A framework for disruptive innovation capability in base-of-the-pyramid environments

Abstract

The low-income, base-of-the-pyramid (BoP) environments which characterise many emerging economies, favour the development of successful disruptive innovations by technology-based companies, yet little is known about this phenomenon in the context of new technology-based companies (NTBCs) in South Africa. The purpose of the study was to investigate the entrepreneurial processes of NTBCs, by exploring the organisation-specific and contextual factors that influence disruptive innovation capability in South Africa’s low-income environment. Following the development of a conceptual framework based on a set of qualitative propositions identified from the scholarly literature, a purposive sampling approach was used to select 20 participants in the NTBC incubation environment, to obtain their insights on the factors that enable or constrain disruptive innovation capability in low-income contexts. A semi-structured interview protocol was followed to collect data from start-up founders, business mentors and industry experts. Using the grounded theory method, the data collected were analysed through iterative coding and analysis cycles. The findings suggest that socioeconomic factors, such as the largely low-income population in South Africa, support the development of disruptive innovations. Their adoption by the market is, however, poor. Additionally, NTBCs in the local context lack an emerging-market orientation, which is crucial for the development of a disruptive innovation capability. Certain founder attributes were noted to favour the emergence of such capability, including high prior founder knowledge, strong learning capabilities, innovativeness, and passion and drive. Additionally, NTBCs face numerous challenges in developing a disruptive innovation capability, including low demand for products, poor market access, ecosystem fragmentation, and weak informational flows. On a practical level, a framework of disruptive innovation capability that highlights how NTBCs negotiate various constraining factors in the internal and external operating environments, was proposed. Theoretically, by investigating disruptive innovation capability through the lens of both resource-based and national systems of innovation theories, the study provided a holistic understanding of the internal and external factors that may influence this capability of NTBCs, in emerging economy contexts. Future work should involve a quantitative survey to further strengthen the framework developed and determine the industry scalability thereof.

Die lae-inkomste-, basis-van-die-piramide (BoP)-omgewings wat kenmerkend is van baie ontluikende ekonomieë, bevorder die ontwikkeling van suksesvolle ontwrigtende innoverings deur tegnologie-gebaseerde maatskappye. Tog is daar min bekend oor hierdie verskynsel in die konteks van nuwe-tegnologie-gebaseerde maatskappye (NTBCs) in Suid-Afrika. Die doel van die studie was om die entrepreneursprosesse van NTBCs te ondersoek, deur verkenning van die organisasie-spesifieke en kontekstuele faktore wat ontwrigtende-innovering-vermoë in Suid-Afrika se lae-inkomste-omgewing beïnvloed. Na aanleiding van die ontwikkeling van ʼn konseptuele raamwerk gebaseer op ʼn stel kwalitatiewe proposisies wat uit die vakkundige literatuur geïdentifiseer is, is ʼn benadering van doelbewuste steekproefneming gebruik om 20 deelnemers in die NTBC-inkubasie-omgewing te kies, om hul insigte te bekom oor die faktore wat ontwrigtende-innovering-vermoë in lae-inkomste-kontekste moontlik maak of beperk. ʼn Halfgestruktureerde-onderhoud-protokol is gevolg om data van stigters, besigheidsmentors en kundiges in die bedryf in te samel. Die versamelde data is met behulp van die onderlegde-teorie-metode ontleed deur iteratiewe kodering- en ontledingsiklusse. Die resultate dui daarop dat sosio-ekonomiese faktore, soos die grootliks lae-inkomste-bevolking in Suid-Afrika, die ontwikkeling van ontwrigtende innoverings ondersteun. Die mark se ingebruikneming daarvan is egter teleurstellend. Afgesien daarvan, het NTBCs in die plaaslike konteks ʼn gebrek aan ʼn ontluikende-mark-oriëntering, wat onontbeerlik is vir die ontwikkeling van ʼn ontwrigtende-innovering-vermoë. Daar is opgemerk dat bepaalde stigterseienskappe kan help dat sodanige vermoë te voorskyn kom, insluitende grondige voorafkennis van stigters, sterk leervermoëns, innoverendheid, en passie en ywer. NTBCs moet boonop talle uitdagings te bowe kom in die ontwikkeling van ʼn ontwrigtende-innovering-vermoë, insluitende ʼn lae vraag na produkte, swak marktoegang, ekostelselfragmentering, en swak vloei van inligting. Op ʼn praktiese vlak is die voorstel geopper van ʼn raamwerk van ontwrigtende-innovering-vermoë wat uitwys hoe NTBCs met verskeie beperkende faktore in die interne en eksterne bedryfsomgewings omgaan. Teoreties, danksy die bestudering van ontwrigtende-innovering-vermoë deur die lens van sowel hulpbron-gebaseerde en nasionale stelsels van innoveringsteorieë, bied die studie ʼn holistiese begrip van die interne en eksterne faktore wat ʼn invloed op hierdie vermoë van NTBCs kan hê in ontluikende-ekonomie-kontekste. Daar word aanbeveel dat toekomstige studies ʼn kwantitatiewe ondersoek behels om die raamwerk wat ontwikkel word verder te versterk, en die skaalbaarheid daarvan in die bedryf bepaal.

