Business model innovation in base of the pyramid markets

Abstract

PurposeThis 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/approachThis study uses a qualitative, multi-case research design with 20 organizations tapping into the water market at the base-of-the-pyramid.FindingsThis paper explores three business models innovations: fostering value-in-context, allowing for modifiability and embracing organizational ambidexterity.Research limitations/implicationsDue to our qualitative research approach, generalizability of our findings is limited.Practical implicationsThe 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 implicationsThe 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/valuePrevious 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.