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Institutions and frugal innovation: The case of Jugaad

Author

Listed:
  • S. Ananthram

    (Curtin University)

  • C. Chan

    (York University [Toronto], ACU - Australian Catholic University, IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes)

Abstract

Multinationals from emerging markets are embracing frugal innovation. While resource constraints and business opportunities targeting the underserved have been identified as core reasons for the same, we heed to researchers calls for a fine-grained understanding of the formal and informal institutions that promote frugal innovation. Using jugaad – an ingenious form of indigenous frugal innovation practiced by Indian multinationals as a study context, we utilize a neo-institutional theoretical lens to explore its antecedents and outcomes while explicating the organizational characteristics that enable and sustain jugaad. Our qualitative study with eight Indian multinationals finds that jugaad is a response to a complex combination of myriad institutional factors that challenge these multinationals to innovate frugally, enabled by specific organizational characteristics that ultimately lead to jugaad outcomes. Our findings are presented in a conceptual framework that advances the understanding of jugaad and extends neo-institutional theory to this context. We also provide some future direction for this contemporary stream of research. © 2019, Springer Science+Business Media, LLC, part of Springer Nature.

Suggested Citation

  • S. Ananthram & C. Chan, 2021. "Institutions and frugal innovation: The case of Jugaad," Post-Print hal-03336967, HAL.
    • Handle: RePEc:hal:journl:hal-03336967
    DOI: 10.1007/s10490-019-09700-1
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    Citations

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    Cited by:

    1. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
    2. Hari Bapuji & Snehanjali Chrispal & Balagopal Vissa & Gokhan Ertug, 2023. "Local, yet global: Implications of caste for MNEs and international business," Journal of International Business Policy, Palgrave Macmillan, vol. 6(2), pages 201-234, June.
    3. Mehak Majeed & Saeed Owais Mushtaq & Zahid Gulzar Rather, 2022. "The Complementarity Between the Formal and Informal Sub-sectors of the Indian Industry," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 981-1006, December.

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