Title: Creating a formal market ecosystem for base of the pyramid markets - strategic choices for social embeddedness
Authors: Sandeep Goyal; Bruno S. Sergi
Addresses: Institute for Competitiveness, U 24/8, DLF Phase 3, Gurgaon 122 002, Haryana, India ' Department of Economics, Business and Environmental Science and Quantitative Methodologies, University of Messina, Via T. Cannizzaro, 278, 98122 Messina, Italy; Davis Center for Russian and Eurasian Studies, Harvard University, CGIS South Building, 1730 Cambridge Street, Cambridge, MA 02138, USA
Abstract: This article is aimed at understanding how the social enterprises (SEs) are creating an ecosystem of social embeddedness at the base of the pyramid (BoP). The qualitative multi-case-based research methodology is applied for data collection and analysis. The data collection involves the field interviews and focus group interactions with the internal and external stakeholders of the SEs offering healthcare and energy offerings to the BoP segment in India. The results suggest that developing a capability in social embeddedness enhances the socio-economic impact on the BoP segment and sustainability of the SEs in the BoP markets. To build this capability, the key focus areas involve local capacity building, non-traditional partnerships and value co-creation ecosystem. The corresponding strategic choices involve actions and orientation towards the local skill building; awareness building; brick and mortar setup; local engagement; multi-skilling; creative partnerships; community engagement; and ongoing field-based experimentations.
Keywords: social embeddedness; social enterprises; low-income markets; base of the pyramid; BoP; inclusive business models; social business models; emerging economies; formal markets; market ecosystems; India; social entrepreneurship; local capacity building; non-traditional partnerships; value co-creation; local skills; awareness building; bricks and mortar; local engagement; multi-skilling; creative partnerships; community engagement.
International Journal of Business and Globalisation, 2015 Vol.15 No.1, pp.63 - 80
Received: 24 Sep 2014
Accepted: 26 Jan 2015
Published online: 26 Jun 2015 *