Supply chain inclusion in Base of the Pyramid markets: A cluster analysis and implications for global supply chains

Eugenia Rosca, Guido Moellering, Arpan Rijal, Julia Bendul

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Purpose
The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains?

Design/methodology/approach
A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains.

Findings
The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.

Research limitations/implications
This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion.

Practical implications
The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities.

Originality/value
This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).
Original languageEnglish
Pages (from-to)575-598
JournalInternational Journal of Physical Distribution and Logistics Management
Volume49
Issue number5
DOIs
Publication statusPublished - 2019

Fingerprint

Cluster analysis
cluster analysis
Supply chains
inclusion
supply
market
Industry
Inclusion
Base of the pyramid
Global supply chain
Supply chain
Lead
small and medium-sized enterprise
Outsourcing
outsourcing
social effects
supplier
Multinational enterprises
Managers

Keywords

  • inclusion
  • base of the pyramid

Cite this

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title = "Supply chain inclusion in Base of the Pyramid markets: A cluster analysis and implications for global supply chains",
abstract = "PurposeThe purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approachA large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. FindingsThe cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.Research limitations/implicationsThis study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implicationsThe findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/valueThis paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).",
keywords = "inclusion, base of the pyramid",
author = "Eugenia Rosca and Guido Moellering and Arpan Rijal and Julia Bendul",
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Supply chain inclusion in Base of the Pyramid markets : A cluster analysis and implications for global supply chains. / Rosca, Eugenia; Moellering, Guido; Rijal, Arpan; Bendul, Julia.

In: International Journal of Physical Distribution and Logistics Management, Vol. 49, No. 5, 2019, p. 575-598.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Supply chain inclusion in Base of the Pyramid markets

T2 - A cluster analysis and implications for global supply chains

AU - Rosca, Eugenia

AU - Moellering, Guido

AU - Rijal, Arpan

AU - Bendul, Julia

PY - 2019

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N2 - PurposeThe purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approachA large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. FindingsThe cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.Research limitations/implicationsThis study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implicationsThe findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/valueThis paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).

AB - PurposeThe purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approachA large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. FindingsThe cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis.Research limitations/implicationsThis study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implicationsThe findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/valueThis paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).

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