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Business model innovations for overcoming barriers in the base-of-the-pyramid market
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center (from 2013). Eawag, Business Innovat Grp, Environm Social Sci Dept, Dubendorf, Switzerland.;Karlstad Univ, Ctr Serv Res CTF, Karlstad, Sweden.;Linkoping Univ, Dept Management & Engn, Linkoping, Sweden..ORCID iD: 0000-0003-2933-244X
Eawag, Business Innovat Grp, Environm Social Sci Dept, Dubendorf, Switzerland.;Linkoping Univ, Dept Management & Engn, Linkoping, Sweden..
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center (from 2013). Eawag, Business Innovat Grp, Environm Social Sci Dept, Dubendorf, Switzerland.;Karlstad Univ, Ctr Serv Res CTF, Karlstad, Sweden..
2017 (English)In: Industry and Innovation, ISSN 1366-2716, E-ISSN 1469-8390, Vol. 24, no 5, p. 543-568Article in journal (Refereed) Published
Abstract [en]

Many barriers must be overcome when entering the base-of-the-pyramid (BoP) market. Firms facing these barriers need to innovate new business models and reinvent existing ones to suit the BoP context. While previous literature has focused on the innovations of particular components of business models in BoP markets, we investigate the reconfigurations in the business model components that underpin the successful business model innovations. This study is based on multiple case studies in the water sector that we carried out in several different countries. Our findings suggest five business model innovations: (a) design, (b) renewal, (c) expansion, (d) diversification and (e) replication. Each business model innovation is a specific response to the barriers met in the BoP market and requires consistent configuration between its various components (i.e. value proposition, value creation and profit equation). These findings add, in two important aspects, to the academic realm of the business model domain: by contributing to the debate of business models in BoP markets and by advancing the configurational view of business models.

Place, publisher, year, edition, pages
Oxon, UK: Taylor & Francis, 2017. Vol. 24, no 5, p. 543-568
Keywords [en]
Business models, business model innovations, base-of-the-pyramid markets, business model design, expansion, diversification, replication
National Category
Business Administration Embedded Systems Other Computer and Information Science
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-65529DOI: 10.1080/13662716.2017.1310033ISI: 000400854600006OAI: oai:DiVA.org:kau-65529DiVA, id: diva2:1170850
Conference
DRUID Summer Conference, 2015, LUISS, Rome, ITALY
Available from: 2018-01-04 Created: 2018-01-04 Last updated: 2018-06-08Bibliographically approved

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Gebauer, HeikoJennings Saul, Caroline

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