Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid
ISSN: 0955-534X
Article publication date: 26 July 2021
Issue publication date: 6 April 2022
Abstract
Purpose
This study aims to examine the process of frugal innovation (FI) in micro- and small-enterprises (MSEs) at the base of the pyramid (BOP) through the analytical lens of business models.
Design/methodology/approach
A case study was conducted with 30 MSEs from three different industries in a very poor region in Brazil.
Findings
The findings indicate that, in cases where FI is intense and dynamic, the start of the FI process is based on the reinterpretation of fashion trends and influences from the business ecosystem while the consolidation of FI in MSEs occurs through the reconfiguration of resources. Additionally, this study shows that FI depends on conditions other than the production of frugal products for BOP consumers.
Research limitations/implications
This study points out that the presence of end-of-life non-BOP raw materials distributed by large distributors in the case of fashion products, along with the interaction between MSEs at the BOP and these distributors, trigger FI and are profitable for both. For non-fashion products with long life cycles, there is no demand for innovation.
Originality/value
This study addresses the research void present in the literature on FI by presenting the process of FI and the conditions that leverage or stagnate FI in MSEs at the BOP, as well as how business models are shaped by these conditions.
Keywords
Acknowledgements
Ministério da Ciência, Tecnologia e Inovação >.
Conselho Nacional de Desenvolvimento Científico e Tecnológico:
302895/2016–7.
Fundação de Amparo à Pesquisa do Estado do Rio Grande do Sul:
17/2551–0001 147–3.
Citation
Borchardt, M., Chiappetta Jabbour, C.J., Belém, J.d.F., Mani, V., Pereira, G.M. and Ritter, Á.M. (2022), "Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid", European Business Review, Vol. 34 No. 3, pp. 297-320. https://doi.org/10.1108/EBR-12-2020-0325
Publisher
:Emerald Publishing Limited
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