Do Frugal and Reverse Innovation Foster Sustainability? Introduction of a Conceptual Framework

Published:

Authors

  • Alexander BremUniversity of Erlangen-Nuremberg, Germany
  • Björn IvensUniversity of Bamberg, Germany
Keywords
Frugal Innovation, Reverse and practice are given to foster future research in this area

Abstract

The fields of frugal and reverse innovation as well as sustainability and its management have received tremendous interest in recent times. However, there is little literature on how both fields are related to each other. Hence, this paper gives an overview of research in both areas and provides a view of the relationship between frugal and reverse innovation, sustainability management and performance constructs. The link between frugal and reverse innovation on the one hand and sustainability performance on the other hand is established through a differentiated perspective on dimensions representing different fields of sustainability management, i.e. the sustainability of resources used in value creation, the sustainability of the actual value creation processes, and the sustainability of the outcomes of value creation processes. Moreover, we also argue for a positive link between the three dimensions of sustainability management and a company’s market performance.

References

Agarwal, N., Brem, A. Frugal and reverse innovation – Literature overview and case study insights from a German MNC in India and China, in: IEEE Xplore Proceedings of the 2012 18th International Conference on Engineering, Technology and Innovation, B. Katzy, T. Holzmann, K. Sailer, K. D. Thoben (Ed.), 2012, pp. 1-11. http://dx.doi.org/10.1109/ICE.2012.6297683
Aggarwal, A. (2000) ‘Deregulation, technology imports and in-house R&D efforts: an analysis of the Indian experience, Research Policy, 29:9, p. http://dx.doi.org/1081-1093. 10.1016/S0048-7333(99)00074-8.
Barney, J. (1991) ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, 17:1, pp. 99-120. http://dx.doi.org/10.1177/014920639101700108
Baumol, W.J., 1972. On taxation and the control of externalities. American Economic Review,62:3, pp.307-322.
Brandon, P. S. (1999) ‘Sustainability in Management and Organization’, The Key Issues ?, Building Research & Information, 27:6, pp. 390-396.
Brem, A. (2008a) ‘The Boundaries of Innovation and Entrepreneurship – Conceptual Background and Essays on Selected Theoretical and Empirical Aspects, Gabler Verlag, Wiesbaden. http://dx.doi.org/10.1007/978-3-8349-9679-4
Brem, A. (2008b) ‘The China Information Technology Handbook, in: Ordóñez De Pablos, P., Lytras, M. D. (Eds.), The China Information Technology Handbook, Springer US, pp. 433.
Brem, A. (2011) ‘Linking innovation and entrepreneurship – literature overview and introduction of a process-oriented framework, International Journal of Entrepreneurship and Innovation Management, 14:1, pp. 6-35. http://dx.doi.org/10.1504/IJEIM.2011.040820.
Brem, A. and Moitra, D. (2012) ‘Learning from Failure – Case Insights into a UK-India Technology Transfer Project, in: Audretsch, D.B.; Link, A.N.; Lehmann, E.E.; Starnecker, A. (Ed.): Technology Transfer in a Global Economy, International Handbook Series on Entrepreneurship, Edited by Audretsch, D.B. & Acs, Z., Springer, Heidelberg, 2013, pp.253-276. http://dx.doi.org/10.1007/978-1-4614-6102-9_14.
Brown, J.S. and Hagel J. (2005) ‘Innovation blowback: Disruptive management practices from Asia, McKinsey Quarterly’, 1, pp. 34-45.
Cacho, O.J., Marshall, G.R., and Milne, M. (2005) ‘Transaction and abatement costs of carbonsink projects in developing countries, Environment & Development Economics, 10 (5),597-614. http://dx.doi.org/10.1017/S1355770X05002056.
Carroll, A.B. 1979, A Three-Dimensional Conceptual Mode of Corporate Performance. Academy of Management Review. 4:4, pp. 497-505. http://dx.doi.org/10.2307/257850.
