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The Poor as Suppliers of Intellectual Property: A Social Network Approach to Sustainable Poverty Alleviation

Sridevi Shivarajan Ramapo College of New Jersey

Aravind Srinivasan University of Maryland at College Park

ABSTRACT We extend the Base of the Pyramid (BoP) poverty-alleviation ap- proach by recognizing the poor as valuable suppliers—specifically of intellectual property. Although the poor possess huge reserves of intellectual property, they are unable to participate in global knowledge networks owing to their illiteracy and poverty. This, is a crippling form of social exclusion in today's growing knowledge economy because it adversely affects their capabilities for advancement at several levels. Providing the poor access to global knowledge networks as rightful partici- pants—as suppliers of intellectual property—leads to poverty alleviation as a result of their increased social inclusion, not only through economic benefits, but also through the poor's improved well-being as a result of their increased self-esteem and dignity. Using concepts from social network theory, we develop a poverty- alleviation approach to harness and integrate the intellectual property of the poor into global knowledge networks through trust-based partnerships among the poor, non-governmental organizations, and multinational corporations.

KEY WORCS: poverty, base of the pyramid, social networks, intellectual property, capabilities, social exclusion, CSR

INTRODUCTION

DESPITE THE PROGRESS made in achieving the Millennium DevelopmentGoals (MDG) of reducing poverty rates by half between 1990 and 2015, close to a billion people will continue to live in abject poverty in 2015 (United Nations, 2012). The success stories discussed by the United Nations (UN) in its 2012 MDG report indicate :hat multiple poverty-alleviation models will be needed to combat this problem. The Base of the Pyramid (BoP) approach (Prahalad & Hart, 2002; Prahalad & Hammond, 2002), which suggests that multinational corporations (MNCs) can play an important role in poverty alleviation without compromising their profits, is an important poverty-alleviation approach in the business literature. Here we define the BoP as the four billion people living below $9.05 a day (Ham-

©2013 Business Ethics Quarterly 23:3 (July 2013); ISSN 1052-150X pp. 381^06 DOI: 10.5840/beq2O1323326

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mond, Kramer, Katz, Tran & Walker 2007). According to the BoP approach, the poor are value-conscious consumers unable to afford the products on the market. Therefore, MNCs could increase the disposable income of the poor by developing affordable and specialized products targeted at them, while themselves profiting from this vast unexploited market (Prahalad, 2005). A recent review of the BoP research (Kolk, Rivera-Santos & Rufin, 2013) confirms the influential status of this poverty-alleviation approach.

Critique is mounting, however, about the BoP approach's primary focus on the poor as consumers, and its narrow definition of poverty as the lack of purchasing power (Kamani, 2007a, 2007b, 2011b; London, Anupindi & Sheth, 2010; Santos & Laczniak, 2009). This focus on selling to the poor can be exploitative and lead to the poor's mindless consumption of non-essential products (Kamani, 2007a, 201 lb). Moreover, even the least expensive products would continue to be out of reach of the poor without MNCs compromising product quality or profits (Kamani, 2007a, 2007b; Pitta, Guesalaga & Marshall, 2008; McFalls, 2007). Altemative business models that generate real income for the poor by considering them as suppliers, partners, and entrepreneurs would thus be more effective in alleviating poverty (Kamani, 2007a, 201 lb; London, Anupindi & Sheth, 2010; London & Hart, 2011 ; Simanis & Hart, 2009).

Another limitation of the BoP approach is that it does not adequately address the social impact of its initiatives, and it implicitly assumes that increased purchasing power leads to social transformation (Kamani, 2007a; London, 2009; Amold & Valentin, 2013). Even studies specifically examining the social impacts of BoP ini- tiatives lack objectivity and consistency in measurement (Kolk et al., 2013; London, 2009). In light of the concems about social indicators of development not keeping pace with economic growth (World Development Report, 2006, 2008), the social aspects of poverty alleviation cannot be overemphasized.

In this article we attempt to address these gaps in the BoP literature by develop- ing a poverty-alleviation model that focuses on the poor as suppliers, specifically, of intellectual property. Our argument is threefold: first, that the poor in general are unable to participate in global knowledge networks owing to their illiteracy and poverty. In today's growing knowledge economy, this is a crippling form of social exclusion (Sen, 1999, 2000) that, in tum, leads to multiple deprivations, such as reduced employment opportunities, limited social participation, poor self-esteem, and a consequent loss of dignity. Second, despite their illiteracy, the poor possess immense reserves of intellectual property, but their exclusion from global knowl- edge networks prevents them from benefiting from their intellectual assets. Third, hamessing and linking the intellectual property of the poor into global knowledge networks, and enabling them to participate in these knowledge networks as right- ful owners of intellectual property, can be a powerful poverty-alleviation approach, primarily because of its potential to increase the social inclusion of the poor.

This article addresses the following research questions: 1) How can the intellectual property of the poor be hamessed and integrated into global knowledge networks?; 2) How does this integration lead to greater social inclusion of the poor?; and 3) How can this process lead to sustainable poverty-alleviation by also being benefi-

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cial to those facilitating in this endeavor? Our model is primarily based on the BoP approach in that we recognize the important role of MNCs in poverty alleviation and the need for mutual benefits if poverty-alleviation initiatives are to be sustain- able. The broad scope of our model, however, makes it necessary for us to rely on two other important theoretical perspectives. Our definitions of poverty and social exclusion are based on the capabilities approach developed by Amartya Sen (1999, 2000). Since the distinguishing feature of social exclusion is its relational aspect (Sen, 2000), we use social network theory to illustrate the relationships required to harness and integrate the intellectual property of the poor into the mainstream, thereby increasing the poor's social inclusion. Specifically, we discuss why an endeavor of this nature requires the involvement of non-governmental organiza- tions (NGOs), and trust-based partnerships among the poor, NGOs, and MNCs to overcome scalability issues. To illustrate the viability of our model, we discuss the activities of The Honey Bee Network (HBN), an Indian NGO involved in identify- ing, documenting, and protecting grassroots innovations.

In the following sections we first discuss the limitations of the BoP-consumer focused approach. We then offer our rationale for developing an alternative, BoP- supplier focused, approach to poverty alleviation. We argue that the huge untapped reserves of intellectual property available at the BoP offer an immense opportunity for sustainable poverty alleviation. Using concepts from social network theory, we then examine the collaborative processes required to harness the intellectual property of the poor and integrate it into the mainstream.

