Journal of Management Studies· 2012Q1
Impact at the ‘Bottom of the Pyramid’: The Role of Social Capital in Capability Development and Community Empowerment
- 548citations
- Q1SCImago
- 2012year
Short summary
This paper proposes a new framework for 'Bottom of the Pyramid' (BoP) business ventures, redefining poverty as a lack of capabilities and emphasizing the role of social capital in developing these capabilities within poor communities.
AI-generated from the title and abstract; the full text is not read.
Key points
- Proposes a socially embedded, community-centric BoP approach.
- Redefines poverty as a lack of 'capabilities' rather than just income.
- Highlights social capital as a mechanism for capability development in BoP communities.
- Suggests evaluating BoP ventures on their enhancement and preservation of social capital.
AI-generated from the title and abstract; the full text is not read.
Abstract
abstract Rooted in the notion of inclusive capitalism, the Bottom‐of‐the‐Pyramid (BoP) approach argues for the simultaneous pursuit of profit and social welfare by creating markets for the poor. This idea has been both celebrated and criticized in the literature. We do neither in this paper. Instead, by leveraging insights from Amartya Sen's work on capability development and the literature on social capital, we offer a more socially embedded and community‐centric BoP approach. By redefining poverty not just as a lack of income, but also as a lack of ‘capabilities’ in Sen's sense that can be developed through leveraging social capital, we offer a systemic framework for understanding the societal impact of business‐driven ventures in the BoP and empowering BoP communities through these ventures. Specifically, we argue that any business initiative in the BoP ought to be evaluated on the basis of whether it advances capability transfer and retention by (a) enhancing the social capital between a particular community and other more resource rich networks, and (b) preserving the existing social capital in the community.
The authors' abstract, as published at the source. Journal of Management Studies, 2012 · DOI ↗
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Field: Business and International Management
Business and International ManagementBusiness, Management and Accounting