and water without the associated managerial or supervisory costs of doing so. Yet economists have thus far not adequately researched these aspects. We review some of the key issues relating to labor, drawing attention to women, children and health, and the environment. We reflect on how economists can better incorporate labor and environmental concerns into their analysis of contract farming.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
The diversity of contract farming arrangements has sometimes led to a general skepticism of universalist models. This chapter reviews the theoretical literature on contract farming within the field of economics, assessing and contrasting economic approaches with alternative frameworks. I start by summarizing some elements common to approaches followed by political scientists, anthropologists, sociologists and geographers before moving on to an elaborate discussion of economics frameworks. The goal of this chapter is to highlight the different points of departure of each approach, contrast these methodologies and identify areas where economic approaches can be infused with perspectives from other disciplines.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
This chapter elaborates on the second element of a two-sided selection process that eventually sorts farmers into contract farmers and non-participating farmers. While firms try to sort heterogeneous farmer types based on location, reliability, size, soil quality and so forth, farmers’ perceptions of the benefits and risks associated with contract farming and its spillovers drive farmers' propensity or willingness to contract or be considered by firms for contracting. Farmers might factor in several issues such as entry costs, family size, perceived returns to the contract crop relative to alternative uses of land and labor, social learning and beliefs about impact on soil fertility and quality, health and so on. At this stage, it is not simply a matter of firms picking farmers. The identification of contract suppliers is contingent on the farmers being willing to contract. In many contexts, farmers, when presented with the option of contracting, make considered decisions on whether to contract and how much exposure they wish to have to the contract firm or for the contract crop, which may be a new or exotic crop.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
This chapter argues that a critical point of contention between economists and most other social scientists is the question of power within contractual relationships. This chapter focuses on the role of contextual conditions in shaping whether there is uptake of schemes, the nature of arrangements and the relative position of the grower. These can collectively define the nature of the relationship between firms and farmers that can be predatory, symbiotic or one of cooperative conflict.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
It has been noted time and again that contract farming arrangements manifest a bewildering variety and that as an analytical category, perhaps the only thing that binds all contract schemes together is the contract. Yet even the notion of a contract is not straightforward in many developing country contexts. This chapter discusses the immense diversity of contracts and contract farming arrangements and the use of contracts to set the balance of power between contractor and grower. It highlights how at times contracts are written to control the production process and at other times to ensure that the firm can distance itself from the process. It also highlights a pervasive “signing without reading” problem in developing countries and the many suggestions to redress these challenges around the writing of contracts.
... In 2000, as part of what was termed a "Rainbow Revolution," the National Agricultural Policy stated: "Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, and assured market for crop production...." With state effort to promote private sector participation in agriculture and an eager private sector eyeing the "fortune at the bottom of the pyramid" (Prahalad 2009), contract farming schemes mushroomed in the mid-1990s. These arrangements, like elsewhere in the world, differ greatly in the nature of actors, relationship intensity and degree of formality, specific terms and scale of operation. ...
This chapter clarifies the definition of contract farming used in the book and provides a concise account of the recent history of contract farming and of its protagonists. Given that there is no systematic data globally on the reach and extent of contract farming, this chapter presents existing estimates of the prevalence of contract farming, especially in developing countries. The chapter concludes with a section focusing on the emergence and prevalence of contract farming in India.
... In such landscapes, a nuanced market analysis becomes indispensable. Investors need to immerse themselves in understanding local consumer behaviour, adapting strategies to align with fluctuating market trends and identifying potential niches that can be capitalized upon to ensure a successful investment trajectory (Prahalad, 2005). ...
