Showing papers on "Frugal innovation published in 2019"

Effects of sources of knowledge on frugal innovation: moderating role of environmental turbulence

Abstract: The purpose of this paper is to investigate the effects of internal and external sources of knowledge on frugal innovation (FI), and to what extent this relationship is strengthened/weakened, authors also analyzed the moderating role of market and technological turbulence.,This is an empirical research. Data were collected from 382 SMEs through questionnaire survey, applied SmartPLS technique to analyse the data.,Findings revealed the significant effects of internal and external sources of knowledge on FI. To what extent this relationship is strengthened/weakened, the moderating role of market and technological turbulence was analysed. Data revealed that the moderation of technological turbulence strengthens the effects internal and external sources of knowledge had on FI. Market turbulence strengthened the effects of external sources of knowledge but surprisingly weakens the effects of internal sources of knowledge on FI.,Findings provide valuable and timely insights for the modern managers as well. Managers who operate in SMEs will have to understand that how knowledge from internal and external sources can be gathered and utilized for producing frugal products. They also will have to weigh which source of knowledge is more important when there is market and technological turbulence.,Sustainable and social issues emerge mainly due to scarcity of available resources. Firms seek to solve such pressing issues through improvisation in resources. However, frugal products assist firms to significantly contribute in society and sustainability. Although prior research has discussed the importance of knowledge for innovation, yet the effects of sources of knowledge and role of contingencies mostly remain unexplained puzzle. This study contributes to knowledge-innovation literature by examining the missing link between different sources of knowledge and FI and how the moderation of technology and market turbulence strengthen/weaken this relationship. Authors believe that it also helps to comprehend FI’s enabling factors through which firms can capitalize upon, and solve the pressing sustainable and social issues.

Innovating with Limited Resources: The Antecedents and Consequences of Frugal Innovation

Abstract: Frugal innovation is a resource scarce solution for emerging market firms. Based upon the resource-constrained innovation perspective, this research theoretically explores and empirically examines the drivers and consequences of frugal innovation. The results of a firm-level survey show that two types of frugal innovation (cost innovation and affordable value innovation) positively affect the performance of emerging-market firms. We also address the issues of how emerging-market firms deal with institutional, technological, and market constraints in emerging markets, and we show how these constraints drive frugal innovation. We find that emerging-market firms with higher levels of capability for institutional leverage and bricolage, and firms that face perceived dysfunctional competition, tend to generate more affordable, value-added new products. Overall, these findings have important implications for emerging-market firms seeking to conduct frugal innovation in resource-constrained emerging markets.

Mobile money as a frugal innovation for the bottom of the pyramid – Cases of selected African countries

Abstract: This paper explores the concept of mobile money as a frugal innovation and a business model. While the frugal innovation theory is evolving, frugality addresses three critical issues about social p...

New sources of growth: The role of frugal innovation and transformational leadership

Abstract: This paper’s main thesis is that frugal innovation and transformational leadership offer additional sources of growth. Our main contribution is the proposal of what we refer to as the breakthrough possibility frontier (BPF) model, which integrates two aspects of leadership: innovation quality (frugal innovation) and leadership competency (transformational leadership). We test the BPF model on two groups of respondents, one group consisting of university students who had never been formal leaders and the other formal leaders who had office experience. The BPF analysis suggests that transformational leadership is a game changer, required for breakthroughs. Transformational leadership is key to encouraging innovation quality and leadership competency and, we argue, to facilitating new sources of growth. Our results imply the development of an integrated institutional framework for innovation. We believe that innovative leadership development programs that can be easily implemented and replicated in other regions are needed to develop transformational leadership competencies.

Frugal Innovation and Social Innovation: Linked Paths to Achieving Inclusion Sustainably.

Abstract: We present a theoretical model that links social and frugal innovation using inclusion as a common denominator. We discuss why the two concepts are important together; where we find examples of such innovations; what the similarities and differences between the two are; and why a combined approach can solve the Grand Challenges of our time and improve social and economic inclusion sustainably around the world. We overview opportunities for future research based on our model and discuss implications for research and practice.

