Filling institutional voids in developing countries through business model imitation and innovation

Peprah, Augustine Awuah, Giachetti, Claudio, Larsen, Marcus M. and Rajwani, Tazeeb S. (2019) Filling institutional voids in developing countries through business model imitation and innovation. In Academy of Management Annual Meeting Proceedings. vol. 2019 (doi:10.5465/AMBPP.2019.13193abstract).

Abstract

Information-based theories of imitation suggest that when environmental uncertainty is high, firms tend to imitate successful organizations. In this study, we explore how information-based motives for imitation work in developing countries, where the uncertainty caused by the lack of reliable market-supporting institutions may increase the pressure to imitate what others successfully do. We draw on a case study of Jumia–an online retailing company in Africa established with the aim to emulate the success of Amazon.com across many African countries characterized by little or no online shopping culture. Our results suggest that firms surrounded by considerable uncertainty deliberately seek to imitate the business model of successful developed country-based firms. However, due to significant institutional voids, firms’ intentional imitation is replaced by an “imitate-but-modify” strategy that blends business model imitation and innovation. We propose a process model explaining how this imitation strategy unfolds through four distinct phases, with each aimed at imitating successful organizations but also innovatively filling specific voids in the environment

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Contributors

Author: Augustine Awuah Peprah

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