Marcello Tonelli - Academia.edu (original) (raw)

Published Articles by Marcello Tonelli

Circular Economy (CE) is today a major concept within the sustainability debate (Geissdoerfer, Sa... more Circular Economy (CE) is today a major concept within the sustainability debate (Geissdoerfer, Savageta, Bocken & Hultinkb, 2017). Its theoretical arguments are widely accepted – especially at a crosscountry institutional level – but businesses still seem reluctant to acknowledge it as a revenue-making paradigm. This ongoing study aims to reveal where, along the value chain, firms are more unaware of CE best practice and/or reluctant to invest. After a comprehensive review of sustainable business models, the authors suggest a framework for circularity in business strategy as a beginning foothold on their research agenda. Next, the authors rely on expert informants to identify the most suitable areas in the value chain for the implementation of CE actions. Finally, an online free-access survey-like tool is launched to invite firms self-assessing (1) how relevant those identified areas are for their respective industries and (2) how CE-mature they feel regarding those areas. The initial results attest low consciousness of the CE potential across industries and even lower levels of maturity, especially by SMEs. Despite the growing evidence of Sustained Competitive Advantage (SCA) achieved by pioneering companies moving away from linear forms of production, through the development of new core competencies (Prahalad & Hamel 1990), most firms still perceive CE as something not applicable to them or too costly and risky to implement.

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) could represent for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) have continued to fail in penetrating low income markets, arguably because applied strategies are often the same adopted at the top of the pyramid. Even in those few cases where products get re-envisioned, their introduction in contexts of extreme poverty only induces new needs and develops new dependencies. At best, the rearrangement of business models by MNCs has meant the realization of CSR (Corporate Social Responsibility) schemes that have validity from a marketing perspective, but still lack the crucial element of social embeddedness (London & Hart, 2004).
Today the challenge is to reach the lowest population tier with reinvented business models based on principles of value co-creation. Starting from a view of the potential consumer at the BoP as a ring of continuity in the value chain process − a resource that can itself produce value – this paper concludes proposing an alternative innovative approach to operate in developing markets that overturns the roles of MNCs and the BoP. The proposed perspective of ‘reversed’ source of innovation and primary target market builds on two fundamental tenets: traditional knowledge is rich and greatly unexploited, and markets at the top of the pyramid are saturated with unnecessary products / practices that have lost contact with the natural environment.

Numerous econometric models have been proposed for forecasting property market performance, but l... more Numerous econometric models have been proposed for forecasting property market performance, but limited success has been achieved in finding a reliable and consistent model to predict property market movements over a five to ten year timeframe.
This research focuses on office rental growth forecasts and overviews many of the office rent models that have evolved over the past 20 years. A model by DiPasquale and Wheaton is selected for testing in the Brisbane office market. The adaptation of this model did not provide explanatory variables that could assist in developing a reliable, predictive model of office rental growth.
In light of this result, this paper suggests a system dynamics framework that includes an econometric model based on historical data as well as user input guidance for the primary variables. The rent forecast outputs would be assessed having regard to market expectations and probability profiling undertaken for use in simulation exercises.

Books & Book Chapters by Marcello Tonelli

Routledge, 2018

In recent years, the Circular Economy (CE) has gained worldwide attention as an effective alterna... more In recent years, the Circular Economy (CE) has gained worldwide attention as an effective alternative economic system to the current take-make-waste model of production and consumption. As more and more firms begin to recognize the potential of this novel approach, the CE quickly moves from theory to practice and the demand for a coherent and structured strategic approach – one that companies can rely upon when commencing their circular journey – grows accordingly. Strategic Management and the Circular Economy aims to bridge the theory-practice gap by putting forward a detailed step-by-step process for analysis, formulation, and planning of CE strategies. Starting from a solid framework of easy-to-grasp constructs (key principles, business objectives and areas of intervention), the authors guide the reader through an understanding of how conventional tools for strategic management can be re-programmed under a CE perspective. To assist learning and encourage circular thinking, the reader is constantly prompted with examples of how forward-looking companies across industries and geographies are already applying circular strategies to future-proof their operations, boost innovation, penetrate new markets and secure customer loyalty.

