Title: Market maketh magic - consequences and implications of market choice for frugal innovation

Authors: Lukas Neumann; Stephan Winterhalter; Oliver Gassmann

Addresses: Institute of Technology Management, University of St. Gallen, Dufourstrasse 40a, 9010 St. Gallen, Switzerland ' Institute of Technology Management, University of St. Gallen, Dufourstrasse 40a, 9010 St. Gallen, Switzerland ' Institute of Technology Management, University of St. Gallen, Dufourstrasse 40a, 9010 St. Gallen, Switzerland

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.

Keywords: frugal innovation; resource-constrained innovation; emerging markets; developing markets; bottom of the pyramid; emerging middle class; disruption; low-end disruption; new market disruption.

DOI: 10.1504/IJTM.2020.109219

International Journal of Technology Management, 2020 Vol.83 No.1/2/3, pp.55 - 77

Received: 07 Aug 2018
Accepted: 16 Aug 2019
Published online: 02 Sep 2020 *

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