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European Business Review
Journal Prestige (SJR): 0.585  Citation Impact (citeScore): 3 Number of Followers: 8  Hybrid journal * Containing 1  Open Access article(s) in this issue *ISSN (Print) 0955-534X - ISSN (Online) 1758-7107 Published by Emerald  [360 journals]
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- Linking an autonomy-supportive climate and employee creativity: the
influence of intrinsic motivation and company support for creativity-
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Authors: Fatemeh Nili , Misagh Tasavori
Abstract: Employees’ creativity is critical for the growth and survival of firms. Therefore, the purpose of this study is to propose a motivational model of creativity to address the effect of an autonomy-supportive climate on employee creativity. This study investigates whether this effect is mediated by intrinsic motivation in employees and depends on company support for creativity. This study used a quantitative approach to collect data by conducting a survey in a developing country using paper-based questionnaires. From 220 questionnaires distributed, 151 usable survey responses were gathered for this study. In addition, structural equation modeling was used to test the hypothesis. The results suggest a motivational contingent path through which employees’ creativity would be promoted. The findings indicate that employees in autonomy-supportive climates are more intrinsically motivated and more creative only when the company supports creativity. The findings suggest that managers should provide employees with an autonomy-supportive climate. Furthermore, rewarding, recognizing and encouraging creativity in employees should be considered by companies. This research integrates Amabile’s (1996) model of creativity and basic needs theory to empirically shed light on the inconsistent findings of the mediating role of intrinsic motivation in the relation of contextual factors to creativity. This study extends Amabile’s (1988) model to include an autonomy-supportive climate and explain how and when this kind of interpersonal climate contributes to enhanced creativity in employees. This research contributes to the basic needs theory by demonstrating that satisfaction of basic needs can also enhance creativity. The findings also add to the interactionist perspective of creativity because this study examines the interaction effect of company support for creativity and intrinsic motivation.
Citation: European Business Review
PubDate: 2022-05-09
DOI: 10.1108/EBR-06-2021-0146
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Orchestrating an experiential value proposition: the case of a
Scandinavian automotive manufacturer-
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Authors: Andreas Aldogan Eklund , Adele Berndt , Susanne Sandberg
Abstract: This paper aims to advance the theoretical knowledge of how manufacturers develop a multisensory value proposition. An exploratory case study with a global automotive manufacturer was conducted. Personal in-depth interviews with key informants within a manufacturer were performed to obtain in-depth knowledge and insights on how the manufacturer plans and designs a value proposition. This paper reveals how a value proposition is created from a sensory marketing perspective, which includes orchestrating the sensory experience, harmonising sensory cues to ensure they provide a consistent experience, thereby providing a memorable experience. Understanding how to offer value might assist managers in tailoring a unique experiential value proposition to position the brand. This paper proposes a theoretical framework, enriching the understanding of the underlying mechanisms used to create an experiential value proposition. The framework illustrates that harmonising sensory cues based on brand-related stimuli fosters a memorable experience, which enables consumers to (sub)consciously infer value.
Citation: European Business Review
PubDate: 2022-05-09
DOI: 10.1108/EBR-07-2021-0149
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- The impact of organisational capabilities on the performance of small- and
medium-sized enterprises (SMEs)-
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Authors: Joshua Ofori-Amanfo , Samuel Wunmalya Akonsi , Gloria Kakrabah-Quarshie Agyapong
Abstract: The purpose of this study was to examine the extent to which organisational capabilities do impact the performance of small- and medium-sized enterprises (SMEs) in Ghana. A cross-sectional survey design was used for the study. Data was collected from 306 SMEs from different sectors of the economy. The partial least square structural equation modelling was used to analyse the relationships between organisational capabilities and SMEs’ performance measured by their financial viability. The findings reveal as predicted that four out of the five organisational capabilities tested were indeed important predictors of SMEs’ financial viability. Specifically, managerial capability, supply chain capability, operations capability and marketing capability were found to positively and significantly impact SMEs’ financial viability. The findings further reveal that firm size does not moderate the relationship between these capabilities and financial viability. This study was undertaken in a developing economy with peculiar business operating conditions and, thus, may limit the generalisability of the findings. The findings suggest that key organisational capability development is critical for enhancing the financial viability of firms, confirming four of such critical capabilities that are needed by SMEs. The findings further suggest the need for firms irrespective of size to develop organisational capabilities. This study has empirically established that developing managerial capability, supply chain capability, operations capability and marketing capability are important success factors if SMEs, irrespective of size, intend to enhance their financial viability.
