Understanding key factors in social enterprise development of the BOP: a systems approach applied to case studies in the Philippines

Abstract

Purpose

The purpose of this paper is to provide a comprehensive perspective on social enterprise development, leading to enhanced understanding of the bottom of the pyramid (BOP) marketplace.

Design/methodology/approach

General systems theory is applied to case studies drawn from the Philippines, enabling the authors delineate system actors and their interrelationships, system objectives and strategies, key success factors and outcomes.

Findings

The BOP social enterprise development process can be modeled from a systems perspective. The resulting model provides valuable information to marketing managers and others.

Research limitations/implications

Model development would be enhanced by its adaptation to a broader range of cases, including those involving large national corporations and MNCs in the Philippines and elsewhere.

Practical Implications

Three major implications for marketing managers and others who aspire to serving the BOP marketplace are revealed: BOP consumers and producers are intertwined; there is much to be learned from BOP entrepreneurs who have developed innovative product, pricing, promotion, and distribution strategies for BOP consumers; and cooperation with local businesses, government agencies, NGOs and cooperatives can increase the likelihood of success in the BOP marketplace.

Originality/value

While previous authors have suggested that it is important to understand the complex system in which social enterprise development takes place, little work has been done to fully describe such a system. This study develops the most comprehensive model of the social enterprise development process to date.

Citation

Nielsen, C. and Samia, P.M. (2008), "Understanding key factors in social enterprise development of the BOP: a systems approach applied to case studies in the Philippines", Journal of Consumer Marketing, Vol. 25 No. 7, pp. 446-454. https://doi.org/10.1108/07363760810915662