Routledge, 2015

This book provides a thorough understanding of entrepreneurship at the BoP. It explains why entr... more This book provides a thorough understanding of entrepreneurship at the BoP. It explains why entrepreneurial attempts by the poor share similarities with what we witness in developed countries, but also explains the differences that make entrepreneurship at the BoP an area of study that deserves to be examined in isolation. The book is also a critical reference for practitioners as examples and guidelines are provided to assist anyone with an interest in supporting entrepreneurial development at the BoP.

The term meditation encompasses a broad range of different practices, including reciting religiou... more The term meditation encompasses a broad range of different practices, including reciting religious scriptures, chanting sacred mantras, progressive muscle relaxation, exercising deep breathing, sitting in silence, dancing, or even screaming. Spirituality through meditation is now becoming widespread in the mainstream business world.

This chapter explores the use of crowdsourcing not only as a business strategy for multinational ... more This chapter explores the use of crowdsourcing not only as a business strategy for multinational corporations (MNCs), but also as an efficient tool for social transformation in developing contexts and poverty alleviation at the Base of the Pyramid (BoP).
As new technologies that support the introduction of crowdsourcing at the BoP emerge, individuals from developing countries increasingly answer the crowdsourcing call of MNCs. Their number is quickly surpassing existing users in developed nations (Ross, 2010) because poor users consider this activity a new source of income (Ipeirotis, 2010). An analysis of Amazon Mechanical Turk (MTurk) and txt eagle indicate that crowdsourcing supports the development of social embeddedness, a fundamental capability for the BoP. Because crowdsourcing promotes the entrepreneurial spirit of the very poor, it can have a substantially effect on wealth redistribution. MNCs that integrate crowdsourcing in their business models consider emerging market countries not only as new potential markets, but also as a source of innovation and value creation.

Awaken Mozambique (Despertai Mozambique) is a community based partnership based in Brisbane, Aust... more Awaken Mozambique (Despertai Mozambique) is a community based partnership based in Brisbane, Australia and Beira, Mozambique, respectively. Resourcing is a responsibility o{ Awaken Mozambique in Australia which is a charitable incorporated association undertaking micro credit projects in Mozambique. The proiect focuses on training and equipping iocal people to improve their communities through micro enterprises and capacity building. The aim is long term local economic sustainability and a gradual transfer of fuil responsibility and accountability to Despertai Mozambique. Awaken Mozambique is a project of the Clobal Development Group, an NGO that carlies out humanitarian projects with approved partners.

The author aims at developing a better understanding of unstructured strategic decision making pr... more The author aims at developing a better understanding of unstructured strategic decision making processes and the conditions for achieving successful decision outcomes. A study of seven leading Italian management consulting firms is undertaken addressing the aspects of content and process of decisions. This research makes its primary contribution by identifying the importance and difficulty of finding the right balance between problem complexity, process richness and cohesion to ensure a decision-making process that is sufficiently rich and yet quick enough to deliver a prompt outcome. While doing so, the study also provides more empirical evidence to some of the most established theories of decision-making, while reinterpreting their mono-dimensional arguments in a multi-dimensional model of successful decision making.

The notion of Territorial Strategy emerged in the 1990s and has become more and more popular in t... more The notion of Territorial Strategy emerged in the 1990s and has become more and more popular in the last decade. It refers to that combination of factors purposively assembled by governments, private and public companies, universities, and industrial associations to exploit a specific geographical competitive advantage in order to boost economic growth through the development of entrepreneurial activity and innovation.

Conference Papers by Marcello Tonelli

There is strong evidence across the media that humanity has finally come to recognize the certain... more There is strong evidence across the media that humanity has finally come to recognize the certainty and imminence of a global environmental crisis due to man-triggered ecological alterations. This widespread recognition of what is happening around us has matured even further as studies acknowledging that everything on Earth is interconnected begin to mount across various branches of learning. The appreciation of this simple linear and two-dimensional relationship implies enormous consequences for economic and management studies, as alternative business models will eventually have to supersede the old practices that still govern major industry sectors (e.g. energy, cement, agriculture, automotive, pharmaceutical, etc.). This paper argues that traditional knowledge found in developing countries can sometimes harness the potential of sparking genuine alternatives to established business practices. With a focus on the most fundamental geochemical cycles on Earth − nitrogen, water, and carbon − and the primary resources they govern (soil, water, and air), three case studies are presented to illustrate how traditional knowledge in the context of GRI (Grassroots Innovation) projects can lead to challenge the dominant logic, when allowed to thrive in terms of adoption and scalability.

