Market development at the bottom of the pyramid: examining the role of information and communication technologies

Abstract

This paper addresses the research question, "How can the use of information and communication technology (ICT) enable development of markets at the bottom of the pyramid (BOP)?" Integrating ideas centered on the threefold role of ICT (automateinformate-transform), market mechanisms, and agency freedom aspects of ICT-enabled development, we examine how (1) ICT facilitate development of market mechanisms at the BOP, (2) market mechanisms enable economic and social benefit outcomes for BOP markets and members, and (3) complementary conditions facilitate or hinder ICTenabled market development. The findings are based on qualitative primary data from interviews with 27 BOP individuals from India, and from published and secondary examples. Theoretical contributions and implications for practice and further research are discussed.

The Role of ICT Use in SMEs Towards Poverty Reduction: A Systematic Literature Review

“…The social benefits of ICT use, such as poverty reduction and social inclusion, were presented in only one empirical study conducted by Tarafdar et al (). In their findings Tarafdar et al () indicate that the use of ICTs to enable market development has the potential to create jobs, leading to poverty reduction and access to valuable information.…”

“…The analysis of the empirical and theoretical literature discussed in this paper highlighted a number of economic benefits or business outcomes that SMEs can derive from using ICTs. The main business outcomes highlighted in the literature include an increase in business turnover, improved productivity; improved access to markets and administrative efficiencies (Ongori and Migiro, 2009;Barbara-Sanchez et al, 2007;Qureshi, 2005;Tarafdar, 2012). The theoretical model defined by Qureshi (2005) on the effects of ICTs on development suggests that ICTs can aid SMEs to attain the greatest benefits in terms of administrative efficiency, labour productivity, competitiveness and access to new markets.…”

The Global Digital Divides

“…Therefore, the disaffection with fixed phones, manifested by the lack of association with this legacy form of ICT seems intuitive. Case studies have documented use by individuals (Tarafdar et al 2012) and communities with diverse socio-economic characteristics Sharma et al 2007), discussed costs, benefits, and challenges (Kumar 2004;Pentland et al 2004;Prakash and De 2007), and debunked myths (Pentland et al 2004) about ICT adoption. A majority of these early adopters presently find employment in India's knowledge services workforce and it is essential from a development planning perspective to focus on the rapid development and deployment of infrastructure for ICTs to meet present and future ICT demands of this generation, both in urban and rural India (case in point is the rural state of Madhya Pradesh, which has high engineering/technical student enrollment per capita as shown in Fig.…”

Present and future of the use and impact of information and communication technology in informal microenterprises: Insights from India

“…Similar observations are found in Pakistan (Palvia, Baqir, & Nemati, ). ICTs are developing the market for the bottom of pyramid by various ways (Tarafdar, Anekal, & Singh, ). For instance, the operational efficiency of farmers has increased due to ICTs in dairy cooperatives in India and by coffee producers in Mexico.…”