Fortune or Not? How Context Drives Passive Resistance to Pro-Social Innovations in Base-of-the-Pyramid Markets: An Empirical Study and a Research Agenda

Abstract

Many innovations, including potentially highly beneficial pro-social innovations, fail to diffuse successfully at the base of the pyramid (BoP). Explanations traditionally emphasize shortcomings in the value proposition or, more recently, interpret non-adoption as a consequence of innovation resistance. This study investigates whether passive innovation resistance (PIR) among BoP consumers should be understood not merely as an individual predisposition, but also as a response shaped by characteristics of the social context. Drawing upon a service ecosystem perspective, we develop and empirically test a model linking three contextual antecedents to PIR among BoP consumers: distrust of retail, use of informal consumption practices, and limitations in resources. Survey data from 282 consumers in Zambia were used to test the model for the case of a mobile-money-related innovation. The findings demonstrate that characteristics of the social context strongly influence PIR. Beyond limitations in resources, distrust of retail and use of informal practices emerge as important antecedents, indicating that in this case, resistance to innovation in BoP settings is not solely a psychological disposition but also a context-dependent response to environmental conditions. These findings extend innovation resistance theory beyond affluent market settings by identifying important contextual antecedents of PIR. From a managerial and societal perspective, the results support the development and diffusion of pro-social innovations that are better aligned with the realities of structurally vulnerable populations, thereby contributing to poverty alleviation and sustainable development.