This study examines the factors affecting the successful provision of microcredit to people at th... more This study examines the factors affecting the successful provision of microcredit to people at the bottom of the pyramid and discusses the activities required to support entrepreneurial activities in a peri-urban African setting. The findings enable us to better understand why micro-credit, though useful, is only part of the solution, in a setting characterized by extreme resource constraints with an institutional fabric lacking the infrastructure that assists market development. We depict the crafting of new entrepreneurial activity as an ongoing process and present an emerging research agenda for future developments.

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) represents for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) generally continue to penetrate low income markets with the same strategies used at the top of the pyramid or choose not to invest at all in these regions because intimidated by having to re-envision their business models.
The introduction of not re-arranged business models and products into developing countries has done nothing more over the years than induce new needs and develop new dependencies. By conducting a critical review of the literature this paper investigates and compares innovative approaches to operate in developing markets, which depart from the usual Corporate Social Responsibility marketing rhetoric, and rather consider the potential consumer at the BoP as a ring of continuity in the value chain − a resource that can itself produce value.
Based on the concept of social embeddedness (London & Hart, 2004) and the principle that an open system contemplates different provisions (i.e. MNCs bring processes and technology, NGOs cultural mediating skills, governments laws and regulations, native people know-how and traditions), this paper concludes with a new business model reference that empowers all actors to contribute to value creation, while allowing MNCs to support local growth by turning what Prahalad called ‘inclusive capitalism’ into a more sustainable ‘inclusive entrepreneurial development’.

This paper reports a longitudinal analysis of 20 necessity driven micro‐entrepreneurs operating i... more This paper reports a longitudinal analysis of 20 necessity driven micro‐entrepreneurs operating in Beira, Central Mozambique, who received funding and training from the same NGO to establish or grow their business activities and reports the development of these entrepreneurs in terms of their acquired entrepreneurial potential for long‐term success. The results indicate there is a process of entrepreneurial becoming that is not just about access to finance but especially learning and, when successful, this process supports the transformation of survival micro‐enterprises into entrepreneurial micro‐businesses. The concept of ‘becoming’ contains an implicit temporal dimension. Becoming suggests a transformation over time: a change from what one is already. In this study, we witness a significant change in understanding how a business needs to operate, in recognizing opportunities, thinking more creatively, and building self‐confidence.

The purpose of this paper is to explore the means of building the capacity of those who are runni... more The purpose of this paper is to explore the means of building the capacity of those who are running an organisation designed to support and resource start-ups and growing micro enterprises among some of the world‟s poorest urban poor. The project is based in Beira, Mozambique, one of the poorest countries in the world. The result of this study is the development of a model for providing ongoing, inexpensive, effective, capacity building in developing economies. The model also provides a base for the further development of strategies to provide better support to micro entrepreneurs in poor developing economies.

Transport and logistics are essential to effective business. Very little is currently known about... more Transport and logistics are essential to effective business. Very little is currently known about the impact of improved transport on micro-enterprises in developing economies and whether improvements in this area would assist the very poor. This paper looks at the obstacles of an inefficient transport facilitation system and the high costs incurred by 22 survival micro-entrepreneurs funded by the same local NGO and operating in diverse industry sectors in a peri-urban context in Mozambique. Six case studies are selected to illustrate the most common constraints they face. The perspectives of the micro-business owners are confronted with those of government officials and community leaders for two reasons: to identify any mismatch and to discuss possible solutions. Significant discrepancies are detected between government agenda and needs of the population, while community-based entrepreneurship (CBE) is discussed as a possible collective strategy in dealing with the problem.

