Access-based business model innovation in frontier markets: Case study of shared mobility in Timor-Leste

• Published in: Technological forecasting & social change Vol. 143; pp. 224 - 238
• Main Authors: Wiprächtiger, David, Narayanamurthy, Gopalakrishnan, Moser, Roger, Sengupta, Tuhin
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.06.2019; Elsevier Science Ltd
• Subjects: Access-based services; Business; Business model innovation; Business models; Case studies; Contextual intelligence; Economic development; Economic factors; Economic growth; Frontier markets; Industrial development; Innovations; Markets; Shared-mobility; Timor-Leste; Timor-Leste; Business model innovation; Access-based services; Shared-mobility; Contextual intelligence; Frontier markets; Timor-Leste
• ISSN: 0040-1625; 1873-5509
• DOI: 10.1016/j.techfore.2019.02.004

Despite the vast amount of research on business model innovation, little is known about what decision-makers must consider while innovating access-based business models in the context of frontier markets. To address this research gap, we develop a comprehensive framework for access-based business model innovation in frontier markets. A participative observation approach is adopted to collect the data on the case study of Microlets, a shared mobility service in Timor-Leste, for validating the framework. We successfully demonstrate the application of the proposed framework to show how access-based business model innovations can minimize issues such as accessibility and affordability, and spur economic growth by giving importance to the factors of contextual intelligence. Three different business model innovation options were compared across the differentiating factors surrounding the contextual requirements of the frontier market to validate the relevance of our framework. By examining factors such as the institutional environment, industry dynamics and infrastructural development, the proposed framework will guide decision-makers to cope up with the inherent uncertainty of frontier markets while developing access-based business models. •Contextual intelligence is key to business model innovation in frontier markets.•Framework developed captures information needs of decision makers in frontier markets.•Access-based business model innovation minimizes frontier market constraints.•Access-based mobility services in Timor-Leste will benefit from digitization.