Tanveer Ahmed Mangi, Zelong Wei, Linqian Zhang, Yongchuan Bao, Wali Muhammad Khoso
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Profiting From Frugal Innovation: A Strategy-Tripod-View and Evidence From China
Despite increasing attention to frugal innovation in resource-constrained environments, we still know little about profiting from frugal innovation. Based on the strategy—tripod—perspective, we investigated the impact of frugal innovation on firm growth performance. We explored how its role varies with market environment (market heterogeneity), institutional environment (knowledge leakage risk), and firm resources (complementary servitization offerings). Together, these elements determine how frugal innovation drives company growth. We examined our hypotheses with survey data from 334 firms in China with a pyramid-shaped income hierarchy. With regression analysis, we found that frugal innovation has a positive effect on firm growth performance. Furthermore, market heterogeneity weakens while servitization strengthens this effect. However, the moderating role of knowledge leakage risk is insignificant. Our findings underscore the strategic value of frugal innovation and indicate that its efficacy may vary with market dynamics and servitization offerings.
期刊介绍：
Creativity and Innovation Management bridges the gap between the theory and practice of organizing imagination and innovation. The journal''s central consideration is how to challenge and facilitate creative potential, and how then to embed this into results-oriented innovative business development. The creativity of individuals, coupled with structured and well-managed innovation projects, creates a sound base from which organizations may operate effectively within their inter-organizational and societal environment. Today, successful operations must go hand in hand with the ability to anticipate future opportunities. Therefore, a cultural focus and inspiring leadership are as crucial to an organization''s success as efficient structural arrangements and support facilities. This is reflected in the journal''s contents: -Leadership for creativity and innovation; the behavioural side of innovation management. -Organizational structures and processes to support creativity and innovation; interconnecting creative and innovative processes. -Creativity, motivation, work environment/creative climate and organizational behaviour, creative and innovative entrepreneurship. -Deliberate development of creative and innovative skills including the use of a variety of tools such as TRIZ or CPS. -Creative professions and personalities; creative products; the relationship between creativity and humour; arts and amp; humanities side of creativity.
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