A review and theoretical framework on inclusive innovation

Abstract

Abstract: Inclusive innovation is a special type of innovation oriented to the low-income market. It can create economic return as well as social value by alleviating or even eradicating poverty, promoting realization of inclusive growth. Considering the huge difference between low-income market and high-end market in terms of market participants, institutional environment and infrastructure, inclusive innovation needs the new ways of thinking, models and properties in comparison with the traditional innovation. Based on the characteristics of recipients and environmental conditions of inclusive innovation, this paper summarizes relevant researches in perspectives of marketing, strategy, institution and organization, and furthermore proposes some effective policies,providing preferences and guidelines for future research and policy making.

Key words: inclusive innovation, base of the pyramid market, poverty alleviation, inclusive growth

CLC Number:

F270.7

Xing Xiaoqiang, Zhou Jianghua, Tong Yunhuan. A review and theoretical framework on inclusive innovation[J]. Science Research Management, 2015, 36(9): 11-18.

References

[1] 林毅夫, 庄巨臣, 汤敏. 以共享式增长促进社会和谐[M]. 北京,科学出版社, 2008. Lin Yifu, Zhuang Juchen,Tang Min. Inclusive growth facilitating social harmony[M]. Beijing: Science Press, 2008. [2] Ali I., Zhuang J. Inclusive growth toward a prosperous asia: Policy implications[R]. ERD Working Paper No.97, Economic and Research Department, Asian Development Bank, Manila, 2007. [3] Prahalad C K, Hart S L. The fortune at the bottom of the pyramid[J]. Strategy + Business, 2002(26):54-67. [4] Prahalad C K. The fortune at the bottom of the pyramid, philadelphia[M]. Wharton School Publishing, 2005. [5] Martinez, J.L., Carbonell, M. Value at the bottom of the pyramid[J]. Business Strategy Review, 2007,18 (3):50-55. [6] Hart S L. Capitalism at thecrossroads[M] (3rd), Upper Saddle River, New Jersey: Pearson educational/Wharton School, 2010. [7] George G., Mcgahan A.M, Prabhu J. Innovation for inclusive growth: Towards a theoretical framework and a research agenda[J]. Journal of Management Studies, 2012: 1-23. [8] Nakata C. Creating new products and services for and with the base of the pyramid[J]. Journal of Product Innovation Management, 2012, 29(1):3-5. [9] 赵武等. 包容性创新:演进、机理及路径选择[J]. 科技进步与对策, 2014,31(6): 6-10.Zhao Wu.Inclusive innovation: Evolution, mechanism and path selection[J]. Science & Technology Progress and Policy, 2014, 31(6): 6-10. [10] Prahalad C K, Hammond A. Serving the world's poor, profitably[J]. Harvard Business Review, 2002(9): 48-57. [11] Viswanathan M., Rosa J.A. Understanding subsistence marketplaces: Toward sustainable consumption and commerce for a better world[J]. Journal of Business Research, 2010, 63(6):535-537. [12] De Soto. The mystery of capital: Why capitalism triumphs in the west and fails everywhere else[M]. New York: Basic Books, 2000. [13] 李宝库. 中国农村居民消费模式及消费行为特征研究[J].管理世界, 2005(4): 85-98. Li Baoku. Research onconsuming model and behavior of Chinese rural communities[J].Management World, 2005(4): 85-98. [14] Hammond A L, Krammer W J, Katz R S, Tran J T, Walker C. The next 4 billion: Market size andbusiness strategy at the base of the pyramid[M]. World Resource Institute, International Finance Corporation, 2007. [15] 陈光金. 中国农村贫困的程度、特征与影响因素分析[J].中国农村经济, 2008(9): 13-25. Chen Guangjin. The extent, characteristics and influencing factors ofChinese rural poverty[J].Chinese Rural Economy, 2008(9): 13-25. [16] Subrahmanyan S. J., Tomas Gomez-Arias. Integrated approach to understanding consumer behavior at bottom of pyramid[J]. Journal of Consumer Marketing, 2008, 25(7):402-412. [17] Viswanathan M., Sridharan S., Ritchie. Marketing in subsistence marketplaces, Alleviating poverty through business strategy[M]. New York: Palgrave Macmillan, 2008. [18] Chikweche T., Richard Fletcher. Understanding factors that influence purchases in subsistence markets[J]. Journal of Business Research, 2010, 63(6): 643-650. [19] Nakata C., Weidner K. Enhancing new product adoption at the base of