Unintended Consequences of Business with 4 Billion

2012 ◽  
pp. 42-54 ◽  
Author(s):  
Nancy E. Landrum
Keyword(s):  
Emerging Economies ◽  
Environmental Sustainability ◽  
Business Models ◽  
New Products ◽  
Academic Research ◽  
Unintended Consequences ◽  
Economic Conditions ◽  
Base Of The Pyramid ◽  
Social Environmental ◽  
International Strategies

In the past, there has historically been a pursuit of profit as the motive for multinational corporation (MNC) international strategies in emerging economies. We have long known of some of the unintended and controversial consequences of MNC international strategies on emerging economies. By contrast, base of the pyramid strategies (BOP) are aimed at the poorest residents in emerging economies and seek to improve social, environmental, and economic conditions for all, ideally addressing many of the problems encountered with more traditional MNC international strategies. Anecdotal examples continue to accumulate of businesses with success in the base of the pyramid, fueled by innovation in new products, services, and/or business models. However, academic research is emerging that does not support this image of BOP success. This chapter will discuss unintended consequences or outcomes of BOP strategies which may not always result in environmental sustainability, improved lives in the BOP, and improved economic conditions. This presentation focuses specifically on the unintended consequences of base of the pyramid strategies within emerging economies. Even with the recent interest in BOP strategies, closer scrutiny of current examples of BOP successes still reveal some of the same negative unintended consequences as MNC international strategies; that is, there is still an emphasis on profit ahead of responsibility and sustainability. Literature and research reviewed in this chapter reveals that BOP strategies have resulted in the promotion of stereotypes, an anticipated increase in e-waste under already hazardous recycling conditions in India and Africa, a loss of social capital, and worsened economic conditions.

scholarly journals Managers Fail to Innovate and Academics Fail to Explain How

2018 ◽  
Vol 14 (1) ◽  
pp. 229-239 ◽  
Author(s):  
Deborah Dougherty
Keyword(s):  
Emerging Economies ◽  
Climate Changes ◽  
Business Models ◽  
Business Processes ◽  
New Products ◽  
Grand Challenge ◽  
Social Changes ◽  
Development Processes ◽  
Investor Returns ◽  
Over Time

I am stunned by the failure of so many organizations to create the capability for generating streams of new products and services over time. Organizations capable of ongoing innovation can create more profits, more value, more employment, more growth, and more adaptability to transformations in technologies and markets (BCG study of investor returns). Generating streams of innovation is even more important now, especially for organizations in emerging economies, because industrial transformations and global grand challenges (Ferraro, Etzion, & Gehman, 2015) demand continuous innovations in products, programs, business processes, and strategies. For example, digitalization is transforming business models from vertical industrial silos such as consumer goods, materials, or financials to horizontal platforms that orchestrate networks, create technologies, and provide services (think Amazon, Alibaba). New markets and technologies emerge unpredictably but will produce major economic and social changes. Emerging economies more directly face grand challenge complexities of poverty, water scarcity, inequality, and climate changes. Innovations in emerging economy organizations are also very complex, since they often include innovations in sales, distribution, and business models along with rigorous product design and development processes.

The Impact of Circular Economy on the Fashion Industry

2020 ◽  
pp. 142-160
Author(s):  
Tugce Aslan ◽  
Adem Akbiyik
Keyword(s):  
Environmental Sustainability ◽  
Circular Economy ◽  
Business Models ◽  
Consumer Preferences ◽  
Academic Research ◽  
Sharing Economy ◽  
Fashion Industry ◽  
Commercial Markets ◽  
New Business ◽  
Consumer Perspective

The fundamental changes in technology and globalization have changed consumer preferences along with the way people buy and consume. This change has profoundly affected new business models and consumption systems in all commercial markets, including the fashion industry in particular. Moreover, fashion businesses have begun to shift from traditional proprietary access business models to the sharing economy. The effect of the sharing economy or circular economy on the fashion industry is increasing day by day. Clothing sharing services, recycling, and re-use of used garments contribute to environmental sustainability and contribute to economic and social sustainability through sales revenue and employment. However, there is limited academic research on clothing sharing models. This research focuses on Dolap application, a clothing sharing service. It examines the role of trust in clothing sharing services from a consumer perspective. As a result of the analysis, it was found that trust in the platform positively and significantly affected the trust given to the service provider.

India as a Hub of Innovations for the Millions (I4M)

2018 ◽  
Author(s):  
Vijay Mahajan
Keyword(s):  
Quality Of Life ◽  
Young People ◽  
New Products ◽  
High Growth ◽  
Institutional Arrangements ◽  
Base Of The Pyramid ◽  
Large Economy ◽  
The World

This chapter deals with Indian ‘innovations for the millions’ (I4M)—new products, processes, and institutional arrangements—that sustainably improve the quality of life of those at the base of the pyramid. Taking ten examples which originated from the private, public, NGO and cooperative sectors, the chapter suggests that these innovations are a response of the ‘elite of calling’ to the Indian paradox – high growth in a large economy, co-existing with a very large number at the base of the pyramid. The chapter argues that a more supportive ecosystem needs to be built to foster I4M, including reforms in regulation and taxation, and attracting bright young people. If that happens Indian I4M can serve billions at the base of the pyramid around the world.

scholarly journals Pursuing Frugal Innovation for Sustainability at the Grassroots Level

2021 ◽  
pp. 1-8
Author(s):  
Mokter Hossain ◽  
Jarkko Levänen ◽  
Marleen Wierenga
Keyword(s):  
Developing Countries ◽  
Environmental Sustainability ◽  
Business Models ◽  
Business Strategies ◽  
Future Research ◽  
Frugal Innovation ◽  
New Business ◽  
Grassroots Level ◽  
Societal Problems ◽  
New Business Models