LIMITATIONS OF THE BOP-CONSUMER FOCUSED APPROACH

Two specific criticisms of the BoP-consumer focused approach are relevant in de- veloping our alternative supplier-focused approach. First is the doubt regarding its economic viability—both for the poor and for MNCs. The second is its limitation in adequately addressing the social aspects of poverty, specifically, social exclusion.

Economic Viability of the BoP-Consumer Focused Approach

Criticism of the economic viability of the BoP-consumer focused approach can be discussed discretely, from the viewpoint of the poor, and from that of the MNCs. Several studies indicate that that the poor are not value-conscious consumers as Prahalad (2005) suggests, and often make emotional purchases on non-essentials such as alcohol, tobacco, etc. (Baklien & Samarasinghe, 2003; Banerjee & Dufio, 2007; Efroymson & Ahmed, 2001). Their illiteracy also makes them easy targets for exploitation by MNCs (Kamani, 2007b; Arnold and Valentin, 2013). Moreover, the meager incomes of the poor put even the least expensive of products out of their reach (Kamani (2007b, 2011b), indicating a fiaw in the basic premise of the consumer-focused approach.

The meager and often seasonal incomes of the poor, and the inadequate infra- structure in the BoP markets, make venturing into these markets a risky proposition for the MNCs. Indeed, many MNCs are reluctant to adopt the BoP approach as their main strategy owing to these reasons (Garrette & Kamani, 2010; Kamani, 2011a;

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Kasturi Rangan, Chu & Petkoski, 2011). Another criticism of the BoP approach is its self-serving definition of the poor. Even those persons living in absolute poverty are included in calculations, which overstate the overall size of the BoP market. While in some cases cited to illustrate the success of the BoP approach, the definition of the poor also encompasses the middle class (Kamani, 2007a, 201 lb). Furthermore, studies examining results of the BoP approach tend to focus only on success stories and not on its failures, which casts doubts on how far the BoP approach can be gen- eralized as a poverty-alleviation strategy that is also profitable for MNCs (Walsh, Kress & Beyerchen, 2005).

In light of these limitations of the BoP's consumer-based approach, we concur with Kamani (2007a; 201 lb) that to raise the real income of the poor, their roles as producers and entrepreneurs must be considered. Traditional BoP scholars also accept that a BoP 2.0 model is now in order, where the focus is on co-creating rather than selling, and where the fortune lies "with" the BoP rather than "at" the BoP (Simanis & Hart 2009; London &Hart, 2011 ; London et al., 2010). Even MNCs seem to balk at the label of their seeking fortunes "at" the BoP and prefer collaborative efforts with the poor instead (Deveshwar, 2011). Despite this noticeable shift in the funda- mental thinking about the role of the poor, BoP-based studies continue to focus on the poor as consumers (Kolk et al., 2013; London et al., 2010), indicating the urgent need for more studies examining the role of the poor as suppliers and producers.

The second criticism of the BoP-consumer focused approach centers on its limi- tations in addressing the social aspects of poverty. Several studies have shown that increased income, although important, is not sufficient to improve the well-being of the poor. For example, increased income by itself was found to be insignificant in predicting improvement in health and nutrition of the poor in Chile (Laderchi, 1997). Similarly, rural immigrants working in the cities in China find themselves vulnerable and marginalized in the cities despite a rise in their incomes (Li, 2005; Liu, He &Wu, 2008). Therefore every poverty alleviation model should also address its social impact on the poor.

Social Impact of the BoP-Consumer Focused Approach

Developmental agencies engaged in poverty alleviation, like the UN and World Bank, have long since viewed poverty as a multi-dimensional concept. For example, the World Development Report (WDR) of the World Bank (2001) describes poverty as more than low income and development, and includes vulnerability and powerless- ness. The WDR of 2006 specifically focuses on social inequities and stresses the need for specific interventions to remove them. Similarly, the UN's Department of Economic and Social Affairs (DESA) (2013), and the MDG progress report of 2010 define poverty as more than a lack of income, and include social discrimination, exclusion, and lack of participation.

The Capabilities Approach. This multi-dimensional conceptualization of poverty used by the UN and World Bank is closely aligned to the capabilities-approach to poverty (Sen, 1985,1987,1993,1999). In fact, the UNDP's annual Human Develop- ment Report is based on the capabilities approach (Robeyns, 2006). According to

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the capabilities approach, every human being requires some basic needs or "func- tionings" to lead a dignified life. Poverty is described as the lack of "capabilities" or opportunities and freedoms to achieve these basic needs (Robeyns, 2005; Sen, 1993, 1999). The capabilities approach thus distinguishes between the "means" and the "ends" of poverty. Eor example, it considers income to be a means, or a capability, to achieve the ends of leading a good life through improved well-being. An increase in income does not automatically lead to increased well-being, owing to the presence of conversion factors or the personal, social, and environmental ef- fects that influence an individual's ability to convert the means to ends (Robeyns, 2005). Eor example, two individuals may differ in their ability to achieve better health (functioning) through the same rise in income (capability) depending on their geographical location, which determines the presence and cost of health facilities in their area (environmental conversion factors). The functionings necessary for leading a good life include both tangible attributes, like health and literacy, and also intangible and intrinsic attributes, such as self-esteem and dignity.

Although Sen shies away from offering a specific list of capabihties and function- ings, the cmcial test for poverty according to the capabilities approach is whether the poor enjoy the same capabilities and functionings available to the rest of soci- ety (Robeyns, 2005; Sen, 1999). Thus an increase in the income of the poor, often the focus of poverty-alleviation initiatives, including the BoP approach, needs to be considered in light of whether it leads to greater access to those opportunities available to the non-poor. One such relative capability of the poor according to the capabilities approach is social exclusion (Sen, 2000).

Social Exclusion. The concept of social exclusion is based on the view that poor income and poor living are related but distinct concepts. In other words, "we need to look at impoverished lives and not just at depleted wallets" (Sen, 2000: 3). Social exclusion is particularly important in studying poverty because of its relational rather than individual nature, and its ability to affect other deprivations (Room, 1999; Sen, 2000). Eor example, when the poor are denied loans, this affects multiple areas of their life, ranging from their ability to buy essential goods or participate in social events, to a lowering of their self-esteem. The detrimental effects of social exclu- sion on the lives of the poor are particularly severe in developing countries, because there the poor cannot rely on any supportive financial or social buffers from the state (Sen, 2000). Social exclusion is also a dynamic concept in that socially excluded people are most likely to fall back into poverty (Room, 1999). By evaluating the real effect of income (or the lack thereof) on the subjective well-being of the poor, social exclusion considerably broadens the scope of poverty analysis and enables us to examine poverty beyond income deprivation (Sen, 2000). The subjective aspects of poverty, like self-esteem and dignity, are therefore important while discussing social exclusion.

