Sustainable supply chain models for base of the pyramid. (20th September 2017)

• Record Type: Journal Article
• Authors: Bendul, Julia C.; Rosca, Eugenia; Pivovarova, Darima
• Is Part Of: Journal of cleaner production. Volume 162(2017)Supplement
• Page Start: S107
• Page End: S120
• Publication Date: 2017-09-20
• Subjects: Sustainability -- Supply chain management -- Social responsibility -- Supply chain operations -- Base of the pyramid -- BOP -- Developing countries; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2016.11.001
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: Institutional barriers and constraints in developing countries require new supply chain models where economic, social and ecological aspects are integrated. Sustainable supply chain management discourse has focused on ecological aspects and neglected social issues, while Base of the Pyramid studies have neglected ecological considerations. This study links the sustainable supply chain management discourse with insights from Base of the Pyramid studies in order to suggest an integrated sustainability perspective. This work adopts a multiple case study design based on secondary data analysis in order to investigate supply chain concepts of 18 successful products and develop sustainable supply chain models in the areas of sourcing, making and delivering. Findings suggest that by employing localized and simplified approaches, companies targeting low-income markets can overcome existing local institutional barriers. We conclude that employing simplified and localized approaches to supply chains and simultaneously integrating local communities in the value creation activities can serve as success factors. Therefore, by linking sustainable supply chain with the Base of the Pyramid strategies discourse, we fill an important research gap in the literature. From a practitioner's perspective, the derived supply chain models serve as best practices for managers of multi-national companies, local entrepreneurs, non-governmental organizations and political institutions designing, operating and regulating supply chains for low-income markets. Highlights: Sustainable supply chain management for Base of the Pyramid markets demands the incorporation of social aspects. BOP supply chains in developing countries are characterized by localization and simplification approaches. The localization and simplification approaches are enabled by the integration of locals in the value chain. The involvement of locals and simplified supply chain models support overcoming institutional barriers in BOP markets.