This article critically reviews existing literature to explore the advancements in due diligence frameworks and their impact on optimizing investment outcomes in emerging markets. Central to this discussion are the roles of Environmental, Social, and Governance (ESG) factors, and the integration of innovative technologies such as Artificial Intelligence (AI), big data analytics, and blockchain technology in the due diligence process. Through a nuanced analysis, this article elucidates how a strategic focus on ESG factors can potentially pave the way for sustainable and ethically grounded investments in emerging markets. Furthermore, it underscores the transformative potential of leveraging technology in enhancing the complexity and sophistication of due diligence frameworks, thereby facilitating more informed and successful investment decisions. The findings through in-depth analysis detailed scrutiny of the existing due diligence frameworks in emerging markets illustrates their substantial influence on the triumph of investments. Through comprehensive discussions with seasoned professionals and examination of case studies, it becomes apparent that due diligence mechanisms are complex and hold a pivotal role in shaping the results of investment endeavours. As emerging markets continue to evolve and hold a significant place in the global economic landscape, the adaptation and integration of these advanced frameworks can potentially revolutionize investment strategies, fostering not only economic gains but also contributing to broader societal and environmental well-being. Through this comprehensive review, the study aims to foster a deeper understanding of the current landscape of due diligence processes in emerging markets and envision a path towards more innovative, sustainable, and successful investment strategies grounded in rigorous due diligence.
... The transformation agenda aims to extend the boundaries of innovation studies to include the needs, perspectives, and knowledge bases of poor and vulnerable communities (Arond et al., 2011;Fressoli et al., 2011). The transformation strand of research is growing, evident in the increase of alternative models: innovation for inclusive development (Cozzens & Sutz, 2014), inclusive innovation (Chataway et al., 2014), inclusive growth (George et al., 2012), below the radar innovation (Kaplinsky, 2011), bottom of the pyramid innovation (Prahalad, 2005), frugal innovation (Knorringa et al., 2016), grassroots innovation (Gupta et al., 2015), responsible innovation (Valdivia & Guston, 2015), and transformative innovation (Schot & Steinmueller, 2018) (see Godin et al., 2021 for a research collection reflecting alternative theories of innovation). ...
Innovation is crucial for transformative social change that addresses growing poverty levels and widening inequalities within and between countries. Innovation measures and indicators suitable for assessing and directing progress towards achieving these goals are yet to be developed.
Much of the research that informs innovation measurement is based on conditions in highly industrialized economies, with a focus on specific sectors, formal businesses, and technology-based innovation. This is a concern, considering that for countries in the global South, the informal sector forms a significant part of the economy, and innovation tends to take non-technological and incremental forms. We have very little experience researching and measuring innovation in these settings. The available evidence suggests that traditional methods of business innovation surveys alone may not be suitable to elicit the kind of data required.
This chapter traces trends in the field of innovation measurement as it adapts to changing conceptualizations of innovation and of conditions of countries in the global South. Using the example of the measurement of innovation in the informal sector in South Africa, the chapter reflects on how African researchers have taken on the challenge. It describes experimentation with novel participatory methodologies, grounded in the lived realities of social actors that have been traditionally marginalized from formal systems of innovation, from the formal economy, and from decision-making processes. The main contribution is to demonstrate the value and limitations of this approach for the field of innovation measurement for directing and assessing progress towards transformative social change.
... Considering the skewed nature and mechanisms of compensation, dividend distribution, tax adherence/compliance, and corporate philanthropic contributions, which are primary ways for business firms to contribute to societal welfare (Bapuji et al., 2018;Chell et al., 2020;Zahra, et al, 2021). But to bring about societal change there is a need to eliminate wealth and other forms of economic inequalities (Piketty, 2015), which leads to the advancement of the standard of living at the Bottom of the Pyramid (BoP) 1 (Goyal et al., 2015;Prahalad, 2009). ...
