Essential Capabilities for Successful Digital Service Innovation at the Bottom of the Pyramid

Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple...

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Bibliographic Details
Published inCalifornia management review Vol. 66; no. 3; pp. 69 - 92
Main Authors Sunder M, Vijaya, Modukuri, Siddhartha
Format Journal Article
LanguageEnglish
Published Los Angeles, CA SAGE Publications 01.05.2024
Subjects
Innovations
Value creation
service innovation
capabilities
case method
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Summary:Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple-case method, this study inductively derives persuasion, co-creation, adaptation, and self-sustainability as essential capabilities. Cumulative maneuvering of these capabilities resulted in a sand cone model. Both established incumbents and digital natives benefit from this model, which enables them to safeguard their digital offerings while penetrating or expanding within BOP markets.
ISSN:0008-1256
2162-8564
DOI:10.1177/00081256241231832