A framework for creating shared value at the base of the pyramid through micro-manufacturing factories

Date
2022-04
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: Developing strategies for poverty alleviation in Base of the Pyramid (BoP) communities has been a persistent challenge due to its complex nature. The BoP represents a socio-economic segment composed of low-income earners with potential opportunities for growth. Previous strategies provide a platform for developing poverty alleviation strategies with impact and scale. These attempts revealed that there is a need for collaborative efforts from an ecosystem of actors in various organisations with capabilities to create shared value in BoP communities. These cross-sector partnerships can join forces to create manufacturing shared value (MSV) in BoP communities to fulfil the mandates of the 1st (on poverty alleviation), 8th (on productive employment and economic growth) and 9th (on increasing productivity through industry, innovation, and infrastructural development) sustainable development goals (SDGs). The aim was to inform decision makers in developing countries on possibilities for creating MSV in BoP communities to deal with poverty whilst experiencing economic growth. This prompted a need for frameworks, tools and guides to help implementers develop BoP ventures in BoP communities that create meaningful impact on poverty alleviation. This study contributes to the discourse on BoP strategies, and creating shared value strategies by providing a framework and management tool for creating MSV in BoP communities. The framework and management tool are developed, refined, and validated through eight design cycle iterations informed by the Design Science Research Methodology. The number of MSV strategy concepts identified consisting of Opportunity identification strategy (19), Preliminary implementation strategy (18), Building partnerships strategy (25), Product development (24), Supply chain networks (20), Human capability building (7), Factory development (18), Process development (12), Environmental conservation processes (5), Monitoring and evaluation (27), Scaling (7), and Cluster capability building (3) are established by obtaining insight from the BoP strategies, creating shared value strategies and micro-manufacturing factories domain. A real-world preliminary case study is also conducted to obtain more insight into creating MSV in BoP communities. The MSV strategies were critically evaluated and refined using a real-world case study application, subject matter expert opinion interviews, and framework ranking by experts. The validation process was done to ensure rigour of the framework and management tool development as well as its relevance for creating MSV in BoP communities. The MSV strategy concepts are consolidated into a framework and management tool to guide the implementation of manufacturing shared value in BoP communities. It is based on a capability building strategy, an implementation process strategy, and a growth strategy. The tool informs implementers on key considerations for creating MSV in BoP communities. The systematic process followed in this study positions it on future development roadmaps and tools that focus on alleviating poverty in BoP communities.
AFRIKAANSE OPSOMMING: Die ontwikkeling van strategieë vir die verligting van armoede in Basis van die Piramide (BvP) gemeenskappe was 'n volgehoue uitdaging vanweë die ingewikkelde aard daarvan. Vorige strategieë bied 'n platform vir die ontwikkeling van armoede verligtingstrategieë met impak en omvang. Hierdie pogings het aan die lig gebring dat daar 'n behoefte is aan samewerkingspogings duer 'n ekosisteem van akteurs in verskillende organisasies met die vermoë om impak in BoP -gemeenskappe te skep. Hierdie vennootskappe kan sektore help kragte saamsnoer om vervaardiging-gedeelde waarde (VGW) in BoP-gemeenskappe te skep en om die mandate van die 1ste, 8ste en 9de doelwit vir volhoubare ontwikkeling (SDG's) na te kom. Die doel was om besluitnemers in ontwikkelende lande in te lig oor die moontlikhede van VGW in BvP -gemeenskappe skep om armoede te verbeter terwyl hulle ekonomiese groei ondervind. Daar is dis ‘n behoefte aan raamwerke, gereedskap en gidse om implementeerders te help om BvP -ondernemings in BvP -gemeenskappe te ontwikkel wat 'n betekenisvolle impak op armoedeverligting kan hê. Hierdie studie het bygedra tot die diskoers van BvP-strategieë en die skep van gedeelde waarde strategieë deur 'n raamwerk en bestuurshulpmiddel te bied vir die skep van MSV in BvP gemeenskappe. Die raamwerk en bestuursinstrument word ontwikkel, verfyn en gevalideer deur agt herhalings van die ontwerpsiklus, soos ingelig deur die ontwerpwetenskaplike navorsingsmetodologie. VGW strategiekonsepte wat geïdentifiseer was bestaan uit geleentheidsidentifiseringstrategie (19), voorlopige implementeringstrategie (18), bouvennootskapstrategie (25), produkontwikkeling (24), verskaffingskettingnetwerke (20), bou van menslike vermoëns (7), fabrieksontwikkeling (18), Prosesontwikkeling (12), Omgewingsbewaringsprosesse (5), Monitering en evaluering (27), Skaalvorming (7) en Kluster vermoëbou (3) word gevestig deur insig te verkry uit die BvP-strategieë, die skep van gedeelde waarde -strategieë en mikrovervaardigingsfabrieke. 'n Voorlopige gevallestudie word ook uitgevoer om meer insig te verkry in die skep van VGW in BoP-gemeenskappe. Die MSV-strategieë word krities geëvalueer en verfyn met behulp van 'n werklike gevallestudie-toepassing, onderhoude met kundige opinies oor onderwerpe en raamwerkranglys deur kundiges. Die bekragtigingsproses is gedoen om die strengheid van die raamwerk en die ontwikkeling van bestuursinstrumente te verseker, asook die relevansie daarvan vir die skep van VGW in BvP -gemeenskappe. Die VGW strategiekonsepte word gekonsolideer in 'n raamwerk en bestuurshulpmiddel om die implementering van vervaardigings gedeelde waarde in BoP -gemeenskappe te lei. Dit is gebaseer op 'n strategie vir vermoënsontwikkeling, 'n implementeringsprosesstrategie en 'n groeistrategie. Die instrument lig implementeerders in oor belangrike oorwegings vir die skep van VGW in BvP - gemeenskappe. Die sistematiese proses wat in hierdie studie gevolg is, plaas dit op toekomstige ontwikkelingsroetes en gereedskap wat fokus op die verligting van armoede in BoP -gemeenskappe.
Description
Thesis (PhD)--Stellenbosch University, 2022.
Keywords
Creating shared value, Base of the pyramid, Micro-manufacturing, Sustainable development -- Developing countries, UCTD, Poverty -- Prevention
Citation