Thin on the Ground: A behavioural Explanation for MNEs’ Entry into the Base of the Pyramid Markets

Gadepalli, Sarada Devi; Banerjee, Aneesh

doi:10.5465/ambpp.2022.14650abstract

Cited by 1 publication

(1 citation statement)

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“…Longer sales cycles, multilevel decision-making and product complexity increase the difficulty of managing new product development (NPD) in business-to-business (B2B) markets (Tobiassen and Pettersen, 2023; Oh and In, 2023). This problem is exacerbated in B2B firms operating in bottom-of-the-pyramid (BoP) markets because local B2B firms must compete against their Western counterparts with more resources and strong market positions (Angeli and Jaiswal, 2015; Aman and Seuring, 2021; Gadepalli and Banerjee, 2022). Simultaneously, market knowledge and proximity to the BoP B2B market may give local firms a competitive edge in creatively tailoring and customizing novel problem-solving products that meet BoP customers’ needs (Ernst et al , 2015).…”

Section: Introductionmentioning

confidence: 99%

Exploring new product development team problem-solving creativity in the base of the pyramid B2B firms

Getnet,

O’Cass,

Siahtiri

et al. 2023

JBIM

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Purpose This study aims to investigate the role of team problem-solving creativity in new product development (NPD) in the bottom-of-the-pyramid (BoP) in business-to-business firms. This study synthesizes perspectives from NPD, creativity and leadership to examine how work-related factors such as NPD managers’ role ambiguity and individual-related factors such as CEO’s ambidextrous leadership style interact to determine team problem-solving creativity and its effect on new product performance (NPP). Design/methodology/approach The hypotheses are tested using data from a multi-informant survey of 274 middle-level managers within 137 local BoP manufacturing firms in a sub-Saharan African country. Findings The results show that an NPD team’s ability to solve problems creatively determines NPP in BoP markets. The findings also show that NPD managers’ role ambiguity has a negative effect on team problem-solving creativity. However, a CEO’s ambidextrous leadership neutralizes the negative impact of role ambiguity on problem-solving creativity. Originality/value This study combines three distinct streams of literature, including NPD, creativity and leadership, to explore the antecedents and outcomes of problem-solving creativity. Drawing on creativity and leadership theories, this study reports that the success of creative idea exchanges depends heavily on a supportive environment for NPD team members and minimizing the NPD manager’s role ambiguity.

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