Business models sustaining subsistence economies: evidence from India

Empowering subsistence women entrepreneurs in India: Insights from Lijjat, Mulukanoor and MPWPCL

Abstract: Empowerment of women by social enterprises in emerging economies has received attention from researchers. This paper aims to study three social enterprises in India that aim to empower subsistence women entrepreneurs.,A comparative case analysis of three social enterprises is done to develop understanding of systems and processes adopted by them. Sources such as published journal and news articles, case studies, success stories and official websites are used for data collection.,The study found that all three organisations strive to increase the asset base of members by organizing disempowered subsistence producers lacking market power; extending services throughout the value chain, i.e. from raw material supply to marketing of products; ploughing back regular incomes and bonuses through mechanisms acceptable to all members; and empowering subsistence producers to gain market power and ability to choose. The interventions give market exposure and voice to the concerns of women producers. These organisations successfully leverage the strength of their relations with civil society and markets in sustaining the business. Women empowerment was found to be achieved through regular income, collective voice, ability to take decisions and creation of social value.,This paper does not take into consideration enterprises promoted by government.,A conceptual framework is suggested in this paper along with insights for organisations interested in collectivising subsistence women for empowering them.,The conceptual framework provided in this paper enriches the understanding of social enterprises working with the objective of women empowerment.

Sustainable Growth: Grow and Broke Empirical Study on Manufacturing Sector Companies Listed on the Indonesia Stock Exchange

Abstract: Sales growth is one of the indicators of firm’s performance. However, high sales growth does not guarantee high stakeholder value. This is shown by the relationship of sales growth (AGR) and sustainable growth (SGR), as well as balance growth (BGR). This study is conducted using a 466 sample of manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2016. Paired sample test and compared mean one-way ANOVA are used to see the difference in Net Profit Margin, Assets Turnover, Dividend Payout Ratio, Price Earnings Ratio, and Debt to Equity Ratio of AGR, BGR, and SGR sample group are classified based on low, medium, and high rank. The results show that (1) high sales growth cannot be used to explain high Net Profit Margin and Assets Turnover; (2) companies with high BGR also have high DPR and PER. However, it is believed that high BGR should lead to lower DER. Nonetheless, this study found that companies with high SGR have higher debt in their financing, indicating ‘Growth and Broke’ has occurred. Keywords: actual growth, balance growth, sustainable growth, ‘Grow and Broke’

Improving healthcare services access at the bottom of the pyramid: the role of profit and non-profit organisations in Brazil

Abstract: This study aims to highlight the processes that private organisations implement to improve access to health care services for low-income communities in Brazil.,A qualitative research based on a comparative case study was conducted in Sao Paulo. A for-profit organisation and a not-for-profit one were compared to scrutinise how they adapt themselves to the social context they are embedded in; while improving their service accessibility.,Both kinds of organisations have succeeded to reach their goal of improving the access and reducing the time frame of health care services to low-income populations. Their initial business model (BM) makes them face their own challenges that they face with different strategies. It affects their way of communicating, their organisational culture, the patients’ expectations and their level of inclusiveness.,The research is context-dependent because of the specific conditions of the health public system in Brazil. When shaping health care BMs, the national context must be taken into account and the service marketing components should be used to enhance patients’ value co-creation in the health care service delivery process.,The research gives insights to organisations that seek to adapt their BM to improve health-care access to low-income populations.,Health-care access plays a key role in improving populations’ living conditions and reach one of the sustainable development goals of the United Nation.,Health care services access at the bottom of the pyramid remains under-studied. The paper brings value by comparing for-profit and non-profit organisations, which have the same social goal of improving health-care access to low-income populations while developing different practices to deal with their own challenges.