How much can we influence the rate of innovation

Abstract: Innovation is how organizations drive technological change, but the rate of innovation can vary considerably from one technological domain to another. To understand why some domains flourish more rapidly than others, we studied a model of innovation in which products are built out of components. We derived a conservation law for the average size of the product space as more components are acquired and tested our insights using historical data from language, gastronomy, mixed drinks, and technology. We find that the innovation rate is partly influenceable and partly predetermined, similar to how traits are partly set by nurture and partly set by nature. The predetermined aspect is fixed solely by the distribution of the complexity of products in each domain. Different distributions can produce markedly different innovation rates. This helps explain why some domains show faster innovation than others, despite similar efforts to accelerate them. Our insights also give a quantitative perspective on lean methodology, frugal innovation, and mechanisms to encourage tinkering.

Frugal innovation and its application in manufacturing networks

Abstract: The newcomer concept of Frugal Innovation is moving towards turning the drawback of resources constraints into an advantage by adapting to local market requirements, resulting in a new business model through low cost and high customer value solutions. Current literature has mainly focused on the theory and characteristics of Frugal Innovation, while only limited work regarding its practical application is observed. Therefore, this work presents a framework, which by supporting regional customization and near-optimum production network generation via advanced information and communications technology (ICT) tools, aims to facilitate the implementation of frugal innovation in manufacturing.

Inovação Frugal: origens, evolução e perspectivas futuras

Abstract: Frugal innovation has recently become a relevant topic in social and academic discourse. The real challenge for this new manifestation of innovation is the introduction of something new or different with the use of few resources. Frugal innovations have generally been associated with emerging economies where large consumer groups are at the bottom of the pyramid with unmet needs. However, there is growing evidence that this phenomenon is also becoming relevant in industrialized nations, potentially affecting the long-term competitiveness of domestic enterprises, not only abroad but also locally. Consequently, frugal innovation scholars have begun to investigate attempts to systematize this emerging field of research and promote the development of this debate. This theoretical study presents the origin and evolution of the frugal innovation approach and its current characterization in the literature; discusses future perspectives on the topic; and suggests that future works invest in empirical research, enriching existing debates on frugal innovation, especially from the lens of local economic development, through financial results and economic returns. It also reinforces the need to develop frugal innovation measurement instruments.

The making and sustaining of leaders in health care.

Abstract: Many nations are focussing on health care’s Triple Aim (quality, overall community health and reduced cost) with only moderate success. Traditional leadership learning programmes have been based on a taught curriculum, but the purpose of this paper is to demonstrate more modern approaches through procedures and tools.,This study evolved from grounded and activity theory foundations (using semi-structured interviews with ten senior healthcare executives and qualitative analysis) which describe obstructions to progress. The study began with the premise that quality and affordable health care are dependent upon collaborative innovation. The growth of new leaders goes from skills to procedures and tools, and from training to development.,This paper makes “frugal innovation” recommendations which while not costly in a financial sense, do have practical and social implications relating to the Triple Aim. The research also revealed largely externally driven health care systems under duress suffering from leadership shortages.,The study centred primarily on one Canadian community health care services’ organisation. Since healthcare provision is place-based (contextual), the findings may not be universally applicable, maybe not even to an adjacent community.,The paper dismisses outdated views of the synonymity of leadership and management, while encouraging clinicians to assume leadership roles.,This paper demonstrates how health care leadership can be developed and sustained.

Frugal Innovation: origins, evolution and future perspectives

Abstract: Resumo A inovação frugal tornou-se recentemente um tópico relevante no discurso social e acadêmico. O verdadeiro desafio para essa nova manifestação de inovação caracteriza-se pela introdução de algo novo ou diferente com uso de poucos recursos. As inovações frugais têm ocorrido, em geral, associadas a economias emergentes nas quais se encontram grandes grupos de consumidores na base da pirâmide com necessidades não atendidas. Todavia há evidências crescentes de que este fenômeno está se tornando relevante também nas nações industrializadas, potencialmente afetando a competitividade das empresas domésticas em longo prazo, não apenas no exterior, mas também localmente. Como consequência, os estudiosos da inovação frugal começaram a investigar tentativas de sistematizar esse campo emergente de pesquisa e promover o desenvolvimento desse debate. Desse modo, este ensaio teórico tem por objetivos: apresentar a origem e evolução da abordagem da inovação frugal e sua caracterização atual na literatura; em seguida, discutir perspectivas futuras de estudo no tema; por fim, sugere-se que estudos futuros invistam em pesquisas empíricas, enriquecendo os debates existentes sobre a inovação frugal, principalmente da lente do desenvolvimento econômico local, por meio de resultados financeiros e retornos econômicos. Reforça-se também a necessidade de desenvolvimento de instrumentos de mensuração de inovação frugal.

