The Use of Sustainable Business Models in Emerging Markets: How is it Influenced by Macroeconomic Trends? A Case Study of the Indian Dairy Industry

Abstract: Businesses are increasingly attracted to Emerging Markets due to the potential of increased demand for goods and services, driven mostly by macroeconomic trends in the external business environment. However, the business model approach for emerging markets differs from the one for developed markets as they are faced with a different set of demand and supply conditions. The purpose of this study is to examine how macroeconomic trends are influencing the adoption of sustainable business models in emerging markets to address the challenges of the bottom of the pyramid. The study is based on a theoretical review of literature on macroeconomic trends in emerging markets, sustainable business models, creating shared value and corporate social responsibility, and the bottom of the pyramid. The research used a qualitative approach through a case study of the Indian dairy industry, looking at two dairy companies, Amul and Vijaya Dairy. Empirical data was gathered through both primary sources in the form of semi-structured interviews and observations, and from secondary sources. On the basis of the findings of this research, it was revealed that macroeconomic trends especially, political and technological factors have a strong influence on the adoption of sustainable business models to deliver on social value, by increasing on supplier’s capacity for the bottom of the pyramid.