Skip to main content
Erschienen in: Journal of Business Ethics 1/2017

03.11.2015

Multinational Corporations’ Strategies at the Base of the Pyramid: An Action Research Inquiry

verfasst von: François Perrot

Erschienen in: Journal of Business Ethics | Ausgabe 1/2017

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Why and how does a multinational corporation adapt its strategy and organizational capabilities to address markets at the base of the pyramid (BOP)? This paper builds on the results of a 3-year action research program conducted with Lafarge, a global building materials company, during which it started to consider the BOP segment as a strategic business opportunity. The article shows how pilot projects and global action networks created as part of the action research in the Indonesian subsidiary and the firm’s head office contributed to this change. The paper then discusses the implications of BOP strategies in terms of organizational capabilities.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Anhänge
Nur mit Berechtigung zugänglich
Fußnoten
1
The dissertation was conducted within the framework of a research convention, which in the French research setting allows a doctoral student to be hired by a company and work on a doctoral thesis conjointly designed between all parties.
 
2
I am grateful to the reviewers for making the suggestion regarding the use of the GAN theoretical framework.
 
Literatur
Zurück zum Zitat Acquier, A. (2007). Les modèles de pilotage du développement durable: du contrôle externe à la conception innovante. Doctoral dissertation. Acquier, A. (2007). Les modèles de pilotage du développement durable: du contrôle externe à la conception innovante. Doctoral dissertation.
Zurück zum Zitat Aguinis, H. (1993). Action research and scientific method: Presumed discrepancies and actual similarities. Journal of Applied Behavioral Science, 29(4), 416–431.CrossRef Aguinis, H. (1993). Action research and scientific method: Presumed discrepancies and actual similarities. Journal of Applied Behavioral Science, 29(4), 416–431.CrossRef
Zurück zum Zitat Andriopoulos, C., & Lewis, M. W. (2008). Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organization Science, 204, 696–717. Andriopoulos, C., & Lewis, M. W. (2008). Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organization Science, 204, 696–717.
Zurück zum Zitat Arjaliès, D.-L., & Ponssard, J.-P. (2010). A managerial perspective on the Porter hypothesis. The case of CO2 emissions. In J.-P. Ponssard & C. Crifo (Eds.), Corporate social responsibility: From compliance to opportunity? (pp. 151–168). Paris: Editions de l’Ecole Polytechnique. Arjaliès, D.-L., & Ponssard, J.-P. (2010). A managerial perspective on the Porter hypothesis. The case of CO2 emissions. In J.-P. Ponssard & C. Crifo (Eds.), Corporate social responsibility: From compliance to opportunity? (pp. 151–168). Paris: Editions de l’Ecole Polytechnique.
Zurück zum Zitat Arnold, D. G., & Williams, L. H. (2012). The paradox at the base of the pyramid: Environmental sustainability and market-based poverty alleviation. International Journal of Management, 60(1), 44–59. Arnold, D. G., & Williams, L. H. (2012). The paradox at the base of the pyramid: Environmental sustainability and market-based poverty alleviation. International Journal of Management, 60(1), 44–59.
Zurück zum Zitat Arora, S., & Romijn, H. (2012). The empty rhetoric of poverty reduction at the base of the pyramid. Organization, 19(4), 481–505.CrossRef Arora, S., & Romijn, H. (2012). The empty rhetoric of poverty reduction at the base of the pyramid. Organization, 19(4), 481–505.CrossRef
Zurück zum Zitat Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRef Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRef
Zurück zum Zitat Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press. Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press.
Zurück zum Zitat Bornstein, D. (2007). How to change the world: Social entrepreneurs and the power of new ideas. Oxford: Oxford University Press. Bornstein, D. (2007). How to change the world: Social entrepreneurs and the power of new ideas. Oxford: Oxford University Press.
Zurück zum Zitat Calton, J. M., & Payne, S. L. (2003). Coping with paradox multistakeholder learning dialogue as a pluralist sensemaking process for addressing messy problems. Business and Society, 42(1), 7–42.CrossRef Calton, J. M., & Payne, S. L. (2003). Coping with paradox multistakeholder learning dialogue as a pluralist sensemaking process for addressing messy problems. Business and Society, 42(1), 7–42.CrossRef