How the BoP-consumer focused approach addresses social exclusion. The objective of poverty alleviation according to the BoP-consumer focused approach is to raise the income of the poor through their increased purchasing power. In Pra- halad's words (2006: xxix), "poverty alleviation is, simply, improving the disposable income for families—by reducing the cost of services, improving its quality, and

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releasing their time to do work that is productive." The BoP approach thus implicitly assumes that increased income for consumption leads to greater well-being. Along these lines, the BoP-consumer focused approach addresses issues of self-esteem and dignity of the poor through the concept of inclusive capitalism, in which the poor can also partake of market goods, primarily as consumers: "When the poor are converted into consumers, they get more than access to products and services. They acquire the dignity of attention and choices from the private sector that were previously reserved for the middle class and the rich" (Prahalad, 2005: 20). One problem of this approach is evident in the debate over the moral implications of the cosmetic company Hindustan Lever Limited (HLL) selling an affordable package of its popular skin whitening cream to the poor. Hammond and Prahalad (2004) call it empowerment and increased choice for the poor, while Kamani (2007a), echo- ing the views of several other women's movement advocates, considers selling this product an attempt to reinforce the prejudices associated with dark skin in India.

Perhaps the most poignant example of the BoP-consumer focused model explicitly discussing social exclusion is pointed out by Prahalad (2010) when he discusses how BoP initiatives like micro-financing provide the poor with legal identities for the first time, making it possible for them to access many previously unavailable societal benefits. But again, instances of exploitation of the poor by micro-financing institutions cast doubts on the real social impact of these initiatives (Kamani, 2007a; Rugman & Doh, 2008). Several BoP scholars are also now discussing the need to holistically examine the impact of BoP initiatives by including social indicators, such as social exclusion, self-esteem, and dignity, in addition to financial performance (Amold & Valentin, 2013; London, 2009; London & Hart, 2011). Considerable ambiguity still exists regarding the social impact of BoP initiatives, however, indicat- ing a dearth of studies explicitly addressing their social impact (KoUc et al., 2013).

AN ALTERNATIVE BOP-SUPPLIER FOCUSED POVERTY-ALLEVIATION MODEL

Given the importance of addressing the social aspects of poverty, and in light of the absence of a linear relationship between the economic and social dimensions of poverty, we argue that BoP initiatives explicitly focusing on improving the adverse social implications of poverty, such as social exclusion, are also needed to comple- ment existing market-based business initiatives. This is not to say that these ventures will not be financially viable, or well worth the likely long-lasting retums, even if they are attainable only in the long-term. Social transformation can happen only over a course of time, and a combination of short-term and long-term models will be needed to achieve it. Despite the skepticism surrounding the involvement of MNCs due to the possibility of their exploiting the poor (Amold & Valentin, 2013; Kamani, 2007a), we believe MNCs can play an important role in improving the scalability of BoP initiatives—which is often their greatest challenge (London & Hart, 2011).

We propose a BoP-supplier based model for poverty alleviation. In addition to the economic advantages of a BoP-supplier focused model, there are significant social implications in viewing the poor as suppliers. The foundational bases of

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self-esteem and dignity are usually associated with giving rather than with taking. Even consumer-based BoP models cite examples of instances in which the poor gain immense satisfaction from giving. For example, Hindustan Lever Limited (HLL) recruits women entrepreneurs (called "Shakti Ammas") to sell their products in rural India. One such Shakti Amma reflected that the biggest reward of her job was the pride of being valued when people looked to her for advice (Prahalad, 2010). Traditionally, the poor are considered poor because they have very little to give, except perhaps their manpower. We argue that a major asset of the poor is being overlooked: their vast reserves of intellectual property. Tapping this asset of the poor could hold the key to developing a sustainable poverty-alleviation model that explicitly addresses an important form of social exclusion. In the following sections, we first define the key concepts of our model and then discuss the finer details of the collaborative process required to make it operational.

Defining the Poor and Poverty

The debates on precisely defining the BoP population have led some prominent BoP scholars to lament that these arguments detract from the main objective of the BoP approach (Prahalad, 2006; London & Hart, 2011). On the other hand, the lack of a precise definition of the BoP population makes it difficult to gauge the effectiveness of BoP initiatives. For example, some BoP initiatives appear to be more success- ful than they actually are because the consumers are not strictly poor but, rather, are middle class (Kamani, 2007b). Moreover, Kolk et al. (2013), in their review of BoP-based studies, notice several inconsistencies in the definition of the poor, and rightly point out that the lack of any agreed-upon definition can adversely affect the generalizability of the findings from BoP-based studies.

We therefore consider it important to provide some broad outlines for our target BoP population. Our objective is to identify those poor who are socially excluded, using both economic and social criteria. Since the term "social exclusion" indi- cates that the population lives primarily in the informal sector, we use Amold and Valentin's (2013) identification of the poor as around 2.6 billion people living in moderate and extreme poverty. This figure includes approximately 1.2 million people living in moderate poverty ($1.25 to $2 a day), and approximately 1.4 bil- lion people Uving in extreme poverty, eaming less than $1.25 a day, who together comprise what Amold and Valentin (2013) term the moderately and extremely poor (MEP). Research indicates that the MEP are socially excluded and have little to be hopeful about in their futures (Narayan, Chambers, Shah & Petesch, 2000). Despite being plagued by illiteracy, they are often unable to make use of educational facili- ties provided by the state owing to their financial commitments to their families (Banerjee & Duflo, 2007).

The upper limit of income to be categorized as MEP is not set in stone, and we agree with London and Hart (2011) that the BoP should be defined using a combi- nation of income and attributes. The common attributes of the poor in our model within the income criteria of the MEP are as follows: illiteracy, and limited oppor- tunities for advancement as a result of illiteracy and poverty. Because the socially

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excluded are most likely to fall back into poverty even after effective interventions, to truly benefit the MEP, the focus should be on improving their capabilities and functionings(Amold&Valentin, 2013;AmoId & Williams, 2012). In the remainder of this article we use the term MEP interchangeably with "the poor" to describe the 2.6 billion people who are impoverished, illiterate, and opportunity deprived.

Lack of Access to Knowledge Networks as a Form of Social Exclusion

Our classification of the poor indicates that illiteracy is one of the common crip- pling attributes of poverty, which necessarily affects their ability to access and participate in several avenues available to the literate population. These avenues include educational institutions, the internet, global commerce requiring education and technological competence, and employment in the formal sector of knowledge economies. We refer to these avenues as global knowledge networks.

