ABSTRACT
Frugalinnovation, a phenomenon which originated in the context of emerging economies, is increasingly receiving interest from researchers and practitioners in Western countries. Frugal innovations (FIs) can be a means to gain market shares in emerging markets or they can be a defensive strategy against local low-cost competitors, that often dominate these markets. The implemental frugal mindset is driven by the goal to offer innovations with a substantial cost reduction, a concentration on core functionalities and an optimised performance level. Members of innovation teams with an implemental frugal mindset should be more committed and capable to develop an in-depth understanding of cost-conscious customers’ needs, wants, and use-contexts and satisfy cost-conscious customers’ needs with frugal solutions. Aspiring FI champions should keep this in mind and critically assess the cognitive orientation of important stakeholders. The resulting motivation and focus to act provide strong arguments to answer the question why a frugal mindset might be important for Multi-national corporations that strive to develop FIs.
