The entry of multinational companies to the base of the pyramid: A network perspective

Multinational corporations (MNCs) have traditionally ignored low-income markets, usually referred to as the base of the pyramid (BOP). Despite the dominant poverty in this market, a growing number of MNCs are attempting to learn about successful strategies for entering this market segment. Some of the studies suggest that establishing relationships with non-governmental organizations (NGOs) is crucial at the BOP. In this paper, we focus on relationship between MNCs and NGOs and try to explain how they facilitate MNCs? entry into this market. A network perspective has been adopted in this research and the relationship between MNCs and NGOs has been analysed in relation to this theoretical framework. Interviews with four MNCs and their NGO partners in India suggest that corporations can enter the BOP market by building trust in their relationships with NGOs and consequently the BOP, demonstrating their commitment and strengthening their legitimate position among NGOs and BOP communities.