IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v33y2025i1p238-250.html
   My bibliography  Save this article

Social innovation at the bottom of the pyramid: Effects of informality and sustainable affordable innovation

Author

Listed:
  • Samuel Adomako
  • Mai Dong Tran

Abstract

Until now, the theoretical exploration of informal entrepreneurship's role in driving social innovation has remained largely unaddressed. This study fills this gap by investigating the impact of informal entrepreneurship on social innovation performance through the mediating mechanism of affordable innovation. Using time‐lagged data collected from 264 firms in Vietnam, we find that (1) informal entrepreneurship positively relates to affordable innovation, (2) affordable innovation mediates the relationship between informal entrepreneurship and social innovation performance, and (3) bottom‐of‐the‐pyramid orientation bolsters the relationship between affordable innovation and social innovation performance. These findings contribute to advancing both informal entrepreneurship and social innovation literature.

Suggested Citation

  • Samuel Adomako & Mai Dong Tran, 2025. "Social innovation at the bottom of the pyramid: Effects of informality and sustainable affordable innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 238-250, February.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:1:p:238-250
    DOI: 10.1002/sd.3122
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.3122
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.3122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sinkovics, Noemi & Sinkovics, Rudolf R. & Yamin, Mo, 2014. "The role of social value creation in business model formulation at the bottom of the pyramid – Implications for MNEs?," International Business Review, Elsevier, vol. 23(4), pages 692-707.
    2. Addisu A. Lashitew & Lydia Bals & Rob Tulder, 2020. "Inclusive Business at the Base of the Pyramid: The Role of Embeddedness for Enabling Social Innovations," Journal of Business Ethics, Springer, vol. 162(2), pages 421-448, March.
    3. Omri, Anis, 2020. "Formal versus informal entrepreneurship in emerging economies: The roles of governance and the financial sector," Journal of Business Research, Elsevier, vol. 108(C), pages 277-290.
    4. Samuel Adomako & Mai Dong Tran, 2022. "Stakeholder management, CSR commitment, corporate social performance: The moderating role of uncertainty in CSR regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1414-1423, September.
    5. Ana Cristina O. Siqueira & Justin W. Webb & Garry D. Bruton, 2016. "Informal Entrepreneurship and Industry Conditions," Entrepreneurship Theory and Practice, , vol. 40(1), pages 177-200, January.
    6. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    7. John Bennett, 2010. "Informal firms in developing countries: entrepreneurial stepping stone or consolation prize?," Small Business Economics, Springer, vol. 34(1), pages 53-63, January.
    8. Colin C. Williams, 2011. "Entrepreneurship, the informal economy and rural communities," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 5(2), pages 145-157, May.
    9. Anne Lange & Stefan Hüsig & Martin Albert, 2023. "How frugal innovation and inclusive business are linked to tackle low-income markets," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(6), pages 2588-2621, November.
    10. Nguimkeu, Pierre, 2014. "A structural econometric analysis of the informal sector heterogeneity," Journal of Development Economics, Elsevier, vol. 107(C), pages 175-191.
    11. Webb, Justin W. & Bruton, Garry D. & Tihanyi, Laszlo & Ireland, R. Duane, 2013. "Research on entrepreneurship in the informal economy: Framing a research agenda," Journal of Business Venturing, Elsevier, vol. 28(5), pages 598-614.
    12. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    13. Colin C. Williams, 2011. "Entrepreneurship, the informal economy and rural communities," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 145-157, April.
    14. Theo Papaioannou, 2014. "How inclusive can innovation and development be in the twenty-first century?," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 187-202, October.
    15. Yi Tang & Cuili Qian & Guoli Chen & Rui Shen, 2015. "How CEO hubris affects corporate social (ir)responsibility," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1338-1357, September.
    16. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    17. Oeij, Peter R.A. & van der Torre, Wouter & Vaas, Fietje & Dhondt, Steven, 2019. "Understanding social innovation as an innovation process: Applying the innovation journey model," Journal of Business Research, Elsevier, vol. 101(C), pages 243-254.
    18. Bakker, Rene M. & McMullen, Jeffery S., 2023. "Inclusive entrepreneurship: A call for a shared theoretical conversation about unconventional entrepreneurs," Journal of Business Venturing, Elsevier, vol. 38(1).
    19. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    20. Esther Salvi & Frank-Martin Belz & Sophie Bacq, 2023. "Informal Entrepreneurship: An Integrative Review and Future Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 265-303, March.
    21. Cristian E. Villanueva & Adrianela Angeles & Luz Cecilia Revilla, 2020. "Social Responsibility Among Informal Entrepreneurs: Evidence From Mexico," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 25(03), pages 1-20, September.
    22. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    23. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    24. Williams, Trenton Alma & Zhao, Eric Yanfei & Sonenshein, Scott & Ucbasaran, Deniz & George, Gerard, 2021. "Breaking boundaries to creatively generate value: The role of resourcefulness in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 36(5).
    25. Gerard George & Anita M. McGahan & Jaideep Prabhu, 2012. "Innovation for Inclusive Growth: Towards a Theoretical Framework and a Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 661-683, June.
    26. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02276707, HAL.
