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New Sources Of Growth: The Role Of Frugal Innovation And Transformational Leadership

Author

Listed:
  • Solikin M. Juhro

    (Bank Indonesia)

  • A . Farid Aulia

    (Bank Indonesia)

Abstract

This paper’s main thesis is that frugal innovation and transformational leadership offer additional sources of growth. Our main contribution is the proposal of what we refer to as the breakthrough possibility frontier (BPF) model, which integrates two aspects of leadership: innovation quality (frugal innovation) and leadership competency (transformational leadership). We test the BPF model on two groups of respondents, one group consisting of university students who had never been formal leaders and the other formal leaders who had office experience. The BPF analysis suggests that transformational leadership is a game changer, required for breakthroughs. Transformational leadership is key to encouraging innovation quality and leadership competency and, we argue, to facilitating new sources of growth. Our results imply the development of an integrated institutional framework for innovation. We believe that innovative leadership development programs that can be easily implemented and replicated in other regions are needed to develop transformational leadership competencies.

Suggested Citation

  • Solikin M. Juhro & A . Farid Aulia, 2019. "New Sources Of Growth: The Role Of Frugal Innovation And Transformational Leadership," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 22(3), pages 1-20.
    • Handle: RePEc:idn:journl:v:22:y:2019:i:3g:p:1-20
    DOI: https://doi.org/10.21098/bemp.v22i3.1195
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    Cited by:

    1. Muhammad Tahir & Haslindar Ibrahim & Abdul Hadi Zulkafli & Muhammad Mushtaq, 2020. "Influence of Exchange Rate Fluctuations and Credit Supply on Dividend Repatriation Policy of U.S. Multinational Corporations," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 267-290.
    2. Solikin M. Juhro & A. Farid Aulia & Dessy Aliandrina & Donni Hadiwaluyo & Edo Lavika, 2019. "The Role Of Catalytic Collaboration In Leveraging Transformational Leadership Competencies To Generate Sustainable Innovation," Working Papers WP/11/2019, Bank Indonesia.
    3. Sathiyaseelan Balasundaram & Anuradha Sathiyaseelan & Michael Zirkler, 2023. "Jugaad in organizational settings: exploring the Jugaad leadership competencies," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 1877-1912, November.
    4. Juhro, Solikin M. & Ridwan, Masagus H., 2021. "Beberapa Perspektif Pembangunan Ekonomi Inklusif di Era New Normal [Some Perspectives on Inclusive Economic Development in The New Normal Era]," MPRA Paper 115855, University Library of Munich, Germany.
    5. Qaisar Iqbal & Noor Hazlina Ahmad & Zeyun Li & Yongmei Li, 2022. "To walk in beauty: Sustainable leadership, frugal innovation and environmental performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 738-750, April.
    6. Solikin M. Juhro & Denny Lie & Aryo Sasongko, 2021. "Monetary-Macroprudential Policy Mix And Covid-19 Pandemic In An Estimated Dsge Model For Indonesia," Working Papers WP/01/2021, Bank Indonesia.

    More about this item

    Keywords

    New sources of growth; Innovation; Frugal innovation; Transformational leadership; Breakthrough possibility frontier;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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