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Innovation and Creativity at the Bottom of the Pyramid

Author

Listed:
  • Lauri Erik Lehikoinen

    (Mälardalen University, P.O. Box 883 721 23 Västerås, Sweden)

  • Amanda Lundh

    (Mälardalen University, P.O. Box 883 721 23 Västerås, Sweden)

  • Louis Meert

    (ECAM Brussels Engineering School Promenade de l'Alma, 50 1200 Bruxelles, Belgium)

  • Kevan Waeingnier

    (ECAM Brussels Engineering School Promenade de l'Alma, 50 1200 Bruxelles, Belgium)

  • Nina Bentsen

    (University College of South-East Norway Gullbringvegen 36 3800 Bø, Norway)

  • Ida B. T. Norbye

    (University College of South-East Norway Gullbringvegen 36 3800 Bø, Norway)

Abstract

Purpose: The purpose of this study is to illustrate how innovative and creative companies develop products and services at the bottom of the economic pyramid (B.o.P) markets. This paper attempts to gain further insight regarding the usage of the 4A perspective developed by Anderson and Billou (2007) and the Triple Bottom Line (TBL) framework developed by Elkington (1999) as guidelines to achieve success in BoP markets. Design/methodology/approach: The authors of this paper come from three different countries (Sweden, Norway and Belgium), which gave a possibility to gather qualitative data from companies located or founded in these three countries. The 4A’s perspective and the TBL framework is used as a theoretical foundation to further investigate the phenomenon regarding how western companies act on B.o.P markets. Thus, this paper attempts to answer the following research questions: How can (social) entrepreneurs (or any companies) adapt the 4A perspective to introduce disruptive innovations and still, with the help from the TBL framework, maintain their sustainable, responsible and ethical approach? Additionally, how can the mind-set of innovation and creativity at the bottom of the pyramid in developing markets be transferred to social entrepreneurs in developed markets? Primary data was gathered through interviews with Solvatten (Sweden), MicroStart (Belgium) and Easypaisa (Norway). Findings: The 4A perspective was proven to be an effective tool while approaching B.o.P markets. Companies must think outside the box of traditional marketing and be creative, to achieve their goals. In dynamic markets, a company will struggle to keep up with all constraints. The case companies struggled most with acting sustainably while achieving profitability. Research limitations/implications: To further validate the results, the sample size should be bigger including several different companies and informants. Originality/value: This paper contributes to the literature of the already-established 4A perspective and the TBL framework by providing in-depth research, by investigating companies and their operations from three different countries (Sweden, Norway and Belgium). To our knowledge no prior case studies have been conducted in these countries.

Suggested Citation

  • Lauri Erik Lehikoinen & Amanda Lundh & Louis Meert & Kevan Waeingnier & Nina Bentsen & Ida B. T. Norbye, 2017. "Innovation and Creativity at the Bottom of the Pyramid," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 11(1), pages 13-25, December.
    • Handle: RePEc:tei:journl:v:11:y:2017:i:1:p:13-25
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    References listed on IDEAS

    as
    1. Zahra, Shaker A. & Gedajlovic, Eric & Neubaum, Donald O. & Shulman, Joel M., 2009. "A typology of social entrepreneurs: Motives, search processes and ethical challenges," Journal of Business Venturing, Elsevier, vol. 24(5), pages 519-532, September.
    2. Aneel Karnani, 2006. "Mirage at the Bottom of the Pyramid," William Davidson Institute Working Papers Series wp835, William Davidson Institute at the University of Michigan.
    3. Weerawardena, Jay & Mort, Gillian Sullivan, 2006. "Investigating social entrepreneurship: A multidimensional model," Journal of World Business, Elsevier, vol. 41(1), pages 21-35, February.
    4. Christie, Michael J. & Honig, Benson, 2006. "Social entrepreneurship: New research findings," Journal of World Business, Elsevier, vol. 41(1), pages 1-5, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bottom of the Pyramid (B.o.P); 4A perspective; Triple Bottom Line (TBL); disruptive innovations; creativity; Solvatten; MicroStart; Easypaisa;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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