Chandy, R., Hopstaken, B., Narasimhan, O. and Prabhu, J. (2006) ‘From Invention to Innovation: Conversion Ability in Product Development’, Journal of Marketing Research. 43:3, pp.494–508. http://dx.doi.org/10.1509/jmkr.43.3.494.
Christensen, C. (1997) ‘The innovator’s dilemma: When new technologies cause great firms to fail, M.A’, Harvard Business School Publishing Corporation, Boston.
Christensen, C., Scott, D. and Erik A. (2004) ‚Seeing what’s next”, M.A, Harvard Business School Publishing Corporation, Boston.
Crane, A., and Matten, D. (2004) ‘Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization’, 2nd edition, Oxford : University of Oxford Press.
De Luca, L.M. and Atuahene-Gima, K. (2007) Market Knowledge Dimensions and CrossFunctional Collaboration: Examining the Different Routes to Product Innovation Performance, Journal of Marketing, 71:1, pp. 95–112. http://dx.doi.org/10.1509/jmkg.71.1.95
Donabedian, A. (1980) ‘Explorations in Quality Assessment and Monitoring, Volume 1: The Definition of Quality and Approaches to Its Assessment’, Ann Arbor : Health Administration Press.
Donabedian, A. (1988) ‘The Quality of Care: How Can It Be Assessed?, The Journal of the American Medical Association, 260:12, pp. 1743-1748.
Donabedian, A. (2005) ‘Evaluating the Quality of Medical Care, Milbank Quarterly, 83:4, pp.691-729. http://dx.doi.org/10.1111/j.1468-0009.2005.00397.x.
Drazin, R. and Schoonhoven, C. B. (1996) ‘Community Population & Organization Effects on Innovation: A Multilevel Perspective’, Academy of Management Journal, 39:5, pp. 1065-1083. http://dx.doi.org/10.2307/256992
Economist 2009: Health care in India: lessons from a frugal innovator, 4:18, pp. 69–70.
Economist, (2010a) First break all the rules, 395:8678, pp. 6-8.
Economist, (2010b) ‘The power to disrupt, 395:8678, pp. 16-18.
Eilbirt, H. and Parker, I.R. (1973) ‘The Corporate Responsibility Officer: A New Position on the Organization Chart, Business Horizons, February, pp. 45-51. http://dx.doi.org/10.1016/0007-6813(73)90060-8
Elkington, J. (1997) ‘Cannibals with Forks: The Triple Bottom Line of 21st Century Business, Oxford : Capstone Publishing.
Epstein, M.J., Roy, M.-J. (2001) Sustainability in Action: Identifying and Measuring the Key Performance Drivers, Long Range Planning, 34:5, pp. 585-604. http://dx.doi.org/10.1016/S0024-6301(01)00084-X.
Epstein, M.J. and Roy, M.-J. (2003) ‘Making the Business Case for Sustainability: Linking Social and Environmental Actions to Financial Performance’, Journal of Corporate Citizenship, 9, pp. 79-96.
Epstein, M.J. and Widener, S. K. (2011) ‘Facilitating Sustainable Development Decisions: Measuring Stakeholder Reactions’, Business Strategy and the Environment, 20, pp. 107-123.
Frederick, W.C. (2008) ‘Corporate Social Responsibility: Deep Roots, Flourishing Growth, Promising Future, in: Crane, A., McWilliams, A., Matten, D., Moon, J., Siegel, D.S.(Eds.), The Oxford Handbook of Corporate Social Responsibility. Oxford University Press, Oxford, pp. 522-531. http://dx.doi.org/10.1093/oxfordhb/9780199211593.001.0001.
Fromartz, S. (2009) ‘5 Companies, 5 Strategies, 5 Transformations’, MIT Sloan Management Review, 51:1, pp. 41-45.
Gardner, P. L. (2002) ‘The Globalization of R&D and International Technology Transfer in the 21st Century, ICMIT & ISMOT Conferences 18-20, October 2002, Hangzhou City.
Garvare, R. and Johansson, P. (2010) ‘Management for sustainability – A stakeholder theory. Total Quality Management & Business Excellence’, 21:7, pp. 737-744. http://dx.doi.org/10.1080/14783363.2010.483095.
General Electric, 2011. General Electric Website, Retrieved from: http://www.ge.com/de/unternehmen/ecomagination.html