An approach is proposed and applied to five industries to prove how phenomenology can be valuable... more An approach is proposed and applied to five industries to prove how phenomenology can be valuable in rethinking consumer markets (Popp & Holt, 2013). The purpose of this essay is to highlight the potential implications that 'phenomenological thinking' brings for competitiveness and innovation (Sanders, 1982), hence helping managers being more innovative in their strategic marketing decisions (i.e. market creation, positioning, branding). Phenomenology is in fact a way of thinking − besides and before being a qualitative research procedure − a very practical exercise that strategic managers can master and apply in the same successful way as other scientists have already done in their fields of study (e.g. sociology, psychology, psychiatry, and anthropology). Two fundamental considerations justify this research: a lack of distinctiveness among firms due to high levels of competition and consumers no longer knowing what they want (i.e. no more needs). The authors will show how the classical mental framework generally used to study markets by practitioners appears on the one hand to be established and systematic in the life of a company, while on the other is no longer adequate to meet the needs of innovation required to survive. To the classic principles of objectivity, generality, and psycho-sociology the authors counterpose the imaginary, eidetic-phenomenological reduction, and an existential perspective. From a theoretical point of view, this paper introduces a set of functioning rules applicable to achieve innovation in any market and useful to identify cultural practices inherent in the act of consumption.

We support Shane and Venkataraman’s (2000) basic idea of an “entrepreneurship nexus” where charac... more We support Shane and Venkataraman’s (2000) basic idea of an “entrepreneurship nexus” where characteristics of the actor as well as those of the “opportunity” they work on influence action and outcomes in the creation of new economic activities. However, a review of the literature reveals that minimal progress has been made on the core issues pertaining to the nexus idea. We argue that this is rooted in fundamental and insurmountable problems with the “opportunity” construct itself, and demonstrate the state of confusion in the literature caused by inconsistent use of the construct within and across works and authors. As an alternative, we suggest the admittedly subjective notion of New Venture as a more workable alternative. We provide a comprehensive definition and explanation of this construct, and take steps towards improved conceptualization and operationalization of its subdimensions. With some further work on these conceptualizations and operationalizations it will be possible to implement a comprehensive research program that can finally deliver on the promise outlined by Shane and Venkataraman (2000).

Routledge, 2018

Routledge, 2015

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) represents for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) generally continue to penetrate low income markets with the same strategies used at the top of the pyramid or choose not to invest at all in these regions because intimidated by having to re-envision their business models.
The introduction of not re-arranged business models and products into developing countries has done nothing more over the years than induce new needs and develop new dependencies. By conducting a critical review of the literature this paper investigates and compares innovative approaches to operate in developing markets, which depart from the usual Corporate Social Responsibility marketing rhetoric, and rather consider the potential consumer at the BoP as a ring of continuity in the value chain − a resource that can itself produce value.
Based on the concept of social embeddedness (London & Hart, 2004) and the principle that an open system contemplates different provisions (i.e. MNCs bring processes and technology, NGOs cultural mediating skills, governments laws and regulations, native people know-how and traditions), this paper concludes with a new business model reference that empowers all actors to contribute to value creation, while allowing MNCs to support local growth by turning what Prahalad called ‘inclusive capitalism’ into a more sustainable ‘inclusive entrepreneurial development’.

In the entrepreneurship literature, prior studies demonstrated the role of intentionality as the ... more In the entrepreneurship literature, prior studies demonstrated the role of intentionality as the best predictor of planned behavior (Ajzen 1991), and assumed that the intention to start a business derives from the perception of desirability and feasibility and from a propensity to act upon an opportunity (Fishbein & Ajzen 1975). Recognizing that starting a business is an intentional act (Krueger et al. 2000) and entrepreneurship is a planned behaviour (Katz & Gartner 1988), models of entrepreneurial intentions have substantial implications for intentionality research in entrepreneurship.
The purpose of this paper is to explore the emerging practice of social entrepreneurship by comparing the determinants of entrepreneurial intention in general versus those leading to start-ups with a social mission. Social entrepreneurial intentions clearly merit to be investigated given that the opportunity identification process is an intentional process not only typical of for-profit start-ups, and yet there is a lack of research examining opportunity recognition in social entrepreneurship (Haugh 2005). The key argument is that intentionality in both traditional and social entrepreneurs during the decision-making process of new venture creation is influenced by an individual's perceptions toward opportunities (Fishbein & Ajzen 1975).

Quantitative studies of nascent entrepreneurs such as GEM and PSED rely on screening the adult po... more Quantitative studies of nascent entrepreneurs such as GEM and PSED rely on screening the adult population to
generate a representative sample, usually by phone in developed economies. However, phone survey research has
recently been challenged by shifting patterns of ownership and response rates of landline versus mobile (cell)
phones, particularly for younger respondents. This challenge is acutely intense for entrepreneurship which is a
strongly age-dependent phenomenon. Although shifting ownership rates have received some attention, shifting
response rates have remained largely unexplored. For the Australian GEM 2010 adult population study we
conducted a dual-frame approach that allows comparison between samples of mobile and landline phones. We find a
substantial response bias towards younger, male and metropolitan respondents for mobile phones – far greater than
explained by ownership rates. We also found these response rate differences significantly biases the estimates of the
prevalence of early stage entrepreneurship by both samples, even when each sample is weighted to match the
Australian population. Our results underscore the importance of using appropriate survey modes to ensure
representativeness of samples used in entrepreneurship research.

