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 role of multinational corporations in fostering or undermining development within poor communities in developing countries has been a subject of intensive debate within academic and practitioner circles. MNCs are not only considered an obstacle to development but also as sources of solutions to some of the pressing social and environmental problems facing these communities. This article reviews the way in which companies frame sustainable community development, and their engagements in the community. It then considers the implications of both for (...) sustainable community development and poverty alleviation in developing countries. The article then proposes an agenda for future research centering on how corporations innovate in their governance roles and the conditions in which community development innovations are created, take shape, and are put into practice. The article concludes with an introduction to the other articles presented in this special issue highlighting also their main contributions. (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)

Firms are showing increasing interest in combining innovation and inclusive business models to contribute to sustainable community development. One framework to conceptualize such a business contribution is “corporate citizenship.” This article utilizes, extends, and critically reflects on the framework of corporate citizenship by identifying, explaining, and assessing the citizenship role toward sustainable community development that firms can perform. The article reviews a business model for delivering financial services to the rural communities in India. The business model is developed by a (...) private firm “A Little World (ALW),” and the article argues that the firm and its sister not-for-profit organization Zero Mass Foundation (ZMF) perform a strategic bridge role between public sector organizations and rural communities and assist in achieving their respective developmental goals. Using this case study, the article argues that firms can act as corporate citizens through a strategic bridge role. In so doing, firms can change political and economic infrastructures by inducing institutional, governance, and cultural changes. While the article underlines the positive contributions, it also raises questions about the extension of market rationality in the public domain and its potential influence on governmental development policies. (shrink)

A renowned economist's classic book on capitalism in the developing world, showing how property rights are the key to overcoming poverty "The hour of capitalism's greatest triumph," writes Hernando de Soto, "is, in the eyes of four-fifths of humanity, its hour of crisis." In The Mystery of Capital, the world-famous Peruvian economist takes up one of the most pressing questions the world faces today: Why do some countries succeed at capitalism while others fail? In strong opposition to the popular view (...) that success is determined by cultural differences, de Soto finds that it actually has everything to do with the legal structure of property and property rights. Every developed nation in the world at one time went through the transformation from predominantly extralegal property arrangements, such as squatting on large estates, to a formal, unified legal property system. In the West we've forgotten that creating this system is what allowed people everywhere to leverage property into wealth. This persuasive book revolutionized our understanding of capital and points the way to a major transformation of the world economy. (shrink)