Citation: European Business Review
PubDate: 2022-05-04
DOI: 10.1108/EBR-06-2021-0139
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Organisational and environmental indicators of B2B sellers’ sales
performance in services firms-
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Authors: Rocio Rodriguez , Mornay Roberts-Lombard , Nils M. Høgevold , Göran Svensson
Abstract: This study aims to propose a conceptual framework based on organisational and environmental indicators of business-to-business sellers’ sales performance in services firms. A descriptive research design was applied and data was gathered from 389 respondents across industries and different-sized services firms in Norway using a self-administered questionnaire. Results show that the proposed six-dimensional framework of organisational and environmental indicators can be applied to manage seller–customer relationships in a business-to-business environment. A six-dimensional framework of organisational and environmental indicators is tested successfully in services firms. Increasingly, services firms will need to work closely with business-to-business sellers to proactively adapt to market changes through a co-creation approach to build long-term seller–customer relationships. To the best of the authors’ knowledge, no previous study has focused on relationship marketing in business-to-business relationships that proposes a conceptual framework based on organisational and environmental indicators of business-to-business sellers’ sales performance in services firms.
Citation: European Business Review
PubDate: 2022-04-20
DOI: 10.1108/EBR-05-2021-0123
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Exploring customer stewardship behaviors in service firms
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Authors: Henry Boateng , Fortune Edem Amenuvor , Diyawu Rahman Adam , George Cudjoe Agbemabiese , Robert E. Hinson
Abstract: The existing literature has emphasized the importance of frontline service employees developing a sense of ownership for the overall well-being of customers. However, studies into why frontline service employees develop ownership and responsibility for customers are still lacking. The purpose of this paper is to address the question, “Why do frontline service employees engage in responsible customer service behaviors and protect the interests of customers in Ghana'" A semistructured interview with 61 frontline service employees was used in the study. This study used a thematic analysis technique to analyze the data. The findings show that frontline service employees develop a sense of customer stewardship because of organizational values, human resource management initiatives (rewards and in-service training) and ownership and accountability. Studies on why frontline service employees engage in responsible customer service behaviors and protect the interests of customers is limited. This study addresses this gap in the literature.
Citation: European Business Review
PubDate: 2022-04-20
DOI: 10.1108/EBR-09-2021-0203
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Resilience and coping with a long-term crisis: the cases of Cypriot and
Greek micro and small firms-
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Authors: Nikolaos Sakellarios , Abel Duarte Alonso , Seng Kiat Kok , Seamus O’Brien , Ian Fillis , Oanh Thi Kim Vu
Abstract: The purpose of this study is to ascertain factors that enable micro- and small firms (MSFs) to cope with the effects of a long-term crisis and develop a model which guides conceptual understanding. This study’s setting is represented by the global financial crisis and by Cyprus and Greece, two nations severely affected. On-site, unstructured, face-to-face interviews were conducted among 135 MSF leaders. Sixteen different coping factors were identified as central to participants, resulting in the emergence of four key dimensions. Three dimensions, self-initiative, financial acumen and human attributes, are associated with entrepreneurs’ skills, initiatives, passion and networks, whereas one dimension, individual-firm advantage, considers firms’ and individuals’ valuable assets and resources, namely, image/reputation, quality or location. Almost two-thirds of participants recognised a lack of collaboration beyond their suppliers within their industry. Several intergroup differences were revealed, including Cypriot participants’ higher optimism concerning their firms’ future. This study responds to calls for research that illuminates the understanding of firms’ ability to overcome inadequacies imposed by the socio-economic environment in which they operate. To this end, a theoretical framework emphasising the vital significance of four dimensions is proposed. Apart from their conceptual insightfulness, the dimensions identify clear associations with resilience and coping and can therefore be of practical value to micro–small-sized firms and their respective industry.
