How Does BOP Market Commitment Promote Radical Innovation Performance?

Zelong Wei · Linqian Zhang

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Innovation and Socioeconomic Development Business Strategies and Innovation Innovation and Knowledge Management

Abstract

In spite of increasing attention to innovation in the ‘bottom of the pyramid’ (BOP) market, previous studies offer conflicting insights into whether BOP market commitment promotes radical innovation performance. This study addresses this limitation by investigating the mediating effects of innovation strategies and moderating effects of strategic orientation. We find that BOP market commitment facilitates radical innovation performance via architectural and modular strategies. Furthermore, customer orientation strengthens the positive effect of BOP market commitment on architectural strategy while weakens its effect on modular strategy. In contrast, technology orientation weakens the positive effect of BOP market commitment on architectural strategy.

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