Impact of sustainable supply chain linkages with BOP firms on MNEs' internationalization: mediating role of market knowledge competence

Multinational Enterprises (MNEs) are increasingly interested in engaging with Base of Pyramid (BoP) enterprises in host market as part of their global supply chain networks in pursuit of internationalization strategy. Recently, the literature in international marketing has emerged to shed light on potential of engaging BoP enterprises in MNEs' supply chain networks. Present study extends the theory of network internationalization. It investigates the influence of MNEs' sustainable/inclusive supply chain linkages with BoP enterprises in host market on market knowledge competence of managers and thereby internationalization strategy of MNEs in host market. Quantitative research design is used to empirically examine the key relationship theorized by the study. The data has been collected using structured questionnaire filled by sample of marketing/supply chain managers in MNEs which have maintained BoP supply chain cluster in their business model in Pakistan. The results of study indicate that sustainable/inclusive supply chain cluster linkages have significant positive impact on market knowledge competence of supply chain managers and on internationalization of MNEs in host market. Further studies may be conducted on BoP supply chain linkages of emerging market MN Es in home market to analyze its impact on their performance in foreign host markets. Nonetheless, findings of the study can be useful to managers in MN Es who are interested in their firms' market penetration in foreign host markets. The outcomes of the study also have implication for policy makers in developing countries interested in poverty alleviation through market based policy interventions.