Zurück zum Zitat Calton, J. M., Werhane, P. H., Hartman, L. P., & Beavan, D. (2013). Building partnerships to create social and economic value at the base of the global development pyramid. Journal of Business Ethics, 117, 721–733.CrossRef Calton, J. M., Werhane, P. H., Hartman, L. P., & Beavan, D. (2013). Building partnerships to create social and economic value at the base of the global development pyramid. Journal of Business Ethics, 117, 721–733.CrossRef
Zurück zum Zitat Crabtree, A. (2007). Evaluating “the bottom of the pyramid” from a fundamental capabilities perspective, In CBDS Working Paper Series. Crabtree, A. (2007). Evaluating “the bottom of the pyramid” from a fundamental capabilities perspective, In CBDS Working Paper Series.
Zurück zum Zitat Folliet, M. (2011). Cementing the foundations of growth. Private Sector and Development, 10, 2–5. Folliet, M. (2011). Cementing the foundations of growth. Private Sector and Development, 10, 2–5.
Zurück zum Zitat Freeman, R. E. (1984, 2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press. Freeman, R. E. (1984, 2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press.
Zurück zum Zitat Freeman, R. E., & Phillips, R. (2002). Stakeholder theory: A libertarian defense. Business Ethics Quarterly, 12(3), 331–350.CrossRef Freeman, R. E., & Phillips, R. (2002). Stakeholder theory: A libertarian defense. Business Ethics Quarterly, 12(3), 331–350.CrossRef
Zurück zum Zitat Gupta, A., Smith, K., & Shalley, C. (2006). The interplay between exploration and exploitation. Academy of Management Journal, 49(4), 693–706.CrossRef Gupta, A., Smith, K., & Shalley, C. (2006). The interplay between exploration and exploitation. Academy of Management Journal, 49(4), 693–706.CrossRef
Zurück zum Zitat Hardy, C., Lawrence, T. B., & Phillips, N. (2006). Swimming with sharks: Creating strategic change through multi-sector collaboration. International Journal of Strategic Change Management, 1, 96–112.CrossRef Hardy, C., Lawrence, T. B., & Phillips, N. (2006). Swimming with sharks: Creating strategic change through multi-sector collaboration. International Journal of Strategic Change Management, 1, 96–112.CrossRef
Zurück zum Zitat Hart, S. (2005). Capitalism at the crossroads: The unlimited business opportunities in serving the world’s most difficult problems. Philadelphia: Wharton School Publishing. Hart, S. (2005). Capitalism at the crossroads: The unlimited business opportunities in serving the world’s most difficult problems. Philadelphia: Wharton School Publishing.
Zurück zum Zitat Hart, S., & Christensen, M. (2002). The great leap. Driving innovation from the base of the pyramid. MIT Sloan Management Review, 51–56. Hart, S., & Christensen, M. (2002). The great leap. Driving innovation from the base of the pyramid. MIT Sloan Management Review, 51–56.
Zurück zum Zitat Karnani, A. (2007). The mirage of marketing to the bottom of the pyramid: How the private sector can help alleviate poverty. California Management Review, 49(4), 90–111.CrossRef Karnani, A. (2007). The mirage of marketing to the bottom of the pyramid: How the private sector can help alleviate poverty. California Management Review, 49(4), 90–111.CrossRef
Zurück zum Zitat Kistruck, G. M., & Beamish, P. W. (2010). The interplay of form, structure, and embeddedness in social intrapreneurship. Entrepreneurship Theory and Practice, 34, 735–761.CrossRef Kistruck, G. M., & Beamish, P. W. (2010). The interplay of form, structure, and embeddedness in social intrapreneurship. Entrepreneurship Theory and Practice, 34, 735–761.CrossRef
Zurück zum Zitat Kolk, A., Rivera-Santos, M., & Rufín, C. (2014). Reviewing a decade of research on the “base/bottom of the pyramid” (BOP) concept. Business and Society, 53, 338–377.CrossRef Kolk, A., Rivera-Santos, M., & Rufín, C. (2014). Reviewing a decade of research on the “base/bottom of the pyramid” (BOP) concept. Business and Society, 53, 338–377.CrossRef
Zurück zum Zitat Lafarge. (2003). Our second sustainability Report, p. 4. Lafarge. (2003). Our second sustainability Report, p. 4.
Zurück zum Zitat Lafarge (2014a). Sustainability report, pp. 28–29. Lafarge (2014a). Sustainability report, pp. 28–29.
Zurück zum Zitat Lafarge (2014b). 2013 Annual report, pp. 1–5. Lafarge (2014b). 2013 Annual report, pp. 1–5.
Zurück zum Zitat Le Ber, M., & Branzei, O. J. (2010). (Re)forming strategic cross-sector partnerships: Relational processes of social innovation. Business and Society, 49, 140.CrossRef Le Ber, M., & Branzei, O. J. (2010). (Re)forming strategic cross-sector partnerships: Relational processes of social innovation. Business and Society, 49, 140.CrossRef
Zurück zum Zitat Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13, 111–125.CrossRef Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13, 111–125.CrossRef
