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  • January–February 2017
  • Article
  • Harvard Business Review

Africa's New Generation of Innovators

By: Clayton M. Christensen, Efosa Ojomo and Derek van Bever
  • Format:Print
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Abstract

With a young, urbanizing population, abundant natural resources, and a growing middle class, Africa seems to have all the ingredients necessary for huge growth. Nevertheless, a number of multinationals have recently left the continent, discouraged by widespread corruption, a lack of infrastructure and ready talent, and an underdeveloped consumer market. Some innovators, however, have succeeded by building franchises to serve poorer consumer segments; tapping the vast opportunity represented by nonconsumption; internalizing risk to build strong, self-sufficient, low-cost enterprises; and integrating operations to avoid corruption. The difference, the authors believe, lies in the choice between “push” and “pull” investment. MNCs seek growth by pushing current products onto emerging middle-class consumers. They retain some large portion of their existing cost structure and operating style, and thus set prices that limit market penetration. The winning strategy diverges from this approach in almost every respect. When innovators develop products that people want to pull into their lives, they create markets that serve as a foundation for sustainable growth and prosperity.

Keywords

Innovation Strategy; Multinational Firms and Management; Economic Growth; Africa

Citation

Christensen, Clayton M., Efosa Ojomo, and Derek van Bever. "Africa's New Generation of Innovators." Harvard Business Review 95, no. 1 (January–February 2017): 129–136.
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About The Author

Derek C. M. van Bever

General Management
→More Publications

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    • 13 Oct 2022
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    4 Business Ideas That Changed the World: Disruptive Innovation

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    Managing Innovation at Atrium Health: 'Never Let a Good Crisis Go To Waste'

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    • February 2021
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    Jobs to Be Done: A Toolbox

    By: Derek C. M. van Bever, Bob Moesta, Iuliana Mogosanu, Shaye Roseman and Katie Zandbergen
More from the Authors
  • 4 Business Ideas That Changed the World: Disruptive Innovation By: Amy Bernstein, Rita McGrath, Felix Oberholzer-Gee and Derek van Bever
  • Managing Innovation at Atrium Health: 'Never Let a Good Crisis Go To Waste' By: Derek van Bever, Rory McDonald and Anibha Singh
  • Jobs to Be Done: A Toolbox By: Derek C. M. van Bever, Bob Moesta, Iuliana Mogosanu, Shaye Roseman and Katie Zandbergen
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