Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors

Rüdiger Hahn and Stefan Gold

Journal of Business Research, 2014, vol. 67, issue 7, 1321-1333

Abstract: Identifying, building, and maintaining partnerships with non-business actors are crucial challenges for multinational companies (MNCs) when implementing Base of the Pyramid (BoP) projects. Using a multiple-case study we analyze such partnerships through the lens of the relational view, focusing on resources generating inter-organizational value and on mechanisms for governing the partnerships. The cross-case analysis suggests that proficiency in identifying appropriate partners featuring non-tangible synergy-sensitive resources is vital for BoP ventures. MNCs compensate for their lack of local knowledge, contacts, and legitimacy by recruiting non-business actors for this consultancy and brokering function. Once a suitable network of partners has been identified, these resources need to be explored and exploited by developing personal relationships, communication routines, common goals, and partner-specific capacity building. Synergy-sensitive resources facilitate performance and long-term maintenance of BoP partnerships by establishing well-adapted and well-informed management practice and by creating a lock-in that works as an informal self-enforcing governance mechanism.

Keywords: Base of the Pyramid; Partnerships; Business–non-business collaboration; Synergy-sensitive resources; Governance; Relational view (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:67:y:2014:i:7:p:1321-1333

DOI: 10.1016/j.jbusres.2013.09.002

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