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Sourcing for the base of the pyramid: Constructing supply chains to address voids in subsistence markets
Open accessAbstract
Abstract Substantial work has described downstream distribution systems for subsistence markets, but little is known about how upstream supply chains support these efforts. We suggest that a multinational corporation (MNC) entering these markets must resolve the institutional voids in product, labor, and capital markets, as well as address issues of regulatory ambiguities and the lack of contracting mechanisms that exist at the raw material, manufacturing, distribution, and marketing stages of the supply chain. We analyze the nature of these voids and their challenges, map them onto the value chain, discuss their interconnections, and suggest that they do not impact all firms equally. We provide examples from the food, beverage, and textile industries of how four firms have addressed institutional voids in constructing their supply chains. We conclude by providing implications, both across the value chain and regarding the trade‐offs of partnering with non‐profit agencies. Our analysis highlights the importance of going beyond the broad impact of the institutional environment to understanding its more nuanced and multi‐faceted effect on supply chains.
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Metadata
- Authors
- Parmigiani, A., & Rivera‐Santos, M.
- Affiliations
- University of Oregon (US)
- Babson College (US)
- Venue
- Journal of Operations Management
- Publisher
- Wiley
- Published
- 2014-10-31
- Volume
- 33-34
- Issue
- 1
- Pages
- 60-70
- ISSN
- 0272-6963 (ISSN-L)
- 1873-1317
- OpenAlex
- W2056040218
- Cited by
- 192
- References
- 64
- Citations by year
- 2026: 7 · 2025: 17 · 2024: 15 · 2023: 18 · 2022: 18 · 2021: 26 · 2020: 19 · 2019: 26 · 2018: 20 · 2017: 13 · 2016: 6 · 2015: 7
- FWCI
- 24.34
- Type
- journal article
- Language
- en
- Open access
- green
- papers.ssrn.com
- Licence
- Locations
- Journal of Operations Management (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Business and International Management › Innovation and Socioeconomic Development
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
- Keywords
- bottom of the pyramid, supply chain construction, institutional voids, subsistence markets, multinational corporations, value chain, raw material procurement, labor market, capital markets, regulatory ambiguity, contracting mechanisms, nonprofit partnerships, food industry, beverage industry, textile industry
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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