IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v186y2025ics0148296324005460.html
   My bibliography  Save this article

From outsider to insider: A Western SME’s journey to inclusive innovation in a base-of-the-pyramid market

Author

Listed:
  • Mortazavi, Sina
  • Raatikainen, Markus
  • Hiltunen, Esa
  • Teplov, Roman
  • Väätänen, Juha
  • Gabrielsson, Mika

Abstract

This study provides an in-depth look at how small- and medium-sized enterprises (SMEs) in the healthcare sector can enter a Base-of-the-Pyramid (BoP) market and foster inclusive innovation (ININ), an innovation meant to offer growth in BoP communities. The study stems from the intersection of internationalization and BoP literature by exploring how companies can internationalise and gain insidership in a BoP market through ININ. This qualitative case study uses primary and secondary data from a Finnish SME and non-governmental organization (NGO) to understand how this partnership led to inclusive expansion into Kenya. This study resulted in a conceptual framework for SME internationalisation through ININ. The findings identify challenges, including a lack of trust and market knowledge, the need for operational and financial adaptation, and antecedents, such as market exploration, partnership, and community inclusion. The study highlights the importance of collaboration with NGOs and suggests five propositions for further research.

Suggested Citation

  • Mortazavi, Sina & Raatikainen, Markus & Hiltunen, Esa & Teplov, Roman & Väätänen, Juha & Gabrielsson, Mika, 2025. "From outsider to insider: A Western SME’s journey to inclusive innovation in a base-of-the-pyramid market," Journal of Business Research, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324005460
    DOI: 10.1016/j.jbusres.2024.115042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324005460
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2024.115042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ojala, Arto, 2009. "Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market," International Business Review, Elsevier, vol. 18(1), pages 50-59, February.
    2. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    3. Addisu A. Lashitew & Lydia Bals & Rob Tulder, 2020. "Inclusive Business at the Base of the Pyramid: The Role of Embeddedness for Enabling Social Innovations," Journal of Business Ethics, Springer, vol. 162(2), pages 421-448, March.
    4. Zhu, Fengxia & Wei, Zelong & Bao, Yongchuan & Zou, Shaoming, 2019. "Base-of-the-Pyramid (BOP) orientation and firm performance: A strategy tripod view and evidence from China," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    5. Jan-Erik Vahlne & Jan Johanson, 2020. "The Uppsala model: Networks and micro-foundations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 4-10, February.
    6. Anna Nadolska & Harry G Barkema, 2007. "Learning to internationalise: the pace and success of foreign acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1170-1186, December.
    7. Liu, Steven Y.H. & Napier, Elizabeth & Runfola, Andrea & Cavusgil, S. Tamer, 2020. "MNE-NGO partnerships for sustainability and social responsibility in the global fast-fashion industry: A loose-coupling perspective," International Business Review, Elsevier, vol. 29(5).
    8. Christopher Foster & Richard Heeks, 2013. "Conceptualising Inclusive Innovation: Modifying Systems of Innovation Frameworks to Understand Diffusion of New Technology to Low-Income Consumers," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(3), pages 333-355, July.
    9. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    10. Peter J Buckley & Jonathan P Doh & Mirko H Benischke, 2017. "Towards a renaissance in international business research? Big questions, grand challenges, and the future of IB scholarship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1045-1064, December.
    11. Jane Briant Carant, 2017. "Unheard voices: a critical discourse analysis of the Millennium Development Goals’ evolution into the Sustainable Development Goals," Third World Quarterly, Taylor & Francis Journals, vol. 38(1), pages 16-41, January.
    12. Ramani, Shyama V. & SadreGhazi, Shuan & Duysters, Geert, 2012. "On the diffusion of toilets as bottom of the pyramid innovation: Lessons from sanitation entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 79(4), pages 676-687.
    13. Giuliani, Elisa, 2013. "Network dynamics in regional clusters: Evidence from Chile," Research Policy, Elsevier, vol. 42(8), pages 1406-1419.
