Sourcing from the Base of the Pyramid markets: An integrative perspective

Studies on supply chain and sustainability suggest that sourcing from the BoP markets and involving the poor in the value chain can improve sustainability performance and contribute to alleviating global poverty. Nevertheless, BoP sourcing also gives rise to a multitude of new issues that must be addressed and managed effectively. Standard procurement models are not applicable in dealing with the specific challenges associated with sourcing from the BoP markets and new sourcing mechanisms must be developed. However, current research offers little theoretical and practical insights regarding BoP sourcing. Recognizing this inadequacy, our paper uses multiple case studies to integrate and elaborate identity, agency and social network theories for developing a holistic BoP sourcing model. This is achieved through identifying the challenges related to sourcing from the poor (i.e. supplier-, product- and market-related), characterizing their manifestation in form of contextual drivers (institutional voids and agency relationships), and categorizing relevant response mechanisms (identity-, agency- and network-based).