Frugal innovation and design changes expanding the cost-performance frontier: A Schumpeterian approach

Lim, Chaisung; Fujimoto, Takahiro

doi:10.1016/j.respol.2018.10.014

Cited by 70 publications

(51 citation statements)

References 21 publications

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“…Stripping down resource needs to the minimum, the innovation process undertaken in the context of scarcity, has led researchers to conceptualize such innovations as being “frugal”, drawn from the Latin word- frugalis . Frugal innovation essentially explicates the phenomenon as involving simplifications ( Lim & Fujimoto, 2019 ), delivering fundamental needs with scant resources (Economist 2010; Radjou et al, 2012 . ; Zeschky, Widenmayer, & Gassmann, 2011 ), and at lower costs ( Zeschky, Winterhalter, & Gassmann, 2014 ).…”

Section: Theoretical Framing- Frugal Innovationmentioning

confidence: 99%

“…Governments worldwide have deployed a range of technological tools to try to stay ahead and flatten the curve. Resource-constraints have been known to trigger cost-effective, good-quality solutions ( Gibbert, Hoegl, & Valikangas, 2014 ; Lim & Fujimoto, 2019 ). Innovations emerging from these limited resource settings are often deemed frugal, sometimes involving adaptations and reengineering of pre-existing technologies ( Sarkar & Pansera, 2017 ).…”

Section: Introductionmentioning

confidence: 99%

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Breaking the chain: Governmental frugal innovation in Kerala to combat the COVID-19 pandemic

Sarkar

2021

Government Information Quarterly

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As the COVID-19 pandemic causes unprecedented disruptions in citizens' lives and work, prompting a wide range of responses from governments across the globe. The southern Indian state of Kerala, India's COVID-19 “ground zero”, stands out with a fatality rate at a fraction of other richer Indian states and countries. This has happened despite the state presenting strong vulnerabilities to COVID-19. Using the theoretical lens of frugal innovation, we analyse how the Kerala State Government (KSG) combated the spread of COVID-19. This research uncovers the mechanisms at play as KSG implemented and used frugal technologies as platforms that helped decision making and strategy to fight the pandemic. We find a rich interplay of frugal innovations promoted by the government, in partnership with research institutes and private sector actors, which are cheap and efficacious. The study defines and promotes the concept of government frugal innovation (GFI) and provides valuable insights and tools to help governments navigate and effectively respond to this crisis, encouraging the rest of the world to learn from Kerala's experience. Our conceptual model characterizes GFI as involving collaborative aspects, and holds practical implications beyond the times of crises.

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Section: Theoretical Framing- Frugal Innovationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Breaking the chain: Governmental frugal innovation in Kerala to combat the COVID-19 pandemic

Sarkar

2021

Government Information Quarterly

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“…For example, Ojha [40, p. 7] noted that "[ …] the term frugal innovation refers to the systematic innovation processes that had been adopted in order to develop high-end low-cost technology products for markets such as India [ …]." The process of developing frugal products can be carried out through many different approaches, such as entrepreneurial bricolage or modularity [30], [47], [59], [73]. However, one of the more prominent examples of product development under constraints is "frugal engineering."…”

Section: A Conceptualizations Of Frugal Processesmentioning

confidence: 99%

Frugal Processes: An Empirical Investigation Into the Operations of Resource-Constrained Firms

Knizkov

Arlinghaus

2021

IEEE Trans. Eng. Manage.

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The severe resource constraints that characterize markets at the bottom of the world's economic pyramid have forced firms to innovate both their products and processes. However, discourse in frugal innovation literature on how firms can design frugal processes in response to the resource constraints they face remains relatively sparse. Based on a systematic literature review, in this article we consolidate existing work on the process echelon of frugal innovation. We outline three ways frugal processes that have been conceptualized in the literature thus far, and distill their key characteristics. Based on an exploration of the supply chains of 87 small-and medium-sized enterprises, we show how firms configure these characteristics to overcome resource constraints at each stage of their supply chain. Ultimately, we propose three archetypes of a frugal supply chain that firms can strategically adopt. Firms with the primary goal of increasing consumer access to affordable products opt for a supply-chain structure that favors traditional economies of scale, and postpone any decentralization as further downstream as possible. In contrast, firms aiming to provide consumers with greener alternatives can adopt a hyperdecentralized structure throughout their supply-chain, which is made economically viable through low-cost approaches to distributed manufacturing. Firms interested in empowering local communities should consider hybrid structures that balance the high costs of investments in local capabilities. Index Terms-Base of the pyramid, bottom of the pyramid, emerging markets, frugal innovation, process innovation, smalland medium-sized enterprises, supply-chain management, sustainability, sustainable operations. I. INTRODUCTION F RUGAL innovation emerged from highly practice-oriented origins, as an approach by companies trying to achieve the price and functionality requirements of their customers at the bottom of the world economic pyramid, who, at times, earn as little as two United States Dollar (USD) a day [58]. Companies operating in bottom of the pyramid markets frequently face constraints such as limited material resources, limited financial resources, as well as limited institutional or infrastructural Manuscript

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“…One of the key challenges for cleaner production is providing new products whilst being sparing with resources [1,2]. Frugal innovation, defined as "a resource scarce solution" [3], thus has received a large amount of attention from cleaner production as well as innovation scholars [2,[4][5][6].…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2019

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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.

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Frugal innovation and design changes expanding the cost-performance frontier: A Schumpeterian approach

Cited by 70 publications

References 21 publications

Breaking the chain: Governmental frugal innovation in Kerala to combat the COVID-19 pandemic

Breaking the chain: Governmental frugal innovation in Kerala to combat the COVID-19 pandemic

Frugal Processes: An Empirical Investigation Into the Operations of Resource-Constrained Firms

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

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