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Article
Publication date: 13 July 2021

Oly Mishra

This study aims to focus on implementing frugal innovation and its principles by social entrepreneurs to face the challenges during the COVID-19 pandemic. The research…

Abstract

Purpose

This study aims to focus on implementing frugal innovation and its principles by social entrepreneurs to face the challenges during the COVID-19 pandemic. The research paper discusses the case of an Indian social entrepreneur who works for menstrual health and hygiene of unprivileged and rural women in India. The social entrepreneur’s constant endeavor is to create an ecosystem to ensure rural women’s economic and social upliftment through financial inclusion and livelihood training. When faced with the COVID-19 pandemic, the social entrepreneur re-purposed the manufacturing process to produce masks that were the need of the hour.

Design/methodology/approach

The research paper is qualitative and follows an inductive case study approach. The underlying principles of frugal innovation are established through content analysis of the social entrepreneur’s interviews and her team members.

Findings

The study discusses how adversity can be an opportunity for social entrepreneurs by implementing frugal innovation principles, i.e. re-use, re-purpose, re-combine and rapidity, in times of crisis.

Research limitations/implications

One of the major limitations of this study is that it is based on a single case study, as, in the current scenario, this case appeared to be the most suitable one. There is no way to generalize the assumptions of this model. Researchers will have to study the phenomena of frugal innovation in adversity across multiple cases in the future. Also, the study is based on a single emerging economy, i.e. India. Further research may be carried out with such cases from other countries.

Practical implications

The proposition of this research paper will help new and established social entrepreneurs understand that the four principles of frugal innovation and their practical application by a social entrepreneur. This will act as a guiding light for the present and future entrepreneurs regarding how one can respond to a crisis. This will also help advance our understanding of the distinct ways in which social entrepreneurs’ activities can help society in times of crisis. The findings of this research paper provide timely implications for social entrepreneurs. To respond efficiently to various crises, it is important to consider its effect on social entrepreneurship.

Social implications

The research paper shows that the social enterprise has implemented frugal innovation principles to manufacture the COVID-19 protection items supplied through existing supply chain networks. Also, a social entrepreneur is not intimidated by the sudden changes in the business environment; instead, they look at the situation as an opportunity to do something new. They are always willing to take the risk to innovate a solution that will address people’s problems. frugal innovation, due to its highly collaborative nature and its ability to make the most from limited resources, is the only way social entrepreneurs can create an inclusive, secure and sustainable future.

Originality/value

There are several challenges in social entrepreneurship, especially in emerging economies like India. During the pandemic, availability of resources was the major challenge, due to which social entrepreneurs had to find solutions through frugal innovation. This paper provides the practical application of the four principles of frugal innovation implemented by a social enterprise to manufacture and supply Covid protection items. It also presents the practical and managerial implications of the principles of frugal innovation by social entrepreneurs in low resource settings.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 13 no. 4
Type: Research Article
ISSN: 2053-4604

Keywords

Content available
Article
Publication date: 10 June 2021

Syed Mudasser Abbas and Zhiqiang Liu

Sustainable development research assumes that startups, under extreme financial constraints, cannot sacrifice resources now for benefits later without risking their…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Innovation & Management Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-8961

Keywords

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Article
Publication date: 17 May 2021

Leonor Costa, Aurora Teixeira and Ana Brochado

This study aims to understand why young people are interested in buying frugal innovations.

Abstract

Purpose

This study aims to understand why young people are interested in buying frugal innovations.

Design/methodology/approach

Data were collected with a survey administered to 534 university students enrolled in various fields of study (e.g. sciences, technology, economics and fine arts). Using the Tata Nano car as an example of frugal innovation, a model based on the unified theory of acceptance and use of technology was developed using partial least squares structural equation modeling.

Findings

The model’s results reveal that effort expectancy, performance expectancy and facilitating conditions are critical factors that explain university students’ intention to buy Tata Nano.

