It Innovation In Emerging Economies

Rai, Sudhanshu; Pedersen, Mogens Kuehn

doi:10.1080/15228053.2010.10856193

Cited by 3 publications

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“…Porém, com o crescimento econômico, os consumidores da BOP são capazes de pagar por produtos de qualidade adaptados às suas necessidades Barki & Parente, 2010). A BOP é capaz de oferecer grande potencial de mercado com benefícios expressivos, como crescimento econômico, lucro e contribuições ambientais e sociais para humanidade (Rai & Pedersen, 2010;Zhou et al, 2011).…”

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Adoção da inovação pelo consumidor de baixa renda

Nogami¹

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Research on innovation and the low-income market usually focus on product development and marketing management, taking a top-down approach, from companies to consumers. This approach suggests prescriptive texts on management of multinational companies in both developed markets and emerging markets. From an individual point of view, it has given little attention to understanding the adoption of innovation by low-income consumers. This PhD dissertation aimed to investigate the concept of innovation from this perspective, taking a bottom-up approach, mainly focusing on consumers rather than companies. Therefore, the aim of the dissertation is to analyze the factors influencing the innovation adoption of products for low-income consumers. The empirical object of the dissertation consists in the smartphone market since is a product with innovative features and affordable to low-income consumers. The theoretical assumptions that support the dissertation consists of the constraints faced by consumers in the market of the base of the pyramid, which include low income, lack of information and knowledge and lack of confidence. These individual constraints caused by infrastructural problems affect negatively the adoption of innovation by consumers. This relationship supports the main effect of the dissertation model, the hypothesis 1. The literature and concepts used to support the research were the Antecedents of UTAUT 2, 4A's of Anderson and Billou, 12 Principles of Prahalad, Disruptive Innovation, Innovation Reverse, and Inclusive innovation. A review of these theories resulted in four concepts that we consider factors that influence adoption of innovation in low-income market, which are the Features and Benefits (CB), Ease of Use (FU), Simplicity (SI), and Affordability (PA) of products. These concepts resulting from the literature review supported the hypotheses 2, 3, 4 and 5 that analyze the moderating effect of these variables on the adoption of innovation. To achieve each of the two specific objectives of the dissertation, two studies were conducted. Study 1, exploratory phase, consisted of six focus groups conducted in Favela of Paraisópolis in Sao Paulo and a complementary inquiry of 11 in-depth interviews conducted in rural areas of South India. The study 1 aimed to identify the factors that influence adoption of innovation by low-income consumers. Study 2, descriptive phase, consisted of a survey carried out in three low-income areas in São Paulo city that aimed to analyze the direct relationship between the constraints of low-income consumers and the adoption of innovation (H1) and moderating effect of Features and Benefits (H2), Ease of Use (H3) Simplicity (H4) and Affordable Price (H5) of this relationship. Study 2 also included an additional research involving a survey carried out with high-income consumers. The main results of the study 1 (exploratory phase) show that the income constraints, lack of information, knowledge and confidence really affect the rate of adoption of innovation. In addition, more tha...

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