Business Model Innovations for Information and Communications Technology-Based Services for Low-Income Segments in Emerging Economies

Abstract

Although proliferation of mobile services in emerging economies like India has made it possible to provide a variety of services such as banking, health, education, etc. to low-income segments through mobiles, it is challenging to do so. This is due to a variety of factors, including low levels of digital infrastructure and literacy and poor propensity to pay. On the other hand, these networks offer a mechanism to improve this state. Therefore, start-ups that develop contextual business model innovations are important. Notwithstanding its importance, there is very little work on what factors contribute to business model innovation for low-income segments in emerging economies in this area. This study contributes to both empirical and theoretical knowledge by developing case studies on business model innovations using information and communications technology-based services in India. It identifies the dimensions of differences between developed countries and emerging economies with respect to (1) the factors that contribute to information and communications technology-based business model innovations for low-income segments and (2) the role of the start-ups in this situation. Further, it integrates two existing strands of theory: value creation through business model innovation in e-business and low-income segments in emerging economies.