Can frugal go global? Diffusion patterns of frugal innovations. (August 2016)

• Record Type: Journal Article
• Authors: Hossain, Mokter; Simula, Henri; Halme, Minna
• Is Part Of: Technology in society. Volume 46(2016)
• Page Start: 132
• Page End: 139
• Publication Date: 2016-08
• Subjects: Frugal innovation -- Reverse innovation -- Diffusion patterns of innovation -- Innovation management -- Low-income markets; Technology -- Social aspects -- Periodicals; 303.483
• DOI: 10.1016/j.techsoc.2016.04.005
• Languages: English
• ISSNs: 0160-791X

Abstract

Abstract: The diffusion of frugal innovation has been an uncharted territory so far. The purpose of this study is to shed light on this topic and to explore the different diffusion patterns. While practitioners have shown growing interest in scaling up frugal innovations, the extant academic literature on the diffusion topic is scarce. In this article, we identify four main diffusion patterns of frugal innovations. We label these diffusion patterns as local diffusion, proximity diffusion, distance diffusion, and global diffusion. Both proximity diffusion and distance diffusion take place predominantly in the countries where the socio-economic context is quite similar. In rare cases, frugal innovation can diffuse globally and find its ways into developed markets. Highlights: We explored a recently emerged hot topic - frugal innovation. Four diffusion patterns of frugal innovation are identified. Diffusion of frugal innovation is different from traditional innovations. Diffusion of frugal innovation needs attention from scholars and practitioners.