This study explores how the neo-liberal agenda co-opts the socio-economic change initiatives of social enterprises, particularly in the context of scaling up, funding dependencies, and financial viability challenges. Even though the role of profit-oriented business firms is desirable, they often pose an imperative threat to social enterprises' socio-economic change agenda. The governance of social enterprises tends to move from the agenda of social change to profit. This study examines this with the shifting roles of state, market, and civil society actors in influencing the agenda of social enterprises and proposes strategies to preserve their autonomy, ensuring they remain effective agents of socio-economic transformation. The present study takes the route of the qualitative approach of the netnographic with inferences from multi-case study analysis. Even though social enterprises have emerged as important institutions to solve issues at the bottom of the pyramid and to make behavior change an inherent tension in this approach remains. This largely requires the effort of scaling up social enterprising initiatives which tend to crowd out socio-economic change or welfare agenda. This study provides insight into the processes of co-optation of social enterprising efforts by the neo-liberal agenda. The process of co-optation largely takes place via scale, dependency, and financial viability traps. This converts social enterprises into social service mediators rather than real socio-economic change agents.
... 31, n. 7, pp. 780-801; B. Wu (2013), Opportunity Costs, Industry Dynamics, and Corporate Diversification: Evidence from the Cardiovascular Medical Device Industry, 1976-2004, in Strategic Management Journal, vol. 34, n. 11, pp. ...
Quando si parla di empowerment si fa riferimento all’idea di conferire potere a qualcuno, qualcuno che di tale potere è sprovvisto. Di chi stiamo parlando? A quale potere facciamo riferimento? Come, e soprattutto, perché dovremmo conferire tale potere? In questo lavoro affrontiamo la sfida di dare potere, e in questo senso abilitare, tutti coloro che tipicamente sono esclusi dalla partecipazione al mercato, e che risultano emarginati e disabilitati. Dare il potere di partecipare alle dinamiche di mercato per abilitare processi di sviluppo della persona: sfida che concettualizzeremo come “l’empowerment degli emarginati”. Da dove partiremo? Chi sarà il nostro interlocutore principale? Per quale fine? Elemento chiave della nostra impostazione è la centralità della persona. Partiremo dalla persona per comprendere i diversi processi di sviluppo abilitati da particolari forme ibride di impresa, denominate Social Business Hybrids, tramite specifici meccanismi economici e all’interno di particolari spazi sociali.
... as noted earlier, the BoP refers to populations earning less than $2 a day and it is estimated to encompass over 4 billion consumers (Prahalad, 2004). the term has gained prominence as an indicator of human inequality and also as a business opportunity for the private sector-e.g., Ver loren van themaat et al. (2013). ...
Financial inclusion remains a significant challenge, particularly in developing countries and among low-income populations. Mobile payments present a potential solution by offering affordable and secure financial services. This study investigates the selection of mobile payment technologies for the bottom-of-the-pyramid population and introduces a methodology tailored to their specific needs. The proposed approach includes a detailed analysis of user characteristics, geographic constraints, and a hierarchy of selection criteria. These criteria consist of three main decision elements—user base, technical features, and economic costs—along with five technical sub-elements: ease of integration, scalability, real-time operation capabilities, security, and provider trustworthiness. The methodology’s practical application is demonstrated through a case study in Panama’s Ngäbe-Buglé region, where mobile payments are being considered for energy provision services. The case study employs the analytic hierarchy process to prioritize criteria using responses from four different stakeholder groups. The findings highlight that while economic factors are critical, the size of the user base and technical aspects, such as solution scalability, also influence decision-making.
... Los temas incluyen conceptos de la RS, enfoques empresariales (RSE), el papel de la alta dirección en la RSE, la triple hélice, Base de la Pirámide (Prahalad, 2004) y experiencias nacionales (Servitje, 2006) y las mencionadas por autores como Mutis y Ricart (2008) y Ramos, Villanueva y Peinado-Vara (2007). Se toman en consideración las directrices de los Objetivos de Desarrollo Sostenible (ODS) de las Naciones Unidas y se efectúa una revisión de los estándares del Centro Mexicano para la Filantropía (CEMEFI) y el Libro Verde de la Unión Europea (Barroso, 2008;Porto y Castromán, 2006), así como la ISO 26000. ...