Citation: European Business Review
PubDate: 2022-04-15
DOI: 10.1108/EBR-05-2021-0108
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- I can see the opportunity that you cannot! A nexus between individual
entrepreneurial orientation, alertness, and access to finance-
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Authors: Ahmad Raza Bilal , Tehreem Fatima , Sajid Iqbal , Muhammad Kashif Imran
Abstract: The purpose of this study is to demonstrate how alertness enable small and medium scale enterprise (SME) owners to leverage their individual entrepreneurial orientation (IEO) such as risk-taking, pro-activity, innovation, passion and perseverance in a better way to recognize opportunities for financial resources as compared to their counterparts who are not alert. Moreover, it elaborates on the mediating role of opportunity recognition of financial resources between IEO and SMEs’ access to finance (AF). A three-wave time-lagged survey from a stratified sample of 271 small and medium scale business owners in Pakistan was conducted and the data were analysed using PROCESS models 1 and 4. The findings grounded in the theory of Action Regulation, signify that the IEO of small and medium scale business owners helps them attain financial resources through opportunity recognition capacity which is an action characteristic. Moreover, the IEO of SME owners, coupled with entrepreneurial alertness (EA; a cognitive pre-action state), amplifies their ability to recognize opportunities for financial resource availability. This is one of the initial studies to test the IEO scale, including passion and perseverance. Moreover, it has added to the individual-level antecedents of AF in small and medium scale businesses through the role of EA and opportunity recognition.
Citation: European Business Review
PubDate: 2022-04-12
DOI: 10.1108/EBR-08-2021-0186
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Sustainability orientation, CSR implementation and new venture growth
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Authors: Albert Danso , Samuel Adomako , Joseph Amankwah-Amoah , Theophilus Lartey
Abstract: Building on the upper echelons theory and sustainability orientation (SO) literature, this paper aims to examine the possibility that the relationship between chief executive officers’ (CEOs’) SO and venture growth might be mediated by levels of corporate social responsibility (CSR) implementation. The authors used data obtained from 211 new ventures operating in Ghana. Multiple regression analysis was used to test the hypotheses. The authors found that CSR implementation mediates the relationship between SO and venture growth. In addition, the authors found that, at higher levels of financial slack, the effect of SO on CSR implementation is attenuated. However, the results show that, at higher levels of CEO power, the influence of SO on CSR implementation is amplified. To the best of the authors’ knowledge, this study is among the first to examine the mediating role of CSR implementation in the relationship between SO and venture growth and also examines two internal contingency factors (i.e. CEO power and financial slack) on this association.
Citation: European Business Review
PubDate: 2022-04-07
DOI: 10.1108/EBR-03-2021-0057
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Effects of customer characteristics and service quality on share of wallet
in neighbourhood shops based on an asymmetric approach-
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Authors: Christian Nedu Osakwe
Abstract: The purpose of this paper is to increase the understanding of customer share of wallet (SoW) based on research in customer characteristics and the retail service quality model. Specifically, this study adopts an asymmetrical modelling approach to provide insights into the necessary and sufficient conditions leading to increased customer SoW in the context of neighbourhood shops in Southern Africa. This study uses fuzzy-set qualitative comparative analysis to analyse survey data collected from 523 current customers of the shops. This study reveals that large household size and low income are necessary conditions for increased SoW. It also reveals five unique customer profiles, or casual recipes, associated with increased customer SoW. More generally, this study demonstrates that service quality constituents (personal interaction, reliability, policy and physical aspects of the shop) and customer characteristics, namely, relationship duration, household size, gender and income-level act in combination to lead to customer SoW. This study illustrates how service quality constituents and customer characteristics compete and/or complement each other in relation to increased customer SoW. To the best of the author’s knowledge, this is the first study to provide evidence on the necessary conditions for increased SoW, especially in the neighbourhood shop context of a developing economy. Value-wise, this paper provides a more nuanced perspective to understanding how unique customer profiles are associated with increased SoW.
Citation: European Business Review
PubDate: 2022-04-01
DOI: 10.1108/EBR-07-2020-0185
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Escaping from institutional weakness by EM-MNEs: the role of firms’
resources vulnerability-
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Authors: Mauricio Losada-Otálora , Veneta Andonova
Abstract: How does emerging market multinational enterprises’ (EM MNEs) resource vulnerability to domestic institutional weakness influence the escapist outward foreign direct investment (OFDI)' This study aims to focus on how varying qualities of technological resources make EM MNEs vulnerable to institutional weakness at home and when such a vulnerability triggers escapist OFDI. A mix of primary and secondary data is used to study evidence of escapist OFDI in the case of multilatinas. Structural equation modelling and hierarchical regressions were applied to test the hypotheses. Domestic institutional weakness triggers escapist OFDI only when EM MNEs’ resources are vulnerable to institutional pressures. Technological leadership increases the vulnerability of EM MNEs to the pressure of institutional weaknesses at home, which, in turn, motivates escapist OFDI. In discussing the role of firm resources and their vulnerability to institutional weakness, a mechanism is proposed to shed light on how EM MNEs transform the general country framework of the institutional environment into the specific decision to escape via OFDI.
Citation: European Business Review
PubDate: 2022-03-31
DOI: 10.1108/EBR-07-2021-0147
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Knowledge generation and market orientation during global crises in supply
chains-
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Authors: Fellipe Silva Martins , Leonardo Vils , Fernando Antonio Ribeiro Serra , Wanderley da Silva Junior , Domingos Márcio Márcio Rodrigues Napolitano
Abstract: Supply chains (SCs) depend on interorganizational relationships (IORs) to function optimally, yet crises may lessen the knowledge flows therein. This paper aims to address this issue by proposing a mediation effect between knowledge generation and market orientation by crisis perception in SC. Partial least square structural equation modeling was used to test the hypotheses. Data collection comprised 279 full answers of business-to-business organizations in global SCs. The data provide evidence that, contrary to the extant literature, knowledge generation during a crisis in a SC does not mitigate crisis perception. In addition, findings suggest there are no significant differences between manufacturing and service SCs in sensemaking during crises and that during crises, SC links diminish cooperation in terms of knowledge generation and sharing and focus on individual performance. The authors have found a conflicting theoretical issue – while extant literature posits setting IORs lead to high sunk cost, making IOR channels costly and reliable for information flows during crises, the behavioral perspective posits that when crises hit, exogenous shocks induce inwards focus diminishing information flows. The results provide insights on this seemingly inconsistent scenario and point to future avenues of research.
Citation: European Business Review
PubDate: 2022-03-30
DOI: 10.1108/EBR-08-2021-0175
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Intergroup dynamics in post-merger integration process
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Authors: Anne-Sophie Thelisson , Olivier Meier
Abstract: Intergroup dynamics between the acquirer and the acquired are determinants of post-merger integration success. Mergers and acquisitions scholars call for the adoption of new reading prisms to gain deeper insights on post-merger integration dynamics as the failure rate of mergers remains high. In mobilizing works from social psychology to examine intergroup dynamics, this study aims to respond to this call by shedding light on the post-merger integration process. Typologies of integration processes do not take into account intergroup dynamics that operate within the new entity, which are influencing the decision-making process. To better understand how firms achieve a successful integration (symbiosis), the authors propose a processual analysis of intergroup dynamics in post-merger integration. The research approach is a qualitative, longitudinal enquiry, which allows us to examine intergroup dynamics in two real-time merger case studies. The integration processes selected for this research include symbiotic integrations. Both integration processes were analyzed over two years, starting with the merger agreement. This study sheds additional light on the triggers for achieving symbiosis integration by demonstrating the specific role and contribution of each of the parties (majority and minority) during the process. This study shows that post-merger is a process that follows different steps to reach symbiosis, involving majority/minority dynamics. The symbiosis implies minority innovation by adopting new business and organizational practices, mainly inspired by the standards and values of the minority. The study highlights innovation by the minority as a key element in achieving a symbiotic integration. This element can be understood by managers involved in managing the integration as a turning point in the integration process. The authors investigated symbiotic integration in specific industries; questions can arise about the extent to which findings are transferable to other mergers and acquisitions contexts. This study advances the understanding of the dynamics between the majority and minority in adopting a processual and longitudinal analysis. On that point, this study gains insights on the “black box” that represents post-merger integration process.
Citation: European Business Review
PubDate: 2022-03-30
DOI: 10.1108/EBR-05-2021-0104
Issue No: Vol. 34 , No. 3 (2022)
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- The gender differences in innovative mentality, leadership styles and
organizational innovative behavior: the case the “40 Under 40” and
their impact on organizational success-
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Authors: Zaida Berdecia-Cruz , Jose A. Flecha , Maribel Ortiz
Abstract: The innovative mentality, it has been found that it is poorly addressed, which in turn does not provide clear delineations in academic literature. The innovative mentality is an opposition to the traditional innovative culture and that this is observed indirectly through the new forms of action of the younger generations. The purpose of this study aims to seek to provide answers by analyzing how the innovative mentality of leaders 40 years of age and under impacts the transformational or transactional leadership styles. Second, this research analyzes whether the leadership style used in the “40 Under 40” impacts an innovative organizational behavior that positively drives toward organizational success. The partial least squares structural equations method (PLS-SEM) is used to analyze a set of hypotheses to 103 professionals awarded the 40 under 40 of Caribbean Business Magazine in Puerto Rico between 2012 and 2016. The unit of analysis were young professionals recognized as the “40 Under 40” by the Caribbean Business Magazine in Puerto Rico between 2012 and 2016. The study results contribute a novel theory about a new style of leadership, based on innovative mentality as a central axis, when combining different leadership styles. The second study examined whether there are significant differences between male and female gender through the proposed research model. The results reflect when the organizational innovative behavior is analyzed, the transactional leadership role used by women is highlighted. This study distinguishes the “40 Under 40” from other leaders and has allowed their enterprises to be successful is their innovative leadership style, which is executed through their innovative mentality.
Citation: European Business Review
PubDate: 2022-02-22
DOI: 10.1108/EBR-07-2021-0160
Issue No: Vol. 34 , No. 3 (2022)
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- Tackling gender bias in equity crowdfunding: an exploratory study of
investment behaviour of Latin American investors
Open Access Article-
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Authors: Antonella Francesca Francesca Cicchiello , Amirreza Kazemikhasragh
Abstract: Belonging to the financial technologies’ companies, equity-based crowdfunding platforms offer investors the opportunity to become shareholders through the purchase of small equity stakes of new innovative ventures. This paper aims to investigate gender-related differences in the behaviour of investors in firms seeking equity financing in Latin America. Using a unique database, with combined information from different equity crowdfunding platforms in Brazil, Chile and Mexico, the authors study the population of 492 projects between 2013 and 2017. To analyse the relationship between investors’ gender-related differences and equity crowdfunding investment, this paper applies Poisson regression. Results suggest that the probability that an investor finances a firm is based on gender bias. Investors prefer firms led by entrepreneurs that are similar to them in terms of gender. Furthermore, the authors find evidence that both female and male investors are risk-averse and are more likely to invest in the equity of firms that are older and offer a higher percentage of equity. However, female investors are associated with firms that are on average older and offer 0.02% more equity. These findings have implications for crowdfunding platforms managers when selecting their target companies and policymakers when defining political actions to promote greater use of equity crowdfunding among female entrepreneurs and decrease barriers hindering women’s access to investment. Unique in its proposition and data usage, this study sheds light on the relationship between investors and entrepreneurs in the Latin American equity crowdfunding market.
Citation: European Business Review
PubDate: 2022-02-01
DOI: 10.1108/EBR-08-2021-0187
Issue No: Vol. 34 , No. 3 (2022)
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- Corporate social responsibility and the impact on economic value added:
the role of environmental innovation-
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Authors: Djonata Schiessl , José Carlos Korelo , Ana Paula Mussi Szabo Cherobim
Abstract: Corporate social responsibility (CSR) is a common strategy implemented by companies due to social, ethical and policy pressures to reduce its impact on society, economy and environment. However, whether CSR adds or decreases firms’ value remains little explored. Thus, this study aims to evaluate the impact of CSR adoption on companies’ economic value added (EVA). The authors also tested a mechanism of environmental innovation and the moderation role of a firm’s size. The authors performed a regression analysis and a mediation process analysis using dataset from 4,287 largest companies worldwide to investigate this issue. The a dataset was collected from Eikon, a Thomson Reuters platform. The results revealed four main findings. Companies with high CSR indexes decreased EVA; environmental innovation mediated the effect of CSR on EVA; the firm size positively moderated the effect of CSR on EVA and firm size positively moderated the effect of CSR on environmental innovation. To the best of the author’s knowledge, this research is the first endeavor to analyze CSR’s effect on EVA and the mediation role of environmental innovation using the most prominent firms worldwide. Furthermore, the results highlight exciting implications for literature, managers and policymakers.