Originality/value

Although frugal innovations are often introduced first in developing countries, frugal innovations could be highly relevant to users in developed nations as these innovations can provide market opportunities in terms of cost-conscious, relatively low-income and sustainability-conscious consumers.

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Article
Publication date: 2 February 2021

Qaisar Iqbal, Noor Hazlina Ahmad and Zeyun Li

This study draws on the upper echelon perspective and effectuation theory to put insights on the relationship between sustainable leadership and sustainable performance.

Abstract

Purpose

This study draws on the upper echelon perspective and effectuation theory to put insights on the relationship between sustainable leadership and sustainable performance.

Design/methodology/approach

The study had adopted the cluster-sampling approach to collect data from 500 small and medium enterprises (SMEs) established in China and India with 46.60% response rate. The SmartPLS 3.0 was employed for data analysis.

Findings

This study verified the mediating role of frugal innovation in emerging markets. Both market and technological turbulence significantly moderated the sustainable leadership-frugal innovation relationship. Nevertheless, the effect of sustainable leadership on frugal innovation did not vary for the different values of entrepreneurial bricolage.

Originality/value

This article contributes by revealing the moderating effect of market and technological turbulence as moderator. Greater market and technological turbulence led to greater impact of sustainable leadership practices on frugal innovation.

Details

Leadership & Organization Development Journal, vol. 42 no. 3
Type: Research Article
ISSN: 0143-7739

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Book part
Publication date: 19 July 2018

Vera Ferrón Vilchez and Dante Ignacio Leyva de la Hiz

This chapter proposes frugal eco-innovation as an eco-efficient way into which firms might shift their existing business models, exploring how firms are able to cut costs…

Abstract

Purpose

This chapter proposes frugal eco-innovation as an eco-efficient way into which firms might shift their existing business models, exploring how firms are able to cut costs and reduce negative environmental impacts simultaneously.

Design/methodology/approach

This work introduces the concept of frugal eco-innovation based on numerous examples about how several European companies are adopting this management perspective. These examples are obtained from these companies’ public environmental reports.

Findings

A summary of how cost reduction could be achieved by firms on the basis of frugal eco-innovation; further, the pathway for how managers could achieve an effective implementation of frugal eco-innovation.

Practical implications

By developing frugal eco-innovation, managers are able to benefit from a management alternative that is ecologically sustainable and economically profitable.

Social implications

This work highlights how frugal eco-innovation could benefit, on the one hand, firms via the achievement of cost reduction and, on the other hand, the society in general via the diminution of the negative environmental impacts generated by the business activity.

Originality/value

This work analyses a management orientation that could be implemented in order to shift business models towards a more ecological production, highlighting how firms are able to do more with less.

Details

The Critical State of Corporate Social Responsibility in Europe
Type: Book
ISBN: 978-1-78756-149-6

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Article
Publication date: 31 December 2020

Leandro Lima Santos, Felipe Mendes Borini, Moacir de Miranda Oliveira, Dennys Eduardo Rossetto and Roberto Carlos Bernardes

This research aims to answer the following question: Could bricolage become a capability for companies in emerging markets to develop frugal innovations in times of…

Abstract

Purpose

This research aims to answer the following question: Could bricolage become a capability for companies in emerging markets to develop frugal innovations in times of crisis? Therefore, in this paper the main aim is to identify whether in times of crisis the development of frugal innovation in emerging markets depends on the bricolage capability.

Design/methodology/approach

The hypotheses were statistically tested using the structural equation modeling technique, with data collected through the survey method applied to 215 companies in Brazil.

Findings

The results allowed support for the hypothesis that bricolage capability has a positive impact on the development of frugal innovation. Therefore, a mediating test was verified, allowing confirmation that to develop frugal innovation in emerging markets, bricolage becomes a required capability for companies in times of crisis.

Research limitations/implications

The limitation of this study lies in considering the effect of bricolage on frugal innovation only in the context of Brazil, while in developed countries this effect may be similar, as they also suffer from resource constraints caused by crises.

