Network competence for the bottom of pyramid markets: Evidence from cross-border networking between exporters and intermediaries

Abstract

Social innovation poses significant challenges for firms operating in today’s dynamic business environment. In bottom-of-the-pyramid (BoP) markets in particular, it requires collaborative networking among firms to facilitate access to underserved communities. Adopting a network perspective as a theoretical lens, this study examines how social innovation emerges through the interplay of actors, resources, and activities. The findings identify three network competencies shaping exporting firm’s BoP orientation: (i) the marketing capabilities of intermediaries; (ii) the cross-border resources of exporting firms; and (iii) strategic partnerships between exporting firms and intermediaries. These competencies complement BOP orientation, which in turn influences social innovation outcomes. Moreover, exporters’ BOP orientation positively interacts with their purposeful societal goals to further enhance social innovation. This study contributes to social innovation research by demonstrating the critical role of intermediaries in BoP markets and by elaborating on the managerial and policy implications of socially driven innovation strategies.