Understanding frugal innovation: a case study of university professionals in developed countries

Abstract: Frugal innovation will likely play an important part in the future of innovation management. In developed countries like Finland, it has attracted only meagre research attention thus far, but globa...

Design Thinking for Entrepreneurship in Frugal Contexts

Abstract: Even if design is recognized as an important driver for innovation on a global scale, there are still many countries in the developing part of the world where design as a process for innovation do not play any significant role for businesses and society. There is however a growing interest in design as a resource for innovation in many developing countries, e.g. in Kenya, where these projects are taking place. The results illustrate how design can support a local network by establishing a co-creation process as the basis for innovations and entrepreneurship in a frugal context, the role and value of design thinking for supporting entrepreneurs. The experiences and learnings from frugal innovations are of equal importance as the process and mindset of Design Thinking. A new type of Knowledge Cluster therefore includes not only design knowledge and skills, but also frugal innovation and frugal criteria.

Can smart cities be frugal? An exploratory study of Inclusive Innovation Mechanisms and influencing factors on the potential adoption of frugal projects in an urban living lab in Amsterdam

Abstract: This research is an exploratory study, which discusses Inclusive Innovation Mechanisms and the potential adoption of Frugal Innovation projects in a Transition-driven Urban Living Lab. It is believed that by exploring the links between these two concepts an inclusive smart city model can be created as well as increasing equality of BoP in cities like Amsterdam. In this respect, the four inclusive dimensions framework developed by Schillo and Robinson (2017) resulted to be useful to give a shape to these mechanisms. Secondly, the study defined key influencing factors on the potential adoption of FI projects in an Urban Living Lab. In order to reach this goal, the theory of diffusion and the Theory of planned behavior were used to see the level of attractiveness of FI characteristics in a ULL. Finally, there is an attempt to illustrate possible patterns between mechanisms and adoption of FI projects to produce innovation strategies for inclusion. Two research strategies were selected to answer theoretical and empirical research questions. These strategies are desk research of academic literature and Case Study, which are particularly appropriate to study how inclusive innovation mechanisms facilitate the potential adoption of frugal projects in an Urban Living Lab operating under Amsterdam’s smart city program. The analysis uncovers strategies and practices involve in the innovation processes. Resulting in a relevant framework where IIMs stimulate the adoption of FI projects and at the same time FI might strengthen the performance of IIMs in the ULL. In addition, the research complements the four-dimensional framework for inclusive innovation created by Schillo and Robinson (2017) by adding a list of possible mechanisms useful to boost inclusion in an organization. Lastly, policy, theoretical and practical contribution are given. As a result, the study found that by applying inclusion innovation mechanisms and allowing them to work as a mediator’s Smart cities can be frugal. However, future research should be orientated towards the application of these IIMs in other smart initiatives to prove their inclusive nature and their relationship with the potential adoption of FI projects in a western context.

Innovation and International Entrepreneurship: Will the Digital Platform Serve All?

Abstract: The link between knowledge, innovation, and technology, as understood in extant literature, tends to emphasize a digital, high-tech platform for the implementation of innovative ideas. This paper challenges this view and details why relying solely on digital platforms and innovation may not let companies reach their full potential. Using examples of frugal innovation, this paper recommends that entrepreneurs need not limit their ideas by focusing only on digital and technology-driven innovation, and to consider the infrastructure realities of the developing economies.