Practical implications

This research provides insights to guide managers by highlighting bricolage as a key managerial capability for the development of frugal innovation. A set of managerial recommendations are provided based on bricolage skills.

Originality/value

The study has contributed to the literature on bricolage and frugal innovation by addressing bricolage as an antecedent of frugal innovation in emerging markets, especially when those markets are affected by resource scarcity.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 13 January 2021

Abdullah Fahad AlMulhim

This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is…

Abstract

Purpose

This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is weakened/strengthened by the moderation of innovation capabilities.

Design/methodology/approach

This empirical study’s data were taken from 288 small and medium enterprises (SMEs) by using a questionnaire survey. To analyze this data, analysis of a moment structures software (AMOS) was used. Structural equation modeling was conducted to test the hypothesis and the slope test investigated moderation.

Findings

The study results showed the significant effect of internal and external sources of knowledge on frugal innovation. Moreover, the results highlighted that the moderating role of innovation capabilities strengthens this relationship.

Research limitations/implications

The SMEs of “Saudi Arabia” were considered for this study. Among these, this paper only focused on enterprises owned by Saudi citizens. Moreover, the data were collected from 288 SMEs. Therefore, future studies can be conducted from any other country with larger sample size. This study has used moderation of innovation capabilities and future studies can use information credibility as a moderating variable.

Originality/value

Previously, many studies have highlighted the importance of knowledge for innovation, but the effects of knowledge sources from the perspective of SMEs and emerging markets remain unexplained. Very limited studies have explored the relation of knowledge sources with frugal innovation. This study first examines the moderating role of innovation capabilities between “internal and external knowledge sources” and frugal innovation. Moreover, this research reveals the SMEs of Saudi Arabia and its sector of frugal products.

Details

International Journal of Innovation Science, vol. 13 no. 3
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 12 March 2020

Leandro Lima Santos, Felipe Mendes Borini and Moacir de Miranda Oliveira Júnior

In the past years, many contributions have been published addressing frugal innovation and other types of resource-constrained innovations in the management field…

Abstract

Purpose

In the past years, many contributions have been published addressing frugal innovation and other types of resource-constrained innovations in the management field. Throughout this paper frugal innovation is reported as a phenomenon, concept, research field and strategy, showing the different ways the literature refers to it and how scattered the concept is. However, based on the understanding, the authors decided to address frugal innovation as a kind of innovation strategy that helps companies to innovate in resource-constrained environments. Therefore, considering the increasing interest in the frugal innovation topic and adding the perspective of business strategy for resource-constrained conditions, the research question addressed in this paper is: what are the main features of the frugal innovation literature that unfold its current perspectives for business strategy? In this sense, the purpose of this study is to analyze the scientific production in frugal innovation through a literature mapping and review to better understand it, delimiting different perspectives and creating boundaries to other business strategies or approaches.

Design/methodology/approach

The authors performed a co-citation analysis using the Vosviewer software to notice how authors are arranged in clusters based on their understanding of the topic. Furthermore, the authors also performed a systematic literature review (SLR) analyzing the extant literature on frugal innovation based on the clusters found through the co-citation method. The final sample used in the study included 42 papers published between 2011 and 2019, using the Web of Science platform as a data source.

Findings

By means of SLR, the findings of this study provided a more organized view of frugal innovation through the co-citation analysis and the qualitative analysis of the clusters, which were the basis for the parameters established. After the conceptualization of frugal innovation strategy (FIS) and the delimitation of boundaries of FIS, the authors bring the reflections about the contribution to the literature and the practice (managers and society) by showing three assumptions to be tested and confirmed in future studies and a framework to guide companies in search of a FIS.

