Table Of ContentTakabumi Hayashi
Hiroshi Hoshino
Yoshie Hori Editors
Base of the Pyramid
and Business
Process Outsourcing
Strategies
In the Age of SDGs
Base of the Pyramid and Business Process
Outsourcing Strategies
· ·
Takabumi Hayashi Hiroshi Hoshino Yoshie Hori
Editors
Base of the Pyramid
and Business Process
Outsourcing Strategies
In the Age of SDGs
Editors
Takabumi Hayashi Hiroshi Hoshino
Saitama, Japan Faculty of Economics
Kyushu University
Yoshie Hori Fukuoka, Japan
Department of Social Science
Waseda University
Tokyo, Japan
ISBN 978-981-19-8170-8 ISBN 978-981-19-8171-5 (eBook)
https://doi.org/10.1007/978-981-19-8171-5
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Preface
Economic development and alleviation of poverty are essential to maintaining
sustainable growth in the age of sustainable development goals (SDGs). This is
particularly pressing for emerging and developing countries where social issues are
concentrated. Through research studies and field surveys, the authors recognized
the need to elucidate the following points. Effective industrial policies for economic
development in the age of digital capitalism must differ from those of former indus-
trial capitalism. Information technology (IT), among others, has been at the core of
technological architecture since the late twentieth century. In this sense, it means
that industrial policies and business models that utilize IT are effective in tackling
these issues. These social issues in emerging countries can be solved smoothly under
a social business model with locally embedded knowledge and wisdom, as well as
IT. This type of social business model needs to be based not only on international
value chains but also on local value chains. Technological architecture has evolved
further, becoming centered on digital technology, and the paradigm of innovation has
changed accordingly. The explosive spread of the Internet has largely enabled some
areas of knowledge to be disseminated worldwide, including in developing coun-
tries, as well as facilitating the sharing and integration of knowledge from around
the world. Strengthening collaboration among private companies, universities, and
non-governmental organizations (NGOs) has become an important strategic issue,
especially in the area of social businesses.
Based on this recognition, the major objective of this book is to introduce the IT
business industry and social business models to address the challenge of social issues
in emerging countries. Each chapter clarifies business strategies based on diligent
field surveys in developing nations, focusing on Bangladesh and the Philippines,
where social issues in the age of the SDGs are concentrated.
Field surveys enable the effective construction of a sophisticated hybrid value
chain by connecting a sustainable business ecosystem of local value chains to global
value chains. Joint social business entities formed between local NGOs and foreign
companies, and multinational corporations with global value chains, among others,
appear to be keystones.
v
vi Preface
The book consists of two parts. The first part, which consists of the following
five chapters, mainly discusses social business-related models from the perspective
of SDGs. In the second part, consisting of the remaining five papers from the sixth
to tenth chapters, new industrial development based on the IT business industry is
examined from the perspective of specific industrial sectors and companies, which
leads to alleviating poverty issues in informal sectors.
Here, we highlight some key themes from each chapter.
Chapter 1, “Collaboration Between For-Profits and Non-profits: Strategies for
Successful Market Entry into Developing Countries” by Hiroshi Hoshino, discusses
the results of research conducted to determine how latecomers can successfully reach
new markets in emerging countries. Studies in Africa and Asia have found that
unique methods are required to enter new markets as latecomers. Among these unique
methods, collaboration with non-profit organizations such as NGOs and international
organizations such as UN agencies can be a powerful tool for overcoming various
entry barriers and penetrating local markets.
Chapter 2, “Social Business Strategies to Alleviate Poverty in Emerging Coun-
tries Aiming at New Development Strategic Management Theories: Focusing on the
Business Model of Grameen-Euglena in Bangladesh,” focuses on the poverty reduc-
tion strategy by “Grameen Euglena,” which is jointly funded by Grameen Krishi
Foundation in Bangladesh, and Euglena, a Japan-based company.
The paper also considers the social business model between sectors by this joint
company to solve social issues in rural areas, based on the research field surveys on
“Grameen Euglena” in Bangladesh in 2016–2020.
Chapter 3, “Digital Healthcare and a Social Business Model to Ensure Universal
Health Coverage (UHC): A Case Study of Bangladesh,” elucidates that disruptive
technologies and a social business model can deliver healthcare services to non-UHC
communities in faster, affordable, and sustainable manner, based on the Portable
Health Clinic (PHC) system that Kyushu University and Grameen Communications
successfully developed. This chapter describes this experience and identifies major
challenges to ensure that UHC approaches can assimilate advanced technologies,
mainstream them in national healthcare policy, and train healthcare workers.
Chapter 4, “Sari-Sari Stores as Sustainable Business by Women in the Philip-
pines,” by Toyoko Funahashi, discusses the consumption activities of the BOP, which
represents the base of the economic pyramid that constitutes the income bracket, as
well as the sari-sari stores, a generic term for micro-retailers that play a major role
in the Philippines. This paper examines the cases of Nestlé Philippines, San Miguel
Brewery, and Yakult Philippines, which are manufacturers of processed beverages
and foods, as examples of how manufacturers utilize sari-sari stores in their business.
It examines their channels and marketing strategies through sari-sari stores, enabling
women to become economically independent.
Chapter 5, “Bottom of Pyramid Strategies by MNEs and NGOs: A Case of
UNIQLO,” by Kanako Negishi, examines how multinational enterprises (MNEs)
in the complex global supply chain of the garment industry maintain sustainability,
Preface vii
centering on the case of UNIQLO. Her study reveals a dual structure in which employ-
ment conditions differ among Bangladeshi workers, depending on whether it is a
Grameen UNIQLO or a production consignment factory.