• Action Research [AR]: builds on the perceptions of practitioners within particular, local pract... more • Action Research [AR]: builds on the perceptions of practitioners within particular, local practice contexts. Their generalizations are unlike the 'laws' of which normal social science aspires: rather than describing relationships between dependent and independent variables, their generalizations describe thematic patterns in one setting and the valid transfer to other settings is dependent on confirmation there by further experiment.

Mancanza di cose di natura materiale e non.  Chi è il 'povero'? Deboli, affamati, ammalati, senz... more Mancanza di cose di natura materiale e non.  Chi è il 'povero'? Deboli, affamati, ammalati, senza tetto, senza terra, mendicanti, pazzi, carcerati, schiavi, analfabeti, esiliati, venditori ambulanti, soldati, santi, licenziati, etc.  La monetizzazione della società ha definito 'poveri' coloro che non possono permettersi quello che i 'ricchi' hanno in termini di soldi e possedimenti -"La vita economica del povero e` primitiva e stagnante…. La loro poverta` e un handicap e una minaccia per loro stessi e per le aree piu` prospere" (Harry Truman, 1949) -Dalla rivoluzione industriale una trasformazione era in atto che "ha ribaltato il tradizionale rapport tra societa` ed economia e, per la prima votla nella storia, quest'ultima e` stat svincolata dalle sue radici socio-culturali, così sottoponendo la società alle proprie regole e dinamiche economiche, piuttosto che il contrario" (Karl Polanyi ,1944)  Che cosa è necessario / Chi è qualificato per definirlo? -Il soggetto o l'osservatore -Tempo e luogo creano diverse percezioni -Esempio: Ladakh (Kashmir) -World Bank: 1948 correlazione tra povertà e PIL pro capite  $1.25/giorno (2008) 4 / 42

Solutions for managing the built environment

A flexible performance evaluation tool for commercial buildings

European Journal of Sustainable Development, 2018

Circular Economy (CE) is today a major concept within the sustainability debate (Geissdoerfer, Sa... more Circular Economy (CE) is today a major concept within the sustainability debate (Geissdoerfer, Savageta, Bocken & Hultinkb, 2017). Its theoretical arguments are widely accepted-especially at a crosscountry institutional level-but businesses still seem reluctant to acknowledge it as a revenuemaking paradigm. This ongoing study aims to reveal where, along the value chain, firms are more unaware of CE best practice and/or reluctant to invest. After a comprehensive review of sustainable business models, the authors suggest a framework for circularity in business strategy as a beginning foothold on their research agenda. Next, the authors rely on expert informants to identify the most suitable areas in the value chain for the implementation of CE actions. Finally, an online free-access survey-like tool is launched to invite firms self-assessing (1) how relevant those identified areas are for their respective industries and (2) how CE-mature they feel regarding those areas. The initial results attest low consciousness of the CE potential across industries and even lower levels of maturity, especially by SMEs. Despite the growing evidence of Sustained Competitive Advantage (SCA) achieved by pioneering companies moving away from linear forms of production, through the development of new core competencies (Prahalad & Hamel 1990), most firms still perceive CE as something not applicable to them or too costly and risky to implement.

Australian Centre For Entrepreneurship Qut Business School School of Mathematical Sciences Science Engineering Faculty School of Management, 2013

Many efforts are made to assist with the advancement of developing economies through the activiti... more Many efforts are made to assist with the advancement of developing economies through the activities of Non Government Organizations (NGOs). There are many management l and engagement issues associated with any successful NGO in a developed economy. When the organization is operating in a developing country, where a lack of infrastructure and education, distrust and corruption are part of the operating environment, the issues multiply. This case study discusses the structure of a NGO started in 2008 and describes the development and interaction of its two main components: a community-based NGO in a developing country and a NGO with a voluntary committee in a developed economy, australia. Despertai Mozambique is the NGO set up in Beira, which provides the necessary support, training and funding to the local poor (defined by the UN as living below the internationally accepted poverty line of US$1.25 a day) to help them set up small, often informal, businesses, to enable them to become sustainable, and ultimately to help alleviate poverty. The partnering Australian organization, Awaken Mozambique, is responsible for providing the necessary intellectual and financial resources required by Despertai Mozambique to operate.

