Frugal Innovation at the Intersection of Formal and Informal Sectors: Insights from Moroccan Entrepreneurial Practices

Issam Ourrai () and Mohamed Rahmou
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Issam Ourrai: Laboratoire GRANEM - Université d’Angers

A chapter in Technology Management for Intelligent, Open and Responsible Organizations and Ecosystems, 2026, pp 447-455 from Springer

Abstract: Abstract Frugal innovation has become a vital approach to fostering sustainable entrepreneurship and societal transformation in resource-constrained environments. This paper investigates how Moroccan entrepreneurs navigate the intersection of formal and informal sectors to drive business growth, social impact, and digital transformation. Through three qualitative case studies—MadNess (a social innovation incubator), NexTronix (a tech firm that adapted to crises like COVID-19 and the Al Haouz earthquake), and Aboulfeth Hamza (a digital entrepreneur)—we explore how frugal innovation strategies emerge from grassroots realities. Guided by sensemaking theory (Weick 1995) and frugal innovation principles (Radjou & Prabhu 2012), we combine ethnographic methods with NLP and machine learning techniques to analyze entrepreneurial resilience. Findings reveal the strategic use of informal networks, digital tools, and lean models to overcome institutional and financial constraints. The study contributes to the discourse on frugal innovation by showing how hybrid ecosystems fuel inclusive entrepreneurship in the Global South.

Keywords: Frugal innovation; business models; entrepreneurship; sustainability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-23124-6_54

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DOI: 10.1007/978-3-032-23124-6_54

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