Integrating general and local context-dependent factors into a framework for analysing business sectors in Bottom-of-the-Pyramid emerging markets

  • Maaike Broeksma University of Groningen
  • Bart Jan Willem (Bartjan) PENNINK University of Groningen, Faculty of Economics and Business
Keywords: Bottom-of-the-Pyramid (BoP), multinational enterprises (MNEs), emerging markets, market entry, business sector analysis, context dependency

Abstract

Abstract:

Aim: This paper investigates how a framework for analysing business sectors in emerging markets looks like when taking into account the local context-dependent and general factors of The Bottom-of-the-Pyramid (BoP). The BoP segment in emerging markets represents a major growth potential for firms, including multinational enterprises (MNEs) from developed countries. However, the continued lack of success of MNEs in these markets has shown that generic one-size-fits-all strategies for the BoP are not appropriate as BoP contexts differ between countries.

Design / Research methods: The sample that was selected for the research includes two non-governmental organizations (NGOs) related to the BoP and eight managers at MNEs with activities in the BoP have been interviewed in a semi-structured manner to collect rich data.

Conclusion / findings: By interviewing eight managers at MNEs with activities in the BoP and two NGOs related to the BoP, an additional analysis, BoP-orientation, and further extensions to the original analyses are being presented. This results in an advanced framework for analysing business sectors in emerging markets.

Originality / value of the article: Current frameworks for analysing business sectors in emerging markets do take into account inter-country differences but fail to recognize intra-country differences, which causes them to fall short on their applicability to the BoP. This paper fills the gap how frameworks for analysing business sectors in emerging markets can be made applicable for the BoP by taking into account both the local context-dependent and general factors of a BoP-market to analyse it for opportunities, threats, and eventually and strategic entry mode.

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Published
2021-06-21
Section
Articles