Market maketh magic - consequences and implications of market choice for frugal innovation. (17th August 2020)

• Record Type: Journal Article
• Authors: Neumann, Lukas; Winterhalter, Stephan; Gassmann, Oliver
• Is Part Of: International journal of technology management. Volume 83:Number 1/3(2020)
• Page Start: 55
• Page End: 77
• Publication Date: 2020-08-17
• Subjects: frugal innovation -- resource-constrained innovation -- emerging markets -- developing markets -- bottom of the pyramid -- emerging middle class -- disruption -- low-end disruption -- new market disruption; Technology -- Management -- Periodicals; 658.4062
• Languages: English
• ISSNs: 0267-5730

Abstract

This study systematically analysed 237 frugal innovation cases in order to understand the consequences and implications of market choice on the characteristics of a successful frugal innovation. The results demonstrate that this type of innovation is disruptive to its respective target market. Further, the study shows that firms that want to achieve such innovation tend to focus either on activities along the value chain or the solution (product/service) itself. This distinction yielded four clusters of frugal innovation, which are described in detail, including aspects regarding strategy, organisation, processes and technology.