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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Sebastián Cantillo Arce & Manon Enjolras & Laure Morel & Ferney Osorio & Brunelle Marche, 2026. "Challenging Traditional Industries with Frugal Innovation: Exploring Business Model Innovation in the International Coffee Market," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-23124-6_50
    DOI: 10.1007/978-3-032-23124-6_50
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