the pyramid: A contextualized model[J]. Journal of Product Innovation Management, 2012, 29(1):21-32. [20] Chesbrough, H., Ahern, S., Finn, M., Guerraz, S. Business models for technology in the developing world: The role of non-governmental organizations[J]. California Management Review, 2006, 48(3): 48-61. [21] Banerjee, A., Duflo, The economic lives of the poor[J]. Journal of Economic Perspectives, 2007, 21(1): 141-167 [22] Perez-Aleman, P., Sandilands, M. Building value at the top and the bottom of the global supply chain: MNC-NGO partnerships[J]. California Management Review, 2008, 51(1):24-49. [23] London T, Anupindi R, Sheth S. Creating mutual value: Lessons learned from ventures serving base of the pyramid producers[J]. Journal of Business Research, 2010, 63(6): 582-594. [24] Vachani S, Smith N C. Socially responsible distribution: Distribution strategies for reaching the bottom of the pyramid[J]. California Management Review, 2008, 50(2): 52-84. [25] Mendoza R.U., Thelen N. Innovations to make markets more inclusive for the poor[J]. Development Policy Review,2008, 26 (4): 427-458. [26] Mair, J., Martí, I. Entrepreneurship in and around institutional voids: A case study from Bangladesh[J]. Journal of Business Venturing, 2009, 24(5), 419-435. [27] Mair J, Martí, Ventresca. Building inclusive markets in rural bangladesh[J]. Academy of Management Journal, 2013, 75(4): 819-850. [28] Anderson J, Markides C. Strategic innovation at the base of the pyramid[J]. MIT Sloan Management Review, 2007, 49(1): 83-88. [29] Prahalad C. K. Bottom of the pyramid as a source of breakthrough innovations[J]. Journal of production innovation management, 2012, 29(1):6-12. [30] Acosta P, Kim N, Melzer I, Mendoza R.U., Thelen N. Business and human development in the base of the pyramid: Exploring challenges and opportunities with market heat maps[J]. Journal of world business, 2010(46):50-60. [31] Weidner L., José Antonio Rosa, Viswanathan. Marketing to subsistence consumers: Lessons from practice[J].Journal of Business Research, 2009, 63(6): 559-569. [32] Viswanathan, M., Sridharan, S., Ritchie. Marketing in subsistence marketplaces, alleviating poverty through business strategy[M]. New York: Palgrave Macmillan, 2008. [33] 张利平, 高旭东,仝允桓. 面向低收入群体市场的产品创新研究[J]. 中国人口资源与环境, 2012, 22(5):195-200. Zhang Liping, Gao Xudong, Tong Yunhuan. Study on BOP-oriented product innovation[J]. China Population Resource and Environment, 2012, 22(5):195-200. [34] Wooder S., Baker S. Extracting key lessons in service innovation[J]. Journal of product innovation management. 2012, 29(1):13-20. [35] Pitta Dennis A.,Guesalaga R,Marshall P. The quest for the fortune at the bottom of the pyramid: Potential and challenges[J].Journal of Consumer Marketing, 2008,25(7):393-401. [36] London T., Hart S. L. Reinventing strategies for emerging markets: Beyond the transnational model[J]. Journal of International Business Studies, 2004, 35(5):350-360. [37] Hart S. L., London T. Developing native capability: What multinational corporations can learn from the base of the pyramid[J]. Stanford Social Innovation Review, 2005, 3(2):28-33. [38] Tashman P., Valentina Marano. Dynamic capabilities and base of the pyramid business strategies[J]. Journal of Business Ethics, 2010 (89):495-514. [39] Seelos C, Mair J. Profitable business models and market creation in the context of deep poverty: A strategic view[J]. Academy Of Management Perspectives, 2007, 21(4): 49-63. [40] Sánchez P, Ricart J.E. Business model.innovation and sources of value creation in low-income markets[J]. European Management Review, 2010(7): 138-154. [41] Yunus M., Moingeon and Laurence. Building social business models: Lessons from the grameen experience[J]. Long Range Planning, 2010, 43(2-3):308-325. [42] Schrader C., Juergen Freimann, Stefan Seuring. Business strategy at the base of the pyramid[J]. Business Strategy and the Environment, 2012, 21(5): 281-298. [43] 邢小强,陈晓鹏,仝允桓. 金字塔底层市场的商业模式:一个多案例研究[J]. 管理世界, 2011(10): 108-124. Xing Xiaoqiang, Chen Xiaopeng, Tong Yunhuan. The business model at the base of the pyramid markets: A multi-case study[J]. Management World, 2011(10): 108-124. [44] 郝秀清, 张利平, 陈晓鹏. 