Zurück zum Zitat Levinthal, D., & March, J. (1993). The myopia of learning. Strategic Management Journal, 14, 95–112.CrossRef Levinthal, D., & March, J. (1993). The myopia of learning. Strategic Management Journal, 14, 95–112.CrossRef
Zurück zum Zitat London, T., Anupindi, R., & Sheth, S. (2010). Creating mutual value: Lessons learned from ventures serving base of the pyramid producers. Journal of Business Research, 63, 582–594.CrossRef London, T., Anupindi, R., & Sheth, S. (2010). Creating mutual value: Lessons learned from ventures serving base of the pyramid producers. Journal of Business Research, 63, 582–594.CrossRef
Zurück zum Zitat London, T., & Hart, S. (2004). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Studies, 1–21. London, T., & Hart, S. (2004). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Studies, 1–21.
Zurück zum Zitat London, T., Rondinelli, D. A., & O’Neill, H. (2005). Strange bedfellows: Alliances between corporations and nonprofits. In O. Shenkar & J. Reuer (Eds.), Handbook of strategic alliances (pp. 353–366). Thousand Oaks, CA: SAGE. London, T., Rondinelli, D. A., & O’Neill, H. (2005). Strange bedfellows: Alliances between corporations and nonprofits. In O. Shenkar & J. Reuer (Eds.), Handbook of strategic alliances (pp. 353–366). Thousand Oaks, CA: SAGE.
Zurück zum Zitat Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44.CrossRef Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44.CrossRef
Zurück zum Zitat March, J. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71–87.CrossRef March, J. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71–87.CrossRef
Zurück zum Zitat Martini, A., Laugen, B. T., Gastaldi, L., & Corso, M. (2013). Continuous innovation: Towards a paradoxical, ambidextrous combination of exploration and exploitation. International Journal of Technology Management, 61(1), 1–22.CrossRef Martini, A., Laugen, B. T., Gastaldi, L., & Corso, M. (2013). Continuous innovation: Towards a paradoxical, ambidextrous combination of exploration and exploitation. International Journal of Technology Management, 61(1), 1–22.CrossRef
Zurück zum Zitat Mintzberg, H., & Westley, F. (1992). Cycles of organizational change. Strategic Management Journal, 13, 39–59.CrossRef Mintzberg, H., & Westley, F. (1992). Cycles of organizational change. Strategic Management Journal, 13, 39–59.CrossRef
Zurück zum Zitat Munir, K., Ansari, S., & Gregg, T. (2010). Beyond the hype: Taking business strategy to the “bottom of the pyramid”. Advances in Strategic Management, 27, 247–276. Munir, K., Ansari, S., & Gregg, T. (2010). Beyond the hype: Taking business strategy to the “bottom of the pyramid”. Advances in Strategic Management, 27, 247–276.
Zurück zum Zitat Murphy, M., Perrot, F., & Rivera-Santos, M. (2012). New perspectives on learning and innovation in cross-sector collaborations. Journal of Business Research, 65, 1700–1709.CrossRef Murphy, M., Perrot, F., & Rivera-Santos, M. (2012). New perspectives on learning and innovation in cross-sector collaborations. Journal of Business Research, 65, 1700–1709.CrossRef
Zurück zum Zitat O’Reilly, C., & Tushman, M. (2004). The ambidextrous organization. Harvard Business Review, 74–83. O’Reilly, C., & Tushman, M. (2004). The ambidextrous organization. Harvard Business Review, 74–83.
Zurück zum Zitat Prahalad, C. K. (2004). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Philadelphia: Wharton School Publishing. Prahalad, C. K. (2004). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Philadelphia: Wharton School Publishing.
Zurück zum Zitat Prahalad, C. K., & Hamel, G. (1989). Strategic intent (pp. 63–76). Harvard: Harvard Business Review. Prahalad, C. K., & Hamel, G. (1989). Strategic intent (pp. 63–76). Harvard: Harvard Business Review.
Zurück zum Zitat Prahalad, C. K., & Hammond, A. (2002). Serving the world’s poor profitably. Harvard Business Review, 80(9), 48–57. Prahalad, C. K., & Hammond, A. (2002). Serving the world’s poor profitably. Harvard Business Review, 80(9), 48–57.
Zurück zum Zitat Prahalad, C. K., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy +Business, 26(First Quarter), 2–14. Prahalad, C. K., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy +Business, 26(First Quarter), 2–14.
Zurück zum Zitat Rapoport, R. (1970). Three dilemmas of action research. Human Relations, 23, 499–513.CrossRef Rapoport, R. (1970). Three dilemmas of action research. Human Relations, 23, 499–513.CrossRef
Zurück zum Zitat Rondinelli, D. A., & London, T. (2003). How corporations and environmental groups cooperate: Assessing cross-sector alliances and collaborations. The Academy of Management Executive (1993–2005), 17, 61–76.CrossRef Rondinelli, D. A., & London, T. (2003). How corporations and environmental groups cooperate: Assessing cross-sector alliances and collaborations. The Academy of Management Executive (1993–2005), 17, 61–76.CrossRef
