Global Village vs. Small Town: Understanding Networks at the Base of the Pyramid

39 Pages Posted: 14 Jul 2011

See all articles by Miguel Rivera-Santos

Miguel Rivera-Santos

Babson College

Carlos R. Rufin

Babson College - Management Division

Date Written: July 14, 2011

Abstract

We compare and contrast business networks at the Base of the Pyramid (BOP) and at the Top of the Pyramid (TOP), and analyze their implications for multinational enterprises (MNEs). We first identify the specificities of BOP environments in terms of competitive environment and institutions. Building on this analysis, we develop a series of propositions regarding the impact of these specificities on the structural characteristics of BOP networks, their boundaries, the characteristics of their ties, the diversity of their partners, and their evolution over time, as compared to TOP networks. Our analysis suggests that major differences exist between both types of networks along all dimensions and that these differences have important implications for MNEs active in BOP environments.

Keywords: base of the pyramid, networks, multinational enterprises, non-market

Suggested Citation

Rivera-Santos, Miguel and Rufin, Carlos, Global Village vs. Small Town: Understanding Networks at the Base of the Pyramid (July 14, 2011). Available at SSRN: https://ssrn.com/abstract=1885390 or http://dx.doi.org/10.2139/ssrn.1885390

Miguel Rivera-Santos (Contact Author)

Babson College ( email )

Babson Park, MA 02157
United States
781-239-5325 (Phone)

Carlos Rufin

Babson College - Management Division ( email )

Babson Park, MA 02457
United States
781-239-6411 (Phone)
781-239-5272 (Fax)

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