Frugal Innovation – Its Concept & Attributes of Success; Learning Lessons For Western MNCs

Author(s)

Fouzia Ashfaq , Dr. Wasif Ali Waseer , Sehrish Ilyas ,

Download Full PDF Pages: 49-54 | Views: 1385 | Downloads: 345 | DOI: 10.5281/zenodo.3474571

Volume 7 - January 2018 (01)

Abstract

Frugal Innovation is an emerging trend as affordability has become a major constraint on purchasing behaviour of the growing population of emerging/developed economies. The Westerns MNCs are good at innovation; however working in a resource-constrained environment requires extra challenges. The success of frugal innovation depends on the ability to sense the local needs and translating them into low cost products without compromising on quality. Using four case examples of Mettler Toledo Basic Weighing Scale,  GE’s Portable Ultrasound Machine, Haier’s Mini Magic Child and Philips Bedside Patient Monitoring System, the research  findings reveal that the firms which are aware of the difference between developed and developing markets and are more flexible and adaptive can have more opportunities to capture the market.

Keywords

Frugal innovation, Emerging markets, Resource Constraints, Innovation Challenges. 

References

        i.            Agnihotri, A. (2015). Low-cost innovation in emerging markets. Journal of Strategic Marketing, 23(5), 399-411.

      ii.            Angot, J., & Plé, L. (2015). Serving poor people in rich countries: the bottom-of-the-pyramid business model solution. Journal of Business Strategy, 36(2), 3-15.

    iii.            Basu, R. R., P. M. Banerjee and E. G. Sweeny (2013). "Frugal Innovation: Core Competencies to Address Global Sustainability." Journal of Management for Global Sustainability 2: 63-82.

     iv.            Bhatti, Y. A. and Ventresca, M. 2013. How can ‘frugal innovation’ be conceptualized? Said Business School Working Paper Series, Oxford. Available at: http://ssrn.com/abstract=2203552.

       v.            Christensen, C.M. (1997), The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, Harvard Business Review Press, Cambridge, MA.

     vi.            Gassmann, O., & Han, Z. (2004). Motivations and barriers of foreign R&D activities in China. R&D Management, 34(4), 423-437.

   vii.            George, G., McGahan, A. M., & Prabhu, J. 2012. Innovation for Inclusive Growth: Towards         a Theoretical Framework and a Research Agenda. Journal of Management Studies, 49(4): 661-683.

 viii.            Haque, U. 2011. The New Capitalist Manifesto: Building a Disruptively Better Business. Cambridge, MA: HBS.

     ix.            Hossain, M., Simula, H., & Halme, M. (2016). Can frugal go global? Diffusion patterns of frugal innovations. Technology in Society, 46, 132-139.

       x.            Kim, C., & Park, J. H. (2010). The global research-and-development network and its effect on innovation. Journal of International Marketing, 18(4), 43-57.

     xi.            Dictionary, O. E. (2011). Oxford dictionaries online.

   xii.            Prahlad, C. K. (2010). The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. New Jersey, USA: Prentice Hall.

 xiii.            Radjou, N. (2014). Frugal innovation: a pioneering strategy from the South. Innovation for Sustainable Development, 221-234.

 xiv.            Rao, B. C. (2013). How disruptive is frugal?. Technology in Society, 35(1), 65-73.

   xv.            Simula, H., Hossain, M., & Halme, M. (2015). Frugal and reverse innovations–Quo Vadis?.

 xvi.            Wooldridge, A. (2010). First break all the rules: The charms of frugal innovation. The Economist, 3-5.

xvii.            Zeschky, M. B., Winterhalter, S., & Gassmann, O. (2014). From cost to frugal and reverse innovation: Mapping the field and implications for global competitiveness. Research-Technology Management, 57(4), 20-27.

             xviii.            Zeschky, M., Widenmayer, B., & Gassmann, O. (2011). Frugal innovation in emerging markets. Research-Technology Management, 54(4), 38-45.

Cite this Article: