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Poverty Alleviation through Sustainable Strategic Business Models PDF

318 Pages·2008·4.74 MB·English
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KtLyEI NAlleviation through w stptwthhoaremoiitvsa Is cnaelteo th o tecllelifio emv sso1ciienest0pc e,g5wet dao rice tanraot t ftr upiouoaonoccn ndtvuti riqeeswnie rvugotiseety n.lhn ?o dTs e phaONow temGnta ioebOrsew eu fasctos,apr icirodnptadfieerlcs o vs1a gasie4lnr cl3ooqcoh lpuup futppiemdorso mi oettnrihfnstog u itcno s ntu,osph is ktreietignnroe apa osmbtno waiaeionzsnnrrgeasd a -,ta i oisnaseof dm tn-bbhtvsophaea tlesa nohbe-ncy pa-pidoeysnr feergom-a-st do,mthi cuhfser icuetdo-ehp p srrefyptsei-ra lnspaaineeaymndarnrdsraiac,d cer mcha d om.nii ndnodas,sf /rut ioklsimite rvuf teiodtsnriri osgs itn.tn hroI sinaef- , ww.b-en-t.nl) Print: Haveka ( MARTIN H SMuosdtaeilnsable Strategic Business IM bwbanuaesdt oe dt-reoesv sfh-tet alhtovhepee- p aacynner n aaetmvrmaeidplr a,ip rgaiocensa dtdlul yaela ixldtyaee m prtiiuhvnraeectd h d eacimsflfianebsgresei dfpndiocciaenwtsgi eow rsn oio tcohfi fa $h l2b iag uonhsrd-i ni lneeecsnsossv.m icrBehou anmillmdlaeiernnknggete atussl p.v foWoanrleu t feahi rliimssno sd a ea axtftait restmenht’des, werp en advies (w . KLEIN Essays on Poverty Alleviation as a Business Strategy ment-ER bbbftctrhiouuuoaensisnml iicda nneaen eepnwassstd wsso,m armemwkauro ohnsgt.ddiaom cTege hohelle s endmtp.lht rprWseiiov snfovee oteuis drnp rsmae druu sou,fpn ivlwrtpdaimhdoteeeeer’ rs ct s a ml mtfamnaiurnasniolanwfdtdynaiie- encgatrilhgensa, e rdltow soop fcrha eoetcinrhontcfdihemocc se arepecmplna e tqaatnturupin aetebpcilpvleseryreto ea i auaonatcdsn dethevsuhv d,aare n ansn etb ncotwceadae sig dtsttehesheh-a.evo etr ef shyq-lt teourhf apaoqet lru-eip tpgediryeosiicrsstfa ir ibotutmouanp ibsssdti lein.etv aoeL erpa s cassirhn sotm klnf-yp,ooo, ortdvw hoiaeneer -l Design & layout: B&T Ont - Poverty Alle v e ia g t a io n n a t h M r ERIM o u f g o The Erasmus Research Institute of Management (ERIM) is the Research School (Onder - h e zoek school)inthefieldofmanagementoftheErasmusUniversityRotterdam.Thefounding S itut pERraoarystaimcl iupNsae nStcthshe oroloafl n EodRfs I EMAc ocaanrdoee m Rmiocyst t. oeEfrRdIAaMmrt ws Saacshn odfoo uSl ncoidefe nMdce aisnn a(1Kg9Ne9m9A Waenn)dt. , TiEshr oaes ffmriecusiaes lalUrycn haicv cuernresdditeiytre,t adak nbedyn ttbhhyee ustain st ERIM isfocussed on the management of the firm in its environment, itsintra- and interfirm ab n relations, and its busi ness processes in their interdependent connections. le h I Theobjective of ERIM is to carry out first rate research in managem ent, and to offer an St c advanced doctoral pro gramme in Research in Management. Within ERIM, over three ra r hundred senior researchers and PhD candidates are active in the different research t a e e programmes. From a variety of acade mic backgrounds and expertises, the ERIM commu nity g s is united in striving for excellence and working at the fore front of creating new business ic e B R knowledge. u s sin u e m ss s M a o r d E e ls ERIM PhD Series Research in Management Rotterdam School of Management Tel. +31 10 408 11 82 Erasmus University Fax +31 10 408 96 40 E Erasmus School of Economics E-mail [email protected] R P.O. Box 1738, 3000 DR Rotterdam Internet www.erim.eur.nl I M The Netherlands PPOOVVEERRTTYY AALLLLEEVVIIAATTIIOONN TTHHRROOUUGGHH SSUUSSTTAAIINNAABBLLEE SSTTRRAATTEEGGIICC BBUUSSIINNEESSSS MMOODDEELLSS Essays on Poverty Alleviation as a Business Strategy 1 2 Poverty Alleviation through Sustainable Strategic Business Models Essays on Poverty Alleviation as a Business Strategy Armoedebestrijding via duurzame strategische bedrijfsmodellen: Essays over armoedebestrijding als bedrijfsstrategie Proefschrift ter verkrijging van de graad van doctor aan de Erasmus Universiteit Rotterdam op gezag van de rector magnificus Prof.dr. S.W.J. Lamberts en volgens besluit van het College voor Promoties. De openbare verdediging zal plaatsvinden op vrijdag 3 oktober 2008 om 13.30 uur door Hermanus Klein geboren te Ridderkerk 3 Promotiecommissie Promotor: Prof.dr. H.R. Commandeur Overige leden: Prof.dr. P.J.F. Groenen Prof.dr. A.R. Thurik Prof.dr. D.M. Wright Copromotor: Dr. E. Verwaal Erasmus Research Institute of Management (ERIM) RSM Erasmus University / Erasmus School of Economics Erasmus University Rotterdam Internet: http://www.erim.eur.nl ERIM Electronic Series Portal: http://hdl.handle.net/1765/1 ERIM Ph.D. Series Research in Management 135 ISBN 978-90-5892-168-0 © 2008, Martin H. Klein All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author. English editing: E.G. van Weezendonk Cover design: H. Huinen