Deficiency premiums at the base of the pyramid: a resource dependence perspective of business-to-business supply chains

Raja Usman Khalid

Chapter 12 in Handbook of Research on Base of the Pyramid Entrepreneurship, 2026, pp 211-233 from Edward Elgar Publishing

Abstract: This chapter explores the business-to-business (B2B) dynamics of poverty premiums in base of the pyramid (BoP) markets, a topic previously examined mainly in business-to-consumer (B2C) contexts. Using an in-depth case study approach focused on micro-entrepreneurs, the chapter applies a resource dependence perspective to analyze the influence of financial capital on interorganizational relationships. It examines factors contributing to bargaining power and their impact on B2B relationships in subsistence markets. The study links power and dependence with the emergence of poverty premiums in B2B marketplaces, highlighting how insufficient working capital and institutional voids manipulate these relationships. This chapter aims to provide a nuanced understanding of B2B relationships in BoP markets, offering insights into the complex interplay of power and dependence.

Keywords: BoP Entrepreneurship; Interorganizational Relationships; Business-to-business; Base of the Pyramid; Resource Dependency Theory; Resource Deficiency Premiums (search for similar items in EconPapers)
Date: 2026
ISBN: 9781802202137
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