Gerybadze, A. and Reger, G. (1999) ‘Globalization of R&D: recent changes in the management of innovation in transnational corporations’, Research Policy, 28:2-3, pp. 251-274.doi:10.1016/S0048-7333(98)00111-5. http://dx.doi.org/10.1016/S0048-7333(98)00111-5.
Gonnering, R. S. (2011), The First Step, Quality Progress, 44:6, pp. 36-40.
Govindarajan, V. and Trimble, C. (2005) ‘Organizational DNA for Strategic Innovation.California Management Review’, 47:3, pp. 47-76.
Gupta, A. (2006) ‘Emergence of Indian Multinationals’, Technology Exports, 8:3, pp. 1-12.
Gupta, V.P., 2011. “Frugal Innovation”. The new masters of management, in: ‘Jugaad’ To Frugal Innovation. Indian MBA. Retrieved from: http://www.indianmba.com/Faculty_Column/FC1283/fc1283.html, accessed: 09.01.2011.
Gupta, A.K. and Wang, H. (2009) ‘Getting China and India right, Jossey- Bass/Wiley, San Francisco.
H kansson, H. and Snehota, I. (1995) ‘Developing Relationships in Business Networks, Routledge, London.
Hansen, E.G., Grosse-Dunker, F. and Reichwald, R. (2009) ‘Sustainability Innovation Cube – A Framework To Evaluate Sustainability-Oriented Innovations’, International Journal of Innovation Management, 13:4, pp. 683-713. http://dx.doi.org/10.1142/S1363919609002479.
Hang, C.C., Chen, J. and Subramian, A.M. (2010) ‘Developing Disruptive Products for Emerging Economies: Lessons from Asian Cases’, Research-Technology Management, 53:4, pp. 21-26
Heske, F. (1938) ‘German Forestry, Yale University Press, New Haven.
Hopkins, M.S. (2009) ‘8 Reasons Sustainability Will Change Management, MIT Sloan Management Review, 51:1, pp. 27-30. http://dx.doi.org/10.1225/SMR328.
Howard, M. (2011) ‘Will frugal innovation challenge the West? Market Leader Quarter’, 3, pp.53.
Hunt, S.D. (2000) ‘A General Theory of Competition: Resources, Competences, Productivity, Economic Growth, Sage Publications, Thousand Oaks.
Hunt, S. D. and Morgan, R.M. (1995) ‘The Comparative Advantage Theory of Competition. Journal of Marketing, 59:1, pp. 1-15.
Immelt, J., Govindarajan, V. and Trimble, C. (2009) ‘How GE is Disrupting Itself’, Harvard Business Review, 10, pp. 56-65.
Jansson, P.M., Gregory, M.J., Barlow, C., Phaal, R., Farrukh, C.J.P., Probert, D.R. and So, V., (2000) ‘Industrial Sustainability – A Review of UK and International Research and Capabilities, University of Cambridge, Cambridge.
Johannessen, J.-A., Olsen, B. and Lumpkin, G.T. (2001) ‘Innovation as newness: what is new,how new, and new to whom? European Journal of Innovation Management, 4:1, pp. 20 –31. http://dx.doi.org/10.1108/14601060110365547.
Jiatao, L. and Rajiv K.K. (2009) ‘Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management’,Journal of International Management, 15:3, pp. 328–339. http://dx.doi.org/10.1016/j.intman.2008.12.005.
Khanna, T. and Krishna G.P. (2010) ‘Winning in Emerging Markets: A Road Map for Strategy and Execution’, Harvard Business Press, Harvard.
Kingsnorth, A.N., Tongaomkar, R.R. and Awojobi, O.A. (2011) ‘Commentary on: low-cost mesh for inguinal hernia repair in resource-limited settings, in: Hernia Online FirstTM.15, pp. 15–18. Retrieved from: http://www.springerlink.com/content/fr83v0v352627617/.http://dx.doi.org/10.1007/s10029-011-828-7.
Kronimus, A. and Roos, A. (2010) ‘M&A back to new reality, November Issue, The Boston Group, Boston.
Kumar, N. (1998) ‘Technology Generation and Technology Transfers in the World Economy: Recent Trends and Implications for Developing Countries’, Science Technology Society, 3:2, pp. 265-306. http://dx.doi.org/10.1177/097172189800300201.
Lacy, S. (2011) ‘Brilliant, Crazy, Cocky. How the Top 1% of Entrepreneurs profit from Global Chaos, Hoboken, New York.
Li, T. and Calantone, R.J. (1998) ‘The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination’, Journal of Marketing, 62:4, pp. 13-29. http://dx.doi.org/10.2307/1252284.
