Numerous scholars have observed that the relationship between poverty and violent conflict is endogenous. As a result, the area of Peace Through Commerce argues as one of its central tenets that the institution of business may be able to contribute to sustainable peace by creating economic development where poverty is a critical issue. While this argument may be valid, it leaves the question open — what is the business case for engaging in poverty alleviation business strategies? Strategic Management scholars are (...) addressing this question, arguing the general proposition that poverty is not only experienced by the people, but also impacts businesses operating in environments where the phenomenon is pervasive. By addressing poverty, businesses can help themselves. Yet, organizational theory justifying this proposition is still emerging, consisting of only a few studies that generally suggest that these strategies can help firms develop competitive advantage through the lens of the resource-based view. This article extends the theoretical application of the resource-based view, suggesting that conditions of poverty directly suppress the value of organizational resources and capabilities that are or could be contributed by people affected by it. In addition, it characterizes poverty alleviation strategic capabilities as dynamic capabilities. Finally, it describes a framework of "base of the pyramid dynamic capabilities" that could guide both future discourse in the area and deductive-disconfirmatory research examining the efficacy of these strategies. (shrink)

This study explores the relational processes that underpin social innovation within strategic cross-sector partnerships. Using four longitudinal narratives to document the duality of success and failure in strategic collaborations between nonprofit and for-profit organizations, the authors explain how partners navigate this duality: deliberate role (re)calibrations help the partners sustain the momentum for success and overcome temporary failure or crossover from failure to success. Our grounded framework models three relational factors that moderate the relationship between role recalibrations and the momentum for (...) success or failure: relational attachment, a personalized reciprocal bond between partners, which provides a stabilizing buffer in the face of unexpected contingencies; partner complacency, an insufficient investment that signals temporary misalignments; and partner disillusionment, an erosion of confidence in the other partner’s commitment that diagnoses premature failure. (shrink)

The idea that business can play a role in alleviating poverty has caught the imagination of academics and practitioners alike. An emerging consensus points to the critical importance of partnerships in market initiatives addressed to the base of the pyramid (BOP). But despite the calls for cross sector partnerships in BOP initiatives, our collective understanding of how these actually work has not advanced proportionally. This study attempts to address this issue by examining the dynamics at play in nine networks that (...) integrated the BOP with mainstream markets in nine developing nations of North, Central, and South America. Our field-based analysis generated a number of tentative propositions structured around three broad issue-areas: alliance formation (drivers that compelled companies to engage in strategic partnerships), alliance implementation (choice of governance mechanisms, resources for enhancing trust and reciprocity between partners, and conflict-resolution mechanisms), and performance outcome (the extent to which an organization’s commitment to an alliance impacted its performance and its societal context). (shrink)

The present study complements current firm—nongovernment organization (NGO) literature by emphasizing the influence of managerial cognition on organizational behavior. In particular, I find that NGOs confront or seek to collaborate with other NGOs or with firms to appear as legitimate actors before selected third parties and as a way to access various sources of funds. By contrast, firm managers interacting with these NGOs are fundamentally concerned with achieving social stability so that their organizations can operate undisturbed. These different goals give (...) rise to considerably dissimilar mental representations of the same reality—representations that subsequently inform strategic action by both types of actors. (shrink)

Growing concerns about corporations’ business and accounting practices have contributed to increased scrutiny and the adoption of new laws to govern corporate behavior. Nonprofit nongovernmental organizations (NGOs) have also come under investigation for their activities, especially when engaging in social venturing. Because NGOs are largely supported by taxpayer dollars and private donations, their existence is strongly based on fulfilling their social purpose mission. In this study, NGOs reported on this increased scrutiny and how it was especially important for them to (...) act as good corporate citizens, which, in corporate citizenship theory, means being economically responsible, abiding by the law, engaging in ethical and moral management, and ensuring the philanthropy of the social venture. The authors find that these components are key to the sustainability of the ventures and the organizations themselves. Based on study findings, the authors propose “community citizenship behavior” as a broader model for application in social ventures. (shrink)

This dissertation abstract and reflection essay presents the work of Dr. Darline Augustine. The dissertation examines variance in firm performance in the microfinance industry. The investigations unfold throughout six dissertation chapters, four of which are empirical. Each chapter illustrates the complex nature of the practice of corporate governance within microfinance firms, and the relationship of transparency to performance. In particular, the dissertation illustrates the influence of firm-level transparency—a proxy for good practice in corporate governance—and positive firm performance. The chapters focus (...) primarily on financial performance and, and to a lesser extent, social performance is also examined. This extended abstract explains the research question, setting, and methods. The reflection essay in the appendix discusses the author’s journey in the research process as a junior scholar. (shrink)

Benedict XVI in Caritas in Veritate advances a positive view of businesses that are hybrids between several traditional categories. He expects that the “logic of gift” that animates civil society infuses the market and the State with relations typical for it—reciprocity, gratuitousness, and solidarity. His theological rationale offers an answer to two questions that have largely remained open in the literature—why hybridization of business occurs and why it is desirable. A rational reconstruction of hybrid enterprise that goes beyond a simple (...) taxonomy of types benefits from the Pope’s call for an intrinsic integration of institutions and processes traditionally attributed to disparate spheres. The relational model of the Trinity defines the unity in diversity that accounts for the benefits of truly hybrid businesses, and the “logic of gift” serves as the agent of integration. (shrink)