Developing Inclusive Business Models at the Base of the Pyramid: A Resource-Based View

Abstract

This paper is grounded in the extended resource-based theory proposed by Warnier, Weppe, and Lecocq (2013), which emphasizes the role of managerial subjectivity in defining resources that can be leveraged for competitive advantage. Traditionally, resources have been classified as strategic, ordinary, or negative, with negative resources often overlooked despite their potential value. This study explores how the business model framework can facilitate the identification, capture, transformation, and delivery of negative resources by combining them with other resources. We address the gap in the literature concerning the integration of negative resources and their strategic importance.

Through an exploration of two detailed case studies of companies operating in the Base of the Pyramid (BOP) market, we provide empirical insights into innovative practices that enable these firms to convert negative resources into valuable assets. The case studies include THE ORGANIZATION X 's "Branchements Sociaux BS" program in Morocco and THE ORGANIZATION Y in Bangladesh. These cases illustrate how organizations can repurpose negative resources to create inclusive and sustainable business models, offering essential services to underserved communities.

Our findings suggest that negative resources, when effectively integrated and managed, can significantly contribute to both social and economic value creation. This study highlights the importance of developing inclusive business models that not only provide essential services to marginalized populations but also utilize and enhance local resources and capabilities. The implications of this research extend to managers and policymakers seeking to foster innovation and sustainability in resource-constrained environments. By focusing on how negative resources can be transformed into strategic assets, this research offers valuable insights into creating competitive advantages in BOP markets.

Keywords: Inclusion, negative resources, Base of the Pyramid (BOP), sustainable business models, resource-based theory.

JEL Classification: L22 Firm Organization and Market Structure

Paper type: Empirical research