Australian Centre For Entrepreneurship Qut Business School School of Management, 2012

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) represents for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) generally continue to penetrate low income markets with the same strategies used at the top of the pyramid or choose not to invest at all in these regions because intimidated by having to re-envision their business models. The introduction of not rearranged business models and products into developing countries has done nothing more over the years than induce new needs and develop new dependencies. By conducting a critical review of the literature this paper investigates and compares innovative approaches to operate in developing markets, which depart from the usual Corporate Social Responsibility marketing rhetoric, and rather consider the potential consumer at the BoP as a ring of continuity in the value chain − a resource that can itself produce value. Based on the concept of social embeddedness (London & Hart, 2004) and the principle that an open system contemplates different provisions (i.e. MNCs bring processes and technology, NGOs cultural mediating skills, governments laws and regulations, native people know-how and traditions), this paper concludes with a new business model reference that empowers all actors to contribute to value creation, while allowing MNCs to support local growth by turning what Prahalad called 'inclusive capitalism' into a more sustainable 'inclusive entrepreneurial development'.

Academy of Management Proceedings, 2013

We support Shane and Venkataraman's (2000) basic idea of an "entrepreneurship nexus" where charac... more We support Shane and Venkataraman's (2000) basic idea of an "entrepreneurship nexus" where characteristics of the actor as well as those of the "opportunity" they work on influence action and outcomes in the creation of new economic activities. However, a review of the literature reveals that very little progress has been made on the core issues pertaining to the nexus idea. We argue that this is rooted in fundamental and insurmountable problems with the "opportunity" construct itself. As an alternative, we suggest the admittedly subjective notion of New Venture Idea as a more workable alternative. We provide a comprehensive definition and explanation of this construct, and take steps towards improved conceptualization and operationalization of its subdimensions. With some further work on these conceptualizations and operationalizations it should be possible to implement a comprehensive research program that can finally deliver on the promise outlined by Shane and Venkataraman (2000).

Socially Responsible Organizations and the Challenge of Poverty

The interest in poverty and the moral sense of'helping the poor' are a constant topic in ... more The interest in poverty and the moral sense of'helping the poor' are a constant topic in Western culture (Mayo 2009).ln recent years, multinational corporations (MNCs) have evolved in their understanding of how social issues, such as poverty alleviation, relate to their fundamental purposes. From a business strategy point of view, 'socially responsible' initiatives are generally born with lhe dual purpose of attaining social visibility (i.e. marketing) and increasing economic returns. Besides addressing social challenges as part of their corporate social responsibility strategies, MNCs have also begun 'selling to the poor' in emerging markets (Prahalad 2004). A few forward -looking companies consider tltis base of the pyramid (BOP) market also as a source of innovation and have started to co-create with consumers (Simanis and Hart 2008).

Academic Journal of Interdisciplinary Studies, 2013

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) could represent for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) have continued to fail in penetrating low income markets, arguably because applied strategies are often the same adopted at the top of the pyramid. Even in those few cases where products get re-envisioned, their introduction in contexts of extreme poverty only induces new needs and develops new dependencies. At best, the rearrangement of business models by MNCs has meant the realization of CSR (Corporate Social Responsibility) schemes that have validity from a marketing perspective, but still lack the crucial element of social embeddedness (London & Hart, 2004). Today the challenge is to reach the lowest population tier with reinvented business models based on principles of value co-creation. Starting from a view of the potential consumer at the BoP as a ring of continuity in the value chain process a resource that can itself produce value-this paper concludes proposing an alternative innovative approach to operate in developing markets that overturns the roles of MNCs and the BoP. The proposed perspective of 'reversed' source of innovation and primary target market builds on two fundamental tenets: traditional knowledge is rich and greatly unexploited, and markets at the top of the pyramid are saturated with unnecessary products / practices that have lost contact with the natural environment.

