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Lessons from Low-Cost Healthcare Innovations for the Base-of the Pyramid Markets: How Incumbents Can Systematically Create Disruptive Innovations

In: Lead Market India

Author

Listed:
  • Aditi Ramdorai

    (Hamburg University of Technology)

  • Cornelius Herstatt

    (Hamburg University of Technology)

Abstract

This study investigates the phenomenon of disruptive innovation at the base of India’s economic pyramid. We analyze firms’ ability to successfully drive disruptive innovations from within the organization through the lens of organizational ambidexterity. While consensus exists on the need for ambidexterity, the underlying mechanisms remain under-theorized. We seek to address this general gap in the research of organizational ambidexterity. This work looks at the mechanisms of ambidexterity at GE Healthcare to help explain its ability in successfully hosting sustaining and disruptive innovations from within its boundaries. This work contributes to the emerging disruptive innovation theory, by exploring organizational designs required by incumbent firms to deal with strategic challenges associated with disruptive innovations in the context of BOP markets. It also contributes to organizational ambidexterity theory by providing substantial empirical evidence from the GE Healthcare case to show how a company has adopted an ambidextrous design to deal with hosting contradictory innovation types.

Suggested Citation

  • Aditi Ramdorai & Cornelius Herstatt, 2017. "Lessons from Low-Cost Healthcare Innovations for the Base-of the Pyramid Markets: How Incumbents Can Systematically Create Disruptive Innovations," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 119-144, Springer.
    • Handle: RePEc:spr:isbchp:978-3-319-46392-6_6
    DOI: 10.1007/978-3-319-46392-6_6
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