IDEAS home Printed from https://ideas.repec.org/p/zbw/tuhtim/110.html
   My bibliography  Save this paper

Opportunities of frugality in the post-Corona era

Author

Listed:
  • Herstatt, Cornelius
  • Tiwari, Rajnish

Abstract

Objective of this discussion paper is twofold: First, we assess the likely impact of the Corona crisis on the economic and societal choices of people, especially in relation to voluntary simplicity. Second, we contextualize the impact of those choices in the field of innovation management. Taking a normative-conceptual perspective we seek to understand in how far frugality, and inter alia, frugal innovations can play a role in better managing the after-effects of the Corona crisis and what implications arise out of this for the relevant societal stakeholders, especially for corporates, policy makers and consumers. Taking note of historical discussions of the role of frugality as a "virtuell", we propose that the currently ongoing fourth renaissance of frugality needs to - and is likely to - emerge as a megatrend that may shape a frugal "AGE" resulting in "affordable green excellence" as the dominant innovation paradigm. To realize this potential, however, it is necessary to move away from the unidimensional focus on monetary affordability of frugal solutions. There is a need for developing a more comprehensive and multidimensional understanding of affordability that is targeted at ensuring financial, societal, infrastructural and ecological affordability of frugal products, services, technologies and business models. Frugal innovators and entrepreneurs should not merely target "significant cost reduction" in relation to existing substitute products but rather aim at ensuring "high affordability" that will open up new business arenas with means of breakthrough innovations and technological excellence. This paradigm shift requires action from all relevant stakeholders including policymakers.

