Resumen

ARNOLD, MG. Inclusive value creation for sustainability of frugal innovations in the base of the pyramid low-income contexts. JCMAN [online]. 2018, vol.15, n.spe, pp.218-244. ISSN 1815-7440.

Inclusive value creation is characteristic for Base of the Pyramid (BOP) 2.0 and often relates to frugal innovation and sustainability. Yet, main network characteristics of sustainability value creation in BOP markets are rather unclear. How can sustainability inclusive value creation be fostered by the companies offering frugal innovations in BOP or low-income markets? A sample of 46 frugal innovations offered at BOP markets were analysed concerning their network characteristics of value creation and sustainability effects by content analysis. Versatile and complex cooperation are characteristics of those markets. Yet, holistic sustainability is not mentioned. Sustainability effects are mainly based on given circumstances, the BOP contexts, and cost or price caps. The six main findings of the content analysis are: (1) Inclusive value creation is often a precondition for successful market entrance by (Multinational companies) MNCs; (2) MNCs have to develop capabilities concerning partnerships and local culture for market success; (3) Limited sustainability effects of frugal innovations offered by MNCs in BOP markets; (4) Sustainability value creation of MNCs are characterised by decentralised Research & Development (R), modular and scalable design, flexible production and an integration of locals in distribution; (5) (Small Medium Enterprises) SMEs and (Non-Government Organisations) NGOs are pivotal to develop the BOP markets in a sustainable manner, as well as (6) Cultural connectivity, local contexts, long-term orientation and collaborative multi-stakeholder approach are key determinants for sustainable development.

Palabras clave : BOP markets; inclusive value creation; innovations; MNCs; network approach and sustainability.

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