COLLABORATIVE BUSINESS MODEL INNOVATION FOR INCLUSIVE BUSINESS

BE PART OF A RESEARCH PROGRAM TO CREATE A TOOL SUPPORTING KEY STAKEHOLDERS’ BUSINESS DEVELOPMENT AND ALLEVIATE POVERTY

About

Businesses’ inclusive efforts do not always turn out to be inclusive. Inclusive businesses aspire to engage the poor in the value chain for the benefit of both. They develop new business models to create opportunities for Base-of-Pyramid (BoP) communities’ social and economic wellbeing while keeping a for-profit nature. To do so, multiple stakeholders – governmental authorities, non-governmental organizations, BoP communities, financial institute, companies, etc. – must be involved. Yet it often turns out to be challenging to align stakeholders’ conflicting interests and balance their unequal relationships. This may increase the coordination costs to a point that a business no longer finds it economically viable. Also, the conflicts that arise between stakeholders may lead to further inequality rather than promote inclusion. Thus, businesses may ultimately fail to deliver opportunities for inclusion despite their aspiration.

The research program’s objective is to make collaborative business model innovation for inclusive business more effective, while simultaneously building up a body of scientific knowledge.

First, we aim to develop a straightforward, practical and versatile tool to support key stakeholders in collaborative business model innovation for inclusive business. Herewith, we alleviate poverty in Base-of-Pyramid (BoP) communities across the globe by integrating them into the value chain as equal business partners. We also encourage Dutch small, medium-sized and large companies’ inclusive business development in multiple industries. Further, we assist inclusive business consortia that build bridges between these companies and BoP communities as well as other stakeholders involved.

Second, we aim to contribute to the project members’ scientific domains. Therefore, we investigate when which elements of the individual stakeholders’ business models must be aligned to promote inclusion. Also, we examine which current theoretical frameworks best explain successful collaboration in an inclusive business context.

The research program takes an action research approach. Action research aims to provide not just solutions to the immediate challenge, but also learnings that contribute to scientific knowledge and theory. Therefore, the approach fits nicely to our objectives. The approach implies that we use scientific methods to study the challenges of inclusive business together with those who experience them directly. Thus, we work closely with inclusive businesses, Base-of-Pyramid (BoP) communities and other stakeholders in the research process. The two-year research process consist of six main steps – data gathering, feedback and analysis followed by action planning, implementation and evaluation. The main steps are preceded by a pre-step to understand the context and purpose, and continually monitored on practical and scientific outcomes.

Articles

Published articles

The influence of native capability on the impact of inclusive business models in the BoP context

By Britt Wiefferink Inclusive businesses have to become truly embedded in the local context to reduce poverty in BoP communities. Therefore, Hart and London (2005, p.30) suggested that they must develop native capability, i.e. ‘’the ability to develop fully...

Startups alone do not solve poverty in Africa

By Mathilde Miedema Recently, the Nobel Prize for Economics 2019 was awarded to three economists for their research into tackling extreme poverty in developing countries. They have found that a seamless connection to the local context and the achievement of...

Acting as a steward for inclusive business

By André Nijhof LendaHand is a typical example of an inclusive business. It aims to service financial transaction between people with and without money. How? By showing on a platform why local entrepreneurs in developing countries need investment capital and allowing...

Cases

FrieslandCampina WAMCO’s Dairy Development Program

FrieslandCampina WAMCO's Dairy Development ProgramFrieslandCampina WAMCO (hereafter called WAMCO) is a joint venture between FrieslandCampina and local partners established in 1954 in Nigeria, with the purpose to provide better nutrition for the Nigerian population....

ELAGA

ELAGA ELAGA, an anonymous company, was established in 2012 to contribute to sustainable development of the agro-industrial sector in rural Burundi, by implementing economic activities that mainly focus on agriculture, livestock, and aquaculture. More specifically, the...

Flying Food

Flying FoodThe Flying Food initiative creates access to affordable proteins and livelihood, by setting up an inclusive value chain on crickets for human consumption in Africa. Crickets are tasty, affordable and very nutritious: they have a very high protein content...

Yayasan Bumi Sasmaya (YBS) & Mantra

Yayasan Bumi Sasmaya (YBS) & MantraYayasan Bumi Sasmaya (YBS) is an NGO established in 2016, to contribute to sustainable and environment friendly waste management on the Bali Island in Indonesia. YBS’ services include installation, operation and maintenance of...

RESCO

RESCORESCO (Renewable Energy Service COmpany) started as a program from the Dutch NGO Hivos, to improve energy access in remote areas of the Indonesian Island Sumba. RESCO became an independent social enterprise in 2016. Their value proposition involves the provision...

Africa Improved Foods

Africa Improved FoodsAfrica Improved Foods (AIF) is established in 2016 as joint venture from a Public-Private Partnership between CDC Group, Royal DSM, Dutch development bank (FMO) and International Finance Corporation (IFC), as well as the Government of Rwanda....