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Business model innovations for overcoming barriers in the base-of-the-pyramid market
Linköping University, Department of Management and Engineering, Business Administration. Linköping University, Faculty of Arts and Sciences. Eawag, Switzerland; Karlstad University, Sweden.
Linköping University, Department of Management and Engineering. Linköping University, Faculty of Arts and Sciences. Eawag, Switzerland.
Eawag, Switzerland; Karlstad University, Sweden.
2017 (English)In: Industry and Innovation, ISSN 1366-2716, E-ISSN 1469-8390, Vol. 24, no 5, 543-568 p.Article 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
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD , 2017. Vol. 24, no 5, 543-568 p.
Keyword [en]
Business models; business model innovations; base-of-the-pyramid markets; business model design; expansion; diversification; replication
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-138308DOI: 10.1080/13662716.2017.1310033ISI: 000400854600006OAI: oai:DiVA.org:liu-138308DiVA: diva2:1109041
Conference
DRUID Summer Conference
Note

Funding Agencies|Swiss Agency for Development and Cooperation

Available from: 2017-06-13 Created: 2017-06-13 Last updated: 2017-06-13

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CiteExportLink to record
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Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf