The SAM Advanced Management Journal is pleased to announce the publication of the article A Framework to Apply Porter and Kramer’s “Creating Shared Value” Approach: Evidence from a Business Model’s Success and Failure in Africa by Santosh Nandi, Madhavi Latha Nandi, and Hendrikus van Bulck in Volume 85 Edition 4.
Article Abstract:
The purpose of the study is to demonstrate how to apply Porter and Kramer’s “Creating Shared Value” (CSV) in developing sustainable business models for international markets. The study proposes a framework to apply CSV and discusses its application by using Vodafone UK’s success in Kenya and failure in South Africa of M-Pesa – its mobile-based financial service business model. Through the proposed framework, the study highlights that three of the four CSV strategies, i.e., (1) reconceiving products and markets, (2) redefining productivity in the value chain, and (3) defining core competence, are process-focused and have direct influence on business model success. The fourth CSV strategy – (4) enabling local cluster development, intensifies the performance of the three process-focused CSV strategies on business model success. In addition, ‘regulatory fit’ of the business strengthens the direct performance of the process-focused CSV strategies on business model success. The proposed framework serves as useful guiding tool for researchers to evaluate and extend CSV’s theoretical juxtapositions and for practitioners to justify CSV approach in developing business models for markets with matching and/or differing socio-economic and socio-political contexts.
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