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Value chain and innovation at the base of the pyramid

Value chain and innovation at the base of the pyramid Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets. Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE's reverse innovation project, GrameenPhone, Essilor, and P&G's PuR. Findings – BoP project should be a top‐down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step‐by‐step scale‐up must be followed. Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png South Asian Journal of Global Business Research Emerald Publishing

Value chain and innovation at the base of the pyramid

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
2045-4457
DOI
10.1108/SAJGBR-03-2012-0020
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets. Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE's reverse innovation project, GrameenPhone, Essilor, and P&G's PuR. Findings – BoP project should be a top‐down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step‐by‐step scale‐up must be followed. Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development.

Journal

South Asian Journal of Global Business Research – Emerald Publishing

Published: Aug 16, 2013

Keywords: Base of the pyramid; Value chain; Innovation; Strategy; Organisation; Integrative framework

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