eThesis - School of Business electronic theses

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Objective of the study

The purpose of this study was to find out what kinds of partnerships companies form in base of the pyramid (BOP) business, i.e. business aimed at alleviating poverty in subsistence markets. Although partnerships have been frequently promoted in previous BOP literature, very comprehensive studies on the topic have not been made before.

Data and methodology

The research was conducted as a multiple-case study, including data on 20 BOP business models of both foreign and local companies from various sectors. The data was collected mainly from existing case studies and company websites.

Findings

The findings of the study highlight the importance of partnerships in BOP business. The study provides an overview of different kinds of partnerships that companies doing business at the BOP may form with various types of actors, such as nongovernmental organisations, local microentrepreneurs, other companies, government agencies, intergovernmental organisations, and universities. As the main contribution of the study, nine categories of roles that partners can take in BOP business are presented: co-developers, suppliers, distributors, complementors, customers, microfinance providers, brokers, funders, and impact assessors. Furthermore, the study describes what types of actors companies may engage as partners in each of these roles.