Open Global Innovation Networks as Enablers of Frugal Innovation: Propositions Based on Evidence from India

Hamburg University of Technology, Technology and Innovation Management, Working Paper No. 72

35 Pages Posted: 4 Jan 2013

See all articles by Rajnish Tiwari

Rajnish Tiwari

Hamburg University of Technology (TUHH)

Cornelius Herstatt

Technical University Hamburg-Harburg (TUHH)

Date Written: December 1, 2012

Abstract

Recent years have seen the emergence of low-cost innovations targeted at economically weaker sections of the society, seeking to align business with social welfare. In many instances, results on the ground have been, however, rather sobering as firms have generally (probably justifiably) worried that “good quality, low price” products may cannibalize into their regular business. At the same time those very customers that were intended to benefit from the new approach have tended to shy away fearing low quality and social stigma of using cheap products. Using multiple case studies of successful affordability-driven innovations (“frugal innovations”) from India we investigate how firms can effectively reduce market and technology uncertainty of product innovations targeted at price-sensitive customers. The key criteria to success seem to lie in reducing the overall cost of ownership and enhancing customer perception of quality and image. The case studies reveal that affordability-driven innovations are especially successful when firms seek recourse to “open global innovation networks” (OGINs) for collaborative development in all phases of the innovation value chain.

Keywords: Frugal Innovations, Bottom of the Pyramid, Lead Markets, Open Innovation, Global Innovation, India, Open Global Innovation Networks, Innovation Systems

Suggested Citation

Tiwari, Rajnish and Herstatt, Cornelius, Open Global Innovation Networks as Enablers of Frugal Innovation: Propositions Based on Evidence from India (December 1, 2012). Hamburg University of Technology, Technology and Innovation Management, Working Paper No. 72. Available at SSRN: https://ssrn.com/abstract=2196080 or http://dx.doi.org/10.2139/ssrn.2196080

Rajnish Tiwari (Contact Author)

Hamburg University of Technology (TUHH) ( email )

Hamburg, D-21071
Germany

HOME PAGE: http://www.global-innovation.net

Cornelius Herstatt

Technical University Hamburg-Harburg (TUHH) ( email )

Hamburg, D-21071
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
329
Abstract Views
1,197
rank
90,621
PlumX Metrics