Techological capability building in MNE-related social businesses of less developed countries: The experience of Grameen-Danone Foods in Bangladesh
Jahan A. Peerally & Paulo N. Figueiredo
#2013-036
Although there has been considerable research on firm-level
technological capability building in the context of developing
economies, there is a scarcity of studies which examine this issue in
multinational enterprises' socially motivated businesses located in less
developed economies. This paper examines the latterissue on the basis of
first-hand empirical evidence derived from an extensive field research
on Grameen-Danone Foods Limited (GDFL) in Bangladesh. The study found
that GDFL generated relevant spillovers to the host economy by
accumulating production capabilities in association with innovation
capabilities at intermediate levels across four technological functions:
project management, process and production organization, product centred
and equipment-related. Apart from revealing the types of frugal and
reverse innovations which emanates from such a business, our study also
explores - unlike existing studies which only focus on the financial and
social benefits - the technological benefits generated froma social
business model.Understanding the nature and dynamics of technological
activities in social businesses of less developed economies is relevant
for the achievement of enhanced local, autonomous and sustainable
economic and social development.
Kewords: Technological capability building, MNE subsidiaries; social
businesses, entrepreneurship; bottom of the pyramid; less developed
countries; Bangladesh.
JEL classification: M16, O32, Q16, Q18