BUSINESS MODEL EVOLUTION IN BASE-OF-THE-PYRAMID MaRKETS

This article provides insight into the evolution of BMs in the provision of safe water to people living in base-of-the-pyramid (BoP) markets. We have investigated the BM evolution of two East African organizations, both of... [ view full abstract ]

This article provides insight into the evolution of BMs in the provision of safe water to people living in base-of-the-pyramid (BoP) markets. We have investigated the BM evolution of two East African organizations, both of which make the assumption that their BoP BM should evolve in order to become inclusive, complex and collaborative. In more specific detail, BM evolution is characterized by four BM reconfigurations: (i) initiation, (ii) diversification, (iii) renewal and (iv) scaling. Such reconfigurations revitalize the idea that BMs are permanently in a state of transitory disequilibrium. These reconfigurations suggest that BM evolution is about managing the internal consistencies in the value proposition, value capture and value creation, independently from the actual organizational form if being a profit-oriented or non-profit-oriented organization. BoP BMs become complex because they cope with tensions emanating from economic and social goals, but become even more complex through diversification, renewal and scaling