ABSTRACT Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level in India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.

scholarly journals Considerations, benefits and unintended consequences of banning plastic shopping bags for environmental sustainability: A systematic literature review

2021 ◽  
pp. 0734242X2110039
Author(s):  
Asphat Muposhi ◽  
Mercy Mpinganjira ◽  
Marius Wait
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Environmental Sustainability ◽  
Self Regulation ◽  
Policy Option ◽  
Unintended Consequences ◽  
Transient Nature ◽  
Plastic Bags ◽  
Plastic Bag ◽  
Foamed Plastics

Although the ban on plastic bags is gaining in prominence as a policy option to manage plastic bag litter, there are mixed views on its rationale and effectiveness. This study employs a systematic literature review to understand considerations, benefits and unintended consequences of banning plastic bags. The review’s results pointed to the limited success of a plastic bag ban owing to lack of suitable alternatives, limited state capacity to monitor and enforce the ban, thriving black market, structural and instrumental power of the plastic industry. The power of the industry was manifested by the covert practice of deflecting accountability to consumers by focusing on business-oriented solutions, including an inclination towards self-regulation. The findings of this study underscored the need for a global treaty to address the transient nature of plastic bag litter and moving away from the symbolic gesture of targeting only plastic shopping bags but considering the environmental impact of all forms of plastic such as straws, foamed plastics, plastic bottles and caps. There is a general consensus in literature that the end of plastic shopping bags is not nigh due to their utilitarian benefits. This study therefore recommends the promotion of a circular economy focusing on ecological modernisation, sustainable plastic bag manufacturing and recovery strategies such as recycling as a long-term strategy. A significant strand of literature reviewed also recommends the adoption of community-driven approaches such as voluntary initiatives as opposed to a plastic bag ban as they proved to be effective in promoting environmental citizenship behaviours in countries such as Finland.

scholarly journals Secondary Business Model Innovation in Emerging Economies

2021 ◽  
pp. 1-30
Author(s):  
Sonia Mehrotra ◽  
S. Ramakrishna Velamuri
Keyword(s):  
Organizational Learning ◽  
Business Model ◽  
Emerging Economies ◽  
Business Models ◽  
Business Model Innovation ◽  
Street Vendors ◽  
China And India ◽  
Successful Business ◽  
Quick Service

ABSTRACT We study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.

scholarly journals Green business models in the construction sector: an analysis of outcomes and benefits

2018 ◽  
Vol 18 (1) ◽  
pp. 20-42 ◽  
Author(s):  
Amal Abuzeinab ◽  
Mohammed Arif ◽  
Mohd. Asim Qadri ◽  
Dennis Kulonda
Keyword(s):  
Environmental Sustainability ◽  
Business Models ◽  
Dominant Role ◽  
Business Case ◽  
Essential Elements ◽  
Construction Sector ◽  
Structured Interviews ◽  
Content Type ◽  
Green Business ◽  
The Uk

Purpose Green business models (GBMs) in the construction sector represent the logic of green value creation and capture. Hence, the call to examine GBMs is growing ever louder. The aim of this paper is to identify benefits of GBMs by adopting five essential elements of the GBM from the literature: green value proposition; target group; key activities; key resources (KR); and financial logic. Design/methodology/approach In all, 19 semi-structured interviews are conducted with construction sector practitioners and academics in the UK. Thematic analysis is used to obtain benefits of GBMs. Further, the interpretive ranking process (IRP) is used to examine which elements of the GBM have a dominant role in providing benefits to construction businesses. Findings The benefits are grouped into three themes: credibility/reputation benefits; financial benefits; and long-term viability benefits. The IRP model shows that the element of KR is the most important when evaluated against these three benefit themes. Practical implications Linking GBM elements and benefits will help companies in the construction sector to analyse the business case of embracing environmental sustainability. Originality/value This research is one of the few empirical academic works investigating the benefits of GBMs in the construction sector. The IRP method is a novel contribution to GBMs and construction research.

Fueling Spin-offs: Case Studies of University-based Technology Start-up Funding

2021 ◽  
Vol 22 (1) ◽  
pp. 29-40
Author(s):  
Julie Lenzer ◽  
Piotr Kulczakowicz
Keyword(s):  
Product Development ◽  
New Technologies ◽  
Early Stage ◽  
New Products ◽  
Academic Research ◽  
Real Life ◽  
Private Investment ◽  
Building Relationships ◽  
Start Up ◽  
Single Path

The new technologies born from academic research can be very promising, yet they are often very early stage. University spin-off companies are uniquely positioned to tackle the risks associated with new technologies emerging from academia by developing proofs of concept, functioning prototypes, and new products. While these enterprises start from a solid research and development foundation, they face their own unique set of challenges—they are strongly anchored in the scientific and technological expertise that is typically backed by intellectual property but often lack the business experience needed to develop and market products demanded by customers. University spin-offs have access to substantial non-dilutive funding that can be utilized for advancing product development. While the relentless pursuit of these funds builds a company's credibility and improves its position for negotiating future private investment, university spin-offs would greatly benefit from an early focus on complementing their technology teams with their business teams. These new enterprises should consider pursuing private investment in parallel to utilizing sources of non-dilutive funding. Timing of private investment is extremely important to maximize the value of the opportunity, and, therefore, building relationships with investors early on and getting ready for executing an investment round can greatly increase odds for success. While there is no single path to formulate, pursue, and adapt successful financing strategies, lessons can be learned from real-life cases of university spin-offs that continue their journeys towards ultimate success.

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