Citation: European Business Review
PubDate: 2022-01-25
DOI: 10.1108/EBR-03-2021-0071
Issue No: Vol. 34 , No. 3 (2022)
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- Radical innovation, incremental innovation, and competitive advantage, the
moderating role of technological intensity: evidence from the
manufacturing sector in Jordan-
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Authors: Ayman Wael Al-Khatib , Eyad Mustafa Al-ghanem
Abstract: The purpose of this paper is to identify the effect of radical innovation and incremental innovation on the competitive advantage of Jordanian industrial companies and identify the moderating role of technological intensity. For this study’s purposes, 303 questionnaires from employees of 30 manufacturing firms were analysed. Convergent validity and discriminant validity tests were performed through structural equation modelling in the Smart-PLS programme. Data reliability was confirmed. A bootstrapping technique was used to analyse the data. Multi-group analysis was performed to investigate the moderating role of technological intensity. Empirical results showed that both radical innovation and incremental innovation explain 60.2% of the variance in competitive advantage and that both constructs have a statistically significant effect on competitive advantage. The results also revealed that the relationship between radical innovation and competitive advantage is modified through the high-tech industries. Meanwhile, the relationship between incremental innovation and competitive advantage is modified through the low-tech industries. This cross-sectional study provides a snapshot at a given moment in time, a methodological limitation that affects the generalization of its results and the results are limited to one country, Jordan. This study promotes the idea of focusing on radical and incremental innovation to enhance competitive advantage in the Jordanian manufacturing sector and knowing the effect of technological intensity in this relationship. This study has important implications for leaders in the Jordanian manufacturing sector in general, as the study highlights the importance of radical innovation and incremental innovation to enhance the competitive advantage, especially in light of the technological intensity in this sector, and thus, increase the innovative capabilities of this firms, which leads to an increase in the level of competitive advantage.
Citation: European Business Review
PubDate: 2021-11-23
DOI: 10.1108/EBR-02-2021-0041
Issue No: Vol. 34 , No. 3 (2021)
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- Exploring sector-specific sustainability indicators: a content analysis of
sustainability reports in the logistics sector-
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Authors: Chamari Pamoshika Jayarathna , Duzgun Agdas , Les Dawes , Marc Miska
Abstract: Businesses produce corporate sustainability information in support of the decision-making of their stakeholders through sustainability reporting. However, the use of such information has been limited because of the broadness of sustainability indicators used in sustainability reports. This study aims to identify sector-specific sustainability indicators and priorities based on the material issues of the logistics sector. The authors conducted an exploratory study using 64 sustainability reports from the logistics sector. Qualitative content analysis was performed using Leximancer software to identify key themes and material concepts of sustainability reports. The results showed that the most important indicators of the logistics sector are economic performance and energy, yet sustainability reports appear to focus more on reporting social sustainability information. Of the several sustainability measures, environmental and social factors dominated the reporting (8 economic, 62 environmental and 58 social). This discrepancy can also imply inconsistencies in sustainability reporting. Identifying sector-specific indicators enables assessing the impact of sustainability issues on value creation and performance comparison among similar organizations. This is also beneficial in ensuring consistency of sustainability reporting, which is a prerequisite for policymaking in sustainable logistics. Prior studies emphasized that no sector-specific sustainability indicators were established in the literature and standardized indicators are needed to ensure the comparability of results. This study addresses this gap by identifying sector-specific sustainability indicators based on the material issues of the logistics sector.
Citation: European Business Review
PubDate: 2021-10-15
DOI: 10.1108/EBR-02-2021-0047
Issue No: Vol. 34 , No. 3 (2021)
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- Germinating seeds in dry soil: examining the process of frugal innovation
in micro- and small-enterprises at the base of the pyramid-
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Authors: Miriam Borchardt , Charbel José Chiappetta Jabbour , José de Figueiredo Belém , Venkatesh Mani , Giancarlo Medeiros Pereira , Ágata Maitê Ritter
Abstract: This study aims to examine the process of frugal innovation (FI) in micro- and small-enterprises (MSEs) at the base of the pyramid (BOP) through the analytical lens of business models. A case study was conducted with 30 MSEs from three different industries in a very poor region in Brazil. The findings indicate that, in cases where FI is intense and dynamic, the start of the FI process is based on the reinterpretation of fashion trends and influences from the business ecosystem while the consolidation of FI in MSEs occurs through the reconfiguration of resources. Additionally, this study shows that FI depends on conditions other than the production of frugal products for BOP consumers. This study points out that the presence of end-of-life non-BOP raw materials distributed by large distributors in the case of fashion products, along with the interaction between MSEs at the BOP and these distributors, trigger FI and are profitable for both. For non-fashion products with long life cycles, there is no demand for innovation. This study addresses the research void present in the literature on FI by presenting the process of FI and the conditions that leverage or stagnate FI in MSEs at the BOP, as well as how business models are shaped by these conditions.
Citation: European Business Review
PubDate: 2021-07-26
DOI: 10.1108/EBR-12-2020-0325
Issue No: Vol. 34 , No. 3 (2021)
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- European Business Review
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