Negotiating new institutional logics: market access amongst smallholder farmers in Zambia and Malawi

Abstract: Purpose – This paper aims to analyse how processes of institutional change in environments of institutional ’voids’ affect smallholder farmer market access in Zambia and Malawi, and explores the role of different dis/enabling institutional agents and logics. The authors examine this in the context of two divergent routes of institutional change – one externally imposed and the second driven from within the ecosystem itself. The authors consider how these different institutional processes impact upon smallholder farmers and how they are able to adapt to these changes. Design/methodology/approach – A qualitative research approach is used which lends itself to an analysis of multiple institutional logics that is based upon the multiple positions of market actors. It uses a comparative case study design methodology focused on two broad cases of smallholder farmers in Zambia and Malawi. Findings – The research demonstrates the tension that multiple institutional logics can create especially amongst those most vulnerable particularly where these are not embedded in local realities and mindful of social settings. Originality/value – It contributes to the understanding of poverty alleviation in rural developing regions, on overcoming institutional voids, market inclusivity and the role of social entrepreneurs and intermediaries, and builds on the perspective of markets as social spaces for economic exchange.

Behavior of Accumulated Assets and Sources of Funding

Abstract: Behavior of asset accumulation or wealth accumulation becomes an important issue to study because it has the potential for aggregate and global financial imbalances. Economic theory explains that the accumulation of assets as a function to improve welfare in the context of business processes, has implications for the welfare of stakeholders, if the process of asset accumulation occurs due to sales growth, saving and investment, all three will not interact. To discuss this matter, research has been carried out on the manufacturing sub-sector in Indonesia Stock Exchange with pooling data for 2014-2018 and 342 samples. The results showed that sales growth, debt to equity ratio, and changes in equity had a positive effect on asset accumulation, while saving behavior as measured by marginal propensity to save had no effect on asset accumulation, and interestingly, asset turnover had a negative effect on asset accumulation as an indication that investment growth is not matched by an increase in income, meaning that the level of asset productivity is relatively low. This finding implies that asset growth does not make it more productive in generating sales growth, meaning that the accumulation of assets occurs due to an external funding mechanism and an increase in equity compared to a mechanism of growth, saving and investment.

The entrepreneur's business model: toward a unified perspective

Abstract: Highly emphasized in entrepreneurial practice, business models have received limited attention from researchers. No consensus exists regarding the definition, nature, structure, and evolution of business models. Still, the business model holds promise as a unifying unit of analysis that can facilitate theory development in entrepreneurship. This article synthesizes the literature and draws conclusions regarding a number of these core issues. Theoretical underpinnings of a firm’s business model are explored. A six-component framework is proposed for characterizing a business model, regardless of venture type. These components are applied at three different levels. The framework is illustrated using a successful mainstream company. Suggestions are made regarding the manner in which business models might be expected to emerge and evolve over time.

Entrepreneurship in and around institutional voids: A case study from Bangladesh ☆

Abstract: In many developing countries those living in poverty are unable to participate in markets due to the weakness or complete absence of supportive institutions. This study examines in microcosm such institutional voids and illustrates the activities of an entrepreneurial actor in rural Bangladesh aimed at addressing them. The findings enable us to better understand why institutional voids originate and to unpack institutional processes in a setting characterized by extreme resource constraints and an institutional fabric that is rich but often at odds with market development. We depict the crafting of new institutional arrangements as an ongoing process of bricolage and unveil its political nature as well as its potentially negative consequences.

You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy

Abstract: The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multi-level perspective integrating entrepreneurship theory (micro-level) with institutional (macro-level) and collective identity (meso-level) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence transition to the formal economy.

You Say Illegal, I Say Legitimate: Entrepreneurship in the Informal Economy

Abstract: The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multilevel perspective integrating entrepreneurship theory (microlevel) with institutional (macrolevel) and collective identity (mesolevel) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence the transition to the formal economy.

Creating mutual value: Lessons learned from ventures serving base of the pyramid producers

Abstract: The base of the pyramid (BoP) literature is grounded in the proposition of mutual value creation, an important but not yet well-tested relationship between business development and poverty alleviation. This paper begins to address this gap by assessing how business ventures serving BoP producers address local constraints and create mutual value. Using a case study methodology, sixty-four ventures are analyzed to identify the constraints faced by BoP producers. These are classified into productivity and transactional constraints. While the former set of constraints inhibits local value creation, the latter severely diminish the value capture potential of BoP producers. An in-depth analysis of eleven agricultural ventures provides insight into the strategies that ventures use to address constraints and enhance value creation and capture by BoP producers. The findings also indicate that alleviating constraints creates value not only for local producers, but also for the ventures themselves.