Analyzing the Association between Bottom of the Pyramid (BoP) and Export Performance in Born Global Firms: A FGLS Model Approval between 2011 and 2021

Abstract

The Bottom of the Pyramid is consumers with limited purchasing power who even make economic efforts to purchase daily or frequent consumer goods. This market niche has historically been overlooked since consumers are more concerned with price than product differentiation. However, the BOP markets provide companies with the opportunity to export their goods, penetrate these markets, and have successful exports. Based on the literature, this study examines the influence of BoP orientation on the export performance of Born Global companies, as well as the role of government assistance in exportation and networking with institutional partners. Data from 341 Born Global companies in Colombia are collected, resulting in an unbalanced panel (FGLS) between 2011 and 2021. The findings support a positive relationship between BoP orientation and export performance. Additionally, this research confirmed that this relationship is moderated by government assistance and institutional social networks. In this regard, Born Global’s export performance is improved by internal and external resources to compensate for its lack of international experience and limited financial resources.