Consolidating Unorganised Retail Businesses through Digital Platforms: Implications for Achieving the UN Sustainable Development Goals

Abstract

This study explores whether digitalisation of unorganised retail (UR) businesses in emerging markets have a positive socio-economic impact on the lives of the subsistence consumer–merchants who perform the dual role of being, not only consumers providing for themselves and their families, but also the managers of micro-UR businesses. We develop a framework for sustainable business model innovation at the base of the pyramid by undertaking content analysis of 65 newspaper articles (interviews with senior executives and founders of digital app-based platforms, expert analysis) as well as social media and YouTube testimonials of UR business users of these platforms in Vietnam, Indonesia, Malaysia and the Philippines. Using the Gioian coding structure of open and second order comparative coding, we develop a framework for sustainable business model innovation from the base of the pyramid perspective. The framework captures how digitalisation enables the UR businesses to circumvent resource shortages, consolidate procurement and inventory management and diversify product and service offerings, which leads to significant economic and social transformation for both the micro enterprises and their owners. Our framework contributes to the emergent literature on sustainable business model innovation and inclusive innovation in resource-constrained contexts. We conclude that sustainable business model innovations enable socio-economic transformations similar to those experienced by UR businesses in emerging Asian markets. Such developments can create local level pathways for local tropical countries seeking to achieve UN social development goals.

Exploring BoP Generations through Business Model Innovation Lens: A Review and Framing

“…Innovation, a well-explored research domain, often incorporates BoP-BM innovation as a pivotal success factor within this market context. In this sample, the term "innovation" predominantly signifies adaptations or modifications relative to BMs operating in other markets [30,34,42,[50][51][52][53][54][55][56][57][58]. Lastly, the yellow cluster encompasses 'business development', 'inclusive business', and 'Africa'.…”

“…Inclusive business models embody environmental considerations [80], linked to either enterprises [27,81] or BMs embracing a diverse array of social agents, including BoP participants [32,59,[82][83][84], aligning closely with BoP 3.0 principles. Similarly, "sustainable business" may encompass environmental, social, and socio-economic dimensions [8,40,55,[85][86][87].…”

Towards Systematic Sustainable Business Model Innovation: What Can We Learn from Business Model Innovation

“…This research stream provides (and analyzes) pictures of new SBMs, targeting what specific elements changed and the impacts on society, environment, and profit. It usually relies on case studies and either focus on a solution (social purpose or environmental purpose) or a technology (Blockchain, IoT, etc) [74,77,86]. The key idea is to show interlinks between generating economic value and social and/or environmental value [67,68,87], delivering value for multiple stakeholders [76,85].…”

Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries

“…In Southeast Asian developing countries, a digital transformation is already happening through the introduction of retail payment systems. With the expansion of e-commerce services, digital payments and online trades are expected to grow rapidly, which in turn will motivate countries in the region to upgrade their payment infrastructures and update their supervision and regulatory frameworks [59][60][61].…”