Frugal innovation

About: Frugal innovation is a research topic. Over the lifetime, 472 publications have been published within this topic receiving 9290 citations.

Serving poor people in rich countries: the bottom-of-the-pyramid business model solution

Abstract: Purpose – The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries Design/methodology/approach – This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources Findings – The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries Limitat

The Digital Transformation of Business Model Innovation: A Structured Literature Review

Abstract: This paper has a two-fold aim: to analyze the development of the digital transformation field, and to understand the impact of digital technologies on business model innovation (BMI) through a structured review of the literature. The results of this research reveal that the field of digital transformation is still developing, with growing interest from researchers since 2014. Results show a need for research in developing countries and for more collaboration between researchers and practitioners. The review highlights that the field is fragmented among disruptive technologies, shared platforms and ecosystems, and new enabling technologies. We conclude that digital transformation has impacted value creation, delivery, and capture in almost every industry. These impacts have led to the employment of a variety of new business models, such as those for frugal innovation and the circular economy.

Jugaad—From ‘Making Do’ and ‘Quick Fix’ to an Innovative, Sustainable and Low-Cost Survival Strategy at the Bottom of the Pyramid

Abstract: Until recent times, Indian jugaad was commonly constructed to be a frugal form of innovation engendered from the lack of resources and unhealthy financial conditions, and has been recently imported...

Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment

Abstract: This study aims to explore the direct impact of the digital orientation, Internet of Things (IoT) and digital platforms on the sustainable digital innovation in the context of the digital economy and frugal environment. This study also investigated the mediating role of the digital platforms in these relations. The study was based on the quantitative research design and data were collected from the 397 CEOs and managing directors of Small and Medium Enterprises in Pakistan. Correlation and structural equation modeling approaches were applied for the analysis and testing of the hypotheses. Results revealed that the digital orientation, IoT and digital platform are major antecedents of the sustainable digital innovation. Results also show that the digital platforms mediate between both digital orientation-sustainable digital innovation link and IoT-sustainable digital innovation link. The rapid pace of change in the technology has forced the business organizations to think out of box and align their operational mechanism accordingly. The need for the sustainable digital innovation is a major need of the current decade for meeting the increasing demands of the society in a sustainable way. Organizations, especially SMEs, should be able to deal with these challenges and rapid technological transformations through cost effective frugal business models. The frugal innovation is an important element of sustainable digital innovation enables SMEs to reduce resources usage and waste and to enhance sustainable economic activities. In this way, they can develop and gain advantages in this highly competitive digital environment. This is the first study showing the bright harmony of the digital orientation, IoT and digital platforms for achieving the sustainable digital innovation in the rapid evolving digital economy.

Frugal Innovation and Knowledge Transferability

Abstract: OVERVIEW: Western firms are generally advised to rely on emerging market partners when attempting to develop frugal innovations for these developing markets. Underlying such advice is the idea that the requirements of emerging market consumers may not be familiar to Western firms and local developers will better understand local needs. We propose an alternative approach for high-tech firms-one that relies on home-based breakthrough R&D focused on emerging market needs. Three frugal innovation projects at a Swedish medical devices manufacturer serve to illustrate both how home-based breakthrough R&D can help managers reconceptualize their core products and the contextual factors favoring such an approach.