Business Model Innovation for Inclusive Health Care Delivery at the Bottom of the Pyramid

TY - JOUR

T1 - Business Model Innovation for Inclusive Health Care Delivery at the Bottom of the Pyramid

AU - Angeli, Federica

AU - Jaiswal, Anand Kumar

N1 - © 2016 SAGE Publications

PY - 2016/12/1

Y1 - 2016/12/1

N2 - This article investigates business models innovation for delivering health care at the base of the pyramid (BoP). The examination of six health care organizational cases suggests that co-creation of patient needs, community engagement, continuous involvement of customers, innovative medical technology, focus on human resources for health, strategic partnerships, economies of scale, and cross-subsidization are business model innovation strategies that enable inclusive health care delivery. Based on these findings, we propose a four-dimensional framework. A process of value discovery, leading BoP patients and communities to recognize a health need and seek for an acceptable treatment, precedes the identification of a successful value proposition. Value creation and value appropriation then follow to warrant patient affordability and organizational sustainability. A “business model mechanism” for BoP health care hence emerges, where interdependencies among these dimensions are highlighted. This article sheds new light on how market-based approaches can improve equitable health care access and hence contribute to poverty alleviation.

AB - This article investigates business models innovation for delivering health care at the base of the pyramid (BoP). The examination of six health care organizational cases suggests that co-creation of patient needs, community engagement, continuous involvement of customers, innovative medical technology, focus on human resources for health, strategic partnerships, economies of scale, and cross-subsidization are business model innovation strategies that enable inclusive health care delivery. Based on these findings, we propose a four-dimensional framework. A process of value discovery, leading BoP patients and communities to recognize a health need and seek for an acceptable treatment, precedes the identification of a successful value proposition. Value creation and value appropriation then follow to warrant patient affordability and organizational sustainability. A “business model mechanism” for BoP health care hence emerges, where interdependencies among these dimensions are highlighted. This article sheds new light on how market-based approaches can improve equitable health care access and hence contribute to poverty alleviation.

KW - base of the pyramid (BoP)

KW - business model innovation

KW - emerging economies

KW - health care

UR - http://www.scopus.com/inward/record.url?scp=84995947193&partnerID=8YFLogxK

U2 - 10.1177/1086026616647174

DO - 10.1177/1086026616647174

M3 - Article

AN - SCOPUS:84995947193

SN - 1086-0266

VL - 29

SP - 486

EP - 507

JO - Organization and Environment

JF - Organization and Environment

IS - 4

ER -