TY - JOUR
T1 - Investigating the causal configurations of cost-efficient firms at the bottom of the pyramid
AU - Basu, Shubhabrata
AU - Munjal, Surender
AU - Malik, Ashish
AU - Vrontis, Demetris
N1 - Publisher Copyright:
© 2021 Elsevier Ltd
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2021
Y1 - 2021
N2 - This study highlights how social and commercial enterprises with local and global presence, balance their economic and social goals, to sustainably serve the bottom-of-the-pyramid (BoP) markets, predominantly in emerging economies. Employing the lens of transaction cost economics and configurational theory, we propose that successful venturing into the BoP markets, sensitize firms to create appropriate governance mechanisms for reducing transaction costs, resulting in creation and capture of values. Further, these mechanisms enable those firms to attain cost efficiency and sustainability in the process of fulfilling their social objectives. To that end, we employed the case survey method to analyse 42 cases, from the Harvard Business School repository, on multinational enterprises (MNEs) in emerging economies. Further, we used qualitative comparative analysis to uncover the various causal governance configurations that enabled those firms to sustainably serve the BoP markets.
AB - This study highlights how social and commercial enterprises with local and global presence, balance their economic and social goals, to sustainably serve the bottom-of-the-pyramid (BoP) markets, predominantly in emerging economies. Employing the lens of transaction cost economics and configurational theory, we propose that successful venturing into the BoP markets, sensitize firms to create appropriate governance mechanisms for reducing transaction costs, resulting in creation and capture of values. Further, these mechanisms enable those firms to attain cost efficiency and sustainability in the process of fulfilling their social objectives. To that end, we employed the case survey method to analyse 42 cases, from the Harvard Business School repository, on multinational enterprises (MNEs) in emerging economies. Further, we used qualitative comparative analysis to uncover the various causal governance configurations that enabled those firms to sustainably serve the BoP markets.
KW - Bottom-of-the-pyramid
KW - Causal configurations
KW - Fuzzy set qualitative comparative analysis
KW - Social and commercial enterprises
KW - Transaction cost
UR - http://www.scopus.com/inward/record.url?scp=85100795301&partnerID=8YFLogxK
U2 - 10.1016/j.ibusrev.2021.101810
DO - 10.1016/j.ibusrev.2021.101810
M3 - Article
AN - SCOPUS:85100795301
SN - 0969-5931
JO - International Business Review
JF - International Business Review
M1 - 101810
ER -