Business Model For Inclusive Innovation

In the west,some consumers are trying to associate with products that undertake sustainable business activities while in most emerging markets,majority of consumers require products that meet their basic needs.In response to this challenge of meeting diverse consumer needs,multinational companies adapt various aspects of their business to deliver more value with fewer resources.International business researchers are studying how some of emerging market multinationals(EMNCs)are stepping up to this challenge with a view on how some EMNCs successfully and sustainably deliver solutions that meet the nascent needs of a relatively large and excluded population of the emerging market consumers.Taking into consideration that emerging markets have diverse factor endowments,economic structures,development history and strategy;researchers are struggling to agree on a generalisable theory(ies)that describe(s)the success of EMNCs or their dynamic capabilities.This research paper,through multiple case studies and using a derived business model analytical tool,identifies that EMNCs have dynamic managerial and entrepreneurial capabilities that include entrepreneurial-strategic orientations,frugality,culturally-relational orientations and business model scalability which enables them to achieve inclusive innovations.An interesting contribution to the fields of inclusive innovation and dynamic capabilities is the effect of the cultural orientation of the EMNCs origin,on their entrepreneurial cognition capability,particularly the Chinese 'Li' philosophy which takes into consideration the needs of others.Similarly,the Nigerian 'quick results' philosophy reflects on the nature of inclusive solutions delivered by Nigerian MNCs.The research then proposes a capabilities-based framework which comprises of some business model components relevant to inclusive innovation,and their corresponding capabilities.The aim of the proposed model is to assist other EMNCs to identify the capabilities required to identify,create and capture value for inclusive innovation based on the institutional context of the target 'excluded' consumers.