Multinational Companies in Low-Income Markets An Analysis of Social
Social embeddedness has been identified as a critical success factor for operations of MNCs in low-income markets. Based on survey data gathered from two subsidiaries of a European MNC, Dina Badry examines relational and structural network aspects with re
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GABLER RESEARCH
Dina Badry
Multinational Companies in Low-Income Markets An Analysis of Social Embeddedness in Southeast Asia
With a foreword by Prof. Dr. Li-Choy Chong
RESEARCH
Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.
Dissertation Universität St. Gallen, 2009
1st Edition 2009 All rights reserved © Gabler | GWV Fachverlage GmbH, Wiesbaden 2009 Editorial Office: Claudia Jeske | Sabine Schöller Gabler is part of the specialist publishing group Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Umschlaggestaltung: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-1875-8
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Foreword
“Alleviating poverty through the pursuit of profit” has become a catch phrase for many entrepreneurs and business people who started to focus their businesses on the lower incomes segments of the population at the “Base of the Pyramid” (BOP). Despite such business interests, there is, as yet, insufficient theoretical and empirical work done in this emerging field. Social embeddedness, which facilitates the leveraging of local knowledge and expertise and the earning of the trust of the local people, is deemed essential for the successful implementation of a BOP strategy. What does social embeddedness mean? What does it entail for the businesses? How should businesses be embedded in the local networks? Dina Badry seeks to answer these questions in her excellent dissertation through her conceptualization and empirical research which examines the different strategic intentions of business units operation at the BOP level and their potential network partners, following social network theory. I have little doubt that this study has contributed to our understanding of social embeddedness and will prove itself to be invaluable for academics as well as practitioners.
Prof. Dr. Li-Choy Chong
VII
Acknowledgements
Writing this dissertation has been a significant academic and personal challenge in my life. Fortunately, I have received invaluable support, patience and guidance from many people to whom I want to express my sincere gratitude. I would like to thank my dissertation committee, Prof. Dr. Li-Choy Chong and Prof. Dr. Günther Müller-Stewens, for their continual support and encouragement. Without their experience and guidance, this project would have not been possible. I would also like to acknowledge Tetra
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