Winning Emerging Markets Through Sustainability: The Case of Danfoss’ Drive to Capture India’s Rapidly Expanding Market for Green Solutions

Abstract

While there is a wealth of research on Creating Shared Value (CSV) and sustainability in multinational corporations (MNCs), the literature has been lacking in terms of exploring the combination of these concepts specifically in emerging markets (EMs), particularly within the context of market development. This paper examines how Danfoss India, a leading company in sustainable solutions, can win the growing market for green solutions in India by leveraging its strong sustainability profile and capabilities. An in-depth single case study is performed of Danfoss India. This approach was chosen to enable an in-depth exploration of a topic that holds significant importance in today's world, focusing on the intersection of sustainability and business opportunities. The primary data collection phase consists of five qualitative semi- structured interviews with three high-ranking representatives from Danfoss India. The theory of CSV is applied in this study due to its ability to address the inherent intersection between a company's business strategies and the sustainability discourse, making it highly applicable to the context of this study. An analytical framework based on the theory and literature review has been presented to provide a structured approach for analyzing CSV for Western MNCs operating in EMs. The framework considers three pillars to effectively create shared value: sustainability strategy, business case and business model. The findings show that Danfoss India is committed to assisting customers in decarbonization and aims to be a leading player in this endeavor, prioritizing sustainable solutions. Danfoss India focuses on specific business cases, each requiring distinct adaptations to its business model for successful implementation. Danfoss India uses and can continue to use its strong sustainability profile to win India’s evolving green market and create shared value in various ways. By developing a comprehensive framework to classify and understand the actions and strategies of Western MNCs operating in EMs, this study has brought the literature forward and filled an important research gap. Future research can delve deeper into the framework by examining other MNCs operating in EMs to enhance the validity of the framework.