The lack of access to these knowledge networks is a serious capability depriva- tion in today's information age and has a detrimental effect on other capabilities, including the ability to make informed choices (Prahalad, 2010). While the lack of access to global knowledge networks affects the employment and earning oppor- tunities of the poor, marginalization in knowledge networks also adversely affects their intrinsic functionings, such as self-esteem and dignity. This explains why the poor place such a premium on the goal of ensuring that their future generations can advance through education (Tooley, 2007). Indeed, women who feared risking their ability to get future credit for their children's education were to found to be less likely to default on micro-loans (Armendáriz de Aghion & Morduch, 2004). Sen (2000, 2004) also considers access to the web and technology-based communications an important capability in today's increasingly globalized world, without which the poor may suddenly find themselves incapable of surviving in the changing times.

We thus consider the poor's lack of access to global knowledge networks as a severe form of social exclusion in today's information age because it leads to multiple deprivations. Sen (2000) rightly laments that the indiscriminate use of the term "social exclusion" to discuss all kinds of deprivations dilutes its significance, because it is interpreted differently in different cultures (Laderchi, Saith & Stew- art, 2003; Room, 1999). We argue that in today's interconnected world, the lack of access of the poor to knowledge networks is a universal form of social exclusion because it denies them opportunities available to the literate and non-poor who are almost invariably part of these networks. Moreover, it also meets the important relational criterion of social exclusion (Sen, 2000) because it is both caused by and results in the decreased ability of the poor to fully participate in society, which in turn adversely affects their self-esteem and dignity (Room, 1999).

To sum up; we examine one form of social exclusion: the lack of access of the poor to global knowledge networks. We conceptualize access to knowledge networks as the ability to participate in, contribute to, and benefit from the reserves of global knowledge. Most developmental programs, including the UN's MDG and the World Bank's WDRs have recognized the debilitating effects of this form of social exclu- sion, and educating the poor is rightly at the forefront of most governmental poverty

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initiatives. Eoundational changes in the poor's self-esteem and dignity can happen when their potential as valuable suppliers of intellectual property is acknowledged, and when they can participate in global knowledge networks as rightful owners of knowledge.

The Poor as Suppliers of Intellectual Property

There is little doubt that the poor possess immense reserves of intellectual property, independent of their literacy levels. Eor example, most poor constantly engage in small but creative entrepreneurial activities to supplement their meager incomes (Banerjee & Duflo, 2007; Viswanathan & Rosa, 2007). Examples of the existence of intellectual property among the poor include initiatives where they produce agricultural goods and handicrafts (London, et al., 2010); the technical expertise of fanners manning internet kiosks as part of the e-Choupal initiatives of ITC in India (Deveshwar, 2011); successful cooperatives in India, such as Amul with dairy farmers and Eabindia with local artisans; and the knowledge of the poor regarding the protection of agro biodiversity (Gupta, 2010). We believe that these examples constitute only the tip of the iceberg—the visible evidence of their intellectual property. Much of this intellectual property lies below the surface, with individuals and communities; embedded in their dense networks (Viswanathan, Rosa & Ruth, 2010). The key, then, is to unleash the vast resources of intellectual property present among the poor, and to devise ways to integrate this knowledge into the mainstream global knowledge networks in productive and profitable ways.

Similar to de Soto's (2000: 6) conceptualization of the informal property rights of the poor as "dead capital," the vast reserves of intellectual property of the poor lie dormant and in disuse because of their lack of access to and exclusion from global knowledge networks. Converting the poor's dormant intellectual property into live capital (de Soto, 2000) can be a powerful poverty-alleviation strategy, with both economic and social benefits. The social outcomes of this endeavor are likely to be most significant in addressing social exclusion as defined in this article. Intellectual property is a great leveler and can provide the poor with a sense of entitlement and pride when participating in global knowledge networks. Just as the lack of self- esteem can be a cause and an outcome of social exclusion, a rise in self-esteem can be the cause and the outcome of social inclusion. Collaborative and long-term commitment from multiple actors will be required to make this endeavor a reality, but successfully hamessing the abundant reserves of intellectual property of the poor can also offer rich dividends to those involved in this process.

To illustrate the feasibility of our argument, we discuss the activities of the Honey Bee Network (HBN), an NGO based in Gujarat, India. We chose HBN because its activities closely relate to our research questions. HBN's view that the knowledge asymmetry faced by the poor can reinforce their exclusion in other areas is closely aligned with our focus on social exclusion as the lack of access to knowledge networks. HBN also has a long-standing good reputation in India, with the Indian govemment recently granting it assured funding for its activities. Prahalad (2010) also lauds HBN's operations as a promising direction for the BoP model. Further-

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more, HBN's activities are well documented online, making it an ideal choice as an illustrative example for our model. The information on HBN's activities is drawn primarily from the websites of HBN and its associates.

The Honey Bee Network in Gujarat, India

The HBN, in Gujarat, India, is an NGO engaged in the identification, collection, and diffusion of local knowledge and grassroots innovations. On its website, HBN attributes its origin to the realization that although the poor possess huge reserves of intellectual property and innovations, they are unable to profit (tangibly and intangibly) from them owing to the lack of channels that connect the poor to the formal sector. This, in tum, adversely affects many other areas of their lives. The mission of HBN and its collaborators is to reverse this trend through systemic ef- forts to acknowledge and utilize the poor's intellectual property and compensate the intellectual property owners (SRISTI, 2012a).

HBN has three key collaborators: Society for Research and Initiatives for Sustain- able Technologies and Institutions (SRISTI), the National Innovation Foundation (NIF), and Grassroots Innovation Augmentation Network (GIAN). SRISTI pro- vides institutional support to the activities of HBN in identifying and unearthing knowledge and innovations of the poor to create an innovations database. The NIF (established by the Indian Government's Department of Science and Technology) provides financial support for HBN's activities and also assists in the process of patenting the innovations in HBN's database. GIAN scales up innovations from HBN's database, acting as an incubator for innovators. Innovations in the HBN da- tabase (now numbering close to ten thousand) are then available to local, national, and international clients and entrepreneurs. HBN ensures that the benefits from their innovations accrue to the poor through lump-sum licensing fees or royalties. HBN and its associates are the brainchild of Professor Anil Gupta of the Indian Institute of Management, in Ahmadabad, who spearheads their activities (SRISTI, 2012b). We will discuss the specific activities of HBN in the following sections, along with the development of our model.

