Influence of Supply Chain Linkages with BoP Enterprises on Market Knowledge Competence and Propensity to Internationalization of MNEs: A Measurement Model

Abstract

Objectives: There has been growing interest in network theory of internationalization as a means to achieve 'cooperative advantage' and 'economies of networking'. Yet there is seldom any measurement model that may offer quantitative approach and tools to analyze role of supply chain linkages of Base of Pyramid (BoP) enterprises with MNE subsidiaries in host markets. Design/Methods: The study makes use of statistical data reduction techniques such as factor analysis to test reliability and validity of the proposed model using data obtained through a structured questionnaire from supply chain/marketing managers of MNEs with backward and/forward supply chain linkages with BoP firms in Pakistan Results: The study develops a measurement framework and structured questionnaire to analyze impact of sustainable/inclusive supply chain linkages as exogenous variable with the variables of subsidiary internationalization in host markets. Implications/originality/value: The study offers implications for linking vast sector of micro and small enterprises with value chain network as economic agents of MNEs to support its innovation and market outreach strategy in a sustainable manner. Further empirical studies are needed to validate and extend the hypothesized relationships of proposed model of sustainable internationalization.