Title: Business model transformation in digital enablement context through frugal innovation: learning from Chinese experience

Authors: Fuyin Lan; Xuefeng Liu

Addresses: Department of Business Administration, School of Management, Xiamen University, No. 422 of Siming South Road, Xiamen, Fujian, China ' Department of Business Administration, School of Management, Xiamen University, No. 422 of Siming South Road, Xiamen, Fujian, China

Abstract: Existing literature on business models is still inconclusive about the specific business model transformation (e.g. C2B transformation). Using frugal innovation as the theoretical lens, we explore this issue in the digital enablement context by using a single longitudinal case study design on a Chinese traditional manufacturing company. This study reveals how the company achieved C2B transformation through frugal innovation and opened the black box of the process of frugal innovation. The result shows that frugal innovation based on an internet strategy updates all the commercial links (e.g. supply of raw materials, design and production, logistics and warehousing, marketing) to form a strong foundation to implement C2B model in three dimensions: frugality, flexibility, and inclusiveness. This study supplements existing knowledge of business model transformation and frugal innovation. The findings offer some recommendations for managers of traditional manufacturing companies in emerging markets to execute business transformations more effectively.

Keywords: business model transformation; C2B model; case study; frugal innovation.

DOI: 10.1504/IJTPM.2017.087272

International Journal of Technology, Policy and Management, 2017 Vol.17 No.4, pp.360 - 373

Received: 05 Jan 2017
Accepted: 18 May 2017
Published online: 11 Oct 2017 *

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