Evolving Organizational Models: Microfranchises and the BOP 4.0 Paradigm in Post-Conflict Colombia

Abstract

Microfranchises (MFs), as an innovative organizational model, aim to enhance the productive capacity of the base of the pyramid (BoP) population in diverse contexts. We provide original insights into the underexplored role of MFs in the socioeconomic inclusion of victims of the conflict and former combatants in conflict settings while advancing theory-building in overlooked areas. To bridge these gaps, we use grounded theory in exploratory analysis of the total population sampling of 17 Colombian social enterprises/seven MFs financed by the United Nations Development Program and Inter-American Development Bank. Our results suggest that MFs were the most adopted organizational model in post-conflict Colombia, promoting the inclusion of victims and ex-combatants who collaboratively create contextualized solutions and prioritize community well-being, which has led to the development of a new iteration of the BoP model – BoP 4.0 - closely aligned with MFs, an innovative sustainable business typology developed. Its focus on Colombian social enterprises in post-conflict settings delimited this research. Thus, generalizing these findings beyond this context should be approached with caution. This study marks a significant contribution by revealing the pivotal role of MFs in promoting socioeconomic inclusion for victims in conflict-affected regions. Furthermore, it introduces the innovative concept of BoP 4.0, representing an evolution in sustainable business typology within the BoP framework.