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Managing resource-constrained innovation in emerging markets: Perspectives from a business model

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  • Sharmelly, Rifat
  • Ray, Pradeep Kanta

Abstract

This study examines the organization of resource-constrained innovation from a business model perspective. Using a multiple case study design, we demonstrate that the ability to organize resource-constrained innovation is built on cost, good-enough, frugal, and reverse innovation capabilities. Cost innovation does not always lead to a new product, rather it is a way to reduce operational costs through the value creation activities of a business model to achieve resource-constrained innovation. Good-enough innovations are developed through existing platform reengineering and localization through value creation activities. We demonstrate that frugal innovations are developed based on new product architectures and applications that can create completely new market segments to compete against non-consumption. Reverse innovations refer to frugal innovations that are characterized by higher market novelty because they create completely new market segments in developed and developing markets for value capture.

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  • Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:teinso:v:65:y:2021:i:c:s0160791x21000130
    DOI: 10.1016/j.techsoc.2021.101538
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    3. Wei Xuecheng & Qaisar Iqbal, 2022. "Ethical Leadership, Bricolage, and Eco-Innovation in the Chinese Manufacturing Industry: A Multi-Theory Perspective," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    4. Jun Wen & Lingxiao Li & Xinxin Zhao & Chenyang Jiao & Wenjie Li, 2022. "How Government Size Expansion Can Affect Green Innovation—An Empirical Analysis of Data on Cross-Country Green Patent Filings," IJERPH, MDPI, vol. 19(12), pages 1-22, June.
    5. Shah, Sayed Kifayat & Zhongjun, Tang, 2021. "Elaborating on the consumer’s intention–behavior gap regarding 5G technology: The moderating role of the product market-creation ability," Technology in Society, Elsevier, vol. 66(C).
    6. Malobi Mukherjee & Jacob Wood, 2021. "Consolidating Unorganised Retail Businesses through Digital Platforms: Implications for Achieving the UN Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-28, October.

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