TY - JOUR
T1 - Frugal business model innovation in the Base of the Pyramid
T2 - The case of Philips Community Life Centres in Africa
AU - Onsongo, Elsie K.
AU - Knorringa, Peter
AU - van Beers, Cees
N1 - Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
PY - 2023
Y1 - 2023
N2 - This paper investigates how a multinational enterprise (MNE) engages in frugal business model innovation to find the optimal balance between value creation and value capture in resource-constrained contexts in sub-Saharan Africa. Using qualitative content analysis, we analyse the case of Community Life Centres (CLC), a primary healthcare innovation developed by Royal Philips N.V., a multinational technology organisation headquartered in The Netherlands. Our findings show that an MNE can innovate by developing multiple iterations of the same business model—customising it to different geographical markets. Some aspects of the business model remain static, while others are dynamic. In this regard, the innovation process in a resource-constrained service sector is pegged on the financing model, and target markets are adjusted based on financial opportunities available, while the value proposition and costing mechanisms remain relatively static. This paper contributes new insights to the frugal innovation and business model innovation literature.
AB - This paper investigates how a multinational enterprise (MNE) engages in frugal business model innovation to find the optimal balance between value creation and value capture in resource-constrained contexts in sub-Saharan Africa. Using qualitative content analysis, we analyse the case of Community Life Centres (CLC), a primary healthcare innovation developed by Royal Philips N.V., a multinational technology organisation headquartered in The Netherlands. Our findings show that an MNE can innovate by developing multiple iterations of the same business model—customising it to different geographical markets. Some aspects of the business model remain static, while others are dynamic. In this regard, the innovation process in a resource-constrained service sector is pegged on the financing model, and target markets are adjusted based on financial opportunities available, while the value proposition and costing mechanisms remain relatively static. This paper contributes new insights to the frugal innovation and business model innovation literature.
UR - http://www.scopus.com/inward/record.url?scp=85145776279&partnerID=8YFLogxK
U2 - 10.1016/j.technovation.2022.102675
DO - 10.1016/j.technovation.2022.102675
M3 - Article
AN - SCOPUS:85145776279
SN - 0166-4972
VL - 121
JO - Technovation
JF - Technovation
M1 - 102675
ER -