    27. Paul Benneworth & Jorge Cunha, 2015. "Universities’ contributions to social innovation: reflections in theory & practice," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 18(4), pages 508-527, October.
    28. Sutter, Christopher & Webb, Justin & Kistruck, Geoff & Ketchen, David J. & Ireland, R. Duane, 2017. "Transitioning entrepreneurs from informal to formal markets," Journal of Business Venturing, Elsevier, vol. 32(4), pages 420-442.
    29. Hossain, Mokter, 2021. "Frugal innovation and sustainable business models," Technology in Society, Elsevier, vol. 64(C).
    30. Nason, Robert & Vedula, Siddharth & Bothello, Joel & Bacq, Sophie & Charman, Andrew, 2024. "Sight unseen: The visibility paradox of entrepreneurship in an informal economy," Journal of Business Venturing, Elsevier, vol. 39(2).
    31. Johanna Mair & Ignasi Marti & Marc Ventresca, 2012. "Building Inclusive Markets in Rural Bangladesh : How Intermediaries Work Institutional Voids," Post-Print hal-02312706, HAL.
    32. Dionisio, Marcelo & de Vargas, Eduardo Raupp, 2020. "Corporate social innovation: A systematic literature review," International Business Review, Elsevier, vol. 29(2).
    33. Colin C. Williams, 2011. "Entrepreneurship, the informal economy and rural communities," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 5(2), pages 145-157, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomas Karpavicius & Tomas Balezentis & Dalia Streimikiene, 2025. "Energy security indicators for sustainable energy development: Application to electricity sector in the context of state economic decisions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 1381-1400, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esther Salvi & Frank-Martin Belz & Sophie Bacq, 2023. "Informal Entrepreneurship: An Integrative Review and Future Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 265-303, March.
    2. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668, December.
    3. Adomako, Samuel & Medase, Stephen Kehinde & Zhang, Stephen X., 2024. "How and when adversity breeds ingenuity in an emerging market: Environmental threats, co-innovation, and frugal innovation," Research Policy, Elsevier, vol. 53(8).
    4. Kumar, Avinash & Kumra, Rajeev & Singh, Ramendra, 2022. "Base of the pyramid producers’ constraints: An integrated review and research agenda," Journal of Business Research, Elsevier, vol. 140(C), pages 115-129.
    5. Adomako, Samuel & Amankwah-Amoah, Joseph & Dankwah, George Obeng & Danso, Albert & Donbesuur, Francis, 2019. "Institutional voids, international learning effort and internationalization of emerging market new ventures," Journal of International Management, Elsevier, vol. 25(4).
    6. Colin C. Williams & Alvaro Martinez–Perez & Abbi M. Kedir, 2017. "Informal Entrepreneurship in Developing Economies: The Impacts of Starting up Unregistered on firm Performance," Entrepreneurship Theory and Practice, , vol. 41(5), pages 773-799, September.
    7. Saka-Helmhout, Ayse & Álamos-Concha, Priscilla & Polo-Barceló, Carlos & Edwards, Tony & Murray, Gregor, 2024. "Corporate social innovation by multinationals: A framework for future research," International Business Review, Elsevier, vol. 33(5).
    8. Eunice Maria M. N. Dos Santos & João J. Ferreira, 2017. "Analyzing Informal Entrepreneurship: A Bibliometric Survey," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-20, December.
    9. Sam Z. Njinyah & Simplice A. Asongu, 2023. "Unregistered Firms, Financial Access and Innovation," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 307-346, July.
    10. Colin C. Williams & Brunilda Kosta, 2019. "Evaluating Institutional Theories Of Informal Sector Entrepreneurship: Some Lessons From Albania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-17, June.
    11. Colin Williams, 2020. "An Institutional Theory of Tax Non- Compliance in Bulgaria: a Tax Morale Approach," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 33-49, March.
    12. Liedong, Tahiru Azaaviele & Peprah, Augustine Awuah & Amartey, Abednego Okoe & Rajwani, Tazeeb, 2020. "Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda," Journal of International Management, Elsevier, vol. 26(3).
    13. Franczak, Jennifer & Lanivich, Stephen E. & Adomako, Samuel, 2023. "Filling institutional voids: Combinative effects of institutional shortcomings and gender on the alertness – Opportunity recognition relationship," Journal of Business Research, Elsevier, vol. 155(PB).
    14. Colin C. Williams & Abbi Kedir, 2018. "Explaining Cross-National Variations In The Prevalence Of Informal Sector Entrepreneurship: Lessons From A Survey Of 142 Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-22, March.
    15. Addisu A. Lashitew & Oana Branzei & Rob van Tulder, 2024. "Community Inclusion under Systemic Inequality: How For‐Profit Businesses Pursue Social Purpose," Journal of Management Studies, Wiley Blackwell, vol. 61(1), pages 230-268, January.
    16. Colin C. Williams & Slavko Bezeredi, 2018. "An Institutional Theory Of Informal Entrepreneurship: Some Lessons From Fyr Macedonia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-22, September.
    17. Babita Bhatt & Israr Qureshi & Christopher Sutter, 2022. "How do Intermediaries Build Inclusive Markets? The Role of the Social Context," Journal of Management Studies, Wiley Blackwell, vol. 59(4), pages 925-957, June.
    18. Matus-Ruiz, Maximino & Saka-Helmhout, Ayse & Carillo, Jorge, 2025. "How institutional voids are experienced and enacted through social innovation initiatives by multinationals in emerging markets," International Business Review, Elsevier, vol. 34(2).
    19. Ault, Joshua K. & Spicer, Andrew, 2022. "The formal institutional context of informal entrepreneurship: A cross-national, configurational-based perspective," Research Policy, Elsevier, vol. 51(9).
    20. Geoffrey M. Kistruck & Patrick Shulist, 2021. "Linking Management Theory with Poverty Alleviation Efforts Through Market Orchestration," Journal of Business Ethics, Springer, vol. 173(2), pages 423-446, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:33:y:2025:i:1:p:238-250. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.