HARNESSING THE INTELLECTUAL PROPERTY OF THE POOR: A SOCIAL NETWORK APPROACH

The core principle of social network theory is that one's connections matter, and that many important attributes of an individual can be explained by examining their positions relative to others within their network of relationships (Zaheer, Gözübüyük & Milanov, 2010). We consider the social network approach an ideal theoretical framework to examine the exclusion of the poor from knowledge networks for several reasons. First, social exclusion is a relational concept, and the lack of con- nections of the poor to others outside the MEP is an important reason for their isolation. Second, studies on characteristics of the poor (Viswanathan et al., 2010) indicate that a fundamental characteristic of the poor is their strong connections among themselves. Third, poverty alleviation clearly requires collaborative efforts

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of multiple actors, and this entails establishing new relationships or strengthening existing ties (Ki-moon, 2010; Prahalad, 2010).

Characteristics of the Poor and Their Intellectual Property

Social capital and social exclusion. In social networks, the poor could also be termed isolates (Monge & Contractor, 2003), not only because of their lack of connections to others, but also because of their own unique characteristics. A distinctive attribute of the poor is that although they lack ties to others outside the MEP, they possess immense social capital within the MEP by virtue of their strong ties to each other. While these strong ties can act as an effective buffer in times of financial hardship (Viswanathan et al., 2010), they can also be a barrier to new ideas and actors attempting to enter this network (Kay, 2006), thus increasing the poor's social exclusion.

Exclusion from, or marginahzation in, social networks occurs due to lack of centrality, or a lack of adequate ties with the rest of the network. Although there are multiple conceptualizations of centrality, we begin by adopting the simple measure of degree centrality, i.e., the number of ties of an actor with the rest of the network (Kilduff & Tsai, 2003). Actors with low degree centrality, like the poor, lack both power and social capital—the benefits that accrue from being connected to other groups and individuals (Tsai, 2000; Tsai & Ghoshal, 1998). In the context of our model, the poor are disconnected from global knowledge networks because of their illiteracy and poverty. The key to addressing their social exclusion in knowledge networks therefore lies in increasing their centrality by establishing ties with multiple actors in global knowledge networks.

The characteristics of the intellectual property of the poor. The intellectual property of the poor is primarily local given their lack of connections to the main- stream, and may be very specific to the communities that posses it. In network parlance, it is therefore "tacit" rather than codified (Hoetker & Agarwal, 2007). Tacit knowledge is socially embedded knowledge, as available with the poor; codified knowledge refers to public knowledge that can be easily coded and transferred, like the knowledge of mathematics. The private aspect of tacit knowledge also results in knowledge "stickiness," or ambiguity, making it difficult to be transferred (von Hippel, 1994). The difficulty in transferring this tacit knowledge is compounded by the exclusion of the poor from society. Due to the complexity and high costs as- sociated with the transfer of tacit knowledge, innovations must take place close to the source and then be transferred or scaled up (von Hippel, 1994; Prahalad, 2002).

Transferring the intellectual property of the poor: The important role of trust in estahlishing the first point of contact. Due to the difficulty in conveying tacit knowledge, it is usually accessible only through close-up observation, demonstra- tion, or hands-on experience (Hamel, 1991). Understanding tacit knowledge also requires specialized language, and this is more easily transferred between actors who have strong ties to each other (Uzzi, 1999). More important than the accessibility offered by strong ties is the role of trust that exists in strong ties. Since any transfer of knowledge involves some skepticism from the source about the recipient gain-

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ing an undue advantage from the transfer, the source is Hkely to be more willing to transfer knowledge when strong ties surround the relationship (Granovetter, 1985; Coleman, 1988). This is particularly relevant in the transfer of tacit knowledge (Reagans & McEvily, 2003). Trust is thus an important factor in predicting the successful diffusion of tacit knowledge from dense networks (Gulati, 1995; Levin & Cross, 2004) and should form the basis of establishing initial contacts with the poor (Herreros, 2004). Trust is usually an attribute of strong rather than weak ties in networks, therefore:

Proposition I: The success of transferring the local knowledge and innovations of the poor is contingent on establishing their first point of contact with actors having strong ties to them.

The poor, in general, are suspicious of formal institutions owing to their ilhteracy; they rather value personal contact (Barki & Parente, 2010). Therefore, local NGOs, such as HBN, who have eamed the trust of the poor by working with them closely over the years, should be their first point of contact. Moreover, NGOs are increasingly playing an important role in poverty alleviation due to globalization and advances in technology (Lindenberg & Dobel, 1999; Rugman & Doh, 2008). HBN's Shodh Yatras (joumeys of exploration) to identify local knowledge illustrate the need for grassroots-level, close-up observation for the transfer of tacit knowledge (Hamel, 1991). In these biannual Shodh Yatras, investigators scout for local knowledge and innovations by walking long distances through areas not connected by roads or modem means of transport. The Shodh Yatris (participants in the walk) try to identify unique knowledge and innovations through observation, and through conversations with the poor. HBN also seeks feedback from the poor on the innovations in its da- tabase to ensure their uniqueness. To identify other dormant sources of knowledge, HBN organizes various activities during the Shodh Yatras, such as biodiversity and recipe competitions, etc., and honors creative ideas with prizes (SRISTI, 2012c).

Improving the Scalability of Local Innovations and the Role of MNCs

As discussed earlier, the poor are characterized by dense but highly fragmented communities disconnected from the rest of the world (Prahalad, 2005, 2010; Sub- rahmanyan & Gomez-Arias, 2008). This fragmentation results in several structural holes: that is, gaps in the social world across which there are no current connections (Burt, 1992). Even the NGOs working with the poor often have very limited outreach, making it difficult for the poor's local knowledge and innovations to transcend their geographic boundaries.' Scalability is particularly relevant in our model since our objective is to include the poor in global knowledge networks. In network parlance, the involvement of actors with the abihty to bridge these stmctural holes, and con- nect the different parts of the network, will be crucial in ensuring the scalability of the innovations and knowledge of the poor. Therefore:

Proposition 2: The scalability of local knowledge and innovations of the poor is contingent upon establishing ties with actors who can bridge the structural holes between the poor and global knowledge networks.

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MNCs, with their global reach, are ideally poised to bridge these structural holes. MNCs also possess the financial, technological, and managerial resources needed to leverage this knowledge transfer (Prahalad and Hart, 2002; Prahalad, 2010). Network theory suggests that bridging structural holes is critical in information- based networks, and associating with a prestigious actor (MNCs in this case) can be beneficial to all actors in the network (Tsai & Kilduff, 2002). Granovetter's (1973) observation of the "strength of weak ties" also indicates that weak ties bridging across structural holes can connect fragmented stmctures and help in knowledge diffusion. MNCs, with their weak ties to the poor but possessing global outreach (compared to the strong ties of local NGOs with local focus), can therefore provide significant stmctural advantages in connecting the poor to global knowledge networks.

