ABSTRACT
In recent decades, multinational corporations (MNCs) have sought new markets at the Base of the Pyramid (BOP), and in some cases, ventures in Africa have been stalled by institutional failures. Institutional failures are often characterised as state failures, with the burden of responsibility put on governments to address critical social needs, infrastructure, security, and regulatory guidance, although market actors and social sector organizations also play an important role in addressing institutional failures. A proactive strategy that MNCs use to address the challenging institutional context of BOP markets is to engage in cross-sector partnerships that target capacity building in local governments, societies, and business partners through knowledge-based philanthropy. What is the role and impact of global versus local influences on host country institutional development? This continues to be an important research question. This chapter uses an alliance framework to frame a discussion of three cross-sector partnership cases of institutional capacity building in government, in society, and in an emerging industry, which together highlight how local partners leverage MNC resources, including global quality standards, expert advice, management skills, and market access. This alliance framework shifts the focus of inquiry to the role of local partners’ use of MNC resources to impact institutional capacity to support the BOP. It also highlights the importance of the local–global link as a direction for further research.
