Lessons on Frugal Eco-Innovation: More with Less in the European Business Context

Abstract

Abstract Purpose This chapter proposes frugal eco-innovation as an eco-efficient way into which firms might shift their existing business models, exploring how firms are able to cut costs and reduce negative environmental impacts simultaneously. Design/methodology/approach This work introduces the concept of frugal eco-innovation based on numerous examples about how several European companies are adopting this management perspective. These examples are obtained from these companies’ public environmental reports. Findings A summary of how cost reduction could be achieved by firms on the basis of frugal eco-innovation; further, the pathway for how managers could achieve an effective implementation of frugal eco-innovation. Practical implications By developing frugal eco-innovation, managers are able to benefit from a management alternative that is ecologically sustainable and economically profitable. Social implications This work highlights how frugal eco-innovation could benefit, on the one hand, firms via the achievement of cost reduction and, on the other hand, the society in general via the diminution of the negative environmental impacts generated by the business activity. Originality/value This work analyses a management orientation that could be implemented in order to shift business models towards a more ecological production, highlighting how firms are able to do more with less.