Challenging Traditional Industries with Frugal Innovation: Exploring Business Model Innovation in the International Coffee Market

Sebastián Cantillo Arce, Manon Enjolras, Laure Morel, Ferney Osorio and Brunelle Marche ()
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Sebastián Cantillo Arce: Université de Lorraine, ERPI
Manon Enjolras: Université de Lorraine, ERPI
Laure Morel: Université de Lorraine, ERPI
Ferney Osorio: Université de Lorraine, ERPI
Brunelle Marche: Université de Lorraine, ERPI

A chapter in Technology Management for Intelligent, Open and Responsible Organizations and Ecosystems, 2026, pp 412-420 from Springer

Abstract: Abstract The coffee industry exemplifies systemic inequalities in global value chains, with smallholder producers capturing minimal value. This study explores how frugal innovation (FI) and business model innovation (BMI) can address these disparities by fostering value creation in resource-constrained environments. Using a mixed-methods approach, the research combines literature review, historical price analysis, and semi-structured interviews to examine and identify the frugal context in the coffee sector. Findings reveal that redundant intermediaries and price volatility disproportionately impact producers, necessitating alternative models. A hypothetical frugal value chain is proposed, composed by different business models that leverage direct trade, digital platforms, and circular economy strategies to optimize value capture. This study contributes to the understanding of frugal business model innovation and its potential to transform traditional industries and enhance sustainability.

Keywords: Frugal innovation; Value creation; Resource constraint environments; Innovation business model; Traditional industry (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_50

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DOI: 10.1007/978-3-032-23124-6_50

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