Li, J., and Kozhikode, R.K. (2009) ‘Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management. Journal of International Management’, 15:3, pp. 328-339. http://dx.doi.org/10.1016/j.intman.2008.12.005.
McElhaney, K., Toffel, M. and Hill, N. (2004) ‘Designing a Sustainability Management System at BMW Group’, Greener Management International, 46, pp. 103-116.
Nidumolu, R., Prahalad, C.K., and Rangaswami, M.R. (2009) ‘Why Sustainability is Now the Key Driver of Innovation, Harvard Business Review, 87:9, pp. 56-64.
Nunes, P.F., Breene, T.S. (2011) ‘Jumping the S-Curve. How to beat the growth cycle, get on top, and stay there’, Harvard Business Review Press, Harvard.
Penrose, E.T. (1959) ‘The Theory of the Growth of the Firm, Basil Blackwell and Mott’, London.
Petrick, I.J. (2011) ‘Innovation in Emerging Markets’, Research Technology Management, 54:4,pp. 8-9.
Porter, M.E. (1996) ‘What is Strategy? Harvard Business Review, 74, pp. 61-78.
Porter, M.E., and Kramer, M.R. (2006) ‘Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility’, Harvard Business Review, 84:12, pp.78-92.
Rybak, A. (2007) ‘Indische Welteroberer, Financial Times Deutschland, 03.04.2007.
Roy, M.-J. (2009) ‘Organizing for Corporate Social Performance: The Role of Board-Level Committees’, Journal of Corporate Citizenship, 36, pp. 71-86.
Rusinko, C.A. (2005) ‘Using Quality Management as a Bridge to Environmental Sustainability in Organizations’, SAM Advanced Management Journal, 70:4, pp. 54-60. http://dx.doi.org/10.1108/14676370510623838.
Sample, V.A. and Sedjo, R.A. (1996) ‘Sustainability in Forest Management, International Advances in Economic Research’, 2:2, pp. 165-173.
Saraf, D. (2009) ‘India’s Indigenous Genius: Jugaad, in: The Wall Street Journal. Retrieved from: http://online.wsj.com/article/SB124745880685131765.html, accessed: 13.07.2009.
Sethi, S.P. (1975) ‘Dimensions of Corporate Social Performance’, California Management Review, 17:3, pp. 58-64.
Singhal, V. (2011) ‘The Impact of Emerging Economies Innovative new models of global growth and vitality are emerging’, Visions, 35:2, pp. 12-14.
Tam, J.L.M. (2007) ‘Linking quality improvement with patient satisfaction: a study of a health service centre, Marketing Intelligence & Planning, 25:7, pp. 732–745. http://dx.doi.org/10.1108/02634500710834197.
Teece, D.J. (2010) ‘Business Models, Business Strategy and Innovation, Long Range Planning 43:2-3, pp. 172-194. http://dx.doi.org/10.1016/j.lrp.2009.07.003.
UNCTAD, 2005, World Investment Report – Transnational Corporations and the Internationalization of R & D, New York.
UNCTAD, 2006. World Investment Report 2006 – FDI from Developing and Transition Economies, New York.
WCED, 1987. Our Common Future, Oxford University Press, Oxford.
Wernerfelt, B. (1984) ‘A Resource-Based View of the Firm’, Strategic Management Journal. 5:2, pp.171-180. http://dx.doi.org/10.1002/smj.4250050207.
Wood, D.J. (1991) ‘Corporate Social Performance Revisited’, Academy of Management Review’, 16:4, pp. 691-718. http://dx.doi.org/10.5465/AMR.1991.4279616.
Vargo, S.L. and Lusch, R.F. (2004) ‘Evolving to a New Dominant Logic for Marketing, Journal of Marketing’, 68:1, pp. 1-17. http://dx.doi.org/10.1509/jmkg.68.1.1.24036.
Vollenbroek, F.A. (2002) ‘Sustainable Development and the Challenge of Innovation’, Journal of Cleaner Production, 10:3, pp. 215-224. http://dx.doi.org/10.1016/S0959-6526(01)00048-8.
Von Krogh G. and Raisch, S. (2009) Focus Intensely on a Few Great Innovation Ideas, Harvard Business Review, October 2009.
Zeschky, M., Widenmayer, B. and Gassmann, O. (2011) ‘Frugal Innovation in emerging markets: the case of mettler’, Research-Technology Management, 54:4, pp. 38-45. http://dx.doi.org/10.5437/08956308X5404007.

