Frugal innovation and sustainable business models

This study aims to explore how frugal innovations (FIs) emerge at the grassroots level of developing countries and employ novel business models to contribute to sustainable development. It explores various business model elements, mainly viewed through the lens of value proposition, value creation, and value capture. FIs transform underserved customers at the grassroots level into novel consumer groups. By exploring three FI cases, this study contributes to the literature about FI business models. It shows how individuals with limited education, funds, and resources can bring affordable products to market using outside the box thinking to meet the needs of underserved customers in developing countries.

Automated summary

This study investigates how frugal innovations emerge at the grassroots level in developing countries and utilize novel business models to foster sustainable development. It highlights the transformation of underserved customers into new consumer groups through innovative business model elements. Through case studies, it demonstrates how individuals with limited education, funds, and resources can bring affordable products to market by thinking outside the box to meet the needs of underserved customers in developing countries.