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International Business and Emerging Economy Firms pp 89–116Cite as

Palgrave Macmillan

Value Co-creation in Multinational Enterprises’ Services Marketing at the Bottom-of-the-Pyramid Markets

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Abstract

This book chapter addresses determinants of value creation by multinational enterprises (MNEs) in the still largely neglected research context of bottom of the pyramid (BoP) markets. Consisting of consumers living below the poverty line, BoP markets exhibit significantly different characteristics compared to the affluent developed or the aspirational emerging markets. Dealing with a wide range of diversity within a market where it is difficult to obtain reliable, generalisable information means that MNEs tend to face challenges upon entering them. Yet, the potential demand offered by BoP markets cannot be ignored and MNE’s have shown increasingly that they are willing to innovate market-specific approaches to cater to BoP needs. We discuss the applicability of service-dominant (S-D) logic in subsistence context and identify commitment to the market, strategic CSR, and service quality as key firm-level determinants of effective service marketing in BoP markets. We further identify social trust, technological outreach and performance orientation characteristics in target BoP market as key country-level determinants. Finally, the book chapter offers a number of academic and managerial implications.

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Authors and Affiliations

  1. School of Marketing & Communication, University of Vaasa, Vaasa, Finland

    Tiina Leposky

  2. Department of Marketing, Management and International Business, Oulu Business School, University of Oulu, Oulu, Finland

    Ahmad Arslan

  3. Institute for International Business, Vienna University of Economics and Business, Vienna, Austria

    Desislava Dikova

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  1. Tiina Leposky
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  2. Ahmad Arslan
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  3. Desislava Dikova
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Correspondence to Tiina Leposky .

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Editors and Affiliations

  1. Department of Business and Management, Aalborg University, Aalborg, Denmark

    Marin A. Marinov

  2. Aalborg Business School, Aalborg University, Aalborg, Denmark

    Svetla T. Marinova

  3. Faculty of Business Studies, University of Vaasa, Vaasa, Finland

    Jorma A. Larimo

  4. School of Marketing and Communication, University of Vaasa, Vaasa, Finland

    Tiina Leposky

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Leposky, T., Arslan, A., Dikova, D. (2020). Value Co-creation in Multinational Enterprises’ Services Marketing at the Bottom-of-the-Pyramid Markets. In: Marinov, M.A., Marinova, S.T., Larimo, J.A., Leposky, T. (eds) International Business and Emerging Economy Firms. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-24482-8_4

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