FRUGAL and REVERSE INNOVATION for HARNESSING the BUSINESS POTENTIAL of EMERGING MARKETS - The CASE of A DANISH MNC

Nivedita Agarwal, Alexander Brem*, Sanjeet Dwivedi

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
JournalInternational Journal of Innovation Management
ISSN1363-9196
DOIs
Publication statusPublished - 1. Jan 2019

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Innovation
Emerging markets
Multinationals

Keywords

  • Developed Markets Firms (DMFs)
  • Emerging Markets (EMs)
  • Frugal innovation
  • reverse innovation

Cite this

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title = "FRUGAL and REVERSE INNOVATION for HARNESSING the BUSINESS POTENTIAL of EMERGING MARKETS - The CASE of A DANISH MNC",
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.",
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author = "Nivedita Agarwal and Alexander Brem and Sanjeet Dwivedi",
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FRUGAL and REVERSE INNOVATION for HARNESSING the BUSINESS POTENTIAL of EMERGING MARKETS - The CASE of A DANISH MNC. / Agarwal, Nivedita; Brem, Alexander; Dwivedi, Sanjeet.

In: International Journal of Innovation Management, 01.01.2019.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Dwivedi, Sanjeet

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AB - 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.

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