Open Innovation: A case study exploring Knowledge Transfer in Developing Markets : Emerging markets, knowledge transfer, open innovation, mobile money transfer, MPesa

Abstract:

With the increasing trend of telecommunication innovations worldwide, emerging markets do not dare to sit back and watch as the global technologies advance at record speed. More and more developing countries are taking heed to these opportunities by developing solutions that best suit the markets they serve. Moreover, regardless of the lack of efficient and affordable financial infrastructure as a contributing factor in the persistence of poverty in many rural parts of developing countries, some firms have taken bold steps to partner with knowledgeable firms in order to increase their own capabilities that are crucial in developing innovative solutions.

The purpose of this study was to explore how knowledge is transferred in emerging/developing markets in order to facilitate open innovation. Knowledge transfer is considered a process and not a one-time event.  Therefore, using a since case study design, an in-depth exploration was made on the MPesa mobile money transfer system  which started in Kenya but has now spread to several emerging countries in Africa, Asia and the Middle East.

 The results indicate that for successful knowledge transfer; (i) Personnel movements is the most effective mechanism (ii) Technology should be transferred using a social mode of transfer (iii) Joint ventures are the most effective partnership form (iv) the bottom-of-the pyramid markets must be engaged in the development of innovative products.