Fig. 1.1 and picture underneath “BoP context” in Fig. 5.1: Prahalad and Hammond (2002) Picture underneath “Learning through native capability” in Fig. 5.4: Prahalad (2006b) 4 I would like to express my sincerest gratitude for all the help and assistance I received from the following committee members and promotores. Committee members Prof.dr. J.B. (Jay) Barney Prof.dr. P.J.F. (Patrick) Groenen Prof.dr. S.L. (Stuart) Hart Prof.dr. A.R. (Roy) Thurik Prof.dr. D.M. (Mike) Wright Promotores Prof.dr. H.R. (Harry) Commandeur Dr. E. (Ernst) Verwaal 5 Contents 1 Introduction and outline 1 1.1 Research context: Base-of-the-pyramid 2 1.2 Base-of-the-pyramid businesses: A strategy of “doing well by doing good” 8 1.3 The BoP approach as form of poverty alleviation 10 1.4 Business arguments to develop a business strategy around the BoP 12 1.5 Objectives and outline 15 2 Discerning the organizational problems and opportunities at the base-of-the-pyramid: A classification and an investigation of contextual relationships 21 2.1 Introduction 22 2.2 Theory and hypotheses 24 2.3 Methods 34 2.4 Analyses and results 38 2.5 Discussion 52 App 2.I Dimensions and formative items of investment climate 56 3 The business model concept: A strategic management approach 57 3.1 Introduction 58 3.2 Literature review 59 3.3 Defining the strategic business model 64 3.4 Multiscale analysis and components versus linkages 66 3.5 Conceptual framework 68 3.6 Propositions: Assessment of internal fitness 79 3.7 Discussion 88 App 3.I Literature review of the business model concept 94 6 4 Can private businesses really build profitable and sustainable business models at the base-of-the-pyramid? 103 4.1 Introduction 104 4.2 Theory and hypotheses development 106 4.3 Data and methods 116 4.4 Analyses and results 121 4.5 Discussion 124 App 4.I Measurement items and validity assessment 129 App 4.II Formative items for firm performance 131 5 A management support model for developing profitable pro-poor business models at the base-of-the-pyramid: On how to analyze base-of-the-pyramid case studies 133 5.1 Introduction 134 5.2 A management support model for developing profitable pro-poor business models at the base-of-the-pyramid 135 5.3 BoP business model qualities 147 5.4 Analysis of validity: Case reviews 220 5.5 Discussion 232 App 5.I From business challenges to business questions 236 App 5.II Making an assessment of the business model qualities 239 6 Conclusion 242 6.1 Introduction 242 6.2 Conclusions and implications 243 6.3 Directions for future research 256 Nederlandse samenvatting (Dutch summary) 259 Acknowledgements 270 References 270 Curriculum vitae 295 7 8 List of Figures 1.1 The base-of-the-pyramid: An estimation of its size 4 1.2 Strategies for social value management 8 1.3 Path of social value management 9 2.1 Multidimensional scaling plot of business challenges for firms at the BoP 41 3.1 Number of articles in which the term ‘business model’ is used 60 3.2 A conceptual framework of strategic business models 69 3.3 Demonstrating the conceptual framework (visualization of the propositions) 83 4.1 Hypothesized structural model 108 5.1 The rationale of the management support model for developing profitable pro-poor business models at the BoP 136 5.2 The management support model for developing profitable pro-poor business models at the BoP 137 5.3 Net of basic business questions 139 5.4 Framework of BoP business model qualities: Today, Together, Tomorrow 149 5.5 The BoP business model qualities 151 5.6 Estimated BoP market size by sector in billion of US$ 155 6.1 A multilevel approach: a necessity at the BoP 245 List of Tables 1.1 Illustrative examples of BoP firms 5 1.2 Levels at which the private sector can involve the poor 12 1.3 Outline of dissertation 20 2.1 Classification frameworks of organizational problems of non-BoP firms 25 2.2 Overview of hypotheses, methodology, and results 27 2.3 Sample description 39 2.4 Means, standard deviations, and correlations 39 2.5 Classification of business challenges for firms at the base-of-the-pyramid 41 2.6 Explaining importances of business challenges 46 2.7 Interpretation of business challenges 50 3.1 Literature review of the business model concept 61 4.1 Means, standard deviations, and correlations 122 4.2 Structural equation model results of the standardized structural paths 123 5.1 The basic business questions 140 5.2 BoP characteristics 142 5.3 Case studies included in the validity test 222 9

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Poverty Alleviation through Sustainable Strategic Business Models. 135 .. It entered the Democratic Republic of the Congo in 2000 at the time of a.
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