Notice: Changes introduced as a result of publishing processes such as copy-editing and formattin... more Notice: Changes introduced as a result of publishing processes such as copy-editing and formatting may not be reflected in this document.

ABSTRACT This paper reports a longitudinal analysis of 20 necessity driven micro-entrepreneurs op... more ABSTRACT This paper reports a longitudinal analysis of 20 necessity driven micro-entrepreneurs operating in Beira, Central Mozambique, who received funding and training from the same NGO to establish or grow their business activities and reports the development of these entrepreneurs in terms of their acquired entrepreneurial potential for long-term success. The results indicate there is a process of entrepreneurial becoming that is not just about access to finance but especially learning and, when successful, this process supports the transformation of survival micro-enterprises into entrepreneurial micro-businesses. The concept of ‘becoming’ contains an implicit temporal dimension. Becoming suggests a transformation over time: a change from what one is already. In this study, we witness a significant change in understanding how a business needs to operate, in recognizing opportunities, thinking more creatively, and building self-confidence.

... Yet even in this context, research into the impact of micro-credit is lacking (Buckley, 1997;... more ... Yet even in this context, research into the impact of micro-credit is lacking (Buckley, 1997; Mayoux, 1999; Sievers and Vandenberg, 2007; Wilburn, 2009). Should micro-credit be such a major poverty alleviation strategy if it leaves its borrowers less well off? ...

Quantitative studies of nascent entrepreneurs such as GEM and PSED are required to generate their... more Quantitative studies of nascent entrepreneurs such as GEM and PSED are required to generate their samples by screening the adult population, usually by phone. Phone survey research has recently been challenged by shifting patterns of ownership and response rates of landline versus mobile phones. We report a comparison between samples of mobile and landline phones for the Australian GEM 2010 study. We find a substantial response bias towards younger, male and metropolitan respondents for mobile phones-far greater than explained by ownership rates. We also found this biases the estimates of the prevalence of early stage entrepreneurship by both samples, even when each sample is weighted to match the Australian population. Recent declining survey response rates, particularly for telephone surveys (Abraham, Maitland and Bianchi, 2006; Groves 2006), have encouraged researchers to use multiple modes of data collection xxx

Academy of Management Proceedings, 2013

This study examines the factors affecting the successful provision of micro-credit to people at t... more This study examines the factors affecting the successful provision of micro-credit to people at the bottom of the pyramid and discusses the activities required to support entrepreneurial activities in a peri-urban African setting. The findings enable us to better understand why micro-credit, though useful, is only part of the solution, in a setting characterized by extreme resource constraints with an institutional fabric lacking the infrastructure that assists market development. We depict the crafting of new entrepreneurial activity as an ongoing process and present an emerging research agenda for future developments.

Australian Centre For Entrepreneurship Qut Business School School of Management, 2012

In 2004 Prahalad made managers aware of the great economic opportunity that the population at the... more In 2004 Prahalad made managers aware of the great economic opportunity that the population at the BoP (Base of the Pyramid) represents for business in the form of new potential consumers. However, MNCs (Multi-National Corporations) generally continue to penetrate low income markets with the same strategies used at the top of the pyramid or choose not to invest at all in these regions because intimidated by having to re-envision their business models. The introduction of not re-arranged business models and products into developing countries has done nothing more over the years than induce new needs and develop new dependencies. By conducting a critical review of the literature this paper investigates and compares innovative approaches to operate in developing markets, which depart from the usual Corporate Social Responsibility marketing rhetoric, and rather consider the potential consumer at the BoP as a ring of continuity in the value chain − a resource that can itself produce value. Based on the concept of social embeddedness (London & Hart, 2004) and the principle that an open system contemplates different provisions (i.e. MNCs bring processes and technology, NGOs cultural mediating skills, governments laws and regulations, native people know-how and traditions), this paper concludes with a new business model reference that empowers all actors to contribute to value creation, while allowing MNCs to support local growth by turning what Prahalad called ‘inclusive capitalism’ into a more sustainable ‘inclusive entrepreneurial development’.

Academy of Management Proceedings, 2013

Micro-finance, which includes micro-credit as one of its core services, has become an important c... more Micro-finance, which includes micro-credit as one of its core services, has become an important component of a range of business models -from those that operate on a strictly economic basis to those that come from a philanthropic base, through Non Government Organisations (NGOs).