    14. Christopher Foster & Richard Heeks, 2014. "Nurturing user-producer interaction: inclusive innovation flows in a low-income mobile phone market," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 221-237, October.
    15. Kurt, Yusuf & Sinkovics, Noemi & Sinkovics, Rudolf R. & Yamin, Mo, 2020. "The role of spirituality in Islamic business networks: The case of internationalizing Turkish SMEs," Journal of World Business, Elsevier, vol. 55(1).
    16. Agarwal, Nivedita & Chakrabarti, Ronika & Brem, Alexander & Bocken, Nancy, 2018. "Market driving at Bottom of the Pyramid (BoP): An analysis of social enterprises from the healthcare sector," Journal of Business Research, Elsevier, vol. 86(C), pages 234-244.
    17. Hahn, Rüdiger & Gold, Stefan, 2014. "Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors," Journal of Business Research, Elsevier, vol. 67(7), pages 1321-1333.
    18. Vachani, Sushil & Doh, Jonathan P. & Teegen, Hildy, 2009. "NGOs' influence on MNEs' social development strategies in varying institutional contexts: A transaction cost perspective," International Business Review, Elsevier, vol. 18(5), pages 446-456, October.
    19. Pansera, Mario & Owen, Richard, 2018. "Framing inclusive innovation within the discourse of development: Insights from case studies in India," Research Policy, Elsevier, vol. 47(1), pages 23-34.
    20. Geoffrey M. Kistruck & Paul W. Beamish, 2010. "The Interplay of Form, Structure, and Embeddedness in Social Intrapreneurship," Entrepreneurship Theory and Practice, , vol. 34(4), pages 735-761, July.
    21. Avelino, Flor & Wittmayer, Julia M. & Pel, Bonno & Weaver, Paul & Dumitru, Adina & Haxeltine, Alex & Kemp, René & Jørgensen, Michael S. & Bauler, Tom & Ruijsink, Saskia & O'Riordan, Tim, 2019. "Transformative social innovation and (dis)empowerment," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 195-206.
    22. Calabrese, Armando & Costa, Roberta & Ghiron, Nathan Levialdi & Tiburzi, Luigi & Pedersen, Esben Rahbek Gjerdrum, 2021. "How sustainable-orientated service innovation strategies are contributing to the sustainable development goals," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    23. Gerard George & Anita M. McGahan & Jaideep Prabhu, 2012. "Innovation for Inclusive Growth: Towards a Theoretical Framework and a Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 661-683, June.
    24. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    25. Ravi Mehta & Meng Zhu, 2016. "Creating When You Have Less: The Impact of Resource Scarcity on Product Use Creativity," Journal of Consumer Research, Oxford University Press, vol. 42(5), pages 767-782.
    26. Hermes, Jan & Mainela, Tuija, 2022. "Actor legitimation in emerging markets: A network-embedded process," Journal of World Business, Elsevier, vol. 57(4).
    27. Håkanson, Lars & Ambos, Björn, 2010. "The antecedents of psychic distance," Journal of International Management, Elsevier, vol. 16(3), pages 195-210, September.
    28. Mortazavi, Sina & Eslami, Mohammad H. & Hajikhani, Arash & Väätänen, Juha, 2021. "Mapping inclusive innovation: A bibliometric study and literature review," Journal of Business Research, Elsevier, vol. 122(C), pages 736-750.
    29. Narula, Rajneesh & Verbeke, Alain, 2015. "Making internalization theory good for practice: The essence of Alan Rugman's contributions to international business," Journal of World Business, Elsevier, vol. 50(4), pages 612-622.
    30. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    31. Desirée Blankenburg Holm & Martin Johanson & Pao Kao, 2015. "From outsider to insider: Opportunity development in foreign market networks," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 337-359, September.
    32. Jan Johanson & Martin Johanson, 2021. "Speed and synchronization in foreign market network entry: A note on the revisited Uppsala model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1628-1645, October.
    33. Rosca, Eugenia & Bendul, Julia C., 2019. "Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes," International Business Review, Elsevier, vol. 28(1), pages 162-176.
    34. Paula Linna, 2013. "Bricolage As A Means Of Innovating In A Resource-Scarce Environment: A Study Of Innovator-Entrepreneurs At The Bop," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-23.
