Resources and Governance in ‘Base of the Pyramid’ Partnerships: Assessing Collaborations between Businesses and Non-Business Actors

Publication Type

Journal contribution (peer reviewed)

Authors

Hahn, R., & Gold, S.

Year of publication

2014

Published in

Journal of Business Research

Band/Volume

67/7

DOI

10.1016/j.jbusres.2013.09.002

Page (from - to)

1321-1333

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.