Frugal innovation and digitalisation : A platform ecosystem perspective

Abstract: Frugal innovation (FI) is an emerging paradigm of innovation, mainly practiced in developing countries such as India, China, Brazil, and Kenya. In both developing and advanced countries, platform firms such as Uber and AirBnB have disrupted traditional business models by leveraging the capabilities provided by digital technologies such as social media, mobility, analytics, and cloud computing. Digital innovation results from the digitalisation of resources, capabilities, processes, products, services, and business models. Digitalisation moves beyond digitisation and involves additional socio-technical aspects that impact the socio-economic context of the organisation. The complexities of the relationships and the physical and digital orchestration of resources, services, and processes that take place in a FI ecosystem are difficult to operationalise and visualise. The lower half extrapolates the top layers and highlights “digitalisation” through the digital platform. The ecosystem consists of several “digital platform participants” and policy and regulations that can shape the environment with respect to socio-economic and political issues including resource constraints and institutional voids.

Frugal Medical Technologies and Adaptive Solutions: Field-Based Applications

Abstract: In our previous chapter, we explore the various innovation processes that comprise frugal innovation as well as novel innovation paradigms including open and reverse innovation. Importantly, we not only define the theoretical dimensions of these innovation processes but also the functional outputs in the form of tangible technologies/devices. But while the intellectual components of these processes are critical, what does this mean for the future of humanitarian medicine and innovation? The fact of the matter is that the deployment of innovation processes in conflict and crisis situations will likely consist of an amalgam of these processes that is utilized as a catalyst for high-functioning problem-solving in the field. The reality is that crisis and conflict situations are not black and white; thus the solutions developed in the field are likely to reflect this. This is where we examine the field-based applications of these technologies and their specific capacities to preserve human life. But before we delve into these medical devices, who are these devices meant for? There are three critical stakeholders in any humanitarian healthcare operation: humanitarian practitioners (i.e., doctors, nurses, aides, relief workers), community health workers (i.e., frontline public health workers from indigenous communities), and crisis-stricken communities themselves. While the scope and capacity to utilize devices varies among these groups, nonetheless, it is vital that each one of these stakeholders be properly retrofitted with the most basic of equipment, technology, and devices. In this book we take this a step further and examine how we can not only enhance the retrofitting of humanitarian operators but also their respective problem-solving and innovation processes to create “adaptive solutions.” We define these as high-utility, unconventional solutions that are derived in resource-poor settings. The reality is that while we can provide frugal devices to individuals, how do we stimulate continued innovation and the implementation of adaptive solutions on the ground? The innovation process is just as important as the device itself—a paradigm that is often overlooked.

Have You Ever Seen the Void? Interest Groups Concerns Toward the Weakening Representational Role of Political Parties in European Countries

Abstract: 1. Product Innovation: Some Theoretical ConsiderationsInnovation seems to be a hot topic today, in all fields of activity. Product innovation, in particular, is considered to be a necessity on the highly competitive developed markets and for emerging markets offering tremendous growth opportunities alike.Extant literature on product innovation reveals a plethora of definitions. OECD defines the concept as 'A good or service that is new or significantly improved; this includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics'1.Several researchers even claim that this resulted in an ambiguity in the way terms were operationalized and utilized in the new product development literature (Garcia and Calantone, 2002). Early references to product innovativeness were made by Davidson (1976), Marquis (1969), Rothwell (1976). Although sometimes used interchangeably with 'product innovation', the term product innovativeness is most often used to measure the degree of newness of an innovation.The 'innovation' process represents the technological development of a product, plus the market introduction of the respective product. Henderson and Clark (1990) distinguished between four types of technological innovation: incremental innovation, modular innovation, radical innovation, and architectural innovation. They go further into the investigation product architectural innovation, whose essence is the reconfiguration of an established system to link together existing components in a new way. The research conducted by Lee and Na (1994) explored technical innovativeness, considering the radicalness of technical innovativeness as a contingency variable.Of course, not all product innovations prove successful. Often, researchers evoke famous product failures to show that marketing product innovations could be a lottery game: sometimes you win, other times you lose. Cooper (1979) conducted an extensive investigation of success and failure factors for industrial new products. He identified 3 factors that described the innovativeness of the venture: newness to the firm ("A project which takes the firm into new markets, new technologies etc."), product uniqueness ("A product which is truly unique; firm is first into the market with type of product"), and product uniqueness / superiority ("A product which has significant improvements over previous products making it unique and superior") (p. 98). Kleinschmidt and Cooper (1991) demonstrated that the relationship between product innovativeness and commercial success is U-shaped, meaning that both high and low innovativeness products are more likely to be more successful than those in-between.An extensive research on product innovativeness from the firm's perspective was conducted by Danneels et al. (1998). They tried to clarify the product innovativeness construct and examine its underlying dimensions; to examine the relation of product innovativeness with the decision to pursue or kill the project; and to examine the relationship between product innovativeness and product performance. The following five dimensions of product innovativeness were found to influence the decision to market the product and product performance: market familiarity, technological familiarity, marketing fit, technological fit, and new marketing activities.2. Emerging Markets' Challenges for Product InnovationOne may think that innovation flows in one direction, from the developed world into developing or emerging markets. This is also argued by the latest Innovation Union Scoreboard (EC, 2014) that presents the situation within the European Union. According to it, European countries fall into one of four categories with respect to innovation: innovation leaders (e.g. Sweden, Denmark, Germany, Finland), innovation followers (e.g. Luxembourg, The Netherlands, UK), moderate innovators (e. …