Successful Collaborations: Preventing Unethical Behavior in Social Networks, and Establishing Trust

Since successful long-term NGO-MNC collaborations will be cmcial to the success of our model, we discuss them at some length. Although NGO-MNC relationships traditionally have been marked with distmst, we see substantial progress in the collaborative efforts between these entities (Prahalad, 2010). Financial constraints caused by the poor state of the economy and reduced govemment funding are also making NGOs shed their traditional anti-corporate stance and opt for form- ing partnerships instead (Brown & Kalegaonkar, 2002; Yaziji & Doh, 2009). This point was echoed by an HBN associate who cited the lack of adequate funding as its biggest challenge.'

Perhaps the most significant advantage of successful NGO-MNC collaborations for our poverty-alleviation model is their ability to fill "institutional voids" in devel- oping countries (Khanna, Palepu, & Sinha, 2005; Yaziji and Doh, 2009). Institutional voids are characterized by the absence of formal legal, financial, and labor systems that normally exist in developed countries. The presence of institutional voids is particularly relevant while discussing social exclusion, because when resource al- location and access to opportunities are govemed by arbitrary, rather than formal rules, they tend to favor the powerful, thus further reinforcing social inequities (Mair, Marti & Ventresca, 2012).

In the context of our model, the process of hamessing and integrating the intel- lectual property of the poor into global knowledge networks is a relatively unfamiliar process, with no real precedent. For example, an HBN executive mentioned that the poor's innovations do not receive any special consideration, and patenting can take up to two years.^ Similarly, legal counsel of any form is often beyond the reach of the poor. NGO-MNC collaborations can therefore play an important role in help- ing the poor to overcome the disadvantages of these institutional voids. HBN, for instance, ensures both the legal protection of the poor's innovations, and the timely economic retums for patented innovations in the form of licensing fees and royalties.

Despite the thaw in the traditional adversarial NGO-MNC relationships, and the obvious advantages of collaborating, the fundamental ideological differences in the values of profit versus service of MNCs and NGOs, respectively, still represent

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significant challenges to their forming trusting relationships (Rondinelh & London, 2003). Building trust is a long-term process, and the consequences of unethical behavior by either of the actors can jeopardize present and future initiatives. Ad- equate checks and balances will thus need to be built in prevent the exploitation of the poor, particularly by MNCs.

The structural properties of networks that affect unethical behavior can serve as guidelines for establishing successful alliances among the poor, NGOs, and MNCs. Actors who bridge structural holes (MNCs in our model) connect different parts of the network, but also possess enormous power and control over the information fiowing through the network because they provide the sole connection point between formerly disconnected networks (Brass, Butterfield & Skaggs, 1998; Burt 1992). Network theory provides several insights to ensure the protection of the poor from being exploited by the powerful MNCs.

The first is to deal solely with MNCs that have a reputation for having strong val- ues, since a high moral compass has been found to negate the effects of opportunism by boundary spanners (Brass et al., 1998). The second condition is to involve MNCs with high visibility, since high centrality (number of connections) can be equated with high visibility in the network, which tends to constrain unethical behavior (Brass et al., 1998). For example, many successful instances of NGO-MNC col- laborations with the poor have been developed with well-established and prestigious MNCs, such as Starbucks or ITC in India (Yaziji & Doh, 2009; London & Hart, 2011). Moreover, companies with established CSR practices also seem more likely to proactively engage in such groundbreaking endeavors (Mirvis & Googins, 2006).

Another property of networks that constrains unethical behavior is density, or the high connectivity among the actors, since it increases the likelihood of surveillance and loss of reputation. Dense networks also enhance trust (Coleman, 1988; Granovet- ter, 1992; Burt & Knez, 1995). Therefore, increasing the number of connections among the poor, NGOs, and MNCs will be crucial in establishing trust. The added advantage of dense ties is the ability of third parties (NGOs) to reduce the possibility of a powerful actor (MNC) from exploiting a less powerful actor (the poor) (Bae & Insead, 1994). Network studies also discuss the moderating effect of group norms, consensus, and codes of conduct on unethical behavior (Brass et al., 1998). In the absence of adequate formal institutional structures, it will be important to establish voluntary codes of conduct to ensure successful NGO-MNC partnerships (Arya & Salk, 2006). Therefore:

Proposition 3: The success of partnerships among the MNCs, NGOs, and the poor will be contingent on establishing trust through dense networks, partner- ing with well-reputed NGOs and MNCs, and establishing both voluntary and enforceable codes of conduct among the partners.

For example. Chiquita and the NGO Rainforest Alliance are working together to certify that all Chiquita plantations meet conditions for ethical practices (Yaziji & Doh, 2009). Cases like the voluntary accreditation partnership outside the patent law framework between Aveda Corporation, Mount Romance (an Australian san- dalwood oil exporter), and the Kutkabubba Aboriginal community, in which Aveda

A SOCIAL NETWORK APPROACH TO POVERTY ALLEVIATION 395

and Mount Romance pay the community a specified no-strings-attached amount for sourcing their products, indicate that trust-based partnerships are possible (Ma- rinova & Raven, 2006). Because we are looking at long-term collaborations, tmst can also increase the efficiency of these partnerships by reducing transaction costs (Beamish & Lupton, 2009).

Poverty Alleviation Through Social Inclusion

Social inclusion. We began developing our model by conceptualizing social exclu- sion of the poor as their lack of ties (centrality) in global knowledge networks. As the poor establish ties with NGOs, and MNCs bridge their stmctural holes in global knowledge networks, the poor's centrality increases as a result of their increased number of ties to others. A higher degree of centrality is considered desirable and indicates increased social capital (Kilduff & Tsai, 2003). Thus, in the simplest of terms, successful MEP-NGO-MNC collaborations decrease the isolation of the poor from global knowledge networks by increasing their centrality. This is the first step toward social inclusion, since, in network parlance, social inclusion is the ratio of connected actors in a network to the total number of actors (Brass, 1995).

However, merely examining the increase in the number of ties, or degree central- ity, does not completely capture the range of benefits accming to the poor from their increased social inclusion. In fact, merely examining the number of ties does not differentiate between the roles of the poor as consumers and as suppliers because a consumer could also be considered to establish ties with MNCs when buying their products. To discuss the benefits of the supplier-focused approach, we examine two other measures of centrality: in-degree centrality and out-degree centrality. These measures of centrality capture both the direction of the ties and their benefits.

