Multinational Companies in Low-Income Markets : An Analysis of Social Embeddedness in Southeast Asia

Social embeddedness has been identified as a critical success factor for operations of MNCs in low-income markets. Based on survey data gathered from two subsidiaries of a European MNC, Dina Badry examines relational and structural network aspects with regard to their influence on the success of companies Base of the Pyramid (BOP) strategies. In order to reveal detailed results and tangible implications for corporate leaders, the author distinguishes not only stakeholder and cross-sector partnerships but also different strategic intentions. The establishment of trust, especially in cross-sector partnerships, turns out to be essential in order to succeed in the approach to serve low-income consumer markets.