How to Cite

Alexander Brem, Björn Ivens. Do Frugal and Reverse Innovation Foster Sustainability? Introduction of a Conceptual Framework. J.Technol. Manag. Grow. Econ.. 2013, 04, 31-50
Do Frugal and Reverse Innovation Foster Sustainability? Introduction of a Conceptual Framework

Current Issue

PeriodicityBiannually
Issue-1May
Issue-2November
ISSN Print2321-2217
ISSN Online2321-2225
RNI No.CHAENG/2013/50088
OA Policy

Publisher's policy of the journal at Sherpa UK for the submitted, accepted, and published articles. Click OAPolicy

Plan-S Compliance

To check compliance, one has to use the Journal Check Tool (JCT). This tool provided by cOAlition S (European funders) for the researchers (fundee) to check the compliance with the journal.

Recommend journal to your library

You can recommend the journal being a researcher or faculty member to your library. We will post a copy of the Journal to your library on your behalf at free of cost.
Click here: Recommend Journal

Preprint Arxiv Submission

The authors are encouraged to submit the author’s copy (preprint) to appropriate preprint archives e.g. https://arxiv.org and/or on https://indiarxiv.org or institutional repositories (e.g., D Space) before paper acceptance by the editor of Journal. After publications of the paper author(s) should mention the citation information, title and abstract along with DOI number of the publication carefully on the required page of the depository(ies).

Contact: Phone: +91-172-2741000, +91-172-4691800

Email : editor.tmg@chitkara.edu.in;

Abstract and Indexing

Information

This work is licensed under a Creative Commons Attribution 4.0 International License.

Articles in Journal of Technology Management for Growing Economies(J.Technol. Manag. Grow. Econ.) by Chitkara University Publications are Open Access articles that are published with licensed under a Creative Commons Attribution- CC-BY 4.0 International License. Based on a work at https://tmg.chitkara.edu.in/. This license permits one to use, remix, tweak and reproduction in any medium, even commercially provided one give credit for the original creation.

View Legal Code of the above-mentioned license, https://creativecommons.org/licenses/by/4.0/legalcode

View Licence Deed here https://creativecommons.org/licenses/by/4.0/

Creative Commons License

Journal of Technology Management for Growing Economies by Chitkara University Publications is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at https://tmg.chitkara.edu.in/

Members