Title: Frugal innovation process mechanism in the digital transformation context: a dynamic capability perspective

Authors: Fuyin Lan; Xiaoping Wang

Addresses: School of Economics and Management, Yichun University, Energy, Resources, Environment and Carbon Neutralization Research Center of Yichun University, No. 576 of Xuefu Road, Yichun, Jiangxi, 336000, China ' School of Economics and Management, Yichun University, Energy, Resources, Environment and Carbon Neutralization Research Center of Yichun University, No. 576 of Xuefu Road, Yichun, Jiangxi, 336000, China

Abstract: The frugal innovation process in the digital transformation context in emerging markets has provided unsatisfactory theoretical explanations. To address this gap, we explored frugal innovation mechanisms from the dynamic capability perspective. We conducted a longitudinal single case study in the high-tech medical industry to develop an integrated model to untangle how SMEs overcome resource constraints and engage in digital innovation. The results show that at different stages of digital transformation, frugal innovation is an iterative process of efficiently solving the problem of scarce resources through distinct dynamic capabilities. This study expands the research on digital transformation and frugal innovation and analyses the relationship between the two to help enterprises in emerging markets promote digital transformation through frugal innovation.

Keywords: frugal innovation; digital transformation; dynamic capability; scarce resources; emerging economies.

DOI: 10.1504/IJTPM.2023.133914

International Journal of Technology, Policy and Management, 2023 Vol.23 No.4, pp.349 - 371

Received: 14 Jul 2022
Accepted: 21 Oct 2022
Published online: 05 Oct 2023 *

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