Mbuelo ya fhasi kha vhupo ho ḓisendekaho vhathu vhane vha dzula kha vhushai vhuhulwanesa (BoP) vhune ha ṱalusa ikonomi nnzhi dzine dza kha ḓibvelela, u fusha mveledziso ya u bveledza muhumbulo kana tshibveledzwa tshiswa wo fhelelaho nga khamphani dzo ḓisendekaho nga thekhinoḽodzhi ntswa, ngeno hu tshi ḓivhiwa zwiṱuku nga ha tshibveleli itshi kha nyimele ya khamphani dzo ḓisendekaho nga thekhinoḽodzhi ntswa (dziNTBC) Afrika Tshipembe. Ndivho ya ngudo iyi ho vha u ṱoḓisisa maitele a vhubindudzi ha (dziNTBC), nga u wanulusa zwo tiwaho zwa tshiimiswa na zwivhumbi zwa nyimele zwine zwa ṱuṱuwedza vhukoni ha u bveledza muhumbulo kana tshibveledzwa tshiswa kha vhupo ha mbuelo ṱhukhu Afrika Tshipembe. Hu tshi tevhela mveledziso ya muṱalukanyo wa furemiweke wo ḓisendekaho nga pulane dza khwaḽithethivi dzo topolwa u bva kha maṅwalwa a vhoradzipfunzo, ho shumiswa kuitele kwa tsumbonanguludzwa hu na zwe zwa sedzwa khazwo u nanga vhadzheneli vha 20 kha vhupo ha mveledziso ya dziNTBC, u wana nḓivho yavho nga ha zwivhumbi zwine zwa konisa kana thivhela vhukoni ha u bveledza muhumbulo kana tshibveledzwa tshiswa kha nyimele ya mbuelo ya fhasi. Ho tevhedzwa maitele a inthaviwu dzo tou dzudzanywaho u kuvhanganya data u bva kha vhathu vho ḓaho na mihumbulo, na vhagudisi vha re na tshenzhemo ya vhubindudzi na vhomakone vha nḓowetshumo. Musi hu tshi khou shumiswa kuitele kwa u kuvhanganya na u saukanya data, data yo kuvhanganywaho yo kuvhanganywa nga kha u khouda hune ha khou dovholola na thevhekano ya musaukanyo. Mawanwa o dzinginya uri zwivhumbi zwa ikonomi ya matshilisano, zwi ngaho vhathu vhanzhi vha mbuelo ya fhasi Afrika Tshipembe, vha tikedza mveledziso ya u bveledza mihumbulo kana zwibveledzwa zwiswa. U ṱanganedzwa nga mimaraga ndi, naho zwo ralo, a si havhuḓi. U ḓadzisa kha zwenezwo, dziNTBC kha nyimele yapo i shaya vhupo ha mveledziso ya mbambadzo, hune ha vha ha ndeme kha mveledziso ya vhukoni ha muhumbulo kana tshibveledzwa tshiswa. Zwiṅwe zwiṱaluli zwa vhathu vho thomaho na mihumbulo zwo dzhielwa nṱha u fusha u bvelela ha vhukoni uhu, hu tshi katelwa thangela nḓivho ya nṱha ya vhathu vha u ḓa na mihumbulo iyo, vhukoni ho khwaṱhaho ha u guda, vhubveledzi, vhudugambilu na mafulufulu. U ḓadzisa kha zwenezwo, dziNTBC dzo livhana na khaedu nnzhi kha u bveledza vhukoni ha u bveledza muhumbulo kana tshibveledzwa tshiswa, hu tshi katelwa ṱhoḓea dza fhasi dza zwibveledzwa, u swikelela mbambadzo dzi si dzavhuḓi, u thithiswa ha zwi tshilaho, na u elela ha mafhungo hu songo khwaṱhaho. Kha ḽeveḽe ya nyito, furemiweke ya vhukoni ha u bveledza muhumbulo kana tshibveledzwa tshiswa ine ya ombedzela uri dziNTBC dzi shandukisa hani zwivhumbi zwa zwibveledzi zwo fhambanaho kha vhupo ha u shumela ha nga ngomu na ha nga nnḓa, yo dzinginywa. Kha thiori, nga u ṱoḓisisa vhukoni ha u bveledza muhumbulo kana tshibveledzwa tshiswa nga kha mbonalo ya vhuvhili hadzo thiori ya vhubveledzi yo ḓisendekaho nga zwiko na sisiṱeme dza lushaka, ngudo yo ṋetshedza u wana ho fhelelaho ha zwivhumbi zwa nga ngomu na nga nnḓa zwine zwa nga ṱuṱuwedza vhukoni uvhu ha dziNTBC, kha nyimele ya ikonomi ine ya khou bvelela. Mushumo wa tshifhingani tshiḓaho u fanela u katela ṱhoḓiso ya khwanthithathivi u isa phanḓa na u khwaṱhisa mveledziso ya furemiweke, na u dzumbulula vhukoni ha u shumisa kha nḓowetshumo yeneyo.