Frugal innovation enablers: a comprehensive framework

This paper aims to propose a framework for the dimensions of frugal innovation enablers in small and medium-sized enterprises (SMEs).

A mixed research approach has been applied. First, by a comprehensive literature review, the most important factors influencing frugal innovation have been identified. Then, an interview has been conducted with 18 experts who were selected by snowball sampling method. In the next step, all identified variables have been modified in a questionnaire with 48 factors, which were distributed to 200 employees and managers of SMEs in the home appliance manufacturing industry of Isfahan province, who were selected by non-random sampling. Data has been analyzed using SPSS-25 software for exploratory factor analysis.

Findings indicated that the most important enablers of frugal innovation are world-class design, human aspect, marketing, support, knowledge, social aspect, prototyping, cultural aspect, environmental aspect, distinct brand creation, core functions focus, local R&D, cost-cutting business model and low-cost production.

The proposed framework provides an effective basis to managers and decision-makers in the field of frugal innovation to evaluate their capabilities in implementing frugal innovation, the results of which are helpful in developing a roadmap for achieving frugal innovation in SMEs and particularly in home appliance manufacturing companies.

The comprehensive framework of this study has not been applied, developed or studied in the literature. The proposed framework provides new insights for future studies on the subject of frugal innovation, e.g. investigating the influence of frugal innovation on frugal innovation performance.