Several researchers have said that the real solution to alleviating, or at least reducing, the level of poverty is not to view poor people as customers; instead it is important to integrate these people into the value chain of Multi-national Corporations (Karnani, 2007; London, 2004; SEKN, 2001). The objective of this research work is to analyze how companies with sustainability initiatives can generate better individual performance through the creation of empowerment in the LIS. First I developed a theoretical framework after conducting 47 in-depth interviews with key participants of one sustainable initiative in Mexico. I found, initially, that other variables like trust, coping strategy and risk aversion can moderate the direct and positive relationship between psychological empowerment and individual performance. Then I applied the surveys to 204 participants of this sustainability initiative. To test the hypotheses, I used PLS-SEM and analyzed the surveys in two groups (Belong, N=85) and (Belonged, N=119). In both groups, I confirmed the positive relationship between psychological empowerment and individual performance, I found also that coping strategy moderates in both conditions of this relationship; however, I cannot demonstrate that risk aversion moderates in any condition. Finally, I demonstrate that trust moderates the relationship, also. Theoretical and managerial implications as well limitations and future research avenues are discussed.
Keywords: low-income sector, empowerment, performance, trust, coping strategy, risk aversion, social entrepreneurship, inclusive business, base of the pyramid.
|Advisor:||Fernandez, Gerardo Lozano|
|School:||Instituto Tecnologico y de Estudios Superiores de Monterrey (Mexico)|
|Source:||DAI-A 75/06(E), Dissertation Abstracts International|
|Subjects:||Marketing, Entrepreneurship, Sustainability|
|Keywords:||Base of the pyramid, Coping strategy, Empowerment, Performance, Risk aversion, Trust|
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