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    Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

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    Author
    Dembek, K; York, J
    Date
    2021
    Source Title
    Business and Society
    Publisher
    SAGE Publications
    University of Melbourne Author/s
    York, Jodi; Dembek, Krzysztof
    Affiliation
    Collected Works
    Metadata
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    Document Type
    Journal Article
    Citations
    Dembek, K. & York, J. (2021). Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers. Business and Society, Forthcoming, https://doi.org/10.1177/0007650320973450.
    Access Status
    This item is currently not available from this repository
    URI
    http://hdl.handle.net/11343/258661
    DOI
    10.1177/0007650320973450
    Abstract
    Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

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