University of Oulu

Arslan, A., Gölgeci, I., Kontkanen, M., & Leposky, T. (2020). Risk and social value creation in volatile BOP markets. In Base of the Pyramid Markets in Africa. In: Muthuri, J., Arnold, M., Gold, S., Rueda, X. (Eds.). Base of the Pyramid Markets in Africa. London: (pp. 76–94). Routledge.

Risk and social value creation in volatile BOP markets : a case study from Somalia

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Author: Arslan, Ahmad1; Gölgeci, Ismail2; Kontkanen, Minnie3;
Organizations: 1Department of Marketing, Management & International Business, Oulu Business School, University of Oulu, Finland
2Department of Business Technology, Aarhus University, Denmark
3School of Marketing & Communications, University of Vaasa, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.4 MB)
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Language: English
Published: Routledge, 2020
Publish Date: 2022-01-27


The current chapter addresses the operations of an emerging market (EM) origin firm in a Base of the Pyramid (BOP) market. We focus on the under-researched empirical context of Somalia using a single case study of a Turkish construction firm operating there to analyse these aspects. Our study reveals that risk of volatility does not deter foreign firms from entering and operating in such markets, especially when the home country image is positive, and there are historical and religious linkages between home and host countries. We further discovered that the case firm dealt with institutional voids by earning legitimacy from powerful local networks and using a positive country-of-origin image to run the business successfully in an uncertain context. Finally, the case firm created social value for BOP consumers not only by developing affordable quality houses, but also indirectly by dealing fairly with local partners and engaging in skills development for both own employees as well as of partner firms.

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ISBN: 978-0-429-42417-5
Pages: 76 - 94
DOI: 10.4324/9780429424175-6
Host publication: Base of the Pyramid markets in Africa : innovation and challenges to sustainability
Host publication editor: Muthuri, Judy N.
Arnold, Marlen Gabriele
Gold, Stefan
Rueda, Ximena
Type of Publication: A3 Book chapter
Field of Science: 512 Business and management
Copyright information: © 2020 The Authors. This is an Accepted Manuscript of a book chapter published by Routledge in Base of the Pyramid Markets in Africa on 27 July 2020, available online: