Frugal entrepreneurship: A way to seize business opportunities for low-income customers

IF 4.9 2区管理学 Q1 MANAGEMENT

Asia Pacific Journal of Management Pub Date : 2023-07-10 DOI:10.1007/s10490-023-09899-0

Muhammad Shehryar Shahid, Mokter Hossain, Masoud Karami, Tehreem Anwar

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引用次数: 0

Abstract

Frugal innovation (FI) is a recently emerged phenomenon that is increasingly gaining importance to serve a set of customers in developing countries. Frugal entrepreneurship (FE) based on frugal innovations is emerging from different regions. FI mainly emerging from resource-constrained environments with institutional voids shows how to serve low-income customers with affordable solutions. Yet, we know little about this phenomenon. The objective of this study is to explore how frugal entrepreneurs embrace institutional voids in a developing country to identify and execute business opportunities targeting low-income customers. Using six start-up cases from Pakistan, this qualitative study contributes to the existing literature on FI and FE in several ways. We reveal certain underlying mechanisms that entrepreneurs utilize in their attempt to undertake FI. We find that the entrepreneurs’ strong aspirations to tackle societal needs trigger them to develop FIs and pursue FE. Constructive cobbling and leveraging appropriate technologies in a frugal manner, in particular, are two key enablers for FE, which results in novel outcomes. Based on the findings, we provide implications and future research avenues.

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节俭创业：为低收入客户抓住商机的一种方式

节约型创新（FI）是最近出现的一种现象，它对服务发展中国家的一系列客户越来越重要。以节约型创新为基础的“节约型创业”正在世界各地兴起。FI主要出现在存在制度空白的资源受限环境中，展示了如何为低收入客户提供负担得起的解决方案。然而，我们对这种现象知之甚少。本研究的目的是探讨节俭的企业家如何利用发展中国家的制度空白来识别和执行针对低收入客户的商业机会。本定性研究以巴基斯坦的6个创业案例为例，从几个方面对现有的FI和FE文献做出了贡献。我们揭示了某些潜在的机制，企业家利用他们的尝试进行金融融资。我们发现，企业家解决社会需求的强烈愿望促使他们发展fi并追求FE。建设性的修补和以节俭的方式利用适当的技术，是FE的两个关键推动因素，可以产生新颖的结果。基于这些发现，我们提出了启示和未来的研究途径。

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来源期刊

Asia Pacific Journal of Management MANAGEMENT-

CiteScore

9.70

自引率

9.30%

发文量

期刊介绍： The Asia Pacific Journal of Management publishes original manuscripts on management and organizational research in the Asia Pacific region, encompassing Pacific Rim countries and mainland Asia. APJM focuses on the extent to which each manuscript addresses matters that pertain to the most fundamental question: “What determines organization success?” The major academic disciplines that we cover include entrepreneurship, human resource management, international business, organizational behavior, and strategic management. However, manuscripts that belong to other well-established disciplines such as accounting, economics, finance, marketing, and operations generally do not fall into the scope of APJM. We endeavor to be the major vehicle for exchange of ideas and research among management scholars within or interested in the broadly defined Asia Pacific region.Key features include: Rigor - maintained through strict review processes, high quality global reviewers, and Editorial Advisory and Review Boards comprising prominent researchers from many countries. Relevance - maintained by its focus on key management and organizational trends in the region. Uniqueness - being the first and most prominent management journal published in and about the fastest growing region in the world. Official affiliation - Asia Academy of ManagementFor more information, visit the AAOM website:www.baf.cuhk.edu.hk/asia-aom/ Officially cited as: Asia Pac J Manag