African business systems in a globalising world

Pedersen, Poul; McCormick, Dorothy

doi:10.1017/s0022278x99002955

Cited by 44 publications

(29 citation statements)

References 26 publications

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“…While these two sets of literatures have not engaged much, in real life, these are less and less separate 'worlds.' For example, Pedersen and McCormick (1999) explained how business systems in Africa were bifurcated between a small 'modern' formal business sector and a massive informal sector in the late 1990s; however, nowadays these two worlds are far less separate. Multinational companies, increasingly also from countries like China, India, and Brazil, are targeting relatively poorer and 'new middle class' consumers, not solely with first-generation frugal innovations of stripped-down products, services, and systems, but increasingly also experimenting with new business models and distribution systems to expand their market reach.…”

Section: Two Worlds Meetmentioning

confidence: 99%

Frugal Innovation and Development Research

Leliveld

Knorringa

2017

Eur J Dev Res

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This article sets the scene for a special issue on why frugal innovations are increasingly important for development research. While the top-down business and management literature on frugal innovation has claimed developmental relevance, we give at least equal importance to much longerstanding bottom-up development studies discourses on grass-root innovation, bricolage, and livelihood strategies. We argue that we need both literatures for a better understanding of how frugal innovations relate to development. Accordingly, we position the articles in this special issue in the frugal innovation and development debate. Finally, we discuss the relevance of a frugal innovation lens in how two major global trends are impacting upon global development opportunities: the global diffusion of 3rd and 4th Industrial Revolution digital technologies and global population dynamics. We consider these two trends to be major entries for future research on frugal innovation and development.Cet article pose le décor pour un numéro spécial sur les raisons pour lesquelles les innovations frugales sont de plus en plus importantes pour la recherche sur le développement. Tandis que la littérature ''topdown'' du monde des affaires et de la gestion au sujet de l'innovation frugale a revendiqué une pertinence dans le monde du développement, nous donnons au moins autant d'importance aux messages bien plus anciens, portés par les études ''bottom-up ''sur le développement, à propos d'innovation à base communautaire, de bricolage et de stratégies de subsistance. Par conséquent, nous placerons les articles de ce numéro spécial dans le débat sur l'innovation frugale et le développement. Nous soutiendrons que nous avons besoin des deux littératures pour mieux comprendre comment les innovations frugales sont liées au développement. En outre, nous discuterons brièvement de la pertinence d'adopter une perspective d'innovation frugale dans l'analyse de la façon dont deux grandes tendances mondiales impactent les opportunités de développement international : la diffusion mondiale des technologies de la 3ème et 4ème révolution industrielle et la dynamique démographique mondiale. Nous considérions ces deux tendances comme thèmes majeurs pour de futures recherches en matière de innovations frugales et développement. While several definitions of frugal innovation exist in the literature, there is consensus that it encompasses (re)designing products, services, systems, and business models in order to reduce complexity and total lifecycle costs, and enhance functionality, while providing high user value and affordable solutions for relatively low-income customers, the latter being either consumers Ó

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Section: Two Worlds Meetmentioning

confidence: 99%

Frugal Innovation and Development Research

Leliveld

Knorringa

2017

Eur J Dev Res

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“…Formal and informal firms generally operate in different segments of a business system (Pedersen & McCormick, 1999;Wood & Frynas, 2006). The 'business system' concept describes distinct forms of economic coordination and control within a territory.…”

Section: Business Systemsmentioning

confidence: 99%

“…It has been argued that business systems in various African countries are segmented between foreign-owned exporters, indigenous 'formal' firms and indigenous 'informal' firms (Pedersen & McCormick, 1999;Wood & Frynas, 2006). Foreignowned exporters form part of global value chains.…”

Section: Business Systemsmentioning

confidence: 99%

Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town

Fransen

Helmsing

2016

Development Southern Africa

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Twenty years after apartheid was formally abolished, black handicraft exporters in Cape Town still innovate significantly less than their white counterparts. This study explains these differences based on the segmentation of business and innovation systems, a novel approach that aims to contribute to a deeper understanding of path dependency in South Africa. The study concludes that the business system is segmented between formal and informal firms and that such segmentation is correlated with race. Despite path dependency, a group of black entrepreneurs has managed to breach the barriers, owing to the ongoing support of an intermediate organisation, intense networking and risk-taking.

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“…Part of this variation can be observed in the type of strategies adopted by businesses in differ ent places. Most of the work on business systems has emanated from industrial ized countries and emerging economies in Asia and Eastern Europe, but there is a small, but growing literature on African business systems that points to similar differentiation in African economies (Pedersen andMcCormick 1999, McCormick andKimuyu 2007).…”

Section: Business Strategies Of Urban Transport Firmsmentioning

confidence: 99%