Out-degree centrality is the number of ties "from" an actor to another, and denotes the influence an actor is able to exert on the other actors in the network (Brass, 1995; Monge & Contractor, 2003). As suppliers of intellectual property, the poor are "sources" in global knowledge networks, and have direct ties to both NGOs and MNCs and their networks, thus increasing their out-degree centrality and influence in the network.

In-degree centrality, on the other hand, refers to the number of ties "to" an actor (Brass, 1995). As the intellectual property from the poor becomes recognized in global networks, the number of contacts that others in the network seek to make with them increases. Rise in in-degree centrality is associated with "prestige" in the network (Knoke & Burt, 1983; Monge & Contractor, 2003). The sum of out-degree and in-degree centrality is a measure of prominence in the network (Wasserman & Eaust, 1994). It is therefore evident that when the intellectual property of the poor is hamessed and integrated into global knowledge networks, their influence, prestige, and prominence increases. Network studies also indicate that associating with prestigious actors (MNCs) in a network can act as a signal of a new entity's (the poor's) high status (Baum, Calabrese & Silverman, 2000). These relational advantages that accme to the poor from their network ties increase their inclusion in global knowledge networks. Therefore:

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Proposition 4: Harnessing and integrating the intellectual property of the poor into global knowledge networks through partnerships among the poor, NGOs, and MNCs leads to greater social inclusion of the poor due to an increase in both their in-degree and out-degree centrality.

Poverty alleviation. The greater inclusion of the poor in global knowledge networks, including digital networks, as suppliers thus significantly increases their capabilities to benefit from, and participate in, the global dissemination of knowledge. We believe that in today's growing knowledge economy, the ability to access global knowledge networks is a basic capability necessary to survive, avoid, and escape poverty (Robeyns, 2005). The trust-based ties with others in global knowledge networks also improve their ability to make use of these opportunities (conversion factors) to achieve their desired functionings (Robeyns, 2005). For example, the poor are able to overcome the constraints of their geographical loca- tion (environmental factors), and also social inequities (social factors), as a result of their increased inclusion in global knowledge networks. Despite their expertise, the poor often lack ideas on how to put these ideas to use owing to their illiteracy (Viswanathan, 2011). Collaborating with NGOs and MNCs can provide the poor with new ideas for benefitting economically from their intellectual property. These economic benefits can be in the form of royalties, licensing fees, and income from both entrepreneurial activities and new employment opportunities.

Just as social exclusion is a relational concept and can lead to other deprivations (Sen, 2000), rise in self-esteem and social inclusion can positively affect other areas of life. The dense social ties within poor communities ensure rapid diffusion of this new-found confidence in their intellectual prowess. For example, de Silva, Ratnadiwakara, and Zainuddin (2011) observe the role of social influence in the adoption of mobile phones by the poor.

The poor's increased inclusion in global knowledge networks as rightful owners of their intellectual property also leads to long-term foundational changes in their poor's self-esteem and dignity. An important concept of the capabilities approach is that of freedom or agency (Robeyns, 2005). For example, an individual who chooses to fast despite having access to food cannot be considered poor, since it is her choice not to eat. It is important, therefore, to examine whether the poor value and desire these intrinsic functionings. Several studies indicate that contrary to the Maslow's law of hierarchy, the poor are motivated by more than their survival needs (Subrahmanyan & Gomez-Arias, 2008; Viswanathan, 2011). Instances of the poor spending on branded goods to gain a sense of self-esteem (van Kempen, 2004), their preference to shop in stores that treat them well even if they have to pay more (Barki & Parente, 2010), and their spending considerable sums on cultural festi- vals to satisfy their sense of belonging (Subrahmanyan & Gomez-Arias, 2008) all indicate that the poor consider self-esteem and dignity as desired functionings for leading a good life (Sen, 1985). In other words, the increased inclusion of the poor in global knowledge networks empowers both their capabilities and their functionings (Amold & Valentin, 2013). For example, the greater inclusion of the poor in global knowledge networks empowers their capabilities by improving their access to better

A SOCIAL NETWORK APPROACH TO POVERTY ALLEVIATION 397

educational opportunities, and by also providing them with the financial means to fully participate in these networks. This capability empowerment enables them to function well through their improved literacy, and increased self-esteem. Therefore:

Proposition 5: Increased social inclusion of the poor in global knowledge networks and the resulting enhancement of the capabilities and functionings necessary for their well-being contribute to sustainable poverty alleviation.

Working of the Poor-Supplier Focused Model and Benefits to NGOs and MNCs

We illustrate the working of our model using the example of a motorcycle-driven plowing machine (farmers predominantly use ox-driven plows in India) invented by a poor local farmer in 1994, which was scouted by HBN's associate SRISTI in 1999. HBN and its associates then provided a platform to showcase this innovation in various science fairs, and also collaborated with a leading design institute of India to fine-tune the design. The design was subsequently patented in both India and the US in 2002, and over a hundred units of the product have already been sold. The innovator has drawn up a plan with the help of universities in the US and India, and plans are underway to sell the product further in the US and Africa. Some of the challenges faced in this case were the lack of entrepreneurial expertise by the inno- vator, lack of systematic marketing, and the lack of compatible motorcycles (GIAN, 2012). We believe that MNCs, with their expertise, can successfully remove these bottlenecks and vastly improve the scalability of similar innovations of the poor.

Benefits to NGOs. Alliances with MNCs open up the NGOs' access to global networks, resulting in greater visibility and legitimacy (Rugman & Doh, 2008). NGO-MNC partnerships can also create new micro-level institutions that benefit the local economy (Oetzel & Doh, 2009). From a network perspective, NGOs, like the poor, also improve their centrality in global networks through partnerships with MNCs. The increased centrality provides NGOs with greater power and access to information (Kilduff and Tsai, 2003), opening up new avenues for collaborations for the NGO. For example, HBN's associate, GIAN, now collaborates with Altec, a French manufacturer of farm equipment.

Benefits to MNCs. The benefits for MNCs can be examined using Rugman and Doh's (2008) framework of country-specific advantages (CSA) and firm-specific advantages (FSA). FS As are unique capabilities the firm possesses, such as manage- rial know-how, technology, distribution, etc., while CSAs are the unique advantages a country offers to business, e.g., infrastructure, skilled labor, and natural resources. Our model offers both FSAs and CSAs to MNCs. MNCs with high FSAs, includ- ing technical know-how and distribution networks (both local and global), should collaborate with the NGOs and the poor to add value to the process of hamessing intellectual property. MNCs then gain CSAs, including legitimacy, tmst, and close access to local markets. In fact, MNCs actively collaborating with NGOs can also gain an important advantage of reduced cormption as a result of their improved relationships with local govemments (Rugman & Doh, 2008).

