Exploring the Intersection of Management Practices and Bottom of the Pyramid Economics in Developing Countries
Name
lavda-lavda988-msms-sloan-2024-thesis.pdf
Description
Thesis PDF
Size
1.14 MB
Format
Adobe PDF
Checksum (MD5)
4853febe61fd274ebebfaea26e267eab
Author(s)
Lavda, Aliki
Advisor(s)
Jónasson, Jónas Oddur
Date Issued
May 2024
Publisher
Massachusetts Institute of Technology
Abstract
This thesis explores the intersection of management practices and Bottom of the Pyramid (BoP) economics within developing countries. Utilizing a comprehensive case study approach, it evaluates several multinational corporations' ventures in these regions, focusing on their strategies to leverage BoP markets for both business innovation and socio-economic upliftment. The research highlights how these companies integrate core business strategies with local economic conditions to create value for both the company and the local communities. Through detailed analysis of ventures by companies such as DuPont, SC Johnson, VisionSpring, and Procter & Gamble, the study identifies critical factors that influence the success or failure of BoP initiatives such as product-market fit, community integration, governance partnerships, and sustainable business model innovation. To critically assess these ventures, two theoritical frameworks are deployed: the Specified Analytical Criteria framework, emerged from existing BoP venture literature, and the Sustainability-Oriented Innovation framework, redesigned from sustainable business practices. Additionally, this study hypothesizes that ventures incorporating a dual-entity structure—combining for-profit and non-profit elements—may increase their chances of success by effectively balancing economic and social goals. This hypothesis is assessed through an in-depth case study of Sanergy Collaborative, a venture operating in Nairobi's informal settlements that transforms waste into valuable resources. By aligning empirical findings with theoretical insights, this work provides nuanced understandings of hybrid business models and offers refined models for future BoP ventures that aim to achieve scalable social impact alongside financial sustainability.
MIT Department
Sloan School of Management
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