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Frugal And Reverse Innovation For Harnessing The Business Potential Of Emerging Markets — The Case Of A Danish Mnc

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  • NIVEDITA AGARWAL

    (Friedrich-Alexander-Universität Erlangen-Nürnberg, Chair of Technology Management, Fuerth, Germany)

  • ALEXANDER BREM

    (Friedrich-Alexander-Universität Erlangen-Nürnberg, Chair of Technology Management, Fürther Str. 246c, 90426 Nuremberg, Germany3University of Southern Denmark (SDU), Mads Clausen Institute, Alsion 2, 6400 Sønderborg, Denmark)

  • SANJEET DWIVEDI

    (Institute of Engineering & Technology, United Kingdom)

Abstract

In recent years, there has been a shift in the epicenter of innovation from developed to emerging markets. Western multinationals are increasingly harnessing the potential of emerging markets by setting up local subsidiaries and developing frugal and reverse innovations. This study is an attempt to explore this shift and investigate the process of development of these innovations using a case study analysis approach. The study analyses the case of a technology-based Danish multinational (MNC) and explores how frugal innovations in India and China are developed. Based on nine interviews with leading R&D experts, the results provide evidence for the ongoing innovation shift and offer insights into the development of frugal products in local R&D projects. Growing traction towards reverse innovation, where MNCs are developing frugal products for global markets is also an important finding.

Suggested Citation

  • Nivedita Agarwal & Alexander Brem & Sanjeet Dwivedi, 2019. "Frugal And Reverse Innovation For Harnessing The Business Potential Of Emerging Markets — The Case Of A Danish Mnc," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-15, February.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:01:n:s1363919620500097
    DOI: 10.1142/S1363919620500097
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    References listed on IDEAS

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    Cited by:

    1. Chakravarty, Sanghamitra, 2022. "Resource constrained innovation in a technology intensive sector: Frugal medical devices from manufacturing firms in South Africa," Technovation, Elsevier, vol. 112(C).

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