    35. Parayitam, Satyanarayana & Dooley, Robert S., 2009. "The interplay between cognitive- and affective conflict and cognition- and affect-based trust in influencing decision outcomes," Journal of Business Research, Elsevier, vol. 62(8), pages 789-796, August.
    36. Fletcher, Margaret & Zhao, Yang & Plakoyiannaki, Emmanuella & Buck, Trevor, 2018. "Three Pathways to Case Selection in International Business: A Twenty–Year Review, Analysis and Synthesis," International Business Review, Elsevier, vol. 27(4), pages 755-766.
    37. Ugonna, Dr Charity Udodirim & Ochieng, Prof Edward G. & Zuofa, Dr Tarila, 2021. "Augmenting the delivery of public research and development projects in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    38. Birger Maekelburger & Christian Schwens & Ruediger Kabst, 2012. "Asset specificity and foreign market entry mode choice of small and medium-sized enterprises: The moderating influence of knowledge safeguards and institutional safeguards," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(5), pages 458-476, June.
    39. Walters, Peter G.P. & Whitla, Paul & Davies, Howard, 2008. "Global strategy in the international advertising industry," International Business Review, Elsevier, vol. 17(3), pages 235-249, June.
    40. Yamin, Mohammad & Sinkovics, Rudolf R., 2006. "Online internationalisation, psychic distance reduction and the virtuality trap," International Business Review, Elsevier, vol. 15(4), pages 339-360, August.
    41. Winterhalter, Stephan & Zeschky, Marco B. & Neumann, Lukas & Gassmann, Oliver, 2017. "Business Models for Frugal Innovation in Emerging Markets: The Case of the Medical Device and Laboratory Equipment Industry," Technovation, Elsevier, vol. 66, pages 3-13.
    42. Chakrabarti, Ronika & Henneberg, Stephan C., 2023. "Base of the Pyramid entrepreneurship through silent design and effectuation," Journal of Business Research, Elsevier, vol. 158(C).
    43. Azmat, Fara & Lim, Weng Marc & Moyeen, Abdul & Voola, Ranjit & Gupta, Girish, 2023. "Convergence of business, innovation, and sustainability at the tipping point of the sustainable development goals," Journal of Business Research, Elsevier, vol. 167(C).
    44. Ominde, Diana & Ochieng, Edward Godfrey & Omwenga, Vincent Oteke, 2021. "Optimising ICT infrastructure performance in developing countries: Kenyan viewpoint," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    45. Rudolf R. Sinkovics & Elfriede Penz & Pervez N. Ghauri, 2008. "Enhancing the Trustworthiness of Qualitative Research in International Business," Management International Review, Springer, vol. 48(6), pages 689-714, December.
    46. Roger Schweizer, 2013. "SMEs and networks: Overcoming the liability of outsidership," Journal of International Entrepreneurship, Springer, vol. 11(1), pages 80-103, March.
    47. Mario Pansera, 2013. "Frugality, Grassroots and Inclusiveness: New Challenges for Mainstream Innovation Theories," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 5(6), pages 469-478, August.
    48. Rivera-Santos, Miguel & Rufín, Carlos, 2010. "Global village vs. small town: Understanding networks at the Base of the Pyramid," International Business Review, Elsevier, vol. 19(2), pages 126-139, April.
    49. Fernhaber, Stephanie A. & Zou, Huan, 2022. "Advancing societal grand challenge research at the interface of entrepreneurship and international business: A review and research agenda," Journal of Business Venturing, Elsevier, vol. 37(5).
    50. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    51. Alvaro Cuervo-Cazurra & Ulf Andersson & Mary Yoko Brannen & Bo Bernhard Nielsen & A. Rebecca Reuber, 2016. "From the Editors: Can I trust your findings? Ruling out alternative explanations in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(8), pages 881-897, October.
    52. A Rebecca Reuber & Eileen Fischer, 1997. "The Influence of the Management Team’s International Experience on the Internationalization Behaviors of SMES," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 807-825, December.
    53. Jeremy Hall & Stelvia Matos & Lorn Sheehan & Bruno Silvestre, 2012. "Entrepreneurship and Innovation at the Base of the Pyramid: A Recipe for Inclusive Growth or Social Exclusion?," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 785-812, June.
    54. Naila Kabeer, 1999. "Resources, Agency, Achievements: Reflections on the Measurement of Women's Empowerment," Development and Change, International Institute of Social Studies, vol. 30(3), pages 435-464, July.
    55. Kavita Surana & Anuraag Singh & Ambuj D Sagar, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Papers 2005.13138, arXiv.org, revised Jun 2020.
