Frugal Innovation Research Articles

INCREASING OR DECREASING FRUGALITY: THE CONNECTION BETWEEN DIGITALISATION AND FRUGAL INNOVATION

Within wider debates on sustainability and digitalisation, frugal innovation (FI) scholars largely assume that digital technologies are important for FI in realising more sustainable outcomes. However, very few studies interrogate this causality. To tackle this challenge, we connect FI with digitalisation. Thereto, we conceptualise digital technologies as and within FIs and discuss three frugality dimensions to analyse three empirical case studies of digitally-enabled FIs. We use these cases to introduce new nuances on how digitalisation affects frugality and scaling. Our results unveil that digitalisation can increase frugality by enabling more accessible and affordable solutions through new flexible funding schemes and pay-as-you-go models. However, our evidence also implies decreasing frugality by an increase in end-user costs and digital exclusion. Likewise, increasing frugality through complexity reduction seems mainly to benefit intermediaries and frugal innovators themselves, whereas benefits of digitalisation in terms of complexity reduction for end-users seem to be limited. Digitalisation can even increase complexity for end-users, thus suggesting decreasing frugality. Finally, just like with non-digital innovations, scaling of digitally enabled innovations is dependent on the quality of logistical infrastructure and local adaptation practices. Moreover, scaling of digitally-enabled innovations is limited to users in regions with a proper ICT infrastructure.

Potential for Frugal Innovation in a Brazilian Regional System: A Study Based on a Multicriteria Approach

Potential for Frugal Innovation in a Brazilian Regional System: A Study Based on a Multicriteria Approach

No frugal innovation without frugal evaluation: the Global IDEAL Sub-Framework

ObjectiveThe Global IDEAL Sub-Framework Study aimed to combine the intended effects of the 2009/2019 IDEAL (Idea, Development, Exploration, Assessment, Long-term study) Framework recommendations on evaluating surgical innovation with the vision...

Mastering citizen involvement in international open innovation challenges: Interim lessons learned of the FRANCIS project

EU-funded project FRANCIS focuses on involving citizens in the development of so-called Frugal Innovations, i.e. simple, affordable and sustainable solutions. It does so by organising open-innovations challenges that are managed through an IT-platform and supported by various recruitment and ideation formats. Usually, Citizen Science only involves citizens for minor tasks such as data collection. FRANCIS jump ahead in science is that the project invites them to propose and work on new solutions that have a real chance to enter the market. Before starting the challenges, the team of FRANCIS already made some assumptions about how to encourage and support participants in the best possible way based on existing publications and first findings from primary research. Now that the first challenge is running, the team had the opportunity to check whether they have proven to be true so far. This paper presents the interim lessons learned and details the way forward

Frugal innovation for smart connected products: a case study of IoT-based smart farming by Vietnamese startups

ABSTRACT Frugal innovation has been gaining increasing attention from scholars, practitioners, and policymakers over the past two decades. Frugal innovation refers to innovations that emerge in resource-constrained settings with scarcity of financial capital, technological capability, or human resources. The innovation output offers significantly lower prices compared to other market alternatives while still delivering an optimal performance level catered to the specific needs of the unserved or underserved customer groups. This research employs a qualitative research methodology, using thematic coding analysis techniques to investigate case studies of three Vietnamese startups that provide IoT-based (Internet of Things) smart farming solutions for Vietnamese farmers and farming businesses. The findings highlight three characteristics of frugal innovation in Vietnam’s agriculture industry of substantial cost reduction, focused functionality, and optimal performance level. The study also identifies various enablers and barriers during the deployment process of frugal innovation. In addition, the research emphasises the distinction in the means of achieving frugal innovation in the context of smart connected products, compared to products that are mainly comprised of hardware components (i.e. hardware-based products). The study has important theoretical and managerial implications for various stakeholders, aiming to accelerate the transformation process from traditional farming to smart farming in Vietnam.

How Enterprises Achieve Frugal Innovation: A Configurational Study Based on the Model of Organizational Symbiosis

Frugal innovation offers cost-effective, demand-driven products for consumers in emerging markets. By leveraging this approach, enterprises can capitalize on opportunities, boost profits, and nurture beneficial consumer relationships. This study uses the transaction cost theory to explore how symbiotic relationships within environmental turbulence influence frugal innovation. The goal is to unravel the interconnected factors that drive high-performance frugal innovation, providing enterprises with a roadmap for seizing opportunities, enhancing profitability, and cultivating enduring consumer relationships. Data from 218 Chinese enterprises were collected through a survey and analyzed using fuzzy-set Qualitative Comparative Analysis (fsQCA) and Necessary Condition Analysis (NCA) methods. The research findings indicate that factors such as market dynamics, technological dynamics, collaboration with suppliers and customers, relationship governance, contract governance, and inter-organizational trust are not necessary prerequisites for high frugal innovation performance. Instead, the synergy among these factors is imperative for reaching elevated levels of frugal innovation performance. Furthermore, three distinct pathways to heightened frugal innovation performance were identified: a dual-drive mechanism involving membership relationships and governance mechanisms, a membership-driven approach in dynamic technological conditions, and a governance mechanism-driven approach in dynamic market conditions. This study offers valuable theoretical and practical insights for enterprises pursuing frugal innovation in turbulent environments, guiding them towards sustained growth and competitive advantages in new markets.

Thriving in scarcity: Harnessing intellectual capital for open frugal innovation

Private higher education institutions (PHEIs) are struggling to invest in the facilities, tools, and staff required to build a complete IR4.0 education ecosystem due to a lack of funding and technological resources. This research investigates the role of intellectual capital elements (Human, Relational, and Structural Capital) in promoting frugal innovation in Malaysian private universities utilizing knowledge-based theory. Using a quantitative research approach, we collected survey data from 308 respondents affiliated with Private Higher Education Institutions (PHEIs) in Malaysia. The study found that human capital is not statistically significant in its relationship with frugal innovation in higher education, while structural capital and relational capital do show significant relationships. These findings contribute to our understanding of intellectual capital's role in frugal innovation in Malaysian PHEIs.

Rural electrification in Nigeria: A review of impacts and effects of frugal energy generation based on some of e-waste components

Nigeria is the seventh most populous country in world being the highest in Africa. The country is blessed with vast natural resources and is one of the highest producers of oil in the world. However, the inadequate supply of electrical energy is a major setback in the nation's economic development. Thus, there is need for an urgent and immediate solution to address the electricity access situation in Nigeria. It is in view of this that we first present an overview of the electrical energy situation of Nigeria (especially in the rural areas). The benefits of rural electrification and it impacts are discussed to buttress the need for electrifying rural areas and an overview of the abundant renewable energy resources in Nigeria is presented. As a proposed solution to improve the electricity situation, the concept of a reuse solar photovoltaic system based on e-waste components and old materials is presented. The system comprises repurposed Power Supply Unit (PSU) from old desktop computers, old thermal car Lead-acid batteries, old solar panels and Uninterruptible Power Supply (UPS) units. The possibility of adopting this solution in Nigeria depends on the amount of e-wastes generated annually thus necessitating the need for an analysis to see the annual impact of this system on electricity access based on the amount of available e-waste. Using the huge amount of e-waste generated/received annually in Nigeria, the feasibility of our solution is assessed by estimating the possible number of households that could be electrified by the second life renewable energy systems we propose. Due to the lack of official data in this field, certain constraints and assumptions were defined for the purpose of this analysis which resulted in obtaining a range of results that showed the possible impacts of adopting the reuse system. The analysis showed the minimum and maximum impacts the reuse solution could have on electricity access in Nigeria, based on best and worst case scenario respectively. The results further showed that an average of 287,000 households can be electrified annually if this solution is adopted, causing 2.2 % increment in population with electricity access in a year (between 620 thousand and 4.1 million individuals). Thus, the result is an indication that it is possible to achieve immediate growth in electricity access based on renewable energy integration, frugal innovation and reuse/repurposing of e-waste materials. In addition, this extension of their lifespan reduces their ecological footprint. It is expected that the energy demands of the continuously growing population can be met by strict adherence to set targets including adoption of smart-grids, generation diversification and focusing on rural electrification.

Frugal Education: What, why, and how?

AbstractThis paper explores how frugal innovation practices can challenge resource constraints by leveraging available resources in creative and innovative ways towards more affordable, practical, sustainable and resilient education practice. The education sector has faced many challenges when adapting practice to deliver quality education in the wake of a world‐changing pandemic. There is a great deal we can learn from each other with regards to the frugal application of resources, such as time, money, people and space. However, forms of frugality in education design are driven by necessity and are reactive as opposed to proactive measures. We can, however, learn from educators and institutions that have been able to achieve significant educational impact at low cost with far fewer resources, adopting frugal approaches to education design and delivery. This paper proposes a set of frugal education aspects that demonstrate how frugal design practices can be organised and applied within an educational context. The aspects are outlined, and examples are presented to illustrate their effectiveness within existing education practice. This paper seeks to contribute to the existing knowledge base and research into frugal innovation practice as it applies within an education context, reframing the use of the term ‘frugal’ away from affordability and poor quality, towards a more expansive understanding that establishes a foundation on which to build, define, and contextualise frugality within an education context. The paper concludes with recommendations for the development of practical resources, informed by the research, to support educators in the design of frugal education practice.

Serving society at large. Operationalization and evidence of (advanced) frugal innovation in industrialized economies

In existing works, frugal innovations are predominantly associated with emerging markets. Little is known about the development and diffusion of frugal innovations in industrialized economies or high-income countries. According to recent research, this can also be attributed to structural differences between emerging and industrialized economies. However, very little empirical research exists that examines the impact of such differences on frugal innovation. This paper develops initial steps towards assessing frugal attributes of existing products. In addition, it can be assumed that the application of certain frugal design principles inhibits attractiveness in certain markets due to the resulting lower level of amenities. However, frugality methods that rely more heavily on internal customization also exist. Accordingly, the possibility of using these methodologies also exists beyond serving the needs of the poor, fulfilling the needs of societies in general, including high-income population groups.

Frugal Innovation Strategies and Supply Chain Performance of Food and Beverage Firms in South-South Nigeria

This study explored frugal innovation strategies and supply chain performance of food and beverage firms in South-South Nigeria. It critically analyzed the dimensions of frugal innovation strategies (value innovation, cost cutting advancement and technological innovation) and relate them to supply chain performance measures (product availability, on-time delivery and supply chain flexibility) of food and beverage firms. The study applied the positivist research philosophy and correlational research design. The population of this study comprised 82 registered food and beverage firms in South-South Nigeria. The sample size consisted of 68 food and beverage firms in South-South Nigeria. The Taro Yamene’s formula was used to determine the sample size for the study. The sampling unit consisted of managers of the selected food and beverage firms in South-South Nigeria. A structured questionnaire was used for data collection in this study. The data collected were analyzed statistically while the Pearson Product Moment Correlation Coefficient (PPMCC) was used to test the formulated hypotheses. The SPSS software program version 24 was used to correlate the data collected on the study variables. The findings revealed that value innovation has a significant relationship with product availability, on-time delivery and supply chain flexibility of food and beverage firms. This study also revealed that cost cutting advancement has significant relationship with product availability, on-time delivery and supply chain flexibility of food and beverage firms. The study equally revealed that technological innovation has a significant relationship with product availability, on-time delivery and supply chain flexibility of food and beverage firms. Based on these findings, it was concluded that frugal innovation strategies such as value innovation, cost cutting advancement and technological innovation are significant predictors of supply chain performance of food and beverage firms in South-South Nigeria. Based on the findings and conclusion, it was recommended that food and beverage firms in South-South Nigeria should adopt frugal innovation strategies as it would improve their supply chain performance.

Frugal Innovation and Business Success of Food and Beverage Firms in South-South Nigeria

This study examined frugal innovation and business success of food and beverage firms in South-South Nigeria. The study employed the correlational research design. The population of this study consisted of all the 82 registered food and beverage firms in South-South Nigeria. The unit of analysis was made up of managers of the selected food and beverage firms in South-South Nigeria. The sample size was determined using the Taro Yamene’s formula. A structured questionnaire was used to elicit data from the respondents. The data collected were analyzed statistically while the Pearson Product Moment Correlation Coefficient (PPMCC) was used to test the formulated hypotheses. The SPSS software program version 24 was used to correlate the data collected on the study variables. The findings revealed that value innovation has a significant relationship with business success (sales growth and profitability growth) of food and beverage firms in South-South Nigeria. This study also reported that cost cutting advancement has significant positive with business success (sales growth and profitability growth) of food and beverage firms in South-South Nigeria. The study equally revealed that technological innovation has a significant relationship with business success (sales growth and profitability growth) of food and beverage firms in South-South Nigeria. Based on these findings, it was concluded that frugal innovation is a significant predictor of business success of food and beverage firms in South-South Nigeria. Based on the findings and conclusion, it was recommended that food and beverage firms in South-South Nigeria should practice frugal innovation as it would enhance business success of food and beverage firms in South-South Nigeria.

Managerial Proactiveness, Frugal Innovation and Firm Performance

Firms use frugal innovations—affordable, functional and long-lasting solutions—to address issues in developing markets. These innovations aid businesses in providing valuable customer services, opening new markets and achieving sustainable goals that add value and stimulate the economy. However, our understanding of the link between frugal innovation and business performance is limited. To address this issue, the authors used a resource-based view and stakeholder theories to investigate the link between frugal innovation and firm financial and environmental performance and the moderating role of managerial proactiveness. The study analysed data from 580 CEOs in emerging markets, and the findings revealed that frugal innovation significantly enhances a firm’s financial and environmental performance. Managerial proactiveness also moderates the impact of frugal innovation on financial and environmental performance. The article concludes by discussing the theoretical and managerial implications, highlighting the importance of frugal innovation and the role of managerial proactiveness in driving firm performance.

The Role of Entrepreneurial Orientation and Entrepreneurial Bricolage on Frugal Innovation and SMEs Sustainable Performance in Emerging Markets

This study sought to investigate the impact of entrepreneurial orientation (EO) and entrepreneurial bricolage (EB) on frugal innovation (FI), and subsequently, the sustainable performance of small and medium-sized enterprises (SMEs) in emerging markets (EMs). Data were collected from 750 key decision-makers in manufacturing small and medium-sized enterprises (SMEs) in the cities of Dar es Salaam and Arusha, Tanzania, yielding a response rate of 51.47%. The data was analyzed using structural equation modeling in SmartPLS software. The results revealed that EO had a positive and significant effect on both FI and EB. Also, EB had a positive and significant effect on FI, which ultimately led to FI positively influencing SMEs’ sustainable performance. Furthermore, the study showed that EO is a strong driver of FI and SMEs’ sustainable performance when mediated by EB and FI, respectively. These findings indicate that firms operating in resource-constrained environments in EMs should emphasize the FI approach in combination with their strategic initiatives, such as EO and EB, to achieve SMEs’ sustainable performance. The theoretical and practical significance of this study is explained thoroughly. The study clarifies how entrepreneurial orientation and bricolage contribute to frugal innovation and the sustainable performance of SMEs in emerging markets. Additionally, it sheds light on a novel perspective regarding the relationship between entrepreneurial orientation, entrepreneurial bricolage, and SMEs’ sustainable performance through frugal innovation. Furthermore, the study provides a new perspective on developing countries such as Tanzania, which lacks empirical evidence on SMEs sustainable performance.

The Role of Entrepreneurial Orientation and Entrepreneurial Bricolage on Frugal Innovation and SMEs Sustainable Performance in Emerging Markets

This study sought to investigate the impact of entrepreneurial orientation (EO) and entrepreneurial bricolage (EB) on frugal innovation (FI), and subsequently, the sustainable performance of small and medium-sized enterprises (SMEs) in emerging markets (EMs). Data were collected from 750 key decision-makers in manufacturing small and medium-sized enterprises (SMEs) in the cities of Dar es Salaam and Arusha, Tanzania, yielding a response rate of 51.47%. The data was analyzed using structural equation modeling in SmartPLS software. The results revealed that EO had a positive and significant effect on both FI and EB. Also, EB had a positive and significant effect on FI, which ultimately led to FI positively influencing SMEs’ sustainable performance. Furthermore, the study showed that EO is a strong driver of FI and SMEs’ sustainable performance when mediated by EB and FI, respectively. These findings indicate that firms operating in resource-constrained environments in EMs should emphasize the FI approach in combination with their strategic initiatives, such as EO and EB, to achieve SMEs’ sustainable performance. The theoretical and practical significance of this study is explained thoroughly. The study clarifies how entrepreneurial orientation and bricolage contribute to frugal innovation and the sustainable performance of SMEs in emerging markets. Additionally, it sheds light on a novel perspective regarding the relationship between entrepreneurial orientation, entrepreneurial bricolage, and SMEs’ sustainable performance through frugal innovation. Furthermore, the study provides a new perspective on developing countries such as Tanzania, which lacks empirical evidence on SMEs sustainable performance.

Low-Cost Innovations in Global Cardiac Surgery.

Cardiovascular diseases are the leading cause of morbidity and mortality worldwide, costing the lives of 18 million people annually, with up to one-third being attributable to cardiac surgical conditions. Approximately 6 billion people do not have access to safe, timely, and affordable cardiac surgery, predominantly affecting populations living in low-middle income countries. Cardiac surgical care is costly, resulting in few centers in variable-resource contexts operating continuously or with the resources observed in higher-resource environments. As a result, innovations may be formally developed or informally adopted to bypass resource constraints and ensure care delivery. Innovations have been observed across the cardiac surgical care continuum and across settings, potentially benefiting both high-income countries, where growing health care costs are becoming unsustainable, and low- and middle-income countries, where competing health agendas may limit investments into cardiac surgery. This narrative review attempts to address the costs associated with cardiac surgery, placing an emphasis on frugal innovations in the perioperative and postoperative care spectrum.

Assessing Crisis Leadership in the context of Frugal Innovation in India

In India, where resources are limited and unpredictable events are common, the ability to combine crisis leadership with cost-effective innovation is critical to the success of businesses and organizations. Leaders must be able to think creatively and strategically to address challenges while being aware of cost implications. By adopting frugal innovation practices, companies can develop innovative solutions that are not only affordable but also environmentally sustainable. This approach can help organizations build resilience and competitiveness in the face of crises, ultimately leading to their long-term success.

Sustainable development through frugal innovation: the role of leadership, entrepreneurial bricolage and knowledge diversity

AbstractFrugal innovation through frugal functionality, frugal cost, and frugal ecosystems that reduce goods to their essential features has emerged as a highly effective method to improve sustainable development across societies, in developed countries as well as in developing countries. Drawing on social exchange theory and effectuation theory, this study examines the indirect effect of diversified knowledge sharing on the relationship of sustainability-oriented leadership with frugal innovation and the conditional role of entrepreneurial bricolage. The study utilized data collected from 223 representatives of small and medium enterprises in Poland. Partial least squares structural equation modelling was used to test the proposed hypotheses. The results confirmed that sustainability-oriented leadership indirectly and significantly affects frugal functionality and costs through both internal and external diversified knowledge sharing. Yet, internal diversified knowledge sharing does not mediate the sustainability-oriented leadership–frugal ecosystem relationship. The findings show that the sustainability-oriented leadership–external diversified knowledge sharing relationship amplifies with increasing values of entrepreneurial bricolage. However, the sustainability-oriented leadership–internal diversified knowledge sharing relationship does not change in the presence of entrepreneurial bricolage. This pioneering study explores the interactions between sustainability-oriented leadership, entrepreneurial bricolage, and internal as well as external diversified knowledge sharing with regards to frugal innovation. It uncovers the underlying processes of frugal innovation and improved frugal innovation performance, facilitates the integration of knowledge, recognises successful approaches to leadership, creates initiatives for leadership development, and offers actionable insights for organisations aiming to cultivate frugal innovation.

The Moderating Role of Frugal Innovation in Enhancing the Impact of Innovation Orientation on Innovation Performance: Evidence from SMEs in Dongguan, China

The Moderating Role of Frugal Innovation in Enhancing the Impact of Innovation Orientation on Innovation Performance: Evidence from SMEs in Dongguan, China

ASSESSING THE ADOPTION OF FRUGAL INNOVATION USING SEM FROM CUSTOMERS’ AND FIRM’S PERSPECTIVES

This study assesses the adoption of frugal innovation from customers’ and firms’ perspectives using Structural Equation Modelling (SEM). Three measures of frugal innovation were considered including cost reduction, core functionalities, and performance level. Then, measurement and structural models were developed with three latent, frugal innovations, firm performance, and customer acceptance. Data were collected from 40 Jordanian firms and 200 customers. In total, 300 surveys were distributed. The response rate was 75%. Results indicated that cost reduction, core functionalities, and product performance were mostly affected by used material, functional aspects, and quality of innovative products, respectively. Further, revenues and meeting requirements had the largest impacts on firm performance and customer acceptance, respectively. Finally, frugal innovation significantly impacts firm performance directly and indirectly through customer acceptance. However, the impacts of customer acceptance on firm performance were found insignificant. In conclusion, frugal innovation can enhance firms’ performance and hence firms should offer customers affordable and good enough low-cost, simple, and robust innovative products to have a successful adoption of frugal innovation.