Abstract

C.K. Prahalad argues that if multinational corporations were to adapt, via the complex interaction between market players, their products and services to the requirements of those earning “bottom of the pyramid” (BoP) incomes, they could create additional value, but also achieve social transformation and eradicate poverty (Prahalad & Hammond, 2002; Prahalad & Hart, 2002). Key to orchestrating these aims is “entrepreneurship on a massive scale” (Prahalad, 2010, p. 26), suggesting that there is a strong interrelation between this concept and entrepreneurial efforts.

This article is a response to the scientific debate on Prahalad’s BoP approach. It develops a conceptual model that allows the hypothesized interrelations between the key variables of multinational corporations’ involvement in developing economies and their effects on entrepreneurial efforts to be quantitatively operationalized.

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