Advances in Management and Applied Economics

Key Factors of Digital Service Innovation Capability in Multi-Level Marketing-Top Management Perspective

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• Abstract

   

  The Multi-level Marketing (MLM) industry has traditionally relied on interpersonal networks and relationship-based marketing. In the context of the rapidly evolving digital economy. Accordingly, how MLM firms enhance their service innovation capabilities through digital transformation has emerged as a salient managerial concern.

  The present study adopts a top management viewpoint and further incorporates the Bottom of the Pyramid (BoP) framework as a foundational theoretical lens, emphasizing value creation and innovation practices in low-income yet high-potential markets.

  The study proposes four core capability dimensions (Persuasion, Co-creation, Adaptation and Self-sustainability) to capture the essential competencies required in digitally enabled and AI-augmented environments, denoting individuals’ capacity for continuous learning, self-development, and long-term business sustainability in digital contexts.

  The empirical analysis employs the AHP to examine the relative effects of different capability dimensions on digital service innovation performance. This research contributes by integrating the BoP perspective with digital service innovation literature, thereby addressing a notable gap in existing MLM-related studies. From a managerial perspective, the results offer actionable insights for top management, providing clear guidance on capability development priorities and resource allocation strategies in the context of digital transformation and BoP market positioning.

   

  JEL classification numbers: C83, M15, O31.

  Keywords: Multi-level Marketing (MLM), Digital Service Innovation Capability, Bottom of the Pyramid (BoP), Top Management Perspective.