Utilizing PPPS as an Alternative to Entering BOP Markets: Benefits, Challenges, and Success Factors
Dirk Primus, Justin Robinson-Howe, Nicholas Tasca
This paper examines public-private-partnerships (PPPs) as viable modes of entry into Bottom-of-the-pyramid (BOP) regions. BOP regions present attractive growth targets with untapped purchase power, however, recent case evidence and BOP research suggests that challenges associated with BOP regions present significant challenges for companies entering BOP regions with business-to-business (B2B) and business-to-consumer (B2C) strategies. In this paper, we concur with existing work by Vinogradov et al. (2014), which argues for PPPs as alternative modes of entry that generate mutual benefits for the regional government and the entrant. However, there is no conceptual framework that guides research and informs practitioners in this important area. To address this deficit, we examine extant PPP literature and case evidence to identify benefits, challenges, and the key factors that contribute to a successful bidding and execution process in a PPP. Finally, our work provides a discussion of how the key success factors can be implemented.