ABSTRACT
This article analyses the business models of organisations that have adopted Inclusive Distribution Networks (IDNs), which are distribution channels that incorporate cross-sector partnerships and populations at the Base of the Pyramid (BOP) as strategic partners. The analysis is based on midterm evaluations of the scaling-up of five IDNs that work with women on delivering products to BOP communities in Latin America. Changes in these IDN business models were identified by comparing the models at the start-up and scaled-up phases. The effects of the adjusted business models on the economic, social, interaction, and environmental value created are identified and analysed. Business models that began as inclusive, open, and cross-sectoral changed to a pure market logic to achieve economic success. The changes in business models strengthened inertias in the distribution field that thwarted sustainability. Our contribution contradicts the positive bias of IDN research; we complement research on trade-offs in value creation and contribute to research on alliance portfolio and organisational ambidexterity in BOP solutions.
