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Business model innovations for overcoming barriers in the base-of-the-pyramid market

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  • Heiko Gebauer
  • Mirella Haldimann
  • Caroline Jennings Saul

Abstract

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.

Suggested Citation

  • Heiko Gebauer & Mirella Haldimann & Caroline Jennings Saul, 2017. "Business model innovations for overcoming barriers in the base-of-the-pyramid market," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 543-568, July.
    • Handle: RePEc:taf:indinn:v:24:y:2017:i:5:p:543-568
    DOI: 10.1080/13662716.2017.1310033
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    Citations

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    Cited by:

    1. Vinicius Luiz Ferraz Minatogawa & Matheus Munhoz Vieira Franco & Izabela Simon Rampasso & Rosley Anholon & Ruy Quadros & Orlando Durán & Antonio Batocchio, 2019. "Operationalizing Business Model Innovation through Big Data Analytics for Sustainable Organizations," Sustainability, MDPI, vol. 12(1), pages 1-29, December.
    2. Maldea, Radu-Andrei, 2023. "Winning when Going Global – On the Role of Heritage and Strategic Moves for Internationalization Endeavors of Start-ups," Junior Management Science (JUMS), Junior Management Science e. V., vol. 8(2), pages 532-568.
    3. Thomas Moellers & Lars von der Burg & Bastian Bansemir & Max Pretzl & Oliver Gassmann, 2019. "System dynamics for corporate business model innovation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(3), pages 387-406, September.
    4. 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.
    5. M. Isabella Leone & Paola Belingheri, 2017. "The relevance of Innovation for Ethics, Responsibility and Sustainability," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 437-445, July.
    6. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    7. Tsai Chi Kuo & Wei-Jung Shiang & Jessica Hanafi & Sz Ying Chen, 2018. "Co-Development of Supply Chain in the BOP Markets," Sustainability, MDPI, vol. 10(4), pages 1-14, March.
    8. Lozić, Joško & Milković, Marin & Fotova Čiković, Katerina, 2022. "The Impact Of The Long Tail Economy On The Business Result Of The Digital Platform: The Case Of Spotify And Match Group," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 13(1), pages 43-55.
    9. Simon Joncourt & Heiko Gebauer & Javier Reynoso & Karla Cabrera & Ana Valdes & Katharina Greve, 2019. "Extending the Base-of-the-Pyramid Concept," Service Science, INFORMS, vol. 11(3), pages 241-261, October.
    10. Reymond, Philippe & Abdel Wahaab, Rifaat & Moussa, Moustafa Samir & Lüthi, Christoph, 2018. "Scaling up small scale wastewater treatment systems in low- and middle-income countries: An analysis of challenges and ways forward through the case of Egypt," Utilities Policy, Elsevier, vol. 52(C), pages 13-21.
    11. Budler, Marko & Župič, Ivan & Trkman, Peter, 2021. "The development of business model research: A bibliometric review," Journal of Business Research, Elsevier, vol. 135(C), pages 480-495.
    12. Christofi, Michael & Vrontis, Demetris & Cadogan, John W., 2021. "Micro-foundational ambidexterity and multinational enterprises: A systematic review and a conceptual framework," International Business Review, Elsevier, vol. 30(1).
    13. Chamindika Weerakoon & Sarath S. Kodithuwakku, 2023. "Configurations of Business Model Innovation: Unpacking the Practice Adopted by Firms in an Emerging Market Context," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 218-259, March.

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