Business Models for Frugal Innovation in Emerging Markets: The Case of the Medical Device and Laboratory Equipment Endustry
Journal
Technovation
ISSN
0166-4972
ISSN-Digital
1879-2383
Type
journal article
Date Issued
2017-08
Author(s)
Abstract
This study investigates business models for frugal innovation (i.e. a specific form of resource-constrained innovation) in the medical device and laboratory equipment industry in the context of emerging markets. Based on original data from five case studies, we investigate how firms can set up value creation and value capturing mechanisms to reach new customer segments in remote rural areas with unprecedented value propositions. With this research, we contribute to the literature on frugal innovation and business models in emerging markets. It is one of the first empirical studies to apply a fine-grained perspective on resource-constrained innovation in emerging markets. In doing so, we focus on its most disruptive form, which is when these innovations entail entirely new applications. We advance and detail the value proposition for frugal innovation in these industries and argue that frugal innovation create new markets. Further, we show how firms set up their value creation and value capturing mechanisms to achieve the frugal value proposition and identify two distinct Research & Development (R&D) strategies for frugal innovation.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Elsevier Science
Publisher place
Amsterdam [u.a.]
Volume
66-67
Start page
3
End page
13
Subject(s)
Division(s)
Eprints ID
251276
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Name
1-s2.0-S016649721730531X-main.pdf
Size
267.44 KB
Format
Adobe PDF
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