Sustainable supply chain models for base of the pyramid

Institutional barriers and constraints in developing countries require new supply chain models where economic, social and ecological aspects are integrated. Sustainable supply chain management discourse has focused on ecological aspects and neglected social issues, while Base of the Pyramid studies have neglected ecological considerations. This study links the sustainable supply chain management discourse with insights from Base of the Pyramid studies in order to suggest an integrated sustainability perspective. This work adopts a multiple case study design based on secondary data analysis in order to investigate supply chain concepts of 18 successful products and develop sustainable supply chain models in the areas of sourcing, making and delivering. Findings suggest that by employing localized and simplified approaches, companies targeting low-income markets can overcome existing local institutional barriers. We conclude that employing simplified and localized approaches to supply chains and simultaneously integrating local communities in the value creation activities can serve as success factors. Therefore, by linking sustainable supply chain with the Base of the Pyramid strategies discourse, we fill an important research gap in the literature. From a practitioner's perspective, the derived supply chain models serve as best practices for managers of multi-national companies, local entrepreneurs, non-governmental organizations and political institutions designing, operating and regulating supply chains for low-income markets.