Frugal innovation

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

Bricolage and early stage firm performance

Abstract: Bricolage is one way firms innovate in the midst of resource constraints. In this thesis bricolage in entrepreneurial firms is investigated as is its impact on firm performance. The research provides empirical tests of bricolage and firm performance and tests environmental dynamism and team compositions as moderating effects that impact the bricolage-performance relationship. The limits of bricolage during firm creation are also explored. This research offers several novel theoretical contributions and some suggestions for entrepreneurs who typically use bricolage in attempts of firm creation.

Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

Abstract: Purpose This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input–process–output (I-P-O) framework was used as a tool to support the analysis of FI as a process. Design/methodology/approach A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry. Findings This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented. Originality/value The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

Orchestrating frugal eco-innovation: the plethora of challenges and diagnostics in lean startups of emerging economies

Abstract: Sustainable development research assumes that startups, under extreme financial constraints, cannot sacrifice resources now for benefits later without risking their survival. Furthermore, their non-compliance with environmental regulations adds fuel to the fire. This paper aims to explore the challenges faced by startups in resource-scarce economies and the innovative ways of coping with these challenges.,The data for the study was collected through 17 semi-structured interviews taken from startup owners and industry experts based in Pakistan and Bangladesh. The transcribed data were coded through NVivo 12 and themes were generated by merging 47 open and 14 axial codes.,The findings show that a lack of government support and lack of organisational readiness and motivation significantly affect startups’ frugal eco-innovation. Empirical evidence reveals problems related to the business ecosystem, and internal organisational issues also contribute to challenges faced by startups in attaining a competitive position in the industry.,The study’s findings suggested leveraging dynamic capabilities can help lean startups in frugal eco-innovation. Furthermore, organisational cohesion, business ecosystem, government regulations and assistantship, organisational mismanagement and market realisation are decisive in startups’ competitive position in emerging economies.,The findings of the study will result in a higher adoption rate of more competitive business models, and hence, startups’ sustainability. The results would be an effective and efficient deployment of sustainable technological solutions, creating more customer and shareholder value leading to economic growth.,This research offers a comprehensive analysis of frugal eco-innovative startups by exploring the interplay between different challenges and organisational capabilities. Furthermore, the study contributes to the existing body of knowledge by providing empirical evidence that eco-innovation can be conducted in a resource-constrained environment. This study challenged the scholarly and managerial assumption of the availability of finances as a significant player in eco-innovation. The study also links the Darwin theory of startups to a competitive edge over rivals for startups’ survival.

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.

What pathways lead to frugal innovation? : Some insights on modes & routines of frugal, technical inventions based on an analysis of patent data in German auto components industry

Abstract: Frugal innovations, ie affordable products and services with appropriately good quality, are getting increasingly important for securing long-term competitiveness in both, the developing world and in industry nations Nevertheless, ensuring actual implementation of technology-driven frugal inventions remains an under-researched area This study investigates modes and routines employed by techno-entrepreneurs from industry nations when innovating frugally The study is based on the patent data of seven auto component sector firms from Germany with a documented history of contributing cost-effective solutions to frugal vehicles With the help of a keyword analysis we identify the role of frugality in (patented) technical inventions Select case studies of frugal inventions show that cost effectiveness and environmental sustainability can be often achieved by simplification of design and production process, as well as by eliminating avoidable complexity, eg through standardization The study shows that frugal inventions in the investigated firms are often driven by individual inventors, while potentials of open global innovation networks are under-utilized Furthermore, the study shows that frugality can (only) be achieved by a holistic approach that encompasses the entire value chain, including logistics and waste management The results are potentially beneficial for techno-entrepreneurs across industry sectors and product domains