低收入群体导向的商业模式创新研究[J]. 管理学报, 2013, 10(1): 62-69. Hao Xiuqing, Zhang Liping, Chen Xiaopeng.[J]. BOP-oriented business model innovation.Chinese Journal of Management, 2013, 10(1): 62-69. [45] Thompson J.D. and MacMillan. I.C., Business models: Creating new markets and societal wealth[J]. Long Range Planning, 2010, 43(2-3):291-307. [46] McGrath R.G. Business models: A discovery driven approach[J]. Long Range Planning, 2010, 43(2-3): 247-261. [47] Khanna T, Palepu K. Why focused strategies may be wrong for emerging markets[J]. Harvard Business Review, 1997, 75(4): 41-51. [48] Chambers, R. Whose reality counts? Putting the first last[M]. ITDG Publishing: London.1997. [49] Rivera-Santos M, Rufin. Between commonweal and competition: Understanding the governance of public-private partnerships[J]. International Business Review, 2010, 19(2): 126-139. [50] Rivera-Santos M, Rufín C., Kolk A., Bridging the institutional divide: Partnerships in subsistence markets[J]. Journal of Business Research, 2011(3): 122-134. [51] Heuer M. Ecosystem cross-sector collaboration: Conceptualizing an adaptive approach to sustainability governance[J]. Business Strategy and the Environment, 2011(20): 211-221. [52] 赵晶. 企业社会资本与面向低收入群体的资源开发型商业模式创新[J]. 中国软科学, 2010(4): 116-123. Zhao Jing.Resource-developed BOP oriented business innovation model seen from the view of corporate social capita l[J]. China Soft Science, 2010(4): 116-123. [53] Ramachandran J., Pant Anirvan, Pani Saroj Kuma. Building the BOP producer ecosystem: The evolving engagement of fabindia with indian handloom artisans[J]. Product Development & Management Association, 2012, 29(1):33-51. [54] London, T. and Rondinelli, D.A., Partnerships forlearning: Managing tensions in nonprofit organizations' alliances with corporations[J]. Stanford Social Innovation Review, 2003, 1(3):28-35. [55] Brugmann, J., Prahalad, C. K. Co-creating business's new social compact[J]. Harvard Business Review, 2007(2):80-90. [56] Reficco E A, Marquez P. Inclusive networks for building BOP markets[J]. Business & Society, 2012, 51(3): 512-556. [57] Findlay-Brooks R, Visser W, Wright T. Cross-sector partnerships as an approach to inclusive development[J]. University of Cambridge Program for Industry Research Paper 4. 2007. [58] 张利平, 高旭东, 仝允桓. 社会嵌入与企业面向 BOP 的商业模式创新一个多案例研究[J]. 科学学研究, 2011, 29(11): 1744-1752. Zhang Liping, Gao Xudong, Tong Yunhuan. Social embeddedness and BOP-oriented innovation initiatives: A multi-casestudy[J]. Studies in Science of Science, 2011, 29(11): 1744-1752. [59] Olsen, Mette. Bottom-of-the-pyramid: Organizational barriers to implementation[J]. California Management Review, 2009, 51(4): 100-125. [60] Hens L. Overcoming institutional distance: Expansion to base-of-the-pyramid markets[J]. Journal of Business Research, 2012, 65(12): 1692-1699. [61] Hart S. L., Milstein M B. Creating sustainable value[J]. Academy of Management Executive, 2003,17(2): 56-67. [62] 邢小强,周江华,仝允桓. 面向低收入群体市场的创新研究[J]. 科学学研究, 2010, 28(10): 1564-1570. Xing Xiaoqiang, Zhou Jianghua, Tong Yunhuan. Research on innovation towards the bottom of pyramid market[J]. Studies in Science of Science, 2010, 28(10): 1564-1570. [63] Kanter R.M, When giants discover the disadvantaged: Managerial challenges and success factors in building capacity to serve underserved markets[A]. K. Rangan, J. Quelch, G. Herrero, B. Barton (Eds.), Business solutions for the global poor: Creating social and economic value[C].San Francisco: Jossey-Bass, 2007, pp.223-238. [64] Galema R., Robert Lensink and Roy Mersland. Do powerful CEOs determine microfinance performance?[J]. Journal of Management Studies, 2012, (49)4:918-742. [65] Halme M, Lindeman S, Linna P. Innovation for inclusive business: Intrapreneurial bricolage in multinational corporations[J]. Journal of Management Studies, 2012, 49(4): 743-784. [66] 邢小强,周江华,仝允桓. 包容性创新:概念、特征与关键成功因素[J]. 科学学研究, 2013, 31(6): 923-931. Xing Xiaoqiang, Zhou Jianghua,Tong Yunhuan. Inclusive innovation: Concept, characteristics and keysuccessful factors[J]. Studies in Science of Science, 2013, 31(6): 923-931.