Suggested Citation

  • Herstatt, Cornelius & Tiwari, Rajnish, 2020. "Opportunities of frugality in the post-Corona era," Working Papers 110, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    • Handle: RePEc:zbw:tuhtim:110
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/220088/1/1700692038.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Smith, Adam, 1759. "The Theory of Moral Sentiments," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1759.
    2. Tiwari, Rajnish & Herstatt, Cornelius, 2012. "Frugal Innovation: A Global Networks’ Perspective," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(3), pages 245-274.
    3. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    4. Rajnish Tiwari, 2017. "Frugality in Indian Context: What Makes India a Lead Market for Affordable Excellence?," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 37-61, Springer.
    5. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    6. Herring, Richard J., 2016. "Less Really Can Be More: Why Simplicity and Comparability Should be Regulatory Objectives," Working Papers 16-08, University of Pennsylvania, Wharton School, Weiss Center.
    7. Belk, Russell, 2014. "You are what you can access: Sharing and collaborative consumption online," Journal of Business Research, Elsevier, vol. 67(8), pages 1595-1600.
    8. Aneel Karnani, 2009. "Romanticising the poor harms the poor," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 76-86.
    9. Richard J. Herring, 2016. "Less Really Can be More: Why Simplicity & Comparability Should be Regulatory Objectives," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(1), pages 33-50, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qaisar Iqbal & Katarzyna Piwowar-Sulej, 2023. "Frugal innovation embedded in business and political ties: transformational versus sustainable leadership," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2225-2248, November.
    2. Achtelik, Timo & Herstatt, Cornelius & Tiwari, Rajnish, 2022. "Frugal sustainability: A new perspective to foster corporate sustainability," Working Papers 112, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management, revised 2022.
    3. 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).
    4. Achtelik, Timo & Tiwari, Rajnish, 2022. "Ecological lightweight design for sustainable composites: Need for application of frugal engineering principles," Working Papers 114, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harvey James, 2006. "Sustainable agriculture and free market economics: Finding common ground in Adam Smith," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 23(4), pages 427-438, December.
    2. Monika Spychalska-Wojtkiewicz, 2020. "The Relation between Sustainable Development Trends and Customer Value Management," Sustainability, MDPI, vol. 12(14), pages 1-18, July.
    3. Sophia Velez & Michael Neubert & Daphne Halkias, 2020. "Banking Finance Experts Consensus on Compliance in US Bank Holding Companies: An e-Delphi Study," JRFM, MDPI, vol. 13(2), pages 1-14, February.
    4. James R. Barth & Stephen Matteo Miller, 2018. "On the Rising Complexity of Bank Regulatory Capital Requirements: From Global Guidelines to their United States (US) Implementation," JRFM, MDPI, vol. 11(4), pages 1-33, November.
    5. Thomas L. Hogan, 2021. "A Review of the Regulatory Impact Analysis of Risk-Based Capital and Related Liquidity Rules," JRFM, MDPI, vol. 14(1), pages 1-29, January.
    6. Barth, James R. & Miller, Stephen Matteo, 2018. "Benefits and costs of a higher bank “leverage ratio”," Journal of Financial Stability, Elsevier, vol. 38(C), pages 37-52.
    7. Katarzyna Cieslik & Marek Hudon & Philip Verwimp, 2015. "Unruly Entrepreneurs - Value Creation and Value Capture by Microfinance Clients in Rural Burundi," Working Papers CEB 15-013, ULB -- Universite Libre de Bruxelles.
    8. Omer Moav and & Zvika Neeman, 2012. "Saving Rates and Poverty: The Role of Conspicuous Consumption and Human Capital," Economic Journal, Royal Economic Society, vol. 122(563), pages 933-956, September.
    9. Xufeng Liu & Hongmin Chen, 2020. "Sharing Economy: Promote Its Potential to Sustainability by Regulation," Sustainability, MDPI, vol. 12(3), pages 1-13, January.
    10. Howarth, Richard B., 2007. "Towards an operational sustainability criterion," Ecological Economics, Elsevier, vol. 63(4), pages 656-663, September.
    11. Gianluca Elia & Alessandro Margherita & Claudio Petti, 2020. "Building responses to sustainable development challenges: A multistakeholder collaboration framework and application to climate change," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2465-2478, September.
    12. Maike Gossen & Jonas Pentzien & Jan Peuckert, 2019. "What use is it really for sustainability? Potentials and impacts of peer-to-peer sharing in the domains of accommodation and mobility," NachhaltigkeitsManagementForum | Sustainability Management Forum, Springer, vol. 27(2), pages 125-138, June.
    13. Achtelik, Timo & Herstatt, Cornelius & Tiwari, Rajnish, 2022. "Frugal sustainability: A new perspective to foster corporate sustainability," Working Papers 112, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management, revised 2022.
    14. Howell, Rachel & van Beers, Cees & Doorn, Neelke, 2018. "Value capture and value creation: The role of information technology in business models for frugal innovations in Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 227-239.
    15. Stephen Matteo Miller & Blake Hoarty, 2021. "On regulation and excess reserves: The case of Basel III," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(2), pages 215-247, June.
    16. Michał Kucia & Grzegorz Hajduk & Grzegorz Mazurek & Nina Kotula, 2021. "The Implementation of New Technologies in Customer Value Management—A Sustainable Development Perspective," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    17. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791, April.
    18. de Lange, Deborah & Valliere, Dave, 2020. "Investor preferences between the sharing economy and incumbent firms," Journal of Business Research, Elsevier, vol. 116(C), pages 37-47.
    19. Demals, Thierry & Hyard, Alexandra, 2014. "Is Amartya Sen's sustainable freedom a broader vision of sustainability?," Ecological Economics, Elsevier, vol. 102(C), pages 33-38.
    20. Eugenia Rosca & Jack Reedy & Julia C. Bendul, 2018. "Does Frugal Innovation Enable Sustainable Development? A Systematic Literature Review," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 136-157, January.

    More about this item

    Keywords

    Corona Crisis; Covid-19 Pandemic; Frugality 4.0; Frugal Innovation; Affordable Green Excellence; Circular Economy; Voluntary Simplicity;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuhtim:110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ittuhde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.