Es muy común escuchar que el objetivo principal de las empresas es generar utilidades. En realidad, generar utilidades es el objetivo de quien puso la empresa, pues espera un beneficio, no de la empresa en sí misma. Para ella, el objetivo debe ser generar valor mediante la sa-tisfacción de los clientes a quienes sirve, a la sociedad y, por supuesto, lograr el bienestar de quienes trabajan en ellas, procurando un auténtico desarrollo humano y social, aunado al económico. Desde este punto de vista, las utilidades no son un objetivo sino el resultado del buen trabajo realizado. Por lo tanto, las empresas no deben ser hechas para durar, sino para cambiar y adaptarse a su entorno, ya que si lo hacen, entonces perdurarán en el mercado.
La clave para adaptarse y ser sostenibles está en el comportamiento so-cialmente responsable, esto es, promover una adecuada calidad de vida a los trabajadores, preservar el medio ambiente, tratar éticamente a los involucrados en el negocio (o stakeholders) y contribuir con el desarro-llo de la comunidad en que opera la empresa (Porto y Castromán, 2006; Barroso, 2008). No hay otra forma de operar que esté fuera de la
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responsabilidad social, la cual debe ser asumida como un valor y no como una estrategia mercadológica. Además, la responsabilidad social, en este caso la empresarial (RSE), debe fundarse en un sentido antro-pológico con la persona al centro, buscar la verdad en los procedimien-tos y conocimientos adquiridos y transferidos, desarrollarse con sentido ético y ser parte del sentido de vida de los individuos y de las empresas en las que trabajan. La RSE puede contribuir al ensanchamiento de la razón al establecer nuevos saberes empresariales que, sin afectar lo pro-pio de las operaciones de negocios, brinden nuevos conocimientos que permitan al hombre ser mejor como persona, como ciudadano y quizá como un ser más espiritual.
... The novel concept of an entrepreneurial ecosystem (EE), proposed by Prahalad (2005), delineates how governments, policymakers, and business leaders stimulate and nurture productive entrepreneurship to co-create wealth and well-being for all stakeholders of a business ecosystem Scaringella & Radziwon, 2018). Despite the fact that a precise definition and understanding of the structure of EEs remains debatable, it is recognized that this kind of ecosystem must have the ability to create a cohesive social and economic system that supports the growth of new ventures (Stam & van deVen, 2021). ...
With the widening gap between the rich and the poor, inclusive growth—meaning the fair distribution of economic growth and equal opportunities for all—has become a priority for many countries. There is an urgent need to investigate inclusive growth from a meso- and networks-based perspective to better interpret its systematic paradoxes across varying levels of analysis. In response, built upon a Yin–Yang dialectical systems view, this research aims to address the paradoxical links between university–firm technology transfer (UFTT), the inclusive growth of entrepreneurial ecosystems (EEs), and entrepreneurship. Based on panel data from 31 Chinese provinces collected between 2010 and 2020, our results show a positive relationship between UFTT and inclusive growth, while entrepreneurship not only negatively impacts inclusive growth but also acts as a mediator that masks the above-mentioned positive association. Furthermore, systems knowledge moderates the impact of this mediating mechanism. The main contribution of this research is to provide novel insights into understanding the meso-level influence on the inclusive growth of EEs through an unorthodox Yin–Yang dialectical systems approach.
... Prahalad (2004) destaca que entender as diferenças nas condições de vida é crucial para formular políticas eficazes de redução da pobreza e aproveitar o potencial das populações jovens. O Banco Mundial (2022) projeta que, em 2030, a taxa global de pobreza extrema será de 7%, tornando a meta de 3% quase inatingível devido a crises como a pandemia e guerras. ...
