How frugal innovation and inclusive business are linked to tackle low-income markets

Anne Lange, Stefan Hüsig and Martin Albert

Journal of Small Business Management, 2023, vol. 61, issue 6, 2588-2621

Abstract: Frugal innovations purportedly address unmet consumer needs. Inclusive business includes consumers as employees and business owners in the value chain, especially to address challenges in base of the pyramid contexts. Recent literature has described increasing numbers of cases in which frugal innovations have been implemented based on inclusive business structures. This paper explores how frugal innovation affects the design of inclusive business by analyzing 11 frugal cases implemented in the African context. We derive an inclusive business link model for frugal innovations (IBLMFI) and propose that frugal innovations with modular features support a deep level of inclusive business integration.

Date: 2023
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DOI: 10.1080/00472778.2021.1924380

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