Heiko Gebauer, Caroline Jennings Saul and Mirella Haldimann
This paper aims to highlight how initial business models can be converted into a larger-scale solution for tapping into the emerging base-of-the-pyramid markets.
Abstract
Purpose
This paper aims to highlight how initial business models can be converted into a larger-scale solution for tapping into the emerging base-of-the-pyramid markets.
Design/methodology/approach
This study uses a qualitative, multi-case research design with 20 organizations tapping into the water market at the base-of-the-pyramid.
Findings
This paper explores three business models innovations: fostering value-in-context, allowing for modifiability and embracing organizational ambidexterity.
Research limitations/implications
Due to our qualitative research approach, generalizability of our findings is limited.
Practical implications
The description of the three business model innovations offers guidance for executives to make their business models financially more sustainable in base-of-the-pyramid markets.
Social implications
The water sector represents one especially interesting sector to examine business model innovations. For, among social goods, safe water remains a huge challenge to date where 700 million people remain without access to an improved water source.
Originality/value
Previous business model discussion in base-of-the-pyramid markets focuses on commercial goods. The authors focus on water as a social good. They demonstrate that the existing recommendations that business models in base-of-the-pyramid markets should be inclusive, complex, collaborative and scalable are mandatory, but not sufficient. In addition, business models should foster value-in-context, allow for modifiability and embrace organizational ambidexterity.
Details
Keywords
Heiko Gebauer, Mirella Haldimann and Caroline Jennings Saul
The purpose of this paper is to develop a typology of management innovations.
Abstract
Purpose
The purpose of this paper is to develop a typology of management innovations.
Design/methodology/approach
The authors apply a multiple-case (embedded) design, with each organization representing a case, which entails a few embedded units of analysis. Case studies are about the base-of-the-pyramid (BoP) initiatives, during which all organizations are interested in management innovations which support them in coming up with and implementing between two and four new management practices.
Findings
The findings suggest four types of management innovations: efficiency-driven, externally recommended, problem-oriented, and opportunity-oriented management innovation.
Research limitations/implications
This paper explores and analyses management innovations, rather than testing them. As with most qualitative research, the transferability of the findings is limited.
Practical implications
Managers should vigorously pursue management innovations, not only in BoP markets, but also in all markets. Practitioners must, however, ensure that they are not fully absorbed by a single type of management innovation, and recognize the importance of pursing multiple ones.
Social implications
For academics, the authors revitalize the concept of engaged scholarship.
Originality/value
Surprisingly, previous research looks either into generic or specific management innovations. The typology is original, since the typology offers a more fine-grained view on management innovations.
Details
Keywords
Heiko Gebauer, Mirella Haldimann and Caroline Jennings Saul
Despite the opportunities provided by pay-per-use (PPU) services, product companies in business-to-business sectors often fail to compete systematically by using them. The purpose…
Abstract
Purpose
Despite the opportunities provided by pay-per-use (PPU) services, product companies in business-to-business sectors often fail to compete systematically by using them. The purpose of this paper is to explain how companies can avoid failures when it comes to PPU services. The paper describes the “seizing” capabilities needed to achieve the strategic objectives of PPU services.
Design/methodology/approach
The research process is divided into a pilot and an in-depth study. Altogether, 17 companies participated in the study.
Findings
The findings reveal that the seizing capabilities depend on the strategic objectives of PPU services. To expand the market share with PPU services, companies need to broaden the customer portfolio for PPU services, to align individual services within the entire service portfolio and to balance profits made by PPU services and other business lines. For strategic objectives such as rapid sales growth early in the market development and new market creation other seizing capabilities are required.
Research limitations/implications
The findings are not generalizable, due to the use of a qualitative study. The study is restricted to product companies in the business-to-business sector.
Practical implications
Managers often believe that extending and modularizing the service portfolio is beneficial. When achieving sales growth during the market development phase, these capabilities are in fact sometimes counterproductive. Practitioners have to look into the costs and benefits of setting-up their own financing company and working with banks.
Social implications
PPU services contribute to a more sustainable consumption and make product design more resource-efficient.
Originality/value
The study is original by virtue of systematically studying PPU services, providing a microfoundation for seizing capabilities and developing testable propositions for future research.