Chapter 6, “The Growth of the IT-BPO Industry and Women’s Work Choices in
the Philippines,” by Yoshie Hori, explores the IT-BPO industry’s role in forming a
middle class in the Philippines. It focuses on enhanced economic opportunities for
Filipina women, who now have alternative ways to earn money in their country rather
than being “exported” to foreign countries as migrant workers, examining cases of
female employees in the industry.
Chapter 7, “IT Business Process Outsourcing (BPO) Strategy as a New Develop-
ment Strategy in Emerging Countries: Focusing on the Philippine IT-BPO Industry
and Lewis Turning Point Theory,” by Takabumi Hayashi, examines the fact that the
number of poor people in the Philippines has decreased relatively and absolutely
since 2012 from the perspective of the IT-BPO industry as the formal sector, while it
also still holds the problems of surplus labor in the informal sector mainly in the rural
areas. These issues are discussed in line with Lewis’s original argument (Lewis1954).
Chapter 8, “New Industrial Development Path Based on IT Service Business in the
Case of the Philippines,” by Raquiza, argues for bright prospects and conditions for
Philippine IT-BPO and the manufacturing industry. The study has two preliminary
findings, which could lead to inclusive development, or at least a more equitable
regional development, with the industry shifting to work from home. First, the rising
IT-BPM investment in the post-pandemic transition coincides with growing interest
in manufacturing services, including product design, engineering design, and data
analytics. Second, the country seeks to leverage its leading global industry position
and large high-skilled pool to expand higher-value employment, linking the provision
of IT-BPM enterprises to the development of an indigenous innovation economy.
Chapter 9, “The Burden and Autonomy of Women in the IT-BPO Industry in
Metropolitan Manila: Under the COVID-19 Pandemic,” by Makiko Ota, discusses
how the COVID-19 pandemic affects the lives and household responsibilities of
women in the IT-BPO industry in the Philippines. The paper clarifies that the growth
of the industry has created possibilities for university—and college-educated women
in adversity to upgrade their lives, enhance their autonomy, and achieve upward
mobility. Through online interviews with female workers/former workers in IT-BPOs
in metropolitan Manila, the author explores their gendered contribution and respon-
sibility in households both before and during the pandemic while paying attention
to differences in both according to life stage. This study suggests that young female
IT-BPO workers from low-income households tend to be economically responsible
for their families and are more vulnerable to the pandemic.
Finally, in Chapter 10, “Joint IT Development Strategies Between Nepal and
Japan: Based on Japan-South Korea-Nepal Trilateral Cooperation,” Tetsuro Saisho
examines the supply of IT human resources in Japan that is continually unable to keep
up with the ever-increasing demand. It is becoming increasingly difficult to secure
IT human resources year after year, and the shortage is expected to continue in
the future. In addition to offshore development, a new system development business
model has been developed in which foreign engineers who wish to work for Japanese
viii Preface
IT companies come to Japan to develop information systems through international
cooperation between Japan and other countries.
The further evolution of IT and international knowledge creation and sharing will
continue to lead to new types of social business models to cope with deepened SDG
issues. The book will help us to better understand the various themes to be unraveled.
This book is highly recommended not only to academicians but also to business-
people who seek social business models and provide an overview of new sustainable
and inclusive businesses in the age of the digital economy.
Finally, in editing the book, we would like to express our gratitude to the
editing staff members of Springer publishing: Ms. Vidyaa Shri Krishna Kumar,
Ms. Kokila Durairaj, Mr. Yutaka Hirachi, and Ms. Shinko Mimura for their valuable
comments and kind help.
Saitama, Japan Takabumi Hayashi
Fukuoka, Japan Hiroshi Hoshino
Tokyo, Japan Yoshie Hori
Contents
1 Collaboration Between For-Profits and Non-profits: Strategies
for Successful Market Entry into Developing Countries ........... 1
Hiroshi Hoshino
2 Social Business Strategies to Alleviate Poverty in Emerging
Countries Aiming at New Development Strategic
Management Theories: Focusing on the Business Model
of Grameen-Euglena in Bangladesh ............................. 21
Takabumi Hayashi, Hiroshi Hoshino, Chie Iguchi, and Masashi Arai
3 Digital Healthcare and a Social Business Model to Ensure
Universal Health Coverage (UHC): A Case Study
of Bangladesh ................................................. 43
Ashir Ahmed, Forhad Hossain, Nuren Abedin, Rafiqul Islam,
Faiz Shah, and Hiroshi Hoshino
4 Sari-Sari Stores as Sustainable Business by Women
in the Philippines .............................................. 75
Toyoko Funahashi
5 Bottom of Pyramid Strategies by MNEs and NGOs: A Case
of UNIQLO ................................................... 97
Negishi Kanako
6 The Growth of the IT-BPO Industry and Women’s Work
Choices in the Philippines ...................................... 117
Yoshie Hori
7 IT Business Process Outsourcing (BPO) Strategy as a New
Development Strategy in Emerging Countries: Focusing
on the Philippine IT-BPO Industry and Lewis Turning Point
Theory ....................................................... 141
Takabumi Hayashi
ix
x Contents
8 New Industrial Development Path Based on IT Service
Business in the Case of the Philippines .......................... 161
Antoinette R. Raquiza
9 The Burden and Autonomy of Women in the IT-BPO Industry
in Metropolitan Manila: Under the COVID-19 Pandemic ......... 171
Makiko Ota
10 Joint IT Development Strategies Between Nepal and Japan:
Based on Japan-South Korea-Nepal Trilateral Cooperation ....... 191
Tetsuro Saisho