These CSAs can translate into FSAs in a global context. For example, an MNCs successful collaboration with an NGO in one country can open up the doors for

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similar ventures in other countries, which is an important FS A in terms of legitimacy (Prahalad, 2010; Rugman & Doh, 2008). MNCs also gain access to the specialized skills and competencies of the NGOs (Oetzel & Doh, 2009; Yaziji & Doh, 2009). Furthermore, the enhanced reputations of MNCs enable them to attract loyal custom- ers and employees (Gates, 2008, London & Hart, 2004, Rondinelli & London, 2003).

CONCLUSION

In this article, we developed a sustainable poverty-alleviation approach focusing on the role of the poor as suppliers. We argued that despite their poverty, the poor pos- sess immense reserves of intellectual property and that tapping and integrating this knowledge into global knowledge networks could be a powerful poverty-alleviation approach, owing to its potential to reduce the social exclusion of the poor from these networks. While our model is rooted in the mutually beneficial, market-based collaborative approach of the BoP model, we extend theory in significant ways.

First, we conceptualize the role of the poor as suppliers of intellectual property. Although there is growing consensus among BoP scholars about the need to develop new models, most studies continue to view the poor as consumers (Simanis & Hart, 2009; London et al., 2010; London & Hart, 2011 ; Kolk et al. 2013). Even the critics of the BoP approach's consumerism focus often do not offer any theoretical alterna- tives (Kamani, 2007a; 2007b; 201 lb). Our model examining the role of the poor as suppliers, on the other hand, is developed on solid theoretical underpinnings from developmental economics and social networks. Second, we specifically address an important social impact of BoP initiatives: social exclusion. The need to address social and environmental outcomes of BoP initiatives in addition to their economic impact is now being discussed increasingly, although objective assessments of these impacts are still lacking (Kolk et al. 2013; London 2009). Assessing the holistic ef- fects of poverty-alleviation initiatives is particularly important in light of the growing divide between social and economic progress (World Development Report, 2006, 2008). We illustrate why a focus on the role of the poor as suppliers is more effec- tive in addressing the social aspects of poverty than considering them as consumers. We add considerable conceptual clarity to the social impact of poverty-alleviation initiatives by adopting a form of social inclusion as our outcome variable and by examining it using concepts from social network theory. By using examples from a real life NGO, we offer theoretical and practical insights into the working of our model. Our article also addresses the need for cross-fertilization of developmental economics with business literature (Kolk et al., 2013) by specifically examining social inclusion as an outcome variable.

Contrary to the trickle-down approach (Aghion & Bolton, 1997), or the trickle-up approach suggested by several BoP scholars (Prahalad, 2010; Kamani 2007a), our model relies primarily on the "ripple effect" of innovations and self-esteem among the poor. In keeping with the BoP approach's emphasis on mutual benefits to the actors involved in poverty alleviation, we illustrate how both NGOs and MNCs stand to gain from the partnerships. While our approach to sustainable poverty alleviation is market-based, it changes the focus from marketing to the poor to creating markets

A SOCIAL NETWORK APPROACH TO POVERTY ALLEVIATION 399

for their "unmet needs" (Garrette & Kamani, 2010), namely social inclusion, and the related intrinsic functionings of self-esteem and dignity.

Our focus on improving the poor's inclusion of the poor in global knowledge networks makes our approach highly relevant, since reducing inequities in educa- tional opportunities and the digital divide is a high priority in the poverty-alleviation programs of the UN and the World Bank. Our approach also has a wide reach and can positively affect a vast majority of the poor. Hart (2005) points out that the dynamic informal economy is worth over $9 trillion in assets, and may be larger than the formal economy (de Soto, 2000). Our model illustrates that the value of the untapped intellectual property of the poor may far exceed these figures, constitut- ing a massive informal market waiting to be tapped. Our model thus empowers the poor by not only ensuring the ownership of their assets (de Soto, 2000), but also by creating markets for them (Gilbert, 2002).

It is important to recognize that not all knowledge available with the poor is useful or valuable (Briggs, 2005; Schroeder, 1999). Since our model prioritizes the mutual benefits for all the actors involved in integrating local knowledge with global knowledge networks, our model can be criticized for commercialization of local knowledge, which may often have cultural and spiritual, rather than economic, value (Marinova & Raven, 2006). Our model is not a solution to address abject poverty, where basic needs for survival are a priority. Since the transfer, documentation, and diffusion of intellectual property require a high level of expertise, our model can succeed only with the involvement of technically competent NGOs. For example, HBN and its associates are the only NGOs engaged in the process of hamessing grassroots innovations in India. The advances in audio and video technology, and collaboration with MNCs, however, reduce the need for manpower at grassroots levels. Once proper documentation of intellectual property is prepared, content can be examined by experts around the globe to confirm its value and uniqueness. Although we examined only one form of social exclusion in this article, we believe that our propositions have wider applicability. Future research can examine the ef- fectiveness of our approach in addressing social exclusion in general.

MNCs unfamiliar with working in informal markets would find tmst-based collaborations with NGOs unfeasible because of the lack of legal contracts. Once established, NGO-MNC collaborations should truly be "partnerships" and require long-term commitment (De Klerk, Johnson & Simanis, 2007; Rugman & Doh, 2008; Sridharan & Viswanathan, 2008). The biggest challenge, perhaps, is the time frame of our model. It is best suited for MNCs that value the sometimes intangible benefits of social involvement, and have a long-term horizon for economic benefits (Karamchandani, Kubzansky & Lalwani, 2011). We believe, however, that once the benefits begin to accme, they will be both long-lasting and non-replicable by others without such collaboration. Our model can create foundational changes in the mindsets of the poor and the rest of society. The continuing success of HBN and its associates gives us hope that social inclusion of the poor into knowledge networks is possible with concerted effort. This social inclusion can in tum enhance the capabilities of the poor to function well.

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NOTES

We sincerely thank Dr. Denis Amold and the three anonymous reviewers for their insightful and encouraging comments throughout the review process, which enabled us to transform this article from a germ of an idea to its present publishable form. We also wish to thank Dr. Lisa Cal vano, Assistant Professor at West Chester University; and Greg Swope, Production Manager at the Philosophy Documentation Center, for their help. The second author's work is supported in part by NSF Award CNS 1010789.

1. Telephonic interview by the first author with Mahesh Patel of GIAN in October 2011. 2. Ibid.

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