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Key Factors of Digital Service Innovation Capability in Multi-Level Marketing-Top Management Perspective

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  • Li-Min Chuang
  • Chih-Hung Chen

Abstract

The Multi-level Marketing (MLM) industry has traditionally relied on interpersonal networks and relationship-based marketing. In the context of the rapidly evolving digital economy. Accordingly, how MLM firms enhance their service innovation capabilities through digital transformation has emerged as a salient managerial concern. The present study adopts a top management viewpoint and further incorporates the Bottom of the Pyramid (BoP) framework as a foundational theoretical lens, emphasizing value creation and innovation practices in low-income yet high-potential markets. The study proposes four core capability dimensions (Persuasion, Co-creation, Adaptation and Self-sustainability) to capture the essential competencies required in digitally enabled and AI-augmented environments, denoting individuals’ capacity for continuous learning, self-development, and long-term business sustainability in digital contexts. The empirical analysis employs the AHP to examine the relative effects of different capability dimensions on digital service innovation performance. This research contributes by integrating the BoP perspective with digital service innovation literature, thereby addressing a notable gap in existing MLM-related studies. From a managerial perspective, the results offer actionable insights for top management, providing clear guidance on capability development priorities and resource allocation strategies in the context of digital transformation and BoP market positioning. JEL classification numbers: C83, M15, O31.

Suggested Citation

  • Li-Min Chuang & Chih-Hung Chen, 2026. "Key Factors of Digital Service Innovation Capability in Multi-Level Marketing-Top Management Perspective," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 16(5), pages 1-2.
    • Handle: RePEc:spt:admaec:v:16:y:2026:i:5:f:16_5_2
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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