O objetivo deste estudo é analisar como a educação, a formação e o empreendedorismo na base de pirâmide (BoP) socioeconómico podem contribuir para o desenvolvimento sustentável em África, com base em revisão bibliográfica de fontes existentes. O tema "Educação, Formação e BoP: Impulsiona o Desenvolvimento Sustentável na África" destaca a relevância da capacitação das camadas mais vulneráveis da sociedade africana através de ações educativas, de formação profissional e de estímulo ao empreendedorismo. Ao focar na base da pirâmide socioeconômica, exploramos a possibilidade de promover um desenvolvimento local sustentável, reduzir a pobreza e criar oportunidades econômicas, permitindo que essas populações se tornem agentes ativos de mudança e crescimento.
... Along with IBEKA's recognition that the sustainability of its rural electrification program hinges on community empowerment, the institute forms a unique collaboration with the people from Kasepuhan Ciptagelar in which the new plants are located. In an innovative setting, IBEKA undertakes the first step to closing the inequality gap that is evident between the top and the bottom of the social pyramid (Prahalad 2003). The concept of development that stems from Sen (1999) is also adopted in this case. ...
... In the new realm of the platform state, private companies have carved a role for themselves making profits out of public services otherwise available for free or at a very little token amount. CSC managers are primarily motivated by the desire to tap into the "consumerist potential" of the BOP market (Prahalad, 2016) rather than addressing fundamental issues of inequality and social exclusion. ...
Indian Administration has long been portrayed as ineffective, corrupt, and uncaring. An image that the government has been trying to fix for the past 15 years in part through the National e-governance plan and “Digital India” programme that are contributing to the massive digitalisation of India’s administration in the name of development. Cornerstone of this digital transformation, Common Service Centres (CSCs) seek to ensure the last mile of the Government-citizen relationship in every village of India. Using state-funded digital infrastructure - such as Aadhaar, UPI, eDistrict and eSevai platforms – these Internet centres are intended to serve as vital links between citizens and government services, providing access to public services. However, this digital layer has made the State services increasingly expensive for millions of people, preventing them from accessing essential services such as healthcare, education and food. Unique point-of-sales for digitised State services as well as bottom-of-the-pyramid private services, CSCs became unavoidable fee-based intermediaries of administrative work.
... Les auteurs avancent l'idée que compte tenu du faible pouvoir d'achat de la majorité des usagers de taxis-brousse, le prix se présente comme le principal critère de choix d'une coopérative. En effet, le marché du taxi-brousse malagasy apparaît être un marché de la base de la pyramide, ou marché BoP, c'est-à-dire un marché constitué de consommateurs ayant de faibles revenus (Prahalad, 2004(Prahalad, , 2012Prahalad & Hart, 2002 ;Prahalad & Hammond, 2002 ;Dumalanède, 2019). Rakotovao et Ramambazafy (2021) ont étudié les liens entre les dimensions de la qualité de service, le prix, la satisfaction et la fidélité, perçus par les passagers-clients d'une coopérative classique de taxi-brousse malagasy. ...
Le taxi-brousse est une institution en Afrique. À Madagasikara, c’est le principal moyen de transport entre les différentes localités pour la majorité de la population. Avant 2013, l’industrie était fragmentée entre une multitude de coopératives très peu différenciées les unes des autres, en particulier en matière de business model. En 2013, l’industrie a été bouleversée par l’entrée sur le marché de l’entreprise Cotisse Transport. Ce nouvel entrant a fait irruption dans l’industrie avec un business model innovant. Cette recherche cherche à répondre à la question “Comment entrer sur un marché existant avec un business model innovant ?”. Après une exploration de la littérature sur l’innovation de business model en contexte entrepreneurial et des quelques références existantes sur l’industrie du taxi-brousse à Madagasikara, cette recherche qualitative, exploratoire et abductive met en lumière le business model classique des coopératives de taxi-brousse avant 2013, ainsi que celui de Cotisse Transport. Elle discute l’entrée d’un nouvel entrant sur un marché existant avec un business model innovant, et les implications de la mise en œuvre de cette innovation par le business model.
... Indeed, social entrepreneurship provides innovative solutions that can play a key role in promoting sustainable energy efficiency by mobilizing local resources and involving vulnerable populations in the transition processes. According to Prahalad (2005), inclusive innovation is essential for enabling social enterprises to address social challenges while ensuring economic and environmental viability. ...