Originality/value

This study contributes to the discussion on frugal innovation moving a step forward to clarify the research field on this subject providing the main characteristics for researchers and practitioners. The paper has delimited the boundaries of FIS. The assumptions established in the discussion can become hypotheses for empirical studies. In addition, the authors explain why, what is, where and to whom the FIS can be developed and applied. Furthermore, the authors contribute by developing the FIS framework, with four strategic positions based on the boundaries of FIS organized by the complexity technological level. The strategic positions are frugal innovation orientation (FIO), FIO to value shared, FIO to market and FIS.

Details

Review of International Business and Strategy, vol. 30 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

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Article
Publication date: 4 December 2017

Rayees Farooq

The purpose of the study is to propose a conceptual model of frugal innovation and examine how it is linked to value creation.

Abstract

Purpose

The purpose of the study is to propose a conceptual model of frugal innovation and examine how it is linked to value creation.

Design/methodology/approach

This study is exploratory in nature, whereby previous studies were explored to identify the dimensions of frugal innovation. The previous studies were explored from selected databases including Google Scholar and ProQuest using the key word search, “frugal innovation”, “Jugaad innovation”, “value creation” and “environmental munificence”. The review process included the studies from 1991 to 2017.

Findings

This study suggests that frugal innovation is a multidimensional construct with affordability, simplicity, quality, sustainability, resilience, management support and defeaturing as its dimensions. The study found that frugal innovation is an important predictor of value creation. The study also proposes the moderating effect of environmental munificence on the relationship between frugal innovation and value creation.

Practical implications

This study invokes entrepreneurs, academicians and managers to be more inclined toward the bottom of the pyramid by using fewer resources. The study contributes to the strategic entrepreneurship literature by developing a conceptual framework of frugal innovation and linking it to the value creation.

Originality/value

The conceptual framework proposed is based on selected dimensions which seem to be lacking owing to various conceptualizations and meanings in the literature. The study is the first of its kind which has proposed the dimensions of frugal innovation.

Details

International Journal of Innovation Science, vol. 9 no. 4
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 14 May 2014

Pavan Soni and Rishikesha T. Krishnan

The paper aims to address two key gaps in the literature of frugal innovation. First, it disambiguates frugal innovations into its types, and into the various levels at…

Abstract

Purpose

The paper aims to address two key gaps in the literature of frugal innovation. First, it disambiguates frugal innovations into its types, and into the various levels at which it happens. Second, it builds upon the theoretical foundations of resource-based view, new institutional economics, economics of location, and institutional theory to offer testable propositions on determinants of frugal innovations.

Design/methodology/approach

This is a conceptual paper. The authors first systematically reviewed the extant literature on frugal innovation and related domains and categorized the existing understanding on the domain into various typologies of frugal innovation. The authors then justified why certain key theoretical lenses are tenable to understand the determinants of frugal innovation and then examined the conditions that enable such innovations.

Findings

The paper has three key findings. First, frugal innovation comprises of a frugal mindset, a frugal process and a frugal outcome, which may be practiced distinctly. Second, frugal innovators are of three types: grassroots-level, domestic-enterprise level, and MNC-subsidiary level. Each has their distinctive incentives and styles of frugal innovation. Third, a frugal mindset is encouraged by a resource-scarce environments, weaker institutional intermediaries, and a higher tolerance for uncertainty. Frugal processes are espoused by poor property rights regime and a critical size of lead market; and frugal outcomes are influenced by the network-position of innovators, and the presence of critical lead-markets.

Research limitations/implications

The propositions are though testable, but proxies need to be developed to measure the variables, such as a frugal mindset, and a frugal process. Further, the current view on various types and levels of frugal innovation is that of mutual exclusivity, whereas this may not always be the case. Hence, it might be useful to identify contingencies in which these distinctions fade away.

Originality/value

The paper is valuable in two key aspects. First, it offers a much-needed theoretical underpinning to the phenomenon of frugal innovation, such that the phenomenon could be better understood and influenced. Second, it nuances the phenomenon by identifying distinct types of frugal innovators in terms of their motivation, institutional influences, and styles of innovation.

Details

Journal of Indian Business Research, vol. 6 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

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