Frugal Innovation and the New Product Development Process: Insights from Indonesia

Abstract: This book explores the new product development process of firms developing frugal innovation for the base-of-the-pyramid (BOP) markets in developing countries. Frugal innovations are products characterised by an affordable price-point, durability, usability and core functionalities that are highly adapted to BOP consumers’ needs. Frugal products have the potential to drive the development progress and living standards of low-income consumers. With an innovation framework developed from worldwide frugal case studies, this book provides detailed insights through two in-depth start-up firms in Indonesia that have successfully launched frugal products for the low-income market. These two start-ups have addressed two major development challenges for not just Indonesia, but also the global BOP market – traditional methods of cooking and access to clean drinking water. A detailed roadmap is developed from insights into the processes and management decisions of these two start-ups and combined with previous studies on frugal products. Providing a detailed roadmap across the different phases and stages of the new product development process when developing frugal products, this book will be insightful to not only innovators but also investors and government agencies supporting their activities.

First Step to Combine Bio-inspiration and Frugal Innovation: Application to a Container’s Village

Abstract: In a world where raw materials are becoming scarcer, it appears necessary to adjust our way of developing new products. Indeed, the fundamental question of products’ sustainability, resources’ origin, and environmental impact is more and more important for customers. Moreover, the issue of equitable access to basic products is growing in poor countries. In this climate, frugal innovation was born. With this thematic in mind, we wanted to go deeper, and we found it very appropriate to start our design process by inspiring us from nature. After a short state of the art, we compared bio-inspiration and frugal design in order to build a design method combining these two approaches. This article relates to our current study and presents the first results of our work.

Frugal Innovation in a Jesuit University in Puebla Mexico

Abstract: The Universidad Iberoamericana Puebla (Ibero Puebla), has incorporated three subjects that constitute the Synthesis and Evaluation Area (ASE) in every undergraduate program. With this area, the student is expected to demonstrate the professional and generic competences acquired in the corresponding level of achievement and their ability to apply them in specific situations. Taking advantage of the characteristics of those subjects, we have made visits with engineering students to communities of high vulnerability and poverty, defined by Puebla City Council. In these neighborhoods, Ibero Puebla has relationships with key actors and people. Students identify problems through observation and interviews of some inhabitants during the visits and develop technological solutions based on frugal innovation. The proposal solutions have to be of low cost, long duration and with the possibility of being replicable, solving the problem in an ingenious manner. The students have managed to identify problems and propose solutions to social problems linked to their profession, using frugal innovation. The proposed solutions were creative and flexible, they explored other opportunities, incorporated unconventional resources and designed different business models. These solutions were delivered to the people identified as customers of the process. After these experiences, students conclude that the solutions they provide in solving society's problems from engineering make them more human.