Morocco, like many developing countries, faces growing challenges in energy efficiency and environmental sustainability. Social and responsible entrepreneurship emerges as a potential response to these issues, but its success depends not only on technical skills but also on soft-skills, such as leadership, team management, communication, and emotional intelligence. These skills are essential for overcoming the complex challenges of energy efficiency projects and ensuring their sustainability. Through an in-depth literature review and a qualitative study focused on the Noor Ouarzazate project, this paper highlights the importance of soft-skills in ensuring the environmental and social impact of entrepreneurial initiatives in this field. It also demonstrates that, for Moroccan social entrepreneurship in the energy efficiency sector to achieve its objectives, it is crucial to develop these skills to enable entrepreneurs to navigate a complex environment effectively and promote sustainable and inclusive energy solutions.
... The transfusion of Finanzkapital into all aspects of global economy has proceeded via political, economic, and cultural processes that constantly open new avenues where capitalist forms of investments become feasible. These include globalization of markets for branded products (Levitt, 1983) as well as financial securities and assets (Appadurai, 1990), privatization of public services (Hacker, 2006), securitization and conversion of non-or less-tradable financial assets into tradable forms (Colander et al., 2008, Orhangazi, 2008Wade, 2009), and injection of branded marketing forms into Finanzkapital in the twenty-first century consumption contexts that were previously not parts of the market economy (Prahalad, 2006). Leading up to the 2007-2009 crisis, the great Finanzkapital move was to engage in a form of gamble that dwarfed all historical expansionist financial moves by an order of magnitude -the invention and expansion of risk diversion derivatives called Credit Default Swaps (CDS). ...
Within worldwide attempts to implement and foster sustainable development, recent efforts to benefit from frugal innovations in the context of developed nations are gaining momentum. However, currently the majority of attempts in this direction are based on what is referred to as reverse innovation, that is, taking ultra-low-cost innovations that originated in developing nations and transferring them to, as well as diffusing them successfully in, developed countries. These strategies are pursued mostly by multinational corporations. Hence, those efforts are mostly considered under, as well as driven by, market- and business-oriented policies. Further academic studies are necessary to advance insight into and understanding of reverse innovation. In particular, it is necessary to gain sufficient knowledge and insight to support the creation of frameworks and methods which permit the systematic development of reverse innovation. To address some of these shortcomings, in this chapter, a novel framework and approach are presented. The aim is to facilitate a better understanding of the various facets of reverse innovation, while also enabling the formation of knowledge that is required to systematically adapt and transfer effective frugal solutions to the actual productive resolution of problems in the context of developed nations.
Despite increasing attention to frugal innovation in resource‐constrained environments, we still know little about profiting from frugal innovation. Based on the strategy—tripod—perspective, we investigated the impact of frugal innovation on firm growth performance. We explored how its role varies with market environment (market heterogeneity), institutional environment (knowledge leakage risk), and firm resources (complementary servitization offerings). Together, these elements determine how frugal innovation drives company growth. We examined our hypotheses with survey data from 334 firms in China with a pyramid‐shaped income hierarchy. With regression analysis, we found that frugal innovation has a positive effect on firm growth performance. Furthermore, market heterogeneity weakens while servitization strengthens this effect. However, the moderating role of knowledge leakage risk is insignificant. Our findings underscore the strategic value of frugal innovation and indicate that its efficacy may vary with market dynamics and servitization offerings.
Este documento tiene como objetivo realizar un análisis bibliométrico sobre la relación del emprendi-miento y la innovación social. Se realiza una revisión de literatura a partir de la base de datos Scopusy un análisis con el software Bibliometrix. Los resultados evidencian un incremento en la producción científica, así como una mayor cantidad de publicaciones y colaboraciones entre Estados Unidos y Europa; así mismo, el uso de una gama amplia de perspectivas teóricas, denotando un desarrollo individual del emprendimiento y la innovación social. Dentro de las conclusiones es evidente la necesidad de articular la investigación en estos dos campos de estudio dado que la amplitud de los referentes obstaculiza el progreso y la maduración teórica. Se proponen futuras líneas de investigación que fortalezcan la gestión de la innovación.
