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Business model innovation at the bottom of the pyramid – A case of mobile money agents

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  • Iheanachor, Nkemdilim
  • David-West, Yinka
  • Umukoro, Immanuel Ovemeso

Abstract

Business models have historically facilitated the ability of firms to createand capturevalue. Focusing on financial service agents (FSAs) as actors in the Nigerian financial services industry, this study helps to elucidate how value creation and distribution can facilitate business model innovation (BMI)in an emerging market. We deployed Osterwalder and Pigneur’s business model canvas alongside Amit and Zott’s Sources of Value in e-Business (SVCeB) model in mapping FSA business models and value creation sources. We find that the constant need to align the resources of a firm with the demand conditions at the customer end triggers the need for BMI by FSAs. The findings also demonstrate that FSAs have weak business models that inhibit their sustainability and ultimately impede their ability to play their role in closing the country’s financial exclusion gap. We suggest the need for business model innovation by FSAs as a pathway to viability, profitability and sustainability.

Suggested Citation

  • Iheanachor, Nkemdilim & David-West, Yinka & Umukoro, Immanuel Ovemeso, 2021. "Business model innovation at the bottom of the pyramid – A case of mobile money agents," Journal of Business Research, Elsevier, vol. 127(C), pages 96-107.
    • Handle: RePEc:eee:jbrese:v:127:y:2021:i:c:p:96-107
    DOI: 10.1016/j.jbusres.2021.01.029
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    3. Grijalvo, Mercedes & García-Wang, Carmen, 2023. "Sustainable business model for climate finance. Key drivers for the commercial banking sector," Journal of Business Research, Elsevier, vol. 155(PB).
    4. Iheanachor, Nkemdilim & Umukoro, Immanuel, 2022. "Partnerships in digital financial services: An exploratory study of providers in an emerging market," Journal of Business Research, Elsevier, vol. 152(C), pages 425-435.
    5. Gupta, Suraksha & Kanungo, Rama Prasad, 2022. "Financial inclusion through digitalisation: Economic viability for the bottom of the pyramid (BOP) segment," Journal of Business Research, Elsevier, vol. 148(C), pages 262-276.
    6. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).

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