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Business model innovation and sources of value creation in low‐income markets
Author(s) -
Sánchez Pablo,
Ricart Joan E.
Publication year - 2010
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1057/emr.2010.16
Subject(s) - leverage (statistics) , business model , business , business rule , contingency , new business development , artifact centric business process model , context (archaeology) , industrial organization , value capture , marketing , order (exchange) , business process modeling , knowledge management , business process , computer science , finance , paleontology , linguistics , philosophy , work in process , machine learning , biology
We explore different business ventures in low‐income markets in order to understand the factors influencing business model innovation in this context. Grounded in the rich data obtained from multiple case study analyses and in the received theory in strategy in low‐income markets and business models, we identified a set of contingency factors that permitted us to distinguish between isolated and interactive business models. Isolated business models widen its entrance into new markets by leveraging firm's current resources and capabilities for taking advantage of existing opportunities. Interactive business models require a firm to combine, integrate and leverage both internal resources with ecosystem's capabilities to create new business opportunities. Finally, we discuss the main implications on value creation from these business models.