Zurück zum Zitat Rust, K., & Gavera, C. (2013). Housing Finance in Africa: A review of some of Africa’s housing finance markets. Johannesburg, SA: Center for Affordable Housing Finance in Africa. Rust, K., & Gavera, C. (2013). Housing Finance in Africa: A review of some of Africa’s housing finance markets. Johannesburg, SA: Center for Affordable Housing Finance in Africa.
Zurück zum Zitat Seelos, C. (2008). Corporate strategy and market creation in the context of deep poverty. Gold prize essay in the 2008 essay competition sponsored by IFC and Financial Times. Seelos, C. (2008). Corporate strategy and market creation in the context of deep poverty. Gold prize essay in the 2008 essay competition sponsored by IFC and Financial Times.
Zurück zum Zitat Segel, A., Chu, M., & Herrero, G. (2006). Patrimonio Hoy (case study). Harvard: Harvard Business School Publishing. Segel, A., Chu, M., & Herrero, G. (2006). Patrimonio Hoy (case study). Harvard: Harvard Business School Publishing.
Zurück zum Zitat Simanis, E. (2012). Reality Check at the bottom of the pyramid. Harvard Business Review, 90(6), 6. Simanis, E. (2012). Reality Check at the bottom of the pyramid. Harvard Business Review, 90(6), 6.
Zurück zum Zitat Simanis, E. (2013). Bringing bottom of the pyramid into business focus. In R. Genevey, R. Pachauri, & R. Tubiana (Eds.), A planet for life: Reducing inequalities. New Delhi: TERI Press. Simanis, E. (2013). Bringing bottom of the pyramid into business focus. In R. Genevey, R. Pachauri, & R. Tubiana (Eds.), A planet for life: Reducing inequalities. New Delhi: TERI Press.
Zurück zum Zitat Simanis, E., & Milstein, M. (2012). Back to business fundamentals: Making BoP relevant to core business. Field Actions Science Report (special issue 4), 8. Simanis, E., & Milstein, M. (2012). Back to business fundamentals: Making BoP relevant to core business. Field Actions Science Report (special issue 4), 8.
Zurück zum Zitat Simons, R. (1995). Levers of control: How managers use innovative control systems to drive strategic renewal. Harvard: Harvard Business School Press. Simons, R. (1995). Levers of control: How managers use innovative control systems to drive strategic renewal. Harvard: Harvard Business School Press.
Zurück zum Zitat Susman, G., & Evered, R. (1978). An assessment of the scientific merits of action research. Administrative Science Quarterly, 23, 582–603.CrossRef Susman, G., & Evered, R. (1978). An assessment of the scientific merits of action research. Administrative Science Quarterly, 23, 582–603.CrossRef
Zurück zum Zitat Tashman, P., & Marano, V. (2010). Dynamic capabilities and base of the pyramid business strategies. Journal of Business Ethics, 89, 495–514.CrossRef Tashman, P., & Marano, V. (2010). Dynamic capabilities and base of the pyramid business strategies. Journal of Business Ethics, 89, 495–514.CrossRef
Zurück zum Zitat Vermeulen, E. (2008). Building dynamic capabilities for the base of the pyramid: A closer look at firm practices. In P. Kandachar & M. Halme (Eds.), Sustainability challenges and solutions at the base of the pyramid. Sheffield: Greenleaf Publishing. Vermeulen, E. (2008). Building dynamic capabilities for the base of the pyramid: A closer look at firm practices. In P. Kandachar & M. Halme (Eds.), Sustainability challenges and solutions at the base of the pyramid. Sheffield: Greenleaf Publishing.
Zurück zum Zitat Waddell, S. (2011). Global action networks: Creating our future together. New York: Palgrave Macmillan.CrossRef Waddell, S. (2011). Global action networks: Creating our future together. New York: Palgrave Macmillan.CrossRef
Zurück zum Zitat Winter, S., & Szulanski, G. (2001). Replication as strategy. Organization Science, 12(6), 730–743.CrossRef Winter, S., & Szulanski, G. (2001). Replication as strategy. Organization Science, 12(6), 730–743.CrossRef
Zurück zum Zitat World Resources Institute, & International Finance Corporation. (2006). The next 4 billion: Market size and business strategy at the base of the pyramid, p. 164. World Resources Institute, & International Finance Corporation. (2006). The next 4 billion: Market size and business strategy at the base of the pyramid, p. 164.
Metadaten
Titel
Multinational Corporations’ Strategies at the Base of the Pyramid: An Action Research Inquiry
verfasst von
François Perrot
Publikationsdatum
03.11.2015
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 1/2017
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-015-2785-z

Weitere Artikel der Ausgabe 1/2017

Journal of Business Ethics 1/2017 Zur Ausgabe

Premium Partner