Locus of decision and implementation in frugal product innovation : Evidence from a multiple case study in Western MNEs
ISBN
978-0-9559367-4-6
Type
conference paper
Date Issued
2012-05-23
Author(s)
Abstract
Recently, the rise of frugal innovations in emerging markets has attracted the attention of both academics and practitioners. Frugal innovations are good-enough products which meet the basic requirements of resource-constrained people in emerging markets. Prior research has focused on the implications that addressing resource-constrained people in emerging markets has on the business models and product strategies of Western multinational enterprises (MNEs). Yet, little attention has been paid to how Western MNEs make decisions about how and where to develop these frugal product innovations. This paper explores whether and how Western MNEs organize their decision and development processes. Based on a multiple case study of six Western MNEs from the medical equipment industry, we find that the locus (i.e., at the R&D headquarters or at a local R&D unit) of where the decision about the frugal product strategy is made as well as the locus of product development depends on the degree to which the frugal product involves new technology development. The paper is useful for R&D managers in Western MNEs for the question how frugal innovation and underlying decision and development processes can be organized.
Language
English
Keywords
frugal innovation
emerging markets
MNE
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Book title
Creating & Capturing Value through R&D Management and Innovation
Publisher
Agence Prisme
Start page
116
Event Title
R&D Management Conference (RADMA) 2012
Event Location
Grenoble, France
Event Date
23.-25.05.2012
Subject(s)
Division(s)
Eprints ID
212331