Leveraging digital technologies to control fraud in a resource-constrained institutional environment: a longitudinal case study

Ruchi Agarwal, Sanjay Kallapur and Sanjiv Dwivedi

Journal of Accounting & Organizational Change, 2025, vol. 22, issue 5, 936-953

Abstract: PurposeDrawing insights from a longitudinal case, this study aims to explore how companies use digital technologies to control frauds in resource-constrained environments.Design/methodology/approachThe authors conducted a longitudinal study in a large Indian insurance company from 2013 to 2023, examining how economic, regulatory, competitive and professional pressures influenced the adoption of digital fraud detection tools in an institutional environment under resource constraints.FindingsWhile regulatory mandates (coercive isomorphism) provided the necessary governance framework, they also increased compliance burdens. Mimetic and normative pressures were weaker due to financial and institutional limitations. The firm overcame these constraints by developing a low-cost, in-house tool – “Fraud-O-Meter” – using multi-trigger analysis and data mining. This frugal innovation enabled strategic fraud detection without reliance on expensive vendor software. The findings suggest that adaptive, internally developed solutions are more viable in emerging markets than imported best practices.Research limitations/implicationsRegulators in emerging markets should create flexible compliance frameworks that allow companies to develop their own fraud detection tools rather than enforcing expensive, one-size-fits-all solutions.Originality/valueThis study shows how large firms in emerging markets can turn institutional and resource constraints into opportunities by using frugal digital innovation. It challenges the assumption that effective fraud control requires costly external models, highlighting context-driven, in-house solutions as viable and strategic. To the best of the authors’ knowledge, this is the first longitudinal case study in the context of fraud control.

Keywords: Fraud risk; Digital technology; Institutional theory; Frugal innovation; Emerging markets; India; Resource Constraint (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:jaoc-06-2024-0209

DOI: 10.1108/JAOC-06-2024-0209

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