    56. Sabine Gebert Persson & Eniko Kaptalan-Nagy, 2009. "Understanding legitimacy in the foreign market entry process," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 2(4), pages 453-467.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mortazavi, Sina & Eslami, Mohammad H. & Hajikhani, Arash & Väätänen, Juha, 2021. "Mapping inclusive innovation: A bibliometric study and literature review," Journal of Business Research, Elsevier, vol. 122(C), pages 736-750.
    2. Gupta, Suraksha & Kanungo, Rama Prasad, 2022. "Financial inclusion through digitalisation: Economic viability for the bottom of the pyramid (BOP) segment," Journal of Business Research, Elsevier, vol. 148(C), pages 262-276.
    3. Yu, Honglan & Fletcher, Margaret & Buck, Trevor, 2022. "Managing digital transformation during re-internationalization: Trajectories and implications for performance," Journal of International Management, Elsevier, vol. 28(4).
    4. Han, Xiaomin & Goxe, François & Freeman, Susan, 2024. "Internationalization through social networks: A systematic review and future research agenda," International Business Review, Elsevier, vol. 33(4).
    5. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    6. Mikael Hilmersson & Roger Schweizer & Sylvie Chetty, 2022. "The Relationship Between Timing, Speed, and Performance in Foreign Market Network Entry," Management International Review, Springer, vol. 62(3), pages 325-349, June.
    7. Mario Pansera & Fabien Martinez, 2017. "Innovation for development and poverty reduction: an integrative literature review," Post-Print hal-02887777, HAL.
    8. Michael D. van der Merwe & Sara S. Grobbelaar & Cornelius S. L. Schutte & Konrad H. von Leipzig, 2018. "Toward an Enterprise Growth Framework for Entering the Base of the Pyramid Market: A Systematic Review," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-34, August.
    9. Eduardsen, Jonas & Marinova, Svetla Trifonova & González-Loureiro, Miguel & Vlačić, Božidar, 2022. "Business group affiliation and SMEs’ international sales intensity and diversification: A multi-country study," International Business Review, Elsevier, vol. 31(5).
    10. Zilja, Flladina & Benito, Gabriel R.G. & Boustanifar, Hamid & Zhang, Dan, 2023. "CEO wealth and cross-border acquisitions by SMEs," International Business Review, Elsevier, vol. 32(6).
    11. Yunhui Zhao & Zhimin Wang & Taiwen Feng & Ting Kong & Qiansong Zhang, 2022. "Organizational unlearning and inclusive innovation: The moderating role of green control ambidexterity," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 539-555, August.
    12. Saiyed, Abrar Ali & Wierenga, Marleen & Fernhaber, Stephanie A. & Nummela, Niina, 2023. "From grassroots to international markets: A qualitative study of marginalized entrepreneurs in India," International Business Review, Elsevier, vol. 32(5).
    13. Christian Omobhude & Shih-Hsin Chen, 2019. "Social Innovation for Sustainability: The Case of Oil Producing Communities in the Niger Delta region," Sustainability, MDPI, vol. 11(23), pages 1-26, November.
    14. George Saridakis & Zaheer Khan & Gary Knight & Bochra Idris & Jay Mitra & Huda Khan, 2024. "A Look into the Future: The Impact of Metaverse on Traditional Theories and Thinking in International Business," Management International Review, Springer, vol. 64(4), pages 597-632, August.
    15. Vavilov, Stanislav & Manning, Stephan, 2024. "How entrepreneurial ecosystems support the formation of international base-of-the-pyramid ventures: The case of Boston," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    16. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    17. Guoliang Frank Jiang & Jeffrey J. Reuer & Colette Southam & Paul W. Beamish, 2022. "The impact of initial public offerings on SMEs’ foreign investment decisions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 879-901, July.
    18. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    19. Goudarz Azar & Rian Drogendijk, 2014. "Psychic Distance, Innovation, and Firm Performance," Management International Review, Springer, vol. 54(5), pages 581-613, October.
    20. Hoffecker, Elizabeth & Lee, Eunhae, 2024. "Refining a middle-range theory of inclusive innovation processes in agrifood systems in the Global South," Agricultural Systems, Elsevier, vol. 219(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324005460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.