This study aims to develop a model for the enablers, critical success factors (CSF) and barriers to frugal innovation (FI). A systematic literature review (SLR) conducted on 372 documentaries of five databases and semistructured interviews conducted with active industrial and academic experts in the innovation field. Then, factors obtained from SLR and interviews placed in two questionnaires with Likert spectrum and the questionnaires were submitted to 200 convenient samples to determine the importance of factors and then ranked through the Friedman test. Based on the findings, ‘optimization of energy consumption in industries, collaborating with local companies, management supports, paying attention to the needs of the local market and reducing the profit margin’ are among the enablers and CSFs of FI. ‘Lack of business acumen among local partners, senior management reluctances, challenging in R&D, challenges of prototyping in product development and currency fluctuations’ are among the barriers of FI.
Purpose This paper aims to propose a framework for the dimensions of frugal innovation enablers in small and medium-sized enterprises (SMEs). Design/methodology/approach A mixed research approach has been applied. First, by a comprehensive literature review, the most important factors influencing frugal innovation have been identified. Then, an interview has been conducted with 18 experts who were selected by snowball sampling method. In the next step, all identified variables have been modified in a questionnaire with 48 factors, which were distributed to 200 employees and managers of SMEs in the home appliance manufacturing industry of Isfahan province, who were selected by non-random sampling. Data has been analyzed using SPSS-25 software for exploratory factor analysis. Findings Findings indicated that the most important enablers of frugal innovation are world-class design, human aspect, marketing, support, knowledge, social aspect, prototyping, cultural aspect, environmental aspect, distinct brand creation, core functions focus, local R&D, cost-cutting business model and low-cost production. Practical implications The proposed framework provides an effective basis to managers and decision-makers in the field of frugal innovation to evaluate their capabilities in implementing frugal innovation, the results of which are helpful in developing a roadmap for achieving frugal innovation in SMEs and particularly in home appliance manufacturing companies. Originality/value The comprehensive framework of this study has not been applied, developed or studied in the literature. The proposed framework provides new insights for future studies on the subject of frugal innovation, e.g. investigating the influence of frugal innovation on frugal innovation performance.
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