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Published Online: 2016-12-11
Published Print: 2016-12-23
VIEW PDF: FROM NETWORK ADVANTAGE TO BOP NETWORK ADVANTAGE: PATH TO SUSTAINABLE VALUE CREATION AND INTERNATIONALIZATION
Recent developments in theories of Base of Pyramid (BoP) focus on engaging low-income population as business affiliates in developing countries. Theories of BoP cluster linkages and firms’ internationalization are well established in the literature yet there is scarcity of theoretical postulations which may connect the two. This study, using inductive qualitative methods, aims to extend network theory of internationalization by identifying linkage between inclusive supply chain cluster linkages with BoP firms and internationalization strategy of MNEs in developing host markets. This study focuses on the social sustainability of MNEs operations in host markets. Proposed model postulates sustainable/inclusive supply chain linkages with BoP enterprises as an exogenous variable that generates sustainable value creation process i.e. inclusive innovation and inclusive entrepreneurship. These sustainable/inclusive supply chain linkages, moreover, influence key determinants of MNEs’ internationalization strategy such as market knowledge competence, cooperative capability and native capability/ local embeddedness. The proposed model offers significant addition to the literature on internationalization of and shared value creation in MNEs.
Keywords: Shared value, Base of Pyramid (BoP) firms, sustainable supply chain, internationalization, economies of networking
JEL Classification: M14, F23, O24, O25
