Mechanisms for fostering inclusive innovation at the base of the pyramid for community empowerment : empirical evidence from public and private sector

Abstract

Sustainability and sustainable mindsets have become vital topics of discussion among the scientific community, practitioners, and policy makers. Large international organizations, such as the UN, have sought to familiarize multinational enterprises (MNEs), small and medium-sized enterprises (SMEs) and political institutions with ways to generate community growth in developing countries. Both scholars and practitioners see innovation playing an important role in generating community growth in developing countries. However, innovation research often focuses on the production of goods and mostly to offer affordable products to less privileged communities, such as the Base of the Pyramid (BOP) markets. Inclusive innovation aims to create a mechanism to not only sell products and services in marginalized communities but also engage the locals in community empowerment. To have long-term business operations in developing countries, it is important to consider the acts of localization and gaining access to grassroot-level knowledge.

The purpose of this dissertation is to explore the concept of inclusive innovation using both primary and secondary data sources to produce conceptual models that showcase how inclusive innovation can be fostered. Findings from this dissertation reveal inclusive innovation as a mechanism that can be used by SMEs, MNEs, NGOs and policy makers for win-win scenarios in which both companies and communities can benefit. After a four-year process, we have devised several conceptual models, backed by primary and secondary data sources. We refined our conceptual models for inclusive innovation through multiple studies using theorical concepts from sustainability, innovation management, and international business research streams.

However, one important finding common to every study was that several types of innovation, from production level to the partnership level, make up inclusive innovation. Additionally, inclusive innovation cannot be made in isolation, and companies or institutions need to engage with systems of different actors (i.e., government institutions, local entrepreneurs, and local people) in the market. Moreover, in this dissertation, several challenges have presented themselves after our attempts to operate with inclusive innovation. These challenges are mostly related to uncertainty, resource management and institutional voids. Our research shows that companies can overcome these challenges through grassroot-level partnerships made within the host country. Lastly, this dissertation has made contributions to theory, revealed implications for management, and resulted in several policy recommendations.