Antecedents and Consequences of Frugal Innovation - A Conceptual Model
Bedi, H. S., and Vij., S. (2016), “Antecedents and Consequences of Frugal Innovation: A Conceptual Model” in K. Ghuman, A. Sharma, and A. Garg (Ed.), Indian Management: Proceeding of International Conference on Indian Management. Thapar University, 2016 (pp. 253-269), Bloomsbury: India.
20 Pages Posted: 27 Feb 2017 Last revised: 29 Nov 2017
Date Written: November 14, 2016
Abstract
Purpose - Frugal innovation has been explored, discussed and showcased in the form of case studies and short documentaries over the last 7-8 years. However, underlying conceptual framework and underpinnings for frugal innovation appear to be lacking in the academic literature. This paper is an endeavor to crystallize frugal innovation construct by providing a conceptual model based on identified antecedents and consequences of frugal innovation.
Design/methodology/approach - This is an exploratory study, based on a systematic review of available literature on frugal innovation.
Findings - The study suggests firm level conceptualization of frugal innovation and proposes affordability, acceptability, core functionality and sustainability as its key dimensions. The conceptual model proposes a positive effect of frugal innovation on business performance. It also proposes the moderating effect of organizational and industrial environmental variables on the relationship between frugal innovation and business performance.
Practical Implications - The Study invokes entrepreneurs, business managers, and policy makers to support ingenuity as a solution to solve the problems of the under-served bottom of the pyramid consumers.
Originality/value - Proposed conceptual model advances the existing case-based research towards deep investigation with empirical testing for theory building. The Study contributes to entrepreneurship and strategy literature by providing agenda for future researchers.
Keywords: Frugal Innovation, Jugaad, Bottom of Pyramid, Business Performance
JEL Classification: M10
Suggested Citation: Suggested Citation