Base of the Pyramid and Business Process Outsourcing Strategies: In the Age of SDGs

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The major objective of this book is to introduce social business models to face the challenge of social issues in emerging countries. Each chapter clarifies business strategies based on diligent field surveys in developing nations, focusing on Bangladesh and the Philippines, where social issues in the age of Sustainable Development Goals (SDGs) are concentrated. The field surveys enable the effective construction of a sophisticated hybrid value chain by connecting a sustainable business ecosystem of local value chains with global value chains. Joint social business entities formed between local NGOs and foreign companies, multinational corporations with global value chains, among others, appear to be the keystones.

In Part I, the case of Grameen Euglena in Bangladesh and that of Sari-Sari stores leveraging micro-financing in the Philippines, along with other interesting cases, are analyzed as effective social business models. Analysis also shows that the IT service industry in emerging countries helps to enlarge formal sectors so as to absorb younger generations into informal sectors. The e-health service business in Bangladesh and the business process outsourcing (BPO) IT service industry in the Philippines are examined in each part of the book. Part II, particularly, shows that IT and the digital technology-based service industry can lead to a new industrial development path in these countries instead of the conventional one based on manufacturing. In other words, digital technology-based service industries, as formal sectors, can absorb working people from informal sectors. As a result, poverty issues which form a key issue in SDGS will be alleviated.

This book is highly recommended not only to academicians but also to businesspeople who seek an in-depth and up-to-date overview of new sustainable and inclusive businesses in the age of SDGs.

Author(s): Takabumi Hayashi, Hiroshi Hoshino, Yoshie Hori
Publisher: Springer
Year: 2023

Language: English
Pages: 217
City: Singapore

Preface
Contents
Editors and Contributors
1 Collaboration Between For-Profits and Non-profits: Strategies for Successful Market Entry into Developing Countries
1.1 Introduction
1.1.1 FDI of Japanese Companies
1.1.2 Expansion Policies in Developing Countries
1.1.3 Attitude Toward Developing Countries
1.2 Market Entry into Developing Countries
1.2.1 Contributing to the Solution of Social Issues
1.2.2 Access to Local Distribution Channels
1.2.3 Selling Through a Unique System
1.2.4 Collaboration
1.3 Benefits of Collaboration Between For-Profits and Non-profits
1.4 Cases of Collaboration
1.4.1 NGO: Grameen Foundation
1.4.2 Case: Farming in Bangladesh by Euglena GG, Ltd. and Grameen Krishi
1.4.3 International Organization: UN-Habitat
1.4.4 Case: Water Treatment Project by Aqua Service Co., Ltd. and UN-Habitat
1.4.5 Case: Insulation Paint Project by MIRACOOL and UN-Habitat
1.4.6 Case: Water Tank Tametotto Project by Daiken Co., Ltd. and Kopernik in Indonesia
1.5 Conclusion
References
2 Social Business Strategies to Alleviate Poverty in Emerging Countries Aiming at New Development Strategic Management Theories: Focusing on the Business Model of Grameen-Euglena in Bangladesh
2.1 Introduction
2.2 Theoretical Background
2.2.1 Three Factors Model by Y. Hayami
2.2.2 Emergence of Three Sectors Model for Social Issues Solving Model
2.3 Current Stage of Social-Business Model by Grameen Bank and Grameen-Euglena
2.3.1 Current Stage of Grameen Model
2.3.2 Social-Business Model of Grameen Euglena Ltd.
2.4 Articulation Between GE Social Business Model and Socio-Economic Structure of Developing Countries
2.5 Challenges from a Development-Business Management Perspective Raised by Business Models in Developing Countries
2.6 Discussion and Conclusion
References
3 Digital Healthcare and a Social Business Model to Ensure Universal Health Coverage (UHC): A Case Study of Bangladesh
3.1 Introduction
3.2 Universal Health Coverage (UHC)
3.3 Status of UHC in Bangladesh and the Unreached Communities
3.3.1 Status of UHC
3.3.2 The Unreached Communities of Bangladesh
3.4 Concept of PHC as a Driver of Achieving UHC
3.4.1 PHC Service Structure
3.4.2 Service Delivery Models
3.5 PHC Social Business
3.5.1 Yunus Social Business Seven Principles
3.5.2 PHC and SB Compliance
3.5.3 Impact of PHC Social Business to Achieve UHC
3.5.4 Impact of PHC Social Business on Other Issues
3.5.5 Challenges
3.6 Conclusion
References
4 Sari-Sari Stores as Sustainable Business by Women in the Philippines
4.1 Introduction
4.1.1 Research Objectives
4.1.2 Promising BOP Markets and Poverty in the Philippines
4.1.3 The Philippine Retail Industry, Where the Old and the New Coexist
4.1.4 Micro-Retailers Exploited for Better or Worse
4.1.5 Micro-Retail Sari-Sari Store
4.1.6 Existence of Support for women’s Economic Independence and Purchasing Activities of the Poor
4.1.7 Diverse Functions not Limited to Product Sales
4.2 Global Expansion of Research and Development
4.2.1 BOP Market Entry Strategies; Understanding Consumers’ Lives and Needs is Key
4.2.2 Nestlé Philippines—Strategy to Increase Awareness by Increasing the Number of Stores that Carry the Product
4.2.3 San Miguel Brewery—Leveraging the Parent company’s Extensive Channels
4.2.4 Yakult Philippines—Providing Products to Every Corner Through Role Sharing
4.3 Conclusion
References
5 Bottom of Pyramid Strategies by MNEs and NGOs: A Case of UNIQLO
5.1 Introduction
5.2 The Problems in Garment Industry in Asia and the Role of MNEs and NGOs
5.3 Problem-Solving by MNEs in Outsourced Factories
5.3.1 Limitation of Social Responsibility in the Current System
5.3.2 BOP and Social Business
5.4 History of UNIQLO (FR)
5.4.1 About FR
5.5 FR’s Sustainability Abroad
5.6 Content Analysis of FR’s Sustainability Reports
5.6.1 Methodology and Data
5.6.2 Results
5.7 Grameen UNIQLO
5.8 Conclusion
Appendix
References
6 The Growth of the IT-BPO Industry and Women’s Work Choices in the Philippines
6.1 Introduction
6.2 Economic Transition in the Philippines
6.2.1 The Emergence of the IT-BPO Industry in the Philippines
6.2.2 The Impact of IT-BPO Growth on the Society in the Philippines
6.2.3 Case Studies of Filipina Women Working in IT-BPO Companies
6.3 Conclusion
Postscript
Notes
References
7 IT Business Process Outsourcing (BPO) Strategy as a New Development Strategy in Emerging Countries: Focusing on the Philippine IT-BPO Industry and Lewis Turning Point Theory
7.1 Introduction
7.2 IT-BPO Industry in Terms of Employment Ratio and GDP Share Trend
7.2.1 Trends in Employment Ratio by Industry and IT-BPO Industry
7.2.2 IT-BPO Industry in Terms of GDP Share by Industry
7.2.3 Trend of the Number of Agricultural Workers and Growth in Rural and Urban Populations
7.2.4 Rural–Urban Population Growth and Service Industries
7.3 IT-BPO Industry as a Formal Sector
7.3.1 Indirect Job Creation in the IT-BPO Industry
7.3.2 Job Creation in the IT-BPO Industry and Its Position in the Service Industry
7.4 Lewis Turning Point and IT-BPO Industry
7.4.1 Applicability of Lewis Turning Point to Emerging Countries
7.4.2 IT-BPO Sector as “Capitalist Sector”
7.4.3 Lewis Turning Point and the Position of the IT-BPO Industry
7.5 Summary and Future Challenges
References
8 New Industrial Development Path Based on IT Service Business in the Case of the Philippines
8.1 Introduction
8.2 COVID-19 Pandemic and the Rush to Digital Transformation
8.2.1 Industrial and Innovation Policies
8.3 Conclusion
Notes
References
9 The Burden and Autonomy of Women in the IT-BPO Industry in Metropolitan Manila: Under the COVID-19 Pandemic
9.1 Introduction
9.2 IT-BPO Workers and Class Dynamics in Metropolitan Manila
9.2.1 IT-BPO Industry and Class Structure
9.2.2 Attempt to Upward Mobility and the Pandemic
9.2.3 Gendered Burdens in Households and the Pandemic
9.3 The Burden and Autonomy of IT-BPO Workers
9.3.1 Working Student
9.3.2 Sibling Relationship
9.3.3 Beyond Hardships
9.3.4 Amid the Pandemic
9.4 Conclusion
References
10 Joint IT Development Strategies Between Nepal and Japan: Based on Japan-South Korea-Nepal Trilateral Cooperation
10.1 Introduction
10.2 Overview of Nepal and IT Industry
10.3 The Japanese IT Industry and Offshore Development
10.4 A New Business Model for Offshore Development
10.5 Mechanism of New IT Human Resources Employment Business Model
10.6 Conclusion
Notes
References