Uncovering the scaling of innovations developed by grassroots entrepreneurs in low-income settings

Wierenga, Marleen

doi:10.1080/08985626.2019.1640478

Cited by 55 publications

(40 citation statements)

References 109 publications

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“…First, the unemployed may pursue opportunities of a different type -arbitrage -and, by so doing, minimize the net loss in startup rates due to the tight control of clusters over the innovative opportunities they create. Second, even if the innovative opportunities that escape clusters are of a lesser quality than those that spill over from incumbents and research institutions, the lack of mainstream employment opportunities may encourage the unemployed to join the newly created startups irrespective of the likelihood of success (Wierenga 2019). In a sense, the sheer size of the labour pool makes it easier for those with entrepreneurial intentions to 'sell' their ideas to potential workers.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Flagship enterprises, entrepreneurial clusters, and business entry rates: insights from the knowledge spillover theory of entrepreneurship

Anokhin

Chistyakova

Antonova

et al. 2021

Entrepreneurship & Regional Development

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Employing a panel setting of 88 counties in the State of Ohio over the fiveyear period ending in 2006, this study aims to investigate the applicability of the knowledge spillover theory of entrepreneurship in explaining the relationships between flagship enterprises, entrepreneurial clusters, and business entry rates. The study confirms the overall positive relationship between flagship enterprises and startup rates, and the negative relationship between entrepreneurial clusters and startup rates. It further demonstrates that the effect of clusters is moderated by local unemployment rates so that higher rates of unemployment weaken the negative impact of entrepreneurial clusters on startup rates. Based on the evidence collected, policy makers should increase support for flagship enterprises in their regions, and would-be business owners should consider locating their ventures in proximity to flagship companies.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Flagship enterprises, entrepreneurial clusters, and business entry rates: insights from the knowledge spillover theory of entrepreneurship

Anokhin

Chistyakova

Antonova

et al. 2021

Entrepreneurship & Regional Development

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“…Similar to many SMEs in Indonesia which do not have access to finance, skill, technology, and others (Irjayanti and Azis, 2012). The brown cane sugar industry also has difficulty establishing the business since they do not have bank loans (Wierenga, 2020). However, some entrepreneurs could still establish the business even in that dearth environment using the bricolage dimension of resources they possess before.…”

Section: Bricolage Enactmentsmentioning

confidence: 99%

Entrepreneurial Bricolage to Facing Resource Constraint in Small Industry of Brown Cane Sugar

Putra

Romli

Arkeman

2021

ijbe

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Bricolage theory, making do what is at hand, describes entrepreneurs' activities to sustain the business in a penurious environment. It is believed could not only develop the business but also trigger innovativeness, creativity, and sustainability. This research intends to discover how entrepreneurs overcome resource constraints using bricolage. It also aims to find the relationship between bricolage and entrepreneurs' demographic and innovative personality. The study was conducted from April to June 2020 in Central Aceh Regency. Using a survey and questionnaire to collect the data towards 26 entrepreneurs of brown cane sugar reveals that human resource is a significant constraint when running the business, specifically in finding an appropriate and loyal team member. Using bricolage, they refuse to enact with limitation by hiring people from surronding even their family members to work in this business. Meanwhile, many entrepreneurs have the resource at hand in the form of capital and knowledge since they have spent a lot of time working in similar businesses before building their brown sugar. Despite weak correlation, the relationship between variables is positive except for age and education. Bricolage and innovative personality have a weak positive correlation which means that this industry is less innovative. This research also become fundamental literature for similar future research.

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“…Therefore, people become poor when their environment subdues them (Asikhia, 2010). As a consequence, BOP entrepreneurs typically face scarce socioeconomic resources, technologies and high-quality raw materials (Jard on and Tañski, 2018; Borchardt et al, 2019;Wierenga, 2020). These challenges reduce the entrepreneursô ćapacity to innovate (Karnani, 2009) and maintain the formality of their businesses (Roundy, 2017).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Thus, this paper is based on the paucity of FI in the context of MSEs at the BOP (Roundy, 2017;Hossain, 2020;Matos and Hall, 2020;Wierenga, 2020), whose environment is fraught with complexities, uncertainties and resource constraints that create barriers for entrepreneurship (Abdallah, 2017;Gebauer et al, 2017;Jard on and Tañski, 2018). This study also takes into account a challenging gap related to the need to understand how innovation emerges even in a resource-constrained environment (Solhi and Koshkaki, 2016), aiming to create value for the BOP consumer (Agarwal et al, 2017;Annala et al, 2018;Howell et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…In response to the presented context and research gaps (Hossain, 2020;Matos and Hall, 2020;Wierenga, 2020), this study aims to answer the following question: "what are the factors that influence FI in MSEs in the resource-constrained environment in Brazil and how do such factors affect FI practices"? The theoretical lens used in this study was the dynamic Leveraging frugal innovation capabilities approach.…”

Section: Introductionmentioning

confidence: 99%

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Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

Borchardt

Pereira

Ferreira

et al. 2020

JEEE

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Purpose This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input–process–output (I-P-O) framework was used as a tool to support the analysis of FI as a process. Design/methodology/approach A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry. Findings This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented. Originality/value The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

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Uncovering the scaling of innovations developed by grassroots entrepreneurs in low-income settings

Cited by 55 publications

References 109 publications

Flagship enterprises, entrepreneurial clusters, and business entry rates: insights from the knowledge spillover theory of entrepreneurship

Flagship enterprises, entrepreneurial clusters, and business entry rates: insights from the knowledge spillover theory of entrepreneurship

Entrepreneurial Bricolage to Facing Resource Constraint in Small Industry of Brown Cane Sugar

Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

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