Journal
ORGANIZATION & ENVIRONMENT
Volume 29, Issue 4, Pages 486-507Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/1086026616647174
Keywords
health care; business model innovation; base of the pyramid (BoP); emerging economies
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Funding
- Research and Publication unit at Indian Institute of Management, Ahmedabad
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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.
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