The inclusive business model revisited: An “extended resource‐based theory” (re)definition built on the investigation of three diversified inclusive enterprises in France

• DOI: http://doi.org/10.1002/jsc.2241
• Date: 01 November 2018
• Published date: 01 November 2018
• Author: Jérémy Tantely Ranjatoelina

RESEARCH ARTICLE

The inclusive business model revisited: An “extended resource-

based theory”(re)definition built on the investigation of three

diversified inclusive enterprises in France

†

Jérémy Tantely Ranjatoelina

1,2

1

INSCAE (BRAIN), Antananarivo, Madagasikara

2

ISCAM, Antananarivo, Madagasikara

Correspondence

Jérémy Tantely Ranjatoelina, INSCAE, Bureau

605, Immeuble INSCAE 67ha, B.P. 946, 101

Antananarivo, Madagascar.

Email: jranjatoelina@inscae.mg

Abstract

The inclusive business model concerns organizations whose strategic intent is to include in their

value creation predominantly people who are being wasted by the dominant practices of actors

on the market due to a presumption of negative performance. Inclusive business models have

been initially defined by the United Nations Development Programme (UNDP). The “extended

resource-based theory”proposes a new typology of resources, which includes the “wasted”

resource notion. The strategic intent is being seen as a main component of the business model

and plays an interface role. Inclusive enterprises predominantly employ people who are

excluded from the workplace. The suggested definition of the inclusive business model is

extended to any form of organization fighting against social exclusion and it specifies that the

included vulnerable people must be the majority among the human resources. Through the

“extended resource-based theory”prism, inclusive organizations have both alternative percep-

tion and intention toward wasted human resources and inclusive business models realize this

alternative intent. This renewed view of the inclusive business model could facilitate its appro-

priation and application by both practitioners and researchers, and both in developed and in

developing countries.

1|INTRODUCTION

Inclusive business models are generally viewed to be addressed, by

multinational companies, at the “base of the pyramid”(BOP) markets

in the context of developing countries (George, McGahan, & Prabhu,

2012; Halme, Lindeman, & Linna, 2012; London, Anupindi, & Sheth,

2010; Prahalad, 2004; Prahalad & Hammond, 2002; Reficco &

Màrquez, 2012; Simanis & Hart, 2008; Thompson & MacMillan, 2010;

Yunus, Sibieude, & Lesueur, 2012). Generally, the notion of “inclusive

business”seems to emphasize “the core principle that organizations can

and do, engage in social innovation activities to connect disenfranchised

individuals and communities with opportunities that foster social and eco-

nomic growth. In doing so, inclusive growth diminishes trade-offs between

growth and inequality because the poor become enfranchised as

customers, employees, owners, suppliers, and community members”

(George et al., 2012, pp. 661–662). More precisely, the “inclusive

business model”is defined by the UNDP «Growing Inclusive Markets»

initiative within the following words: “Inclusive business models include

the poor on the demand side as clients and customers, and on the supply

side as employees, producers and business owners at various points in the

value chain. They build bridges between business and the poor for mutual

benefit”(UNDP, 2008, p. 2). This consideration of the people living in

poverty seems to drive social innovation within the private sector

around the world. It also implies a large diversity of actors, which are

federated by UNDP “Business Call to Action”program (UNDP, 2008,

2010, 2014). Furthermore, the inclusive business model seems to

have an empirical resonance with the core activities of every (social

and classic) enterprise—including developed countries ones—which

deliberately employs people who are in a situation of social exclusion

in the majority of its human resources.

†

The author is grateful toward the following actors of the partnership for their

contributions to this research: the Fondation Agir Contre l'Exclusion (FACE), the

Association des Paralysés de France (APF), and the Chambre Régionale de l'Écono-

mie Sociale et Solidaire (CRESS) Hauts-de-France; as well as the research team

for «strategy, organization and entrepreneurship» of the «Organizations perfor-

mance analysis» department of the LEM and the BRAIN research team; the edi-

tor in chief for the review and the guest editor of the special issue; finally, the

author is grateful toward the seven anonymous reviewers who revised the arti-

cle before the conferences during which it has been presented and the reviewer

who revised it before its publication.

JEL Classification Codes: L31, M10, M12, M14, M51, O15, O35.

DOI: 10.1002/jsc.2241

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