Partnerships in BOP business

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Volume Title

School of Economics | Master's thesis

Date

2011

Major/Subject

International Business
Kansainvälinen liiketoiminta

Mcode

Degree programme

Language

en

Pages

82

Series

Abstract

Objective of the study The purpose of this study was to find out what kinds of partnerships companies form in base of the pyramid (BOP) business, i.e. business aimed at alleviating poverty in subsistence markets. Although partnerships have been frequently promoted in previous BOP literature, very comprehensive studies on the topic have not been made before. Data and methodology The research was conducted as a multiple-case study, including data on 20 BOP business models of both foreign and local companies from various sectors. The data was collected mainly from existing case studies and company websites. Findings The findings of the study highlight the importance of partnerships in BOP business. The study provides an overview of different kinds of partnerships that companies doing business at the BOP may form with various types of actors, such as nongovernmental organisations, local microentrepreneurs, other companies, government agencies, intergovernmental organisations, and universities. As the main contribution of the study, nine categories of roles that partners can take in BOP business are presented: co-developers, suppliers, distributors, complementors, customers, microfinance providers, brokers, funders, and impact assessors. Furthermore, the study describes what types of actors companies may engage as partners in each of these roles.

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Keywords

base of the pyramid, BOP, poverty alleviation, partnerships, cross-sector partnerships, partner roles, partner networks

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