Inclusive operations at the base of the pyramid: Sustainable value creation for mitigating social exclusion

Literature on inclusive production, logistics and sustainable supply chain models and good practices for BOP markets is sparse. This paper reports results of a cross-case study on supply chains in base-ofthe- pyramid (BOP) societies. Inclusive procurement, production and distribution activities are identified as central elements to achieve sustainability, poverty alleviation and to avoid social exclusion in BOP markets. By combining BOP research and social exclusion theory, this work aims to provide structured insights into the design of inclusive operations and their sustainability contributions in developing countries by the cross-case comparison of four case studies of frugal products produced and mostly sold in Ghana and India. The explorative research shows that inclusion can be realized in all parts of the supply chain: Inclusive supply chains show a funnel-shape with an increasing number of involved local actors from product development, to procurement, production and distribution. Our findings also reveal that while external financing is key for viability in BOP settings, inclusive operations are required to avoid exploitation risks and enable sustainable local value creation.