India is categorised as a developing country with substantial obstacles concerning poverty and unemployment. Upon completing the ninth plan, it was observed that a considerable segment of the Indian populace, particularly 27.1%, was residing in impoverished circumstances. A significant proportion of the populace, 29.1%, dwelled in rural regions, distinguished by elevated poverty levels. The current unemployment rate among females stands at approximately 8.5%. There has been a notable surge of 10.8% in the yearly unemployment rate among women residing in rural regions. The underlying cause of this situation can be attributed to the lacklustre expansion of novel and fruitful employment prospects. At the culmination of the IX plan, there was a discernible upward trend in the execution of several initiatives to reduce poverty and generate employment opportunities. On the other hand, using Self Help Groups offers a more attractive strategy as it requires fewer financial resources and entails less effort. A self-help group (SHG) is an organised gathering of individuals with similar socioeconomic characteristics who come together regularly to provide each other with mutual support and assistance. Individuals convene to offer reciprocal assistance in surmounting their individual obstacles and acquiring knowledge from the mistakes of their peers. The government utilises the approach of women’s empowerment as a method to tackle socioeconomic poverty. Women have been pivotal in transforming the self-help savings movement, contributing to the widespread acceptance and adoption. This can be attributed to their conscious endeavours to improve their future prospects. To effectively achieve its Development Agenda, the government has emphasised the inclusion of individuals, specifically women. This strategy has effectively permitted the development of a multitude of SHG entities throughout the state. Notably, a considerable percentage of women actively engage in these collectives, making a daily contribution of one rupee towards their savings. The primary aim of this research is to investigate the prominent SHGs operating within the region of Erode. The main objective of this study is to evaluate the influence of women’s participation in Self Help Groups on their empowerment, taking into account the considerable focus on the group-based approach in implementing programmes aimed at rural women
This book published by Routledge uncovers a new dimension in the study of sustainability, offering balanced development from a spiritual and cultural values perspective. The authors of this edited volume investigate the role of religion in the debate concerning the Sustainable Development Goals (SDGs) and offer an Islamic perspective to environment, social and governance (ESG) issues.
This paper is grounded in the extended resource-based theory proposed by Warnier, Weppe, and Lecocq (2013), which emphasizes the role of managerial subjectivity in defining resources that can be leveraged for competitive advantage. Traditionally, resources have been classified as strategic, ordinary, or negative, with negative resources often overlooked despite their potential value. This study explores how the business model framework can facilitate the identification, capture, transformation, and delivery of negative resources by combining them with other resources. We address the gap in the literature concerning the integration of negative resources and their strategic importance.
Through an exploration of two detailed case studies of companies operating in the Base of the Pyramid (BOP) market, we provide empirical insights into innovative practices that enable these firms to convert negative resources into valuable assets. The case studies include THE ORGANIZATION X 's "Branchements Sociaux BS" program in Morocco and THE ORGANIZATION Y in Bangladesh. These cases illustrate how organizations can repurpose negative resources to create inclusive and sustainable business models, offering essential services to underserved communities.
Our findings suggest that negative resources, when effectively integrated and managed, can significantly contribute to both social and economic value creation. This study highlights the importance of developing inclusive business models that not only provide essential services to marginalized populations but also utilize and enhance local resources and capabilities. The implications of this research extend to managers and policymakers seeking to foster innovation and sustainability in resource-constrained environments. By focusing on how negative resources can be transformed into strategic assets, this research offers valuable insights into creating competitive advantages in BOP markets.
Keywords: Inclusion, negative resources, Base of the Pyramid (BOP), sustainable business models, resource-based theory.
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