Aggravated poverty problems in developing countries, caused by globalization, became such serious threats to sustainable development that efforts to solve these problems generated diverse changes in institutions and organizations. Such changes amalgamated the fields of development and business activities, involving partly companies' business interests and partly civil society pressures, and created an unprecedented business field, called the base of the pyramid (BOP). Under globalization, market-principle-based value creation rather than income redistribution, such as foreign aids, became a solution to the problems. To be more specific, companies following market principles concretize and mobilize dispersed knowledge possessed by the poor, develop BOP business, and institutionally include the poor as viable business partners and targets. Consequences are the provision of sustainable livelihood to them and their increased living standards. But such consequences cannot be well achieved without cross-boundary collaborations with newly devised development-oriented institutions such as microfinances, NGOs, development agencies, international organizations, etc. The cross-boundary collaboration with them, according to case studies, cuts transaction costs and reduces risks in a business field previously perceived too costly and risky. These institutions also provide indispensable assistance in identifying the needs and capability of the poor, enabling companies to create adaptation to locally specific conditions. Thus, BOP business requires understanding about institutional changes, development-related issues, and needless to say, new approaches in business models and practices.
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