Innovation in the subsistence marketplace: an analysis considering multiple concepts and approaches

Resumo

Purpose – The purpose of this paper is to explore the different concepts of innovation in the
subsistence marketplace from top-down and bottom-up approaches. This study analyzes the literature
on the theme and identified research gaps by constructing a framework based on approaches and
innovation concepts, which can guide future research efforts. Additionally, this paper presents two case
studies, which can improve the way innovation is developed and diffused in the subsistence
marketplace.
Design/methodology/approach – Through a literature review, this study develops a framework by
analyzing innovation concepts in the subsistence marketplace (i.e. base of the pyramid innovation, disruptive
innovation, frugal innovation, reverse innovation and inclusive innovation) in light of subsistence
marketplace approaches (top-down and bottom-up).
Findings – The analysis showed critical research gaps, especially a lack of studies involving
disruptive and frugal innovations from a bottom-up approach. This paper also concludes that the topdown approach is more common than the bottom-up one. To fill these gaps, this study presents two
business plans by illustrating disruptive innovation vs bottom-up approach and frugal innovation vs
bottom-up approach.
Originality/value – The use of real business plans to illustrate proposals having an actual impact on
subsistence marketplace regions sheds light on how to address these challenges. By doing so, this paper
intends to fill the theoretical gap in disruptive and frugal innovations within a bottom-up approach to promote the development and diffusion of different types of innovation in the subsistence marketplace, and
thus provide solutions to alleviate poverty