Users as Innovators in Developing Countries: The Global Sources of Innovation and Diffusion in Mobile Banking Services

41 Pages Posted: 24 Feb 2012 Last revised: 19 Apr 2014

See all articles by Paul van der Boor

Paul van der Boor

Carnegie Mellon University - Department of Engineering and Public Policy; Instituto Superior Técnico (IST); CATÓLICA-LISBON School of Business & Economics

Pedro Oliveira

Copenhagen Business School; Nova School of Business and Economics

Francisco M. Veloso

Carnegie Mellon University - Engineering and Public Policy (EPP); CATOLICA - LISBON School of Business and Economics

Date Written: March 2014

Abstract

This paper examines the extent to which users in developing countries innovate, and whether these innovations are meaningful on a global stage. To study this issue, we conducted an empirical investigation into the origin and types of innovations in financial services offered via mobile phones, a global, multi-billion-dollar industry in which developing economies play an important role. We used the complete list of mobile financial services, as reported by the GSM Association (GSMA), and collected detailed histories of the development of the services and their innovation process. Our analysis shows that 85% of the innovations in this field originated in developing countries. We also conclude that at least 50% of all mobile financial services were pioneered by users, approximately 45% by producers, and 5% jointly by users and producers. Additionally, services developed by users diffused at more than double the rate of producer-innovations. Finally, we observe that three-quarters of the innovations that originated in non-OECD countries have already diffused to OECD countries, and that the (user) innovations are therefore globally meaningful. This study suggests that the traditional North-to-South diffusion framework fails to explain these new sources of innovation and may require re-examination.

Keywords: User Innovation, Mobile Banking Services, Technology Diffusion, Developing Countries

Suggested Citation

van der Boor, Paul and Oliveira, Pedro and Veloso, Francisco M., Users as Innovators in Developing Countries: The Global Sources of Innovation and Diffusion in Mobile Banking Services (March 2014). Available at SSRN: https://ssrn.com/abstract=2009926 or http://dx.doi.org/10.2139/ssrn.2009926

Paul Van der Boor (Contact Author)

Carnegie Mellon University - Department of Engineering and Public Policy ( email )

Baker Hall 129
5000 Forbes Avenue
Pittsburgh, PA 15213
United States

Instituto Superior Técnico (IST) ( email )

Av. Rovisco Pais
Lisboa, 1049-001
Portugal

CATÓLICA-LISBON School of Business & Economics ( email )

Palma de Cima
Lisbon, Lisboa 1649-023
Portugal

Pedro Oliveira

Copenhagen Business School ( email )

Department of Strategy and Innovation (SI)
Kilen, Kilevej 14, K.2.71
Frederiksberg, DK - 2000
Denmark

Nova School of Business and Economics ( email )

Campus de Campolide
Lisbon, 1099-032
Portugal

Francisco M. Veloso

Carnegie Mellon University - Engineering and Public Policy (EPP) ( email )

Pittsburgh, PA 15213
United States

HOME PAGE: http://www.andrew.cmu.edu/~fveloso/

CATOLICA - LISBON School of Business and Economics ( email )

Palma de Cima
Lisboa, 1649-023
Portugal

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
747
Abstract Views
3,845
rank
36,241
PlumX Metrics