David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Journal of Business Ethics 89 (4):495 - 514 (2009)
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
|Keywords||base of the pyramid dynamic capabilities microfinance poverty alleviation resource-based view|
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References found in this work BETA
Thomas Donaldson (1995). [Book Review] the Ethics of International Business. [REVIEW] Business Ethics Quarterly 5:865-882.
Citations of this work BETA
Ron Berger, Chong Ju Choi & Jai Boem Kim (2011). Responsible Leadership for Multinational Enterprises in Bottom of Pyramid Countries: The Knowledge of Local Managers. [REVIEW] Journal of Business Ethics 101 (4):553-561.
François Perrot (forthcoming). Multinational Corporations’ Strategies at the Base of the Pyramid: An Action Research Inquiry. Journal of Business Ethics.
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