TY - JOUR
T1 - Frugal Innovations in Technological and Institutional Infrastructure
T2 - Impact of Mobile Phone Technology on Productivity, Public Service Provision and Inclusiveness
AU - Altamirano, Monica A.
AU - van Beers, C.P.
PY - 2017
Y1 - 2017
N2 - This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology-induced frugal innovations’ on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural microinsurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to, among others, reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.
AB - This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology-induced frugal innovations’ on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural microinsurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to, among others, reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.
KW - inclusiveness
KW - Information Technology
KW - M-Pesa
KW - productivity
KW - public service provision
KW - resource constraints
UR - http://resolver.tudelft.nl/uuid:fa72370f-c26d-4627-bcad-c280ee423ddc
UR - http://www.scopus.com/inward/record.url?scp=85033360210&partnerID=8YFLogxK
U2 - 10.1057/s41287-017-0115-2
DO - 10.1057/s41287-017-0115-2
M3 - Article
AN - SCOPUS:85033360210
SN - 0957-8811
SP - 1
EP - 24
JO - European Journal of Development Research
JF - European Journal of Development Research
ER -