cooperation issues in developing the bop market - amcis
DESCRIPTION
The basic argument of this paper is that successful contribution of ICT to development goals is partly dependent on the nature of the cooperation between partners. Thus if there is a need to assess the contribution of ICT, then one needs to look further than just the basic quantitative measures and include cooperation issues as criteria for success. The purpose of the research reported in this paper was therefore to take one step closer towards a framework of cooperation issues in so-called BOP projects, specifically in the ICT arena, with the ultimate aim of developing a way to assess factors that may present a risk to the success of these projects. This framework could serve as the foundation for further research into developing a diagnostic instrument for this purpose. Presentation by Gilbert Silvius for paper "Cooperation issues in developing the BOP market", AMCIS Proceedings , San Francisco, USA, August 2009.TRANSCRIPT
Cooperation issues in developing the BOP market
Kobus SmitAnand SheombarGilbert Silvius
Utrecht University of Applied ScienceThe Netherlands
6,776,034,371
World population
60
Bottom of the Pyramid
Bottom of the Pyramid
5,000,000,000,000
Estimated BOP market
The BOP & ICT Research Project
How can Multinational Information and Communication Technology companies (ICT MNCs) gain benefit from entering the Bottom of the Pyramid (BoP) market in a commercial successful and sustainable way?
And what could be the opportunities in the BoP market for multinational ICT companies?
Why BoP as a Market?
better meet their needs
increase their productivity and incomes
empower their entry into the formal economy
A Mindshift …
… also in Business
BOP 1.0 BOP 2.0 BOP as consumer Deep listening Reduce price points Redesign packaging, extend distribution Arm’s length relationships mediated by NGOs
BOP as business partner Deep dialogue
Expand imagination Marry capabilities, build shared commitment
Direct, personal relationships facilitated by NGOs “Selling to the Poor” “Business Co-Venturing”
Table 1: First Generation BOP Strategy compared with the new BOP (2.0) strategy (Hart et al., 2008)
Three elements...
Research Questions
What are the difficulties that ICT MNCsexperience in their cooperation with partners in their efforts to reach the BOP market;
And more specifically, how could these observed issues be categorized
Local
for-profit
organisationLocal
Non-profit
organisation
MNC
ICT
“an association between two or more persons, groups, or
organizations who join togetherto achieve a common goal that
neither one alone can accomplish”
(Mullinix, 2002:78)
Partnerships are…
Partnerships are…
Important
Have some advantages
Need to be managed
The Research – 10 Cases
10 Cases M-Pesa Village Phone in Uganda Village Connection Unlimited Potential Public-private partnerships - Tapping into innovation Public-private partnerships - ICT & media i-Community in South Africa World ahead (e.g. Classmate PC) Digital Bridge Communication for all
The Research – Sources of Evidence
Interviews Archival records Documents
The Research - Analysis
USED basic analysis techniques of grounded theory
NOT develop grounded theory
Findings- Cooperation Issues
Driving force factors Skill factors Input-Output factors Socio-cultural factors Systems factors Trust factors
Driving Force Factors
Driving Force factors refers to problems that occur as a result of misaligned fundamental driving forces that shape the goals, purposes and process of ICT projects in developing countries, both from the perspective of the ICT MNC as well as that of local partners
Skills Factors
ICT MNCs tend to have unrealistic expectations about local skills and knowledge on a variety of topics ranging from IT skills and knowledge to managerial skills and knowledge.
Input-Output Factors
Input-Output factors refer to difficulties that may arise as a result of unequal investments by partners in projects, as well as unequal gains by partners from their projects.
Socio-cultural Factors
Difficulties related to social & cultural differences
System Factors
Difficulties relating to the integration of systems, as well as the eventual use thereof
Trust Factors
Includes issues related to expectation management as well as business desirability bias
Factors Examples of Relevant LiteratureDriving force factors
Different foci on results versus process (Kumar et al., 2005)Technocratic approach of MNCs (Chio, 2005)Over-emphasis on "top-down, closed access and 'expert' driven" research
(Gurstein, 2005)Bottom-up approach that builds on indigenous knowledge (Simanis et al.,
2008b) Failure to continuously monitor the relationship (Seelos and Mair, 2007)
Skill factors Becoming and staying aware of the variety of resources, e.g. Prahalad (2005), Simanis et al. (2008a) and Jenkins (2007)
Input-Output factors
Sustainable business (Prahalad, 2005, Simanis et al., 2008b)Business partnerships related to intellectual property and patents
(Matson, 2006)Socio-cultural factors
Social embeddedness (London and Hart, 2004)Culture shock (Oberg, 1960, Marx, 2001)U-curve theory e.g. Lysgaard and (Ward et al., 1998)
Systems factors Integration of systems (Butt et al., 2008)Trust factors Trust as a relevant factor (Das and Teng, 2001).
"Social desirability bias" (Randall et al., 1993)
The road ahead
Limitations Future research Recommendations
