Abstract
AbstractWe explore different business ventures in low‐income markets in order to understand the factors influencing business model innovation in this context. Grounded in the rich data obtained from multiple case study analyses and in the received theory in strategy in low‐income markets and business models, we identified a set of contingency factors that permitted us to distinguish between isolated and interactive business models.Isolated business modelswiden its entrance into new markets by leveraging firm's current resources and capabilities for taking advantage of existing opportunities.Interactive business modelsrequire a firm to combine, integrate and leverage both internal resources with ecosystem's capabilities to create new business opportunities. Finally, we discuss the main implications on value creation from these business models.
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