The Limits and Promises of Embeddedness as a Strategy for Social Value Creation

Multinational enterprises (MNEs) attempting to create social value in Base of the Pyramid (BoP) economies are encumbered by unique market and institutional barriers. To overcome these challenges, BoP scholars have advocated the strategy of using embeddedness as a replacement for inefficient formal institutions. Reliance on informal social ties for coordinating market exchange, however, leads to costly investments, exposure to opportunism, and …