From chaos to creation: The mutual causality between supply chain disruption and innovation in low-income markets

Abstract

Low-income markets have unique constraints that trigger the co-evolution of innovation and disruption in such markets. When disruptions occur in global supply chains, and in particular, in low-income markets, they spur innovations that may be necessary to address both existing and potential future disruptions. However, such innovations in turn create disruptions to existing supply chains, and they may also create new supply chains. Therefore, this study theorizes in support of the mutual causality between innovation and disruption in low-income markets. The focus is on low-income market contexts because of the unique opportunities and constraints that exist in these contexts, resulting in interesting and unique dynamics between innovation and disruption. Further, the mechanisms through which innovation-disruption mutual causality occurs—as well as the boundary conditions for these mechanisms—are identified. This culminates in a theoretical framework surrounding the interrelationship between disruption and